Japan buys energy storage for industrial parks

What drives energy storage adoption in Japan?

Shunsuke Kawashima, who works across Itochu’s BESS business at all scales including residential, commercial and industrial (C&I) and utility-scale, opened the discussion by highlighting the drivers for energy storage adoption in Japan, of which he said there are two: increasing renewable energy generation and increasing demand for electricity.

How many battery energy storage projects have won a bid?

Over a gigawatt of bids from battery storage project developers have been successful in the first-ever competitive auctions for low-carbon energy capacity held in Japan. A total 1.67GW of projects won contracts, including 32 battery energy storage system (BESS) totalling 1.1GW and three pumped hydro energy storage (PHES) projects totalling 577MW.

Is solar PV a viable use case for energy storage in Japan?

While preventing curtailment is a valuable potential use case for energy storage in Japan as renewable generation increases, developing solar PV projects in Japan can have much longer lead times than in other markets, said Joost van Acht, managing director of ib vogt.

Will Orix build the world's largest power storage facility?

Japanese financial services group Orix is set to build one of the country’s largest power storage facilities, partnering with Tesla Inc. for the supply of industrial-scale batteries. The project in Maibara, Shiga prefecture, will incorporate Tesla’s Megapack units with a total capacity of 548 megawatt-hours.

Where in Japan will a solar power plant be built?

Geographically, three of the projects will be built in Ibaraki Prefecture, two in Kanagawa, Chiba, and Tochigi each, and one in Tokyo, Saitama, and Gunma each. As Japan works to expand battery storage amid growing solar and wind capacity, METI also runs a similar subsidy scheme at the national level.

Does Japan have a battery subsidy program?

As Japan works to expand battery storage amid growing solar and wind capacity, METI also runs a similar subsidy scheme at the national level. In FY2024, it awarded 34.6 billion yen to 27 projects. Both programs are expected to continue in FY2025.