As the world’s energy markets change and grow, so do the needs of energy providers to safely and efficiently manage the power they deliver.
Ancillary services maintain safe, reliable and secure transmission of energy on the grid. They play an important role in the rapidly changing environment of today’s energy technology.
According to a recent report published by Pike Research, several global trends will contribute to significant growth in the ancillary services market over the next 10 years.
The report, “Energy Storage Systems for Ancillary Services,” forecasts the market penetration for five types of ancillary services. They are frequency regulation, voltage support, spinning reserves, electric supply reserve capacity and load following.
In particular, Pike Research examines the market penetration of energy-storage systems (ESSs) for these five types of ancillary services. Pike Research asserts that providers of ESSs are poised to take advantage of global trends to make a move into the market for ancillary services.
The report projects annual worldwide installations of energy storage for ancillary services to increase more than tenfold over the next 10 years, growing from less than 330 megawatts (MW) in 2013 to 3,500 MW in 2023. The trends contributing to this growth are a combination of rising global demand for energy, increased deregulation of energy markets, and an increase in instability attributed to the growth of renewables.
The report also projects the strongest markets for ESSs for ancillary services to be in Asia-Pacific, North America and Western Europe, where the factors of high growth in energy demand, growth in renewables and supportive policies will combine to form the most favorable circumstances. Eastern Europe, Latin America, the Middle East and Africa will not see as much growth in this market, primarily because they will not see as much growth in renewables.