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Market Research Report
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1081286

Market Data - Evolving Market Participation Models for Energy Storage: Battery Energy Storage, Wholesale Price Arbitrage/Ancillary Services, Market Participation Models, Lithium-Ion, Asset Lifetime Operational Revenue, Global Market Analysis & Forecasts

Published: | Guidehouse Insights (formerly Navigant Research) | 29 Pages; 28 Tables, Charts & Figures | Delivery time: 1-2 business days

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Market Data - Evolving Market Participation Models for Energy Storage: Battery Energy Storage, Wholesale Price Arbitrage/Ancillary Services, Market Participation Models, Lithium-Ion, Asset Lifetime Operational Revenue, Global Market Analysis & Forecasts
Published: June 2, 2022
Guidehouse Insights (formerly Navigant Research)
Content info: 29 Pages; 28 Tables, Charts & Figures
Delivery time: 1-2 business days
  • Description
  • Table of Contents
  • List of Tables

Battery energy storage systems (BESSs) can store usable energy for use at another time when most needed or most valuable. When installed in front-of-the-meter (FTM), BESSs can provide an array of long-term and short-term grid services which, depending on latent market and regulatory frameworks, can generate different and stackable revenue streams for related stakeholders, such as independent system operators. Utility-scale ESSs are beginning to consolidate around four high-value applications: frequency regulation, solar plus storage, peak capacity, and resource adequacy services.

This market data report explores market participation models for energy storage systems (ESS), focusing on BESSs in all regions, between 2022-2031. Focusing on the total addressable market and base-case scenarios, it provides estimated forecasts for maximum potential operational revenue ($ Million), across the lifetime of a BESS asset, alongside related global power capacity (MWh), and global energy capacity (MW) statistics. The report focusses on estimated associated revenue streams in wholesale market arbitrage opportunities and utility-scale ancillary services.

The study leverages Guidehouse Insights syndicated Energy Storage research services, supplemented by interviews with market participants. Guidehouse Insights estimates that lifetime expected revenues for BESS assets will continue to grow over the forecast period. Renewable energy shifting and ancillary services will likely reach $5,738 million and $1,488 million in 2022, respectively. Growing at respective CAGRs of 17.0% and 13.9% renewable energy shifting is expected to reach approximately $23,586 million by 2031, and ancillary services, $4,794 million. The Asia Pacific market is set to offer the largest opportunity by 2031, with the North American market closely following.

KEY QUESTIONS ADDRESSED:

  • What are the forecast operational revenues across the lifetime of BESS assets?
  • What are the regional and application breakdowns of operational revenues?
  • Which BESS applications demonstrate the greatest growth potential in revenue generation?
  • What are some of the key market participation models for BESS systems?
  • What are some of the key market enablers to revenue generation for BESS assets?
  • What are some of the key market barriers to revenue generation for BESS assets?
  • What trends should investors, developers, and policy-makers, follow going forward in the BESS market?

WHO NEEDS THIS REPORT:

  • Energy storage developers and independent power producers
  • Power market traders and investors
  • Energy storage technology firms
  • Utilities
  • Government and regulatory agencies
  • Smart grid controls and software companies
  • Engineering, procurement, and construction (EPC) firms
Product Code: MD-EMPM-22

Table of Contents

1. Executive Summary

  • 1.1. Market Introduction
  • 1.2. Market Forecasts

2. Market Issues

  • 2.1. Market Drivers
    • 2.1.1. Growing Penetration of Renewable Energy Resources
    • 2.1.2. Battery Cost Reductions
    • 2.1.3. Hybrid Solar Plus Projects
    • 2.1.4. Fossil Fuel Power Plant Retirements
    • 2.1.5. Renewable Energy Shifting Services
    • 2.1.6. Ancillary Services
    • 2.1.7. Battery Energy Storage Systems Regulations and Incentives
    • 2.1.8. Revenue Stacking Opportunities
    • 2.1.9. Carbon Emissions
    • 2.1.10 Battery Energy Storage Systems Case Studies
      • 2.1.10.1. United States
      • 2.1.10.2. United Kingdom
  • 2.2. Market Barriers
    • 2.2.1. Regulatory Issues
    • 2.2.2. Rising Cost of Raw Materials
    • 2.2.3. Inter-Fuel Competition

3. Market Forecasts

  • 3.1. Methodology and Assumptions
  • 3.2. Forecast by Region

4. Conclusions and Recommendations

5. Acronym and Abbreviation List

6. Table of Contents

7. Table of Charts and Figures

8. Scope of Study, Sources and Methodology, Notes

LIST OF CHARTS AND FIGURES

  • Lifetime Revenues for BESS Asset by Application, Global: 2022-2031
  • Annual Installed UES Power Capacity by Application, Global: 2022-2031
  • Annual Installed UES Energy Capacity by Application, Global: 2022-2031
  • Lifetime Revenues for BESS Asset by Application, North America: 2022-2031
  • Lifetime Revenues for BESS Asset by Application, Europe: 2022-2031
  • Lifetime Revenues for BESS Asset by Application, Asia Pacific: 2022-2031
  • Lifetime Revenues for BESS Asset by Application, Latin America: 2022-2031
  • Lifetime Revenues for BESS Asset by Application, Middle East & Africa: 2022-2031
  • Horizontal Revenue Stacking
  • Vertical Revenue Stacking

LIST OF TABLES

  • Annual Installed UES Energy Capacity by Application, Global : 2022-2031
  • Annual Installed UES Power Capacity by Application, Global : 2022-2031
  • Lifetime Revenues for BESS Asset by Application, Global: 2022-2031
  • Annual Installed UES Energy Capacity by Application, North America : 2022-2031
  • Annual Installed UES Power Capacity by Application, North America : 2022-2031
  • Lifetime Revenues for BESS Asset by Application, North America: 2022-2031
  • Annual Installed UES Energy Capacity by Application, Europe : 2022-2031
  • Annual Installed UES Power Capacity by Application, Europe : 2022-2031
  • Lifetime Revenues for BESS Asset by Application, Europe: 2022-2031
  • Annual Installed UES Energy Capacity by Application, Asia Pacific : 2022-2031
  • Annual Installed UES Power Capacity by Application, Asia Pacific : 2022-2031
  • Lifetime Revenues for BESS Asset by Application, Asia Pacific: 2022-2031
  • Annual Installed UES Energy Capacity by Application, Latin America: 2022-2031
  • Annual Installed UES Power Capacity by Application, Latin America: 2022-2031
  • Lifetime Revenues for BESS Asset by Application, Latin America: 2022-2031
  • Annual Installed UES Energy Capacity by Application, Middle East & Africa : 2022-2031
  • Annual Installed UES Power Capacity by Application, Middle East & Africa : 2022-2031
  • Lifetime Revenues for BESS Asset by Application, Middle East & Africa: 2022-2031