This report “Unlocking the Potential of Grid-Scale Battery Storage Business: Current Status and Challenges” by the Renewable Energy Institute concludes that grid-scale battery storage projects have rapidly expanded in recent years across the globe. This expansion is driven by the sharp decline in battery costs and the large-scale integration of VRE, which has significantly enhanced the competitiveness of grid-scale batteries as a means of providing system flexibility.
Despite the growing attention to grid-scale battery storage, large-scale deployment began globally in the late 2010s and in Japan around 2023. As such, the sector is still in its early stages of development, and institutional frameworks and market mechanisms have yet to fully mature. This report aims to provide an overview of the early-stage grid-scale battery storage business in Japan, identify key challenges, and outline the direction of future development.
It concludes that this transition is still in its early stages and, in the short term, may appear overheated. Consequently, issues such as delays in grid connection procedures and uncertainties in market operations have begun to emerge. Realizing innovation in the power system will require rational reforms in regulations and institutional frameworks.
Access the report here
