Report analyzes value of renewable energy participation in ancillary services markets

Battery storage
The next frontier goes beyond the shift from fossil fuels to renewables and moves toward different power resources working together.

A new report from the Lawrence Berkeley National Laboratory aims to advise renewable energy asset owners on the value of participating in ancillary services markets as an additional revenue source and grid resiliency tool.

Researchers analyzed standalone wind and solar deployments in the seven U.S. electricity markets, as well as hybrid wind and solar paired with energy storage. Historically, wind and solar participation in ancillary services markets have been "low to non-existent," the authors wrote.

While the researchers found potential for significant value to wind and solar resource owners from ancillary services market participation, they determined that the thin AS marketplace could become saturated by energy storage projects in the pipeline.

"Relying on additional AS revenues as a means to offset declining energy and capacity value may be a risky strategy for resource owners," the authors wrote.

Across electricity markets, we estimate that average (2015-2019) additional revenues from participating in regulation markets were $0.0-2.9/MWh (+0-15% of revenue without participation) for standalone resource owners and $1-33/MWh (+1-69%) for hybrid resource owners (see figures).

Berkeley Lab
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John Engel is the Content Director for Renewable Energy World. For the past decade, John has worked as a journalist across various mediums -- print, digital, radio, and television -- covering sports, news, and politics. He lives in Asheville, North Carolina with his wife, Malia. Have a story idea or a pitch for Renewable Energy World? Email John at john.engel@clarionevents.com.

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