Japan will require power utilities to open up their grids to energy storage systems operated by other companies, aiming to promote a technology that will be key to broader adoption of renewable energy.
The government will also subsidize up to half the cost of battery storage systems, drawing from a 13 billion yen ($114 million) pot of funding in the fiscal 2021 supplementary budget, to make them competitive with other types of energy storage. It plans to solicit applications this fiscal year.
Large-scale battery storage is essential for stabilizing the fluctuating supply of electricity from such renewable sources as solar and wind, and more independent players are expected to enter the field as demand rises.
Japan already requires grid operators to allow other companies to connect power generation equipment to their transmission networks. The lack of a similar provision for batteries had raised concern among companies considering forays into the business that utilities would block their plans.