Report: Positive Outlook For Energy-Storage Market, But Challenges Remain


The global market for energy-storage systems (ESS) for ancillary services applications will see strong growth in the coming decade, with revenues in the sector rising from $412 million this year to more than $3.2 billion by 2021, predicts a new report from Pike Research.

‘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," Dehamna adds. "Therefore, until markets "catch up' and recognize the value of the performance characteristics of ESS, a select few applications will drive the market."

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, the report notes, adding that the key regions will be North America, Europe and the 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, and battery technologies such as lithium ion, sodium sulfur and advanced lead-acid batteries, Pike Research adds.

Leave a Comment
Your email address will not be published. Required fields are marked *

Notify of