Japan Incentivizes Battery Storage Projects Amid Growing Demand
By 2030, official estimates show variable renewable energy reaching 20% of Japan''s power mix. Noting the demand case and ever-growing renewables curtailment
While amendments to the Renewable Energy Act introduced the Feed-in Premium to encourage renewable integration, no unified framework exists for battery storage. Project developers cite uncertainty around licensing, grid access, and fire safety rules—raising both compliance costs and risk premiums. Urban density further compounds the problem.
The need to incentivize more balancing capacity in Japan is strong. Renewable energy sources already account for a fifth of domestic electricity volumes, but the sector's further expansion is focused on solar and wind power, which are intermittent. By 2030, official estimates show variable renewable energy reaching 20% of Japan's power mix.
BESS are among the most promising technology options available to support renewable power, and are expected to play a huge role in Japan's future power system.
As of May 2023, about 1.1 GW of supply has been contracted for grid-scale storage batteries nationwide, with contracts for an additional 12 GW under consideration, according to METI data.
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