Click here to close now.


News Feed Item

DNV KEMA's Retail Energy Markets Team Forecasts Competitive Power Markets to Expand

Small Consumer Demand Will Drive Competitive Power Market Expansion in Short Term

BURLINGTON, MA -- (Marketwire) -- 02/13/13 -- Competitive power markets will continue to expand aggressively in the next two years for homeowners and small businesses. Slower growth is expected in the non-residential segment over the same time period, according to the latest Retail Energy Outlook forecasts by the Retail Energy Markets Team at DNV KEMA Energy & Sustainability.

"Our analysis shows that retailers are seizing opportunities created by increased margins in these smaller markets," said Sonny Kanlier, Vice President, DNV KEMA's Retail Energy Markets. Residential and small commercial competitive market sales grew by 31 TWh (19%) over the past 12 months. DNV KEMA forecasts that trend to continue over the next 12 to 18 months.

A substantial increase in competitive retail suppliers entering restructured markets signals that residential and small markets are going to heat up. Competitive retailers are offering commodity prices with savings compared to the regulated utility rate, and customers are paying attention.

"This is indeed an interesting dynamic," said Hugo van Nispen, Chief Operating Officer, Americas Division. "Traditionally, the large non-residential market drives competitive sales. Now it appears that a growing number of retailers are beginning to focus on the mass market, a market many tended to ignore in the past."

Competition for smaller energy consumers intensified last year in Illinois, Ohio, and Pennsylvania. In Illinois, voters in over 300 communities adopted municipal aggregation referenda last year that allow them to pursue opt-out aggregation deals with competitive suppliers, who will provide savings to residential and small business customers compared to their incumbent utility provider.

Significant residential and small commercial switching to competitive retailers also took place in Pennsylvania, Maine, and New Hampshire in the past 12 months.

"Maine is an especially interesting story," Kanlier noted. "Less than two percent of the residential market had switched to competitive providers historically, though Maine consumers have had choice since 2000. Favorable retail margins, effective social media and grassroots customer acquisition strategies have enabled a small startup to make unprecedented inroads in this market. Currently, nearly 30 percent of the small customer segment in Maine is competitively served. That's an impressive growth."

In the non-residential market segment, steady growth continued in Illinois, Pennsylvania, and Ohio. In Ohio, the Commission adopted a hybrid approach to the contentious AEP capacity recovery mechanism for customers on competitive retail supply, which means good news for some retailers. Essentially, this will create a level playing field for retailers, which will boost migration rates, especially through May 2013.

DNV KEMA expects that New Jersey and some New York markets will improve shopping rates for mid-sized commercial customers with the lowering of hourly price thresholds.

"These developments mean that there are significant short-term opportunities for retailers and large end users alike in some markets," van Nispen said. "For competitive retailers, it means that effective marketing strategies could lead to increased market share and long term customer relationships, if done properly. For large consumers, it means opportunities to lock in better prices for a longer period of time."

Growth prospects have led to an increase in the number of retail supplier licenses granted, with the greatest number of new entrants in Ohio, Pennsylvania, and Illinois. "These increases are due to a combination of favorable retail margins, pro-competition policies, and opt-out municipal aggregation opportunities," Kristie Deiuliis, report author and principal consultant for DNV KEMA's Retail Energy Markets Advisory Service, observed.

DNV KEMA projects a 6.6 percent compound annual growth rate (CAGR) in the total U.S. competitive market over the next two years, and flat to modest growth (1.7% CAGR) in the following years due to increased upward pressure on power prices. By 2017, DNV KEMA forecasts non-residential competitive sales to reach 622 TWh, a growth of 51 TWh from 2012. More than half (57%) of this growth is expected to occur in the next two years.

Overall, DNV KEMA estimates that the total competitive sales reached 740 TWh in 2012, representing 56 percent of the eligible market, and 20 percent of all U.S. power sales. In 2013, DNV KEMA expects that competitive sales volume will increase by 26 TWh, or 3% from 2012.

For 2014 and beyond, a considerably slower growth rate of 1.3% CAGR is forecasted, with non-residential markets returning to the driver's seat in competitive retail sales. "After 2014, we expect residential markets will be flat or slightly declining," Deiuliis said. Yet, some markets such as Illinois, Maine, and New Hampshire will continue to grow at a rapid pace. "We do not expect markets that have shown growth the last few years to retrench."

