October 10, 2011
Energy storage technologies hold tremendous potential to help stabilize, regulate, and balance the flow of electricity through the power grid. While long-duration energy storage systems (ESS) for renewables integration and peak load shifting have been a topic of much discussion within the industry, a variety of short-duration applications for energy storage are also a critical factor in the development of the sector. Such short-duration energy storage systems may be utilized for ancillary services including frequency regulation, spinning reserves, voltage control, and load following, among others. According to a new report from Pike Research, the global market for ESS for ancillary services applications will see strong growth in the coming decade, with revenues in the sector rising from $412 million in 2011 to more than $3.2 billion by 2021.
“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.
Pike Research is a market research and consulting firm that provides in-depth analysis of global clean technology markets. The company’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Grid, Smart Transportation, Smart Industry, and Smart Buildings sectors. For more information, visit www.navigantresearch.com or call +1.303.997.7609.