ALBANY, New York, July 16, 2020 /PRNewswire/ -- Ancillary services occupy key role in maintaining the reliability of electricity grids and quality of power in the light of constant fluctuations in distributed power generation. Intermittent renewable energy integration, notably of wind and solar energy, is a key part of evolution of demand for ancillary services for power industry.
In 2019, the global valuation of the ancillary services for power market stood at ~US$ 7 bn in 2019. Clocking a CAGR of ~8%, it is expected to reach worth of ~US$ 16 bn by 2030-end.
Analysts at Transparency Market Research opine that new regulations have come to forefront in the wake of COVID-19 pandemic, which will shape the outlook of ancillary services for power market. Streamlining the processes in power bidding and deployment of smart meters will reduce uncertainty in distributed energy resources, affirm the analysts.
Ancillary Services for Power Market: Key Driving Factors and Promising Avenues
Increasing drive for integration of intermittent distributed generation of wind and solar energy is a key trend bolstering the uptake of ancillary services in the power sector in several parts of the world. Managing a variable power reserves reliably has driven the need for ancillary services for the power market. Numerous regulatory trends and macroeconomic factors have propelled the growth of the market.
Changes in regulations in the power sector are becoming prominent in the emerging COVID-19 pandemic in developing and developed nations. For one, India has seen a shift from long-term stakeholder engagement to short-term contracts to overcome problems in energy trade demarcations in real-time electricity markets. This has made ancillary services to gain traction in the power market.
Global electrification rate is markedly increasing around the world. In particular, countries in Asia Pacific and low and middle-income economies in Africa have witnessed a rapid rise in access to electricity over the past five years, driving the demand for ancillary services in the power market. Bangladesh, Myanmar, and Kenya have seen striking rise in electrification rate, supported by various government initiatives.
In developing regions, the governments are committed to promoting the modernization of grid where renewable energy penetration forms the key policy. A case in point is the African Renewable Energy Initiative (AREI). To facilitate this, there has been a remarkable growth in demand in the ancillary services for power market.
Ancillary Services for Power Market: Competitive Landscape
The presence of relatively large number of players both at regional and global level has raised the ante for new entrants and incumbents in the ancillary services for power market. Not only is the landscape intensely competitive, there exists a high degree of fragmentation.
Some of the players eyeing high stakes in the ancillary services for power market are PJM Interconnection LLC, Elia System Operator, Electric Reliability Council of Texas, Midcontinent Independent System Operator, Inc., General Electric, Transelectrica SA, and Snowy Hydro Limited.
Analyze Ancillary Services for Power Market growth in 30+ countries including US, Canada, Germany, United Kingdom, France, Italy, Russia, Poland, Benelux, Nordic, China, Japan, India, and South Korea. Request a sample of the study
Ancillary Services for Power Market: Key Impediments for Stakeholders
Ongoing COVID-19 pandemic has spurred stakeholders in electricity market to follow power trading and adopt an hourly demarcation in the ancillary services for power market. Consequently, this has created unique uncertainties in energy trade demarcations for distribution companies.
Further, voltage deviation in distributed energy processes is significant concern for players in ancillary services for power market, which demands a high degree of efficiency in ancillary services. Moreover, renewable energy plants also need to keep a check in output fluctuations, dampening the adoption of renewables in the overall energy mix in some nations.
Ancillary Services for Power Market, by Service Type
Voltage Control & Reactive Power Support
Ancillary Services for Power Market, by Region
Russia & CIS
Rest of Europe
Rest of Asia Pacific
Rest of Latin America
Middle East & Africa
Rest of Middle East & Africa
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