“Battery Storage Subsidies in Japan”

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Introduction

In the Sixth Strategic Energy Plan, published by the Japanese Government in October 2021, targets are set to (a) achieve carbon neutrality by 2050; (b) increase the share of renewables as part of Japan’s total electricity generation to 36-38% by 2030 (including 19-21% from solar and wind) compared to an 18% share in 2019; and (c) reduce greenhouse gas emissions by 46% in 2030.

Solar and wind power generation are heavily dependent on weather conditions and other factors.  Therefore, in order to stabilise the fluctuating supply of electricity from such sources, the Government recognises that it is essential for Japan to develop large-scale battery energy storage systems (BESS), which allows the storage of energy for utilisation at appropriate times.

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