August 12, 2024
- Market Research Future (MRFR) has published on the “Global Ancillary Services for Battery Energy Storage Systems Market”.
New York, NY (Highpoint Digest) − The Ancillary Services for Battery Energy Storage Systems market is estimated to register a CAGR of 14.63% during the forecast period of 2024 to 2032.
MRFR recognizes the following companies as the key players in the global Ancillary Services for Battery Energy Storage Systems market Nidec Industrial Solutions, ESS Inc., EDF Energy, Powin Energy, Saft, Mitsubishi Heavy Industries, Ltd., Honeywell International, Inc., LG Energy Solution Ltd., NextEra Energy, and Doosan GridTech
Ancillary Services for Battery Energy Storage Systems Market Highlights
The global Ancillary Services for Battery Energy Storage Systems market is accounted for to register a CAGR of 14.63% during the forecast period and is estimated to reach USD 5,258.7 Million by 2032.
The battery energy storage system (BESS) is significant in providing ancillary services to the grid. The BESS plays a crucial role in facilitating the integration of renewable energy sources (RESs) into the grid by compensating for the fluctuations produced by RESs as intermittent resources. Ancillary services encompass all the services necessary for the grid operator (transmission and distribution operator) to maintain the system’s integrity, stability, and power quality. Grid operators ensure a reliable power supply, frequency, voltage, and power load within certain limits.
The global ancillary services for battery energy storage system (BESS) market are experiencing rapid growth driven by several key factors. One of the primary drivers is the increasing integration of renewable energy sources, such as solar and wind, into the power grid. Government policies and regulations aimed at promoting energy storage and reducing greenhouse gas emissions are also driving market growth. Many countries and regions have implemented targets for energy storage deployment and have introduced incentives such as subsidies, tax credits, and favorable financing options to encourage the adoption of BESS.
Segment Analysis
The global Ancillary Services for Battery Energy Storage Systems market is segmented based on Type, battery energy storage system type, end-use and Region. The global Ancillary Services for Battery Energy Storage Systems Market segmentation, based on Type is segmented as Frequency Regulation (and Balancing), Congestion relief, Voltage support, Power smoothing, Peak shaving, Backup Power, Solar Plus Storage, Grid Reliability & Microgrid Capability and Others. Among these, Frequency Regulation (and Balancing) segment is anticipated to dominate the global Ancillary Services for Battery Energy Storage Systems market revenue through the projected period as estimated by MRFR analysts.
Power grids heavily rely on battery storage systems for reliable and even service. These systems provide rapid response capabilities that are essential to maintain inventory stability by adjusting electrical equipment in real time based on demand. Unlike today’s power plants, battery storage devices can quickly adjust output power to reduce seasonal fluctuations. Charge and discharge control mechanisms allow the battery system to inject or charge electricity and control it to keep the grid frequency within the desired operating range.
It has excellent first-order frequency response and continuously adjusts its output in response to sudden grid disturbances such as power outages. Battery storage also helps improve auxiliary frequency response by monitoring grid frequencies and adjusting power levels over long periods of time. These systems can enter the formal programming market, providing programmers with the flexibility and responsiveness to efficiently manage programming tasks.
In the battery energy storage system type segment, the market is categorized as Lead acid, Lithium-ion, Flow batteries, Nickel-based batteries, Sodium-Sulphur and Zinc-Bromide. Out of which the Lithium-ion segment held the maximum share in the base year market and is also expected to be holding a significant share in the forecasted period as well. Batteries energy storage systems (BES) are expected to provide supplementary services for the power grid, with lithium-ion batteries being a key technology.
The high capacity, long life and fast response time of lithium-ion batteries make them an excellent choice for long-lasting applications that require fast and accurate repairs. In additional services, lithium-ion batteries are ideal for functions such as frequency regulation, voltage support and grid stability. Lithium-ion batteries have a fast charge and speed that can quickly respond to changes in voltage due to changes in power demand or power supply, providing better frequency requirements.
In the end-use segment, the market is categorized as Residential, Commercial, Industrial and Utilities. Out of which the Industrial segment held the maximum share in the base year market and is also expected to be holding a significant share in the forecasted period. The use of auxiliary battery storage services in industrial settings can enhance power management, reliability, and operational efficiency. Industrial facilities utilize battery storage systems to provide demand response, frequency regulation, and backup power as ancillary services. Battery storage systems can quickly manage usage and variability in the power grid while maintaining reliability and stability in industrial applications.
Regional Analysis
By Region, the Ancillary Services for Battery Energy Storage Systems market is segmented into North America, Europe, Asia-Pacific, Middle East & Africa, and Latin America. The Asia Pacific Ancillary Services for Battery Energy Storage Systems Market holds a considerable market share and is also forecasted to hold the largest share during the forecast period.
The ancillary services market in Asia Pacific, particularly battery energy storage systems (BESS), is experiencing rapid growth due to various factors. As the area continues to industrialize and become urbanized, a strong electrical system is necessary for its reliability. In addition, the increasing use of renewable energy sources and important climate targets are driving the deployment of BESS to support grid stability and the introduction of renewable energy. Countries such as China, Japan, South Korea, and Australia are leading the deployment of BESS through large investments in grid modernization and energy storage projects.
Key Findings of the Study
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- The global Ancillary Services for Battery Energy Storage Systems market is expected to reach USD 5,258.7 Million by 2032, at a CAGR of 14.63% during the forecast period.
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- The Asia Pacific region accounted for the fastest-growing global market.
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- Based on Type, the Frequency Regulation (and Balancing) segment was attributed to holding the largest market in 2023.
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- Based on battery energy storage system type, the Lithium-ion segment was attributed to holding the largest market in 2023.
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- Based on end-use, the Industrial segment was attributed to holding the largest market in 2023.
- Nidec Industrial Solutions, ESS Inc., EDF Energy, Powin Energy, Saft, Mitsubishi Heavy Industries, Ltd., Honeywell International, Inc., LG Energy Solution Ltd., NextEra Energy, and Doosan GridTech are the key market players.
Source: Market Research Future
Image Credit: Market Research Future
