Japans renewable FIP scheme and recent changes to the regime
Battery energy storage systems (" BESS ") are playing an increasingly important role in the transition towards net zero. However, the regulations for BESS in Japan were generally
As policy, technology, and decarbonization goals converge, Japan is positioning energy storage as a critical link between its climate targets and energy reliability. Japan's energy storage policy is anchored by the Ministry of Economy, Trade and Industry (METI), which outlined its ambitions in the 6th Strategic Energy Plan, adopted in 2021.
A Growing Need for Energy Storage The increasing generation of renewables on the Japanese grid has led to various support policies and CAPEX subsidy schemes to support the deployment of grid-scale Battery Energy Storage (BESS).
These are the Ministry of Economy, Trade, and Industry (METI) and the Tokyo prefectural subsidies. There are a series of requirements to be eligible: projects must have a minimum capacity of 1 MW, the battery must be able to participate in various markets, and the battery must be directly connected to the grid. The Market for Energy Storage
Japan's energy storage landscape is shifting, pushed by household demand, corporate ESG mandates, and domestic battery manufacturing. The residential lithium-ion market, projected to grow at a CAGR of 33.9% through 2030, remains one of the fastest-expanding segments.
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