Pike Research Forecasts Energy Storage Ancillary Services Market to Reach $6.6 Billion by 2019

A new report from Pike Research, Energy Storage Systems for Ancillary Services, forecasts that global investment in ancillary services systems for electric power will grow from $227 million in 2010 to $6.6 billion by 2019.

Energy storage systems (ESS) are being developed by technology providers using a wide variety of solutions, from advanced batteries to flywheels to kinetic storage techniques. Demand is being driven by several key trends, including the proliferation of intermittent renewable energy sources such as wind and solar, the onset of the smart grid concept and a shift to plug-in hybrid and electric vehicles.

One key area within the ESS market is the Ancillary Services sector, which comprises applications such as frequency regulation, spinning reserve, voltage control, and other fast response storage services.

Ancillary services will play a critical role in supporting power generation, transmission, and distribution. Energy storage systems providing ancillary services offer sustained energy requirements of typically less than one hour, and often minutes or seconds. The ideal response time is in many cases instantaneous.

—Pike senior analyst David Link

Link adds that these fast response requirements are a strong match for the capabilities of advanced Lithium Ion (Li-ion) batteries, and as such this technology category holds the greatest promise for ancillary services. Pike Research’s analysis further suggests that flywheels have an opportunity in frequency regulation, but must deliver on promises of cost reduction. Other technologies such as pumped hydro, compressed air, and flow batteries will all have a role in providing ancillary services.