Global investment in ancillary services systems for electric power will grow from $227 million in 2010 to $6.6 billion by 2019, according to a new market report by Pike Research.
The ancillary services sector comprises applications such as
frequency regulation, spinning reserve, voltage control, and other fast
response storage services to support power generation, transmission, and distribution.
It is part of the larger market for energy storage systems (ESS) within new smart grid development, and it includes technologies like advanced batteries, flywheels and kinetic storage techniques.
Ancillary services are generally needed for sustaining energy supply in short bursts, typically less than an hour, and sometimes for just minutes or seconds.
David Link, a senior analyst with Pike Research, said the 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.
The report adds 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.
French battery maker Saft announced last week that it is supplying lithium-ion battery technololgy for an ancillary services energy storage product offered by Switzerland's ABB.
Boston-based Beacon Power (Nasdaq: BCON) is the US company making the biggest waves with flywheel technology. In March, they installed a system at a wind farm in California. And in November 2009, the company broke ground on a 20-MW regulation plant in New York, supported by the Department of Energy.
Also in November 2009, FirstEnergy Generation Corp., a subsidiary of Akron, Ohio-based FirstEnergy Corp. (NYSE: FE) purchased the rights to develop an enormous compressed-air electric generating plant on a 92-acre site in Norton, Ohio.
Pike Research’s study, “Energy Storage Systems for Ancillary Services”, provides assessment of various energy storage technologies, their strengths and weaknesses, performance capabilities, and economics. The report also examines the commercialization path for ancillary services including market drivers and barriers, policy and regulatory factors, and investment dynamics.
An Executive Summary of the report is available for free at the link below.