In Japan, as the adoption of renewable energy expands,
the importance of grid – scale batteries (grid – storage batteries) is increasing.
Grid – scale batteries play a role in maintaining the balance between power supply and demand in the electrical power system and
regulating the unstable power generation output of renewable energy
Background and Reasons for the Government’s Promotion of Grid-scale Batteries
The Japanese government promotes the widespread use of grid-scale batteries as an important policy to ensure a stable supply of renewable energy, balance power supply and demand (including dealing with peak loads), reduce the burden on the power grid, expand the use of non – fossil fuels (de – carbonization), increase the share of renewable energy, and achieve carbon neutrality.
01 Current Situation
· Deployment and Technological Progress
Grid – scale battery deployment is underway, but it is still in the development stage. Although grid – scale battery adoption is progressing, the scale in Japan is still small compared to Europe and the US, leaving room for expansion.
· Lithium – ion Batteries as the Mainstream
Due to cost reduction and technological advancement, lithium – ion batteries are widely adopted. Meanwhile, new technologies such as flow batteries are also being developed.
· Domestic and Foreign Company Participation
In addition to Japanese companies like Panasonic, Toshiba, and Hitachi, foreign companies such as Tesla and CATL have also entered the Japanese market.
02 Specifically
· Stable Supply of Renewable Energy: Since the power generation of solar and wind energy depends on weather conditions, it is necessary to store excess electricity to balance supply and demand. Utilizing excess electricity during the day at night enables a stable power supply.
· Power Supply – Demand Adjustment (Peak Shaving): Discharging during peak power demand times (such as evenings in summer and winter) ensures a stable power supply. It also suppresses fluctuations in electricity prices, generating economic benefits.
· Reducing the Burden on the Power Grid: Using batteries can reduce the burden of long distance power transmission and lower the cost of power grid reinforcement. It also contributes to stabilizing power supply in remote islands and rural areas.
· Expanding the Use of Non – Fossil Energy (Decarbonization): Batteries are essential to achieve a decarbonized society and reduce reliance on thermal power. They are being explored in combination with hydrogen and ammonia power generation.
· Strengthening Energy Security: Strengthening resilience during earthquakes and disasters (used as emergency power sources). Increasing the self – sufficiency rate of energy (reducing dependence on fossil fuel imports).
SCHEME OVERVIEW
ROLES OF EACH COMPANY
The business owner purchases the battery energy storage system and
entrusts the battery operation services to the aggregator.
PROJECT REVENUE
Since the aggregator settles the market transaction revenue and charging/discharging
related costs, the amount with the operation handling fee deducted is paid monthly.
Kyushu Case | 8MWh
Location: Kyushu Outlying Islands
Delivery Date: January 2025
Manufacturer: HUAWEI
Lender: Bank of US
Capacity:1999kW/8MWh
Kyushu Case | 8MWh
Location: Gunma
Delivery Date: January 2025
Manufacturer: HUAWEI
EPC: Not Disclosed
Lender: SMBC
Capacity: 1999kW/8MWh
COMPLETED CONSTRUCTION CASE
Location: Saitama Prefecture
Delivery Date: December 2023
Manufacturer: HUAWEI
Lender: Resona Bank
Capacity: 1999kW/8MWh