As power sectors accelerate the integration of variable renewable energy (VRE) to meet decarbonization targets, Demand Response (DR) has emerged as a critical enabler for efficient and resilient power system operation. While DR services and compensation mechanisms are well-established in liberalized markets, their role remains underdefined in single-buyer environments like Saudi Arabia. This paper examines the system value of industrial DR, driven by Vision 2030 goals to achieve a 50% VRE in the electricity mix. Using granular hourly modeling, we analyze the evolution of system flexibility requirements between 2025 and 2030. Results indicate that flexibility needs will intensify significantly: the daily "duck curve" depth is projected to triple, while maximum one-hour ramping requirements are expected to increase by factors of 3.5 to 5.5, raising concerns for grid stability. In this context, theoretical gross potential of industrial DR estimated at 6.9-29.1 GW by 2030 is sufficient to meet peak shaving needs and contribute to supporting grid stability. We further evaluate the economic viability of DR services, finding that the system’s willingness-to-pay ranges from 2,534 USD/MWh for resources activated 50 hours per year to 444 USD/MWh for those activated 300 hours per year. We conclude with recommendations to unlock DR participation in a single-buyer market: policy alignment with country’s ambitions, tailored business models, and implementation through a phased approach.
