Ancillary services for power market to reach valuation of ~us$ 16 bn by 2030

Information may not be reliable

Ancillary Services for Power Market: Introduction

The global ancillary services for power market was valued at ~US$ 7 Bn in 2019 and is anticipated to expand at a CAGR of ~8% during the forecast period. In terms of service type, the operating reserve segment accounted for major share of the global ancillary services for power market in 2019. The global ancillary services for power market is expected to expand at a rapid pace in the near future due to exponential rise in the demand for electricity across the globe. The growth in electricity consumption can be ascribed to rapid urbanization, increase in investments in industrial infrastructure, and economic growth, primarily in developed and developing countries.

Significant investments and technological advancements are driving the development of sustainable sources of energy, such as solar, wind, geothermal, and biomass, in order to meet the rising demand for energy across the globe. The rise in penetration of variable renewable resources increases fluctuation in electrical output and creates uncertain generation-demand imbalances. This leads to concerns about power quality and stability.

Request a Sample –

https://www.transparencymarketresearch.com/sample/sample.php?flag=S&rep_id=42677

In order to minimize the grid instability risk, grid operators are increasing their focus on implementation of ancillary services, as these services help them maintain proper flow and direction of electricity. Thus, rise in adoption of renewable energy in the power generation sector is anticipated to boost the ancillary services for power market during the forecast period. Moreover, increase in investments in the expansion of power infrastructure to provide electricity access in off-grid areas, primarily in developing and underdeveloped countries such as India, Bangladesh, Kenya, and those in Sub-Saharan Africa, is estimated to propel the ancillary services for power market during the forecast period. Policymakers have introduced several electrification programs to attract investments in the power sector. This, in turn, is likely to augment the ancillary services for power market.

Europe Leads Ancillary Services for Power Market

Europe dominated the global ancillary services market in 2019. The dominance of Europe in global ancillary services for power market can be ascribed to increase in adoption of renewable technologies due to rise in focus on reducing carbon emissions and growth in emphasis on maintaining sustainability of fossil fuel resources across the region. Enactment of stringent government regulations to minimize environmental impact is a key factor boosting the demand for renewable technologies in Europe. In 2018, the EU introduced renewable energy directive 2018/2001/EU with an aim to meet at least 32% of its total energy needs with renewables by 2030. The U.K. constituted major share of the ancillary services for power market in Europe in 2019.

The ancillary services for power market in Asia Pacific is anticipated to expand owing to the increase in investments in expansion of grid infrastructure, primarily in China and India. For instance, in 2018, the Government of India invested US$ 77 Mn for the installation of 350 circuit kilometers of transmission lines. In 2019, it provided US$ 92 Mn for the installation of 1,900 circuit kilometers of transmission lines. Increase in share of clean fuel technologies in the primary energy mix is also expected to boost the ancillary services for power market during the forecast period. As of December 2019, India had installed 86 gigawatts (GW) of renewable energy capacity. The country has been targeting 175GW of variable renewable energy by 2022. The target is expected to rise to 450 GW by 2030. These efforts are projected to provide an impetus to the ancillary services for power market in the country.

Request for covid19 impact analysis –

https://www.transparencymarketresearch.com/sample/sample.php?flag=covid19&rep_id=42677

The ancillary services for power market in North America is anticipated to expand during the forecast period due to the increase in adoption of energy storage systems in the region. The U.S. constituted prominent share of the ancillary services for power market in North America in 2019. Ongoing investments in modernization of transmission & distribution infrastructure is expected to boost the ancillary services for power market in the U.S.

Competition Landscape of Ancillary Services for Power Market

The global ancillary services for power market is dominated by several local and regional players. The ancillary services for power market is fragmented in nature. Prominent players operating in the ancillary services for power market include Snowy Hydro Limited, New York Independent System Operator, Elia, PJM, Transelectrica SA, General Electric, Independent Electricity System Operator, Midcontinent Independent System Operator, Inc., Alberta Electric System Operator, Southwest Power Pool, Inc., and Electric Reliability Council of Texas.