Annual Energy Storage for Ancillary Services Capacity Installations Will Increase Ten-Fold by 2023, Forecasts Pike Research
BOULDER, Colo.--(BUSINESS WIRE)-- Designed to respond to the technical challenges of generating, transmitting, and distributing electricity, ancillary services are required to balance the grid regardless of the structure of the electricity market. Energy storage is poised to take advantage of several global trends in the ancillary services market. According to a new report from Pike Research, a part of Navigant's Energy Practice, annual worldwide installations of energy storage for ancillary services will increase more than ten-fold over the next ten years, growing from less than 330 megawatts (MW) in 2013 to more than 3,500 MW in 2023.
"The value of ancillary services to utilities and grid operators is becoming more explicit," says senior research analyst Anissa Dehamna. "This will allow energy storage system (ESS) providers to present clear business cases for ESSs for ancillary services in the coming decade, and while this market will still be relatively small by 2023, the opportunities for providers are significant."
In regulated markets, the customers for both ancillary services and energy storage providing ancillary services are vertically integrated utilities. By contrast, the customers for ancillary services in deregulated markets are grid operators. However, the grid operators do not own assets that provide ancillary services - they procure these services from other parties. Therefore, according to the report, the customers for energy storage systems in this case could be generators, third-party service providers, or resource aggregators (such as demand response aggregators).
The report, "Energy Storage Systems for Ancillary Services", analyzes the global market for energy storage to provide ancillary services. The report provides a comprehensive assessment of the demand drivers and technology issues associated with the ancillary services market. Key industry players are profiled in depth and worldwide revenue and capacity forecasts, segmented by technology and region, extend through 2023. An Executive Summary of the report is available for free download on the Pike Research website.
About Pike Research
Pike Research, which joined Navigant's global Energy Practice on July 1, 2012, provides in-depth analysis of global clean technology markets. The team'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 Utilities, Smart Transportation, Smart Industry, and Smart Buildings sectors. Additional information about Pike Research can be found at www.navigant.com/pikeresearch.
Navigant (NYS: NCI) is a specialized, global expert services firm dedicated to assisting clients in creating and protecting value in the face of critical business risks and opportunities. Through senior level engagement with clients, Navigant professionals combine technical expertise in Disputes and Investigations, Economics, Financial Advisory and Management Consulting, with business pragmatism in the highly regulated Construction, Energy, Financial Services and Healthcare industries to support clients in addressing their most critical business needs. More information about Navigant can be found at www.navigant.com.
* The information contained in this press release concerning the report, "Energy Storage Systems for Ancillary Services," is a summary and reflects Pike Research's current expectations based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report's conclusions and the methodologies used to create the report. Neither Pike Research nor Navigant undertakes any obligation to update any of the information contained in this press release or the report.
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