The global pipeline of planned battery and flywheel projects increased 45 percent 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 percent of planned installations worldwide in 2016, followed by Japan at 20 percent.

“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.