Are Japan's solar PV costs high?

Including these types of plants, the assertion that Japan's solar PV costs are high may simply be an overstatement of the country's solar PV generation costs. To the contrary, the efficient scenario may in fact be closer to the real economic performance of Japan's solar PV.

What is Japan's energy storage policy?

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.

How big is Japan's battery storage market?

In the commercial space, Japan’s battery storage market was valued at USD 593.2 million in 2023 and is projected to reach USD 4.15 billion by 2030. While commercial installations currently dominate revenues, industrial adoption is expected to scale faster. Utility-scale storage is also gaining ground.

Is Japan a good market for grid-scale storage?

With strong ambitions towards the energy transition and a liberalised power market structure, Japan is one of the most promising markets for grid-scale storage in Asia Pacific. The country’s electricity consumption per capita is twice the Asia Pacific average, and there is a race to keep up.

How will Japan's wholesale electricity market perform in 2021?

Revenues in Japan’s wholesale electricity market are likely to depend on intraday prices, which have been extremely volatile over the past few years due to limited supply and high fuel prices. In the first quarter of 2021, LNG prices rose to unprecedented highs due to tight supply.

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.