Energy Storage Systems for Ancillary Services to Surpass $3.2 Billion by 2021

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 or call +1.303.997.7609.

Register to Receive Updates

Sign up or login to receive free newsletters, research updates, access to webinars, and other analyst content from Navigant Research.

Research News

Remote Microgrids Now Make up More than Half of All Microgrids Deployed Globally
The United States leads all countries in terms of microgrid capacity and projects, report finds…
Read More »
Global Revenue from Diesel Generator Set Installations Is Expected to Total $538 Billion from 2015 to 2024
Diesel generator sets can provide effective resiliency options when combined with renewable resources in a microgrid, report finds • A recent report from Navigant Research examines the global market for diesel generator sets…
Read More »
New Energy Storage Deployments in Asia Pacific’s Major Markets Are Expected to Total Nearly 37 GW from 2015 to 2025
Variable renewable energy generation is driving interest in grid-tied energy storage technologies, report finds • A new report from Navigant Research examines the market for grid-tied energy storage systems…
Read More »
Global Revenue from Submarine Electricity Projects Is Expected to Total Nearly $230 Billion from 2015 to 2024
World governments are expected to begin streamlining the high level of undersea project regulation requirements, report finds • A recent report from Navigant Research analyzes the global market for submarine electricity transmission…
Read More »
View All News

{"userID":"","pageName":"Energy Storage Systems for Ancillary Services to Surpass $3.2 Billion by 2021","path":"\/newsroom\/energy-storage-systems-for-ancillary-services-to-surpass-3-2-billion-by-2021","date":"11\/28\/2015"}