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Energy Storage Has Become A Necessity For The Japanese Power Grid To Meet The Technological Needs.
- Aug 08, 2018 -

At present, the opportunity of combining PV projects with energy storage has sprung up. In order to understand the Japanese demand for energy storage based photovoltaic projects, we have collected and collated 15 of Japan's largest list of PV + energy storage projects, including projects that have been put into operation and are being built.


Photovoltaic + energy storage market classification in Japan


1. Distributed photovoltaic


For electricity consumers and residents, namely photovoltaic consumption, grid parity and so on.


The current market is mainly subsidized, which can be used for lithium ion batteries (LiB) and zero energy consumption housing (ZEH). Under the latter's policy, most new houses will achieve net annual energy consumption and zero carbon emissions by 2020. In addition to the FIT subsidy, there will be a number of additional options after 2019, including the possibility that residents can sell surplus electricity at a price lower than the net electricity price; the METI Committee estimates that the price will be about 11 yen per kilowatt hour.


2. Centralized photovoltaic


For power developers, related to grid connected and PPA.


These projects are also subsidized and supported by local / municipal governments instead of METI.


The following list shows 15 centralized photovoltaic + energy storage projects in operation in early 2018 (O) or under construction (UC). At present, the cumulative capacity of the top 6 photovoltaic and energy storage projects in Japan is 44.3MW, and the estimated cumulative capacity is about 120MW.

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Data interpretation


Data show that by 2020, Japan's photovoltaic energy storage market capacity is expected to grow more than three times. It is estimated that by the end of 2018, about 19% of construction capacity will be put into operation.


LG Chem Ltd. is dominant in Japan's energy storage market share. The company provides energy storage equipment for 2 operating (6) operating (a total of 6) and 5 building photovoltaic power stations (a total of 9), accounting for about 47% of the current 15 PV energy storage projects in Japan.


Of these photovoltaic energy storage projects, 87% are located in Hokkaido. To reach PPA in Hokkaido and other adjacent islands, energy storage batteries are indispensable, which seems to have become a catalyst to support the photovoltaic energy market in the region. In addition, the Hokkaido Electric Power Co (HEPCO), according to technical requirements, indicates that energy storage battery is a necessity, which is the main measure to solve the instability of the capacity of the photovoltaic power plant (in the short term).

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Allocation of market share for energy storage suppliers in 15 large photovoltaic energy storage projects

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Regional distribution map of 15 large photovoltaic energy storage projects


So far, energy storage applications are mainly deployed in areas with urgent technological needs such as Hokkaido. In general, considering the increase of market capacity in the coming years, Japan has a bright future in photovoltaic and energy storage. In addition, BNEF predicts that by 2030, global lithium battery prices will drop to about $74 per kilowatt hour. In addition to the decline in energy storage prices, the overall generation capacity of major power companies in Japan will soon be saturated. The combination of photovoltaic and energy storage is a valuable measure to reduce power risk, financial risk and other related risks.