Technical FAQs 4

What's going on with a Bess project in Japan?

In a Japan industry first, a tolling agreement was signed with Tokyo Gas by UK's Eku Energy for a 30MW BESS project in Kyushu. Beyond corporate demand, developers and investors willing to take on merchant risk are increasing following early success cases of full merchant BESS projects by the likes of Pacifico Energy.

How many Bess projects does Sun Village have in Japan?

Sun Village said then that it was targeting the deployment of 250 BESS projects across Japan, each 2MW/8MWh and totalling 500MW/2,000MWh. Sungrow has agreed to supply ‘approximately’ 500MWh of battery storage technology in Japan to Sun Village.

Will a Bess project grow in 2024?

As pure merchant BESS projects are difficult to gain project financing, and tolling agreements to secure revenues are still in their .nfancy, the LTDA .s driving short-term BESS growth with 30 projects granted subsidies in 2024, split evenly between Japanese and foreign developers, and the BESS allocation under LTDA to double for 2025.

Will Japanese energy storage projects have a merchant component?

Future large-scale projects that have a merchant component are set to increase as sophisticated players from more mature power markets such as Australia, UK and US enter the Japanese energy storage market.

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