Japan: Large-scale BESS opportunities in an evolving market
The 26 BESS and two pumped hydro projects that won 20-year fixed-revenue capacity contracts in the 2024 LTDA hosted by the national association of grid operators,
A render of the BESS project. Image: ORIX Corporation / PR Times. Tesla and Sumitomo Electric have both been selected to supply energy storage projects in Japan. Tesla will supply Megapacks for a BESS project while Sumitomo will deploy a 12MWh vanadium flow battery.
Tesla will supply Megapacks for a BESS project while Sumitomo will deploy a 12MWh vanadium flow battery. Financial services firm Orix Corporation selected Tesla to supply 134MW/548MWh of BESS to the Maibara Koto Power Storage Plant project in the city of Maibara, Shiga Prefecture.
Kentaro Ono says that Hirohara BESS' tolling deal and the Eshi project's LTDA contract are two of three commercialisation pathways Eku Energy sees potential for in Japan. The third is a full merchant model. Ono says the developer wants to hold a diversified portfolio representing different risk and reward appetites for investment.
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.
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