Combined, these regions will account for more than 32 GW of new capacity through 2026, report finds
A new report from Navigant Research examines the ancillary service market opportunities for energy storage, providing global market forecasts for capacity and revenue, segmented by service type and region, through 2026.
The increasing penetration of renewable energy and the retirement of conventional thermal power plants are causing major shifts in energy markets that are expected to result in a greater need for ancillary services. These services support the transmission of electric power from seller to purchaser to maintain reliable operations of the interconnected transmission system. Energy storage systems (ESSs) are emerging as a new source of ancillary services required to maintain stable and efficient grid operation.
“Ancillary services have provided a critical foundation for emerging energy storage industries in several markets around the world,” says Alex Eller, research analyst with Navigant Research. “These services are attractive for storage developers as they often have either structured contracts or well-established competitive markets that provide a reliable source of revenue for new projects.”
According to the report, ancillary services often provide the initial high-value anchor service for new storage projects. Additional applications have become more viable as ESS prices have decreased and storage becomes a more integral component of the grid. As markets evolve in the transition to a more dynamic Energy Cloud network, increasing competition for providing ancillary services from different resources is expected.
The report, Market Data: Ancillary Service Markets for Energy Storage, examines the ancillary service market opportunities for energy storage, with a focus on four main ancillary services: spinning reserves, non-spinning reserve capacity, frequency regulation, and voltage support. The study provides an analysis of the market issues, including drivers, barriers, and regulatory issues, associated with energy storage for ancillary services. Global market forecasts for capacity and revenue, segmented by service type and region, extend through 2026. The report also provides an overview of the trends related to ancillary service markets for energy storage and projected market sizes in regions around the world. An Executive Summary of the report is available for free download on the Navigant Research website.
Filed Under: Energy storage