Report analyzes value of renewable energy participation in ancillary services markets
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.
Source: Renewable Energy