1Q 2013 (Pike Research/Navigant)
“Ancillary services are…required to maintain safe, reliable, and secure transmission of energy on the grid. Designed to respond to the technical challenges of generating, transmitting and distributing electricity, these services…balance the grid regardless of the structure of the electricity market… “It can be challenging for a new technology – such as energy storage systems (ESSs) – to make a compelling business case…even if on a technical level energy storage provides a compelling and competitive solution.”
click to enlarge“Energy storage, however, is poised to take advantage of several global trends in this market. Demand for energy will continue to grow at a rapid pace, leading to more deregulation of the electricity market as well as more instability on the grid system as renewables penetration will also grow… “…ESSs offer, in many cases, better quality ancillary services in addition to an alternative to using traditional generation assets. Pike Research forecasts that worldwide annual installed capacity of energy storage systems for ancillary services will reach 3,500 MW by 2023…”
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