Ancillary services, such as frequency regulation and voltage support, are required to maintain safe, reliable, and secure transmission of electricity on the grid. As the technical need for ancillary services grows over the next 10 years, the corresponding demand for energy storage systems that support these services will grow as well.
According to a recent report from Navigant Research, worldwide revenue from energy storage systems for ancillary services will increase from less than $590 million in 2013 to more than $3.8 billion in 2023.
“With the integration of intermittent, distributed, renewable sources of power, the technical challenges of generating, transmitting and distributing electricity are increasing,” says Anissa Dehamna, senior research analyst with Navigant Research. “Along with the growing volatility of load and generation, moves toward deregulation in high economic growth markets, such as Asia Pacific, are highlighting the value of ESSs for ancillary services.”
Mechanical technologies, such as pumped hydro, compressed air and flywheels, continue to dominate the market for energy storage systems. However, the emergence of advanced battery chemistries, such as lithium carbonate, lithium titanate and advanced lead-acid, promises to open a new era of innovation in energy storage technology, according to the report.