About DNV KEMA Energy & Sustainability
DNV KEMA's Retail Energy Practice provides a wide range of strategic and technical consulting services to organizations involved in competitive power and gas markets. DNV KEMA's Retail Energy Advisory Service provides a current, detailed knowledge base of the opportunities and risks in competitive markets. DNV KEMA also leads an industry benchmarking collaborative that develops performance data and comparative analysis for retail suppliers. DNV KEMA's assignments range from strategic planning and market analysis to operational gap analysis and process improvement to customer research and product design.

DNV KEMA Energy & Sustainability, with more than 2,300 experts in over 30 countries around the world, is committed to driving the global transition toward a safe, reliable, efficient, and clean energy future. With a heritage of nearly 150 years, we specialize in providing world-class, innovative solutions in the fields of business & technical consultancy, testing, inspections & certification, risk management, and verification. As an objective and impartial knowledge-based company, we advise and support organizations along the energy value chain: producers, suppliers & end-users of energy, equipment manufacturers, as well as government bodies, corporations and non-governmental organizations. DNV KEMA Energy & Sustainability is part of DNV, a global provider of services for managing risk with more than 10,000 employees in over 100 countries. For more information on DNV KEMA Energy & Sustainability, visit

Add to Digg Bookmark with Add to Newsvine

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
"eFolder does a lot of different things but we protect data and we are focused on protecting data no matter where it resides," explained Carlo Tapia, Product Marketing Manager at eFolder, in this interview at Cloud Expo, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
Cloud computing is unquestionably one of the driving forces of DevOps, as the automation of operations transforms enterprise software development. DevOps, however, is more than a technology trend, as it represents a move toward silo-busting, self-organizing horizontal teams that drive business velocity. At the same time, enterprise Digital Transformation represents an upheaval across the enterprise, as customer preferences and behavior drive enterprise technology decisions. This transformation ...
Most of the IoT Gateway scenarios involve collecting data from machines/processing and pushing data upstream to cloud for further analytics. The gateway hardware varies from Raspberry Pi to Industrial PCs. The document states the process of allowing deploying polyglot data pipelining software with the clear notion of supporting immutability. In his session at @ThingsExpo, Shashank Jain, a development architect for SAP Labs, discussed the objective, which is to automate the IoT deployment proces...
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Su...
In demand-intensive mobile and web applications, an emerging pattern is to host the Systems of Engagement in the cloud (for maximum responsiveness) but keep the Systems of Record with the other important business systems in the company datacenter, often on a tightly secured mainframe. But what about the space in between? In this IBM Redpaper publication, we show that the IBM Bluemix cloud platform offers technologies that make it easy for cloud-based SoEs to securely connect to on-premises IBM...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
OpsHub, Inc. has announced enhanced support for DevOps and Migration for both Team Foundation Server and Visual Studio On-line in a heterogeneous environment. With added support for build and release entities in OpsHub Integration Manager (OIM) Microsoft customers can now leverage Visual Studio build and release services to manage DevOps processes in a heterogeneous environment. With the enhanced support customers can manage the DevOps process in Team Foundation Server while undertaking activit...
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
SYS-CON Events announced today that Catchpoint, a global leader in monitoring, and testing the performance of online applications, has been named "Silver Sponsor" of DevOps Summit New York, which will take place on June 7-9, 2016 at the Javits Center in New York City. Catchpoint radically transforms the way businesses manage, monitor, and test the performance of online applications. Truly understand and improve user experience with clear visibility into complex, distributed online systems.Founde...
In recent years, at least 40% of companies using cloud applications have experienced data loss. One of the best prevention against cloud data loss is backing up your cloud data. In his General Session at 17th Cloud Expo, Sam McIntyre, Partner Enablement Specialist at eFolder, presented how organizations can use eFolder Cloudfinder to automate backups of cloud application data. He also demonstrated how easy it is to search and restore cloud application data using Cloudfinder.
With all the incredible momentum behind the Internet of Things (IoT) industry, it is easy to forget that not a single CEO wakes up and wonders if “my IoT is broken.” What they wonder is if they are making the right decisions to do all they can to increase revenue, decrease costs, and improve customer experience – effectively the same challenges they have always had in growing their business. The exciting thing about the IoT industry is now these decisions can be better, faster, and smarter. Now ...