Oct 3, 2012 - The global frequency regulation market will expand to over 55 GW in 2022 from the projected 45 GW in 2012, driven by the growth of renewable energy generation, Pike Research forecasts.
Demand for frequency regulation services that manage load fluctuations on the grid by absorbing or providing power will increase as the share of intermittent, renewable sources in overall power generation grows, according to a report by the market intelligence firm.
Traditionally, frequency regulation has come from power generation assets such as coal and natural gas, but utilities and grid operators in more developed markets in North America, Europe and Asia Pacific are starting to adopt alternatives like energy storage, according to the report. Energy storage systems are forecast to be providing 3 GW to 7 GW of frequency regulation services by 2022.
While frequency regulation services represent a cost of doing business for vertically integrated utilities in regulated markets, in deregulated markets, they can be offered as high-value services by power producers or independent service providers through a variety of devices, research analyst Anissa Dehamna says.
Choose your newsletter by Renewables Now. Join for free!