Japan has seen a spate of storage battery projects announced in recent months. Many seek to take advantage of state subsidies as central and local governments push for more renewables. The goal is to encourage the installation of batteries to help the grid cope with more weather-reliant generation in the system.

As Japan’s renewables sector expands, and both the Capacity Market and Balancing Market develop, there’s growing demand for grid-scale batteries and onsite units at solar and wind farms. Most existing battery capacity in Japan is residential.

Large-scale battery storage is vital for modern energy systems, enhancing energy grid stability and reliability by storing and releasing excess energy to balance supply and demand. Batteries also facilitate the integration of intermittent energy sources by storing surplus energy during high production periods and releasing it during low production, ensuring a consistent energy supply. All of which can reduce the reliance on fossil fuels.

Keen to ensure that Japan can secure battery capacity as demand for the technology increases, Prime Minister Kishida’s government is promising to introduce tax breaks for battery manufacturers. In the mid-to-long term, this should help to lower the cost of installing the technology at grid and project level. But even at today’s prices and amid uncertain supply, the capacity of applications of grid-scale battery projects in Japan is unprecedented.