Global Market for Spinning Reserves Services to Double by 2021, According to Pike Research

Spinning reserves refer to an ancillary service with the purpose of providing online reserve capacity that is synchronized to the electrical grid system and ready to meet electric demand within 10 minutes of a dispatch instruction by the grid operator. In more general terms, spinning reserves are reserves that are quick to come online and are typically used as bridge power to supply the grid with energy until longer-duration assets can come online. As electrical grids around the world become more complex, with a greater diversity of power generation assets as well as more sophisticated control capabilities, spinning reserves will become an increasingly important grid stabilization service.

A new report from Pike Research forecasts that the global spinning reserves market will more than double in size from $261 million in 2012 to $534 million by 2021. During the forecast period, the cleantech market intelligence firm anticipates that worldwide spinning reserves capacity will increase from 86 gigawatts (GW) to more than 148 GW.

“The spinning reserves market is highly specific to a grid system and depends on generation or load events,” says research analyst Anissa Dehamna. “Grid systems are facing more instability as energy mixes change rapidly – particularly as intermittent renewable energy systems come online – and load profiles also become more unpredictable, especially in markets that are experiencing volatility in residential or industrial load, such as China and Germany, respectively. Opportunities in the spinning reserves market will hinge on key market structures, which will change over time.”

Dehamna adds that coal power plants are currently the highest percentage of spinning reserves capacity, representing 52% of total capacity compared to 42% for natural gas power plants and 6% for energy storage systems. By 2021, natural gas plants will take the lead, with 47% of total capacity in that year compared to 45% for coal power plants. Energy storage will grow to 8% of spinning reserves capacity in the same timeframe.

Pike Research’s report, “Spinning Reserves for the Grid”, analyzes the global market for spinning reserves and forecasts the amount and revenue associated with this rapidly changing market using a scenario-based forecast. The report provides a comprehensive assessment of the demand drivers, business models, policies, and technology issues associated with the spinning reserves market. Key players are profiled in depth and worldwide revenue and capacity forecasts, segmented by technology and region, extend through 2022. An Executive Summary of the report is available for free download on the firm’s website.

Pike Research is a market research and consulting firm that provides in-depth analysis of global clean technology markets. The company’s research methodology combines supply-side industry analysis, end-user primary research and demand assessment, and deep examination of technology trends to provide a comprehensive view of the Smart Energy, Smart Grid, Smart Transportation, Smart Industry, and Smart Buildings sectors. For more information, visit www.pikeresearch.com or call +1.303.997.7609.