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Article

Battery Energy Storage Systems: Energy Market Review, Challenges, and Opportunities in Frequency Control Ancillary Services

by
Gian Garttan
1,
Sanath Alahakoon
1,*,
Kianoush Emami
1 and
Shantha Gamini Jayasinghe
2
1
School of Engineering & Technology, Central Queensland University, Rockhampton 4701, Australia
2
Australian Maritime College, University of Tasmania, Launceston 7250, Australia
*
Author to whom correspondence should be addressed.
Energies 2025, 18(15), 4174; https://doi.org/10.3390/en18154174
Submission received: 9 July 2025 / Revised: 1 August 2025 / Accepted: 4 August 2025 / Published: 6 August 2025

Abstract

Battery energy storage systems (BESS) are considered a good energy source to maintain supply and demand, mitigate intermittency, and ensure grid stability. The primary contribution of this paper is to provide a comprehensive overview of global energy markets and a critical analysis of BESS’ participation in frequency control ancillary service (FCAS) markets. This review synthesises the current state of knowledge on the evolution of the energy market and the role of battery energy storage systems in providing grid stability, particularly frequency control services, with a focus on their integration into evolving high-renewable-energy-source (RES) market structures. Specifically, solar PV and wind energy are emerging as the main drivers of RES expansion, accounting for approximately 61% of the global market share. A BESS offers greater flexibility in storage capacity, scalability and rapid response capabilities, making it an effective solution to address emerging security risks of the system. Moreover, a BESS is able to provide active power support through power smoothing when coupled with solar photovoltaic (PV) and wind generation. In this paper, we provide an overview of the current status of energy markets, the contribution of battery storage systems to grid stability and flexibility, as well as the challenges that BESS face in evolving electricity markets.
Keywords: BESS; frequency control ancillary services; primary frequency response; secondary frequency response; RES; battery degradation; cyclic degradation BESS; frequency control ancillary services; primary frequency response; secondary frequency response; RES; battery degradation; cyclic degradation

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MDPI and ACS Style

Garttan, G.; Alahakoon, S.; Emami, K.; Jayasinghe, S.G. Battery Energy Storage Systems: Energy Market Review, Challenges, and Opportunities in Frequency Control Ancillary Services. Energies 2025, 18, 4174. https://doi.org/10.3390/en18154174

AMA Style

Garttan G, Alahakoon S, Emami K, Jayasinghe SG. Battery Energy Storage Systems: Energy Market Review, Challenges, and Opportunities in Frequency Control Ancillary Services. Energies. 2025; 18(15):4174. https://doi.org/10.3390/en18154174

Chicago/Turabian Style

Garttan, Gian, Sanath Alahakoon, Kianoush Emami, and Shantha Gamini Jayasinghe. 2025. "Battery Energy Storage Systems: Energy Market Review, Challenges, and Opportunities in Frequency Control Ancillary Services" Energies 18, no. 15: 4174. https://doi.org/10.3390/en18154174

APA Style

Garttan, G., Alahakoon, S., Emami, K., & Jayasinghe, S. G. (2025). Battery Energy Storage Systems: Energy Market Review, Challenges, and Opportunities in Frequency Control Ancillary Services. Energies, 18(15), 4174. https://doi.org/10.3390/en18154174

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