The global pipeline of planned battery and flywheel projects increased 45% in Q4 2015 over the previous quarter—to 1.6 gigawatts (GW), according to IHS. The firm predicts a doubling in the global installed base for grid-connected energy storage in 2016.

According to IHS' Technology Energy Storage Project and Company Database, grid-connected battery projects in the U.S. will make up 45% of planned installations worldwide in 2016, followed by Japan at 20%.

“Continued battery cost reduction, government funding programs and utility tenders have helped spark a notable acceleration in the global energy storage market," says Marianne Boust, principal analyst for IHS Technology. “Suppliers and developers around the world are preparing for a record year in 2016, with significant growth projected in a wide range of regions and market segments.”

The global pipeline of planned battery and flywheel projects increased 45% in Q4 2015. Image credit: IHS.Several large-scale projects were announced at the end of 2015, signaling that the storage industry is shifting from research-and-development demonstration projects to commercially viable projects. These projects include a 90-megawatt (MW) order by major power producer STEAG from LG Chem, to compete in the primary reserve market in Germany, and 75 MW of contracts awarded by PG&E to a diverse mix of companies using various established and emerging technologies.