Pipeline growth signals impending rise in global energy storage market

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Battery cost reductions, government funding programs and utility tenders led to a 45 percent increase in the global energy storage pipeline in the fourth quarter of 2015 compared to the previous quarter. According to IHS the global pipeline of planned battery and flywheel projects had reached 1.6 GW in Q4 2015.

According to IHS Technology the global energy storage market recorded an increase of nearly 400 MW in the global pipeline during the final quarter of 2015. 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.

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 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.

The IHS Technology Energy Storage Project and Company Database currently tracks approximately 900 MW of global grid-connected battery projects that are expected to be commissioned in 2016, supporting a predicted doubling in the global installed base for grid-connected energy storage in 2016. Planned storage installations in the United States will make up nearly half (45 percent) of planned installations, followed by Japan at 20 percent.