The impact of ancillary service markets on energy storage operation and investment

摘要

The increase in the penetration of variable renewable energy generation has brought about a series of technical and operational challenges, requiring an increase in the ability of power systems to adapt to uncertain and variable power outputs. Consequently, ancillary service markets have been growing in liquidity and importance, as these are used as economic incentives for power producers to provide the flexibility required to run the system. The evolution and growth of ancillary service markets has expanded opportunities for electrical energy storage to receive remuneration for services that it is technically capable of providing, influencing its business case. An assessment of the factors that may affect the investment case and the operation of energy storage in ancillary service markets, including market design, regulation, and asset ownership and operation, is presented. The effect of competition from other levers of flexibility is assessed, and the way by which ancillary service markets may shape the development of future energy storage technologies is discussed.