Renewable Energy Institute released a partial English translation and reconfiguration of selected sections of the report "Unlocking the Potential of Grid-Scale Battery Storage: Current Status and Challenges" (originally published in Japanese on 16 July 2025).
In recent years, there has been a significant increase in the installation of grid-scale battery storage systems connected to power grids. Traditionally, balancing electricity supply and demand in real time was difficult due to the challenges associated with storing electricity. This limitation has hindered the expansion of variable renewable energy (VRE). However, advancements in energy storage technologies that enable charging and discharging have made it possible to shift electricity supply and demand over time, thereby significantly reducing barriers to VRE integration. Furthermore, the widespread use of stationary batteries and large-capacity onboard batteries in electric vehicles could also transform market transactions and related services, potentially driving innovation across the entire power system.
Despite these possibilities, grid-scale battery storage remains in the early stages of adoption, 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.
Unlocking the Potential of Grid-Scale Battery Storage
Current Status and Challenges
<Contents>
Introduction
Chapter 1: Positioning and Business Models of Grid-Scale Battery Storage
Section 1: Stationary Batteries as a Means of Flexibility
Section 2: Three Types of Stationary Battery Storage – Grid-Scale, Co-located with Renewable Energy, and Behind-the-Meter
Section 3: Business Models for Grid-Scale Battery Storage
Chapter 2: Current Status of Grid-Scale Battery Storage in Japan
Section 1: Installation Status in Japan
Section 2: Policy Support Measures in Japan
Section 3: Deployment Examples in Japan
Chapter 3: Challenges for Grid-Scale Battery Storage
Section 1: Concentration and Delay in Grid Connection Application Procedures
Section 2: Uncertainty of Revenue from Markets and Market Design
Section 3: Cost of Stationary Battery Storage
Conclusion
References
