Japanese mobile energy storage power supply purchase information

What drives energy storage adoption in Japan?

Shunsuke Kawashima, who works across Itochu’s BESS business at all scales including residential, commercial and industrial (C&I) and utility-scale, opened the discussion by highlighting the drivers for energy storage adoption in Japan, of which he said there are two: increasing renewable energy generation and increasing demand for electricity.

Why is battery energy storage important in Japan?

During an emergency, battery energy storage can supply backup power and aid in disaster management operations. Furthermore, Japan is the market leader in advancing the use of electric vehicles, and the inclusion of EVs with battery energy storage is currently gaining traction.

Should you buy a battery storage system in Japan?

In addition, Japan’s capacity market is currently limited to battery storage systems lasting 3 hours, and the uncertainty of its overall revenue stack may make investors cautious about purchasing large-scale battery storage systems.

Who manages the electricity market in Japan?

These are: The Japan Electric Power Exchange (JEPX): manages the wholesale market. The Organisation for Cross-regional Coordination of Transmission Operators (OCCTO): coordinates electricity supply and demand plans, manages interconnectors, and runs the capacity market.

What percentage of Japan's primary energy supply will be renewable?

Under the plan, renewables should account for 36-38% of power supplies in 2030. Figure 1: Domestic Primary Energy Supply Source: METI Figure 1 highlights the growing penetration of renewables over the last decade in Japan’s primary energy supply.

What is the Japan Electric Power Exchange (jepx)?

The Japan Electric Power Exchange (JEPX) is one of the most mature wholesale energy markets in the Asia-Pacific region, operating since 2005. More than 40% of the country’s total electricity demand is met through the spot market, which sets electricity prices at different times throughout the day to incentivize low-cost usage.