Japan''s Solar Boom Sparks Energy Storage Revolution: Virtual Power
By fiscal 2026, Japan plans to establish a dedicated market for trading electricity stored in residential batteries. This move will create opportunities for virtual power plants
By fiscal 2026, Japan plans to establish a dedicated market for trading electricity stored in residential batteries. This move will create opportunities for virtual power plants
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(Photo by Shinya Sawai) TOKYO -- Foreign companies are piling into battery energy storage in Japan as they seek to gain an early-mover advantage in a market they expect to grow along with the use of renewable energy.
Mahdi Behrangrad, head of energy storage system and virtual power plant department at Pacifico Energy, an early participant in Japan's battery storage sector, with projects in Kyushu and Hokkaido, agrees the LTDA changes support existing power generation assets rather than storage and could harm additional battery investments in Japan.
That is creating surging interest in battery energy storage systems (BESS) to smooth mismatches in supply and demand. Since December 2023, companies have announced investments of at least $2.6 billion in Japanese battery storage projects, according to calculations by Reuters.
Solar panels in the western Japanese city of Kitakyushu: As Japan integrates more renewables into its energy mix, the market for battery storage is forecast to grow. (Photo by Shinya Sawai)