How Japan is Driving BESