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.
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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.
Key Findings of Ancillary Services for Power Market
- Advancements in internet connectivity in ancillary services platforms help grid operators and service providers tap lucrative opportunities
- Of the various services types, the operating reserve segment led the market in 2019
- Of the various regions in ancillary services for power market, Europe accounts for the major revenue share; greening of grids offers the impetus for its growth
- Asia Pacific to rise at promising pace on back of governments' efforts to adopt renewables in overall energy mix
- Modernization of distribution grid help North America market to grow at impressive pace; the U.S. contributed the major share to the regional market in 2019
Explore 112 pages of top-notch research, incisive insights, and detailed country-level projections of Ancillary Services for Power Market (Service Type: Voltage Control & Reactive Power Support, Black Start, Load Following, Operating Reserve, Regulation Service, and Others) - Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2020 - 2030 at https://www.transparencymarketresearch.com/pressrelease/ancillary-services-power-market.htm
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.
View Detailed Table of Contents at https://www.transparencymarketresearch.com/report-toc/42677
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