How much does a Bess system cost?

Installation costs increased by 16.7% from 12,000 yen/kWh to 14,000 yen/kWh. Their proportion of the overall BESS installed cost decreased from 24% to 22% due to the increase of system-related costs.

How much does a kW power plant cost in Japan?

Assets in Hokkaido, Tohoku, and Tokyo TSO areas were awarded the highest price at 14,812 yen per kW. Those in Kyushu awarded under single price fetched 13,177 yen per kW and in Chubu at 10,280 yen per kW. The awarded price was 8,785 yen per kW in the remaining four mainland TSO areas.

How much does a Bess battery cost?

According to the BESS industry stakeholders interviewed by MRI as part of the study, foreign-made battery systems are cheaper, ranging between as low as 20,000 and 40,000 yen/kWh, and the cost of BESS subsidies is high due to the subsidies being awarded based on an overall rating rather than examining project costs.

Does Japan have a capex subsidy scheme for grid-scale battery developers?

Increased generation of renewables requires various forms of energy storage to manage the issues associated with intermittency. Japan has, therefore, introduced two CAPEX subsidy schemes for grid-scale battery developers, excluding co-located projects.

Does Japan have a battery subsidy program?

As Japan works to expand battery storage amid growing solar and wind capacity, METI also runs a similar subsidy scheme at the national level. In FY2024, it awarded 34.6 billion yen to 27 projects. Both programs are expected to continue in FY2025.

How many Bess projects are there?

Three big nuclear plants claimed around half the awarded capacity. In total, 1.4 GW of BESS was allocated, with 27 projects awarded contracts as part of the capacity market. Six of these projects feature durations of six hours or longer, while 21 are for batteries with durations between three and six hours.