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.

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.

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 many GW of battery storage capacity did the organization allocate?

Through the procurement exercise, the organization assigned 1.09 GW of battery storage capacity spread across 30 projects, 1.3 GW of nuclear power capacity, and 824 MW of thermal power capacity. Furthermore, it allocated 576.9 MW of pumped hydro storage capacity and 199.2 MW of biomass capacity.

Why should Japan invest in storage batteries?

Energy Security: Storage batteries are key to stabilizing Japan’s energy system. Given Japan’s limited natural resources and dependence on imports, combined with its vulnerability to natural disasters, investing in reliable and sustainable energy solutions is critical.

What is Japan's storage battery industry strategy?

The “Storage Battery Industry Strategy” document from METI sets out three key targets: Boost Domestic Manufacturing: Japan aims to ramp up its domestic production of automotive storage batteries to 100 GWh by 2030, with a long-term goal of reaching 150 GWh annually. This move highlights the potential for foreign companies to invest in Japan.