“The energy storage market is beginning to take off in various ancillary services segments, with a number of new projects coming online,” says research analyst Anissa Dehamna. “In the early years of this market, a few key applications including frequency regulation and spinning reserves will represent the majority of the activity. Although there is a great deal of discussion within the industry about ‘stacking’ applications, there are really only a handful of applications that benefit from the regulatory structures currently in place. Therefore, until markets ‘catch up’ and recognize the value of the performance characteristics of ESS, a select few applications will drive the market.”
Dehamna adds that likewise, in the initial period of adoption, the ESS for ancillary services market will be limited to regions with suitable market structures, primarily deregulated electricity markets. Pike Research forecasts that the key regions will be North America, Europe, and Asia Pacific, particularly for frequency regulation, load following, spinning reserves, and short-duration renewables integration. Key technologies for these ancillary services include flywheels, pumped hydro storage, compressed air energy storage (CAES), and battery technologies such as lithium ion, sodium sulfur (NaS), and advanced lead-acid batteries.
Pike Research’s report, “Energy Storage Systems for Ancillary Services”, provides an in-depth examination of the market potential for energy storage systems for ancillary services including an analysis of legislation, financing, and market structures that will shape the sector as it develops in the coming decade. The study includes an assessment of technology issues, key application areas, and profiles and SWOT analysis of the principal market players in each segment. Global market forecasts, segmented by world region, application, and technology, are provided through 2021. An Executive Summary of the report is available for free download on the firm’s website.