Battery Cost Reductions Lead To Rise In Battery Energy Storage Market

The energy storage system market is expanding at a fast pace, and 2016 could double the world’s power output of installed ESS.

General Electric Lithium-Ion Energy Storage System (Image: GE)

General Electric Lithium-Ion Energy Storage System (Image: GE)

ESS is becoming dominated by lithium-ion batteries – cost reductions of those batteries, combined with government funding programs and utility tenders, brings tremendous growth of orders, according to IHS.

The global pipeline of planned battery and flywheel (who still uses flywheels these days?) projects had reached 1.6 gigawatts (GW) in Q4 2015 (up 45% compared to Q3 2015).

IHS doesn’t reveal the MWh of ESS because they measure installations in MW or GW. That makes comparison to EVs more difficult.

45% of new ESS installations are planed in the U.S. followed by Japan with 20%.

Read more: Inside EVs

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