Japan Energy Storage Policies and Market Overview
As Japan pushes toward decarbonization, energy storage is no longer optional infrastructure—it''s a strategic hinge between climate ambition and energy security.
To this end, TEPCO HD and Toyota have jointly developed a stationary storage battery system that can be used in combination with existing PCS *2 by connecting multiple storage batteries for electric vehicles.
The company secured a 20-year tolling agreement for its first Japan project, the 30MW/120MWh Hirohara BESS. Now under construction on the southern island of Kyushu, Eku claimed its tolling agreement with utility Tokyo Gas was a first of its kind for the Japanese market that helped it to close financing in the summer of 2024.
For example, while the first rounds of the LTDA included two duration categories for batteries and pumped hydro energy storage of 3-6-hour duration and 6-hour+ bids, a recent METI committee has proposed that future rounds may seek only long-duration energy storage (LDES) of 6-hour duration or longer.
The Tokyo Metropolitan Government scheme, meanwhile, is for projects both in and outside the Tokyo area and covers up to 50% of the Capex. Both schemes help to improve the economics of financial return on investment, Ono says.
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