Guidehouse Insights Estimates Renewable Energy Shifting and Ancillary Services Applications Will Grow at Respective Compound Annual Growth Rates of 17% and 14%

Renewables plus storage hybrid projects can provide an opportunity to bulk-shift energy to avoid power grid congestion and costly transmission network upgrades

BOULDER, Colo., July 28, 2022 /PRNewswire/ — A new report from Guidehouse Insights analyzes market participation models for energy storage systems (ESS), focusing on battery energy storage systems (BESSs). It explores estimated revenue streams across the lifetime of a BESS asset in wholesale market arbitrage opportunities and utility-scale ancillary services.

Battery energy storage systems can store energy to be used when most needed or most valuable. When installed in front-of-the-meter (FTM), BESSs can provide an array of long-term and short-term grid services which, depending on latent market and regulatory frameworks, can generate different and stackable revenue streams for related stakeholders, such as independent system operators (ISOs). According to a new report from Guidehouse Insights, BESS lifetime asset expected revenues in renewable energy shifting and ancillary services will likely reach $5,738 million and $1,488 million in 2022, respectively, and grow at respective CAGRs of 17.0% and 13.9% to reach approximately $23,586 million and $4,794 million by 2031.

“Global energy systems are transforming, with the global market for energy storage set to grow rapidly,” says Serkan Birgel, research analyst with Guidehouse Insights. “Utility-scale ESSs are beginning to consolidate around four high-value applications: frequency regulation, solar plus storage, peak capacity, and resource adequacy services.”

When paired with renewable power generation, renewables plus storage hybrid projects can provide an opportunity to bulk-shift energy to avoid power grid congestion, avoid costly transmission network upgrades, and provide grid capacity services and ancillary services such as frequency regulation, operating reserves, and Volt/VAR support. Profitability can further be enhanced through arbitrage opportunities. Inter-temporal wholesale power price differences can be arbitraged with fast-response ESS technologies to generate revenue, according to the report.

the report, Market Data: Evolving Market Participation Models for Energy Storage, leverages Guidehouse Insights syndicated Energy Storage research services, supplemented by interviews with market participants. Guidehouse Insights estimates that lifetime expected revenues for BESS assets will continue to grow. The Asia Pacific market is set to offer the largest opportunity by 2031, with the North American market closely following. An executive summary of the report is available for free download on the Guidehouse Insights website.

About Guidehouse Insights

Guidehouse Insights, the dedicated market intelligence arm of Guidehouse, provides research, data, and benchmarking services for today’s rapidly changing and highly regulated industries. Our insights are built on in-depth analysis of global clean technology markets. The team’s research methodology combines supply-side industry analysis, end-user primary research, and demand assessment, paired with a deep examination of technology trends, to provide a comprehensive view of emerging resilient infrastructure systems. Additional information about Guidehouse Insights can be found at

About Guide

Guidehouse is a leading global provider of consulting services to the public sector and commercial markets, with broad capabilities in management, technology, and risk consulting. By combining our public and private sector expertise, we help clients address their most complex challenges and navigate significant regulatory pressures focusing on transformational change, business resiliency, and technology-driven innovation. Across a range of advisory, consulting, outsourcing, and digital services, we create scalable, innovative solutions that help our clients outwit complexity and position them for future growth and success. The company has more than 13,000 professionals in over 50 locations globally. Guidehouse is a Veritas Capital portfolio company, led by seasoned professionals with proven and diverse expertise in traditional and emerging technologies, markets, and agenda-setting issues driving national and global industries. For more information, please visit

* The information contained in this press release concerning the report, Market Data: Evolving Market Participation Models for Energy Storage, is a summary and reflects the current expectations of Guidehouse Insights based on market data and trend analysis. Market predictions and expectations are inherently uncertain and actual results may differ materially from those contained in this press release or the report. Please refer to the full report for a complete understanding of the assumptions underlying the report’s conclusions and the methodologies used to create the report. Neither Guidehouse Insights nor Guidehouse undertakes any obligations to update any of the information contained in this press release or the report.

Cecile Fradkin
[email protected]

SOURCE Guidehouse Insights


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