The Case for Demand Side Management Solutions in Emerging Economies

Advanced demand side energy management (DSM) solutions exist in a limited number of markets across the globe. They have taken a back seat in the power sectors of high-growth economies, as the challenge of satisfying growing demand for electricity is seen as a problem of a lack of supply. To the policy makers, grid operators, utilities, and the largest commercial and industrial consumers of electricity in an emerging economy, energy is certainly more valuable than reliability, thus the belief is that DSM is better suited to more “advanced” grids. But are the emerging economies in the world really disqualified from reaping the benefits of the most exciting smart grid technologies that are currently in use globally today? What are the barriers to advanced DSM taking hold in some high-income countries with more sophisticated electricity sectors?

Working closely with DSM technology leader EnerNOC, this Capstone project explored the case for DSM in a selection of new international markets. The EnerNOC Capstone team identified five potential new market opportunities by developing a screening index that involves a range of qualitative and quantitative indicators critical to success for EnerNOC’s products and services in a new market. Those five market opportunities include Chile, Kuwait, Malaysia, Peru, and Saudi Arabia. The Capstone team prepared case studies and sales pitches for the selected new markets as part of a final presentation to EnerNOC, which included analysis of the size of the potential new market, along with identification of key barriers and recommendations to overcome them.