Why are Japanese companies investing in battery energy storage systems?

Sign up here. 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.

How many companies are involved in inverter production?

Companies involved in Inverter production, a key component of solar systems. 6 Inverter manufacturers are listed below. List of Inverter manufacturers. A complete list of component companies involved in Inverter production.

Does Japan need energy storage?

With Japan targeting a 36-38% share of renewable energy in its generation mix by 2030 and carbon neutrality by 2050, the government identified support for and promotion of energy storage as a key pillar of the Green Transformation Act announced in 2021.

How much battery power does Japan have?

As of March, Japan had 0.23 GW of grid-connected BESS, according to METI. By comparison, China has 75 GW and the U.S. has installed nearly 26 GW of battery storage capacity, according to the Energy Institute.

How big is Japan's battery storage capacity?

Rystad forecasts Japan's battery storage capacity could reach about 4 GW based on projects under construction, planned and awarded, which would require $6 billion in investment.

What subsidies are available for battery storage in Japan?

There are now direct subsidies available from the Japanese government for grid-scale battery storage, as well as the Long-Term Decarbonisation Auction (LTDA), a government-backed capacity market that awarded 1.67GW of contracts to batteries and pumped hydro in its inaugural staging last year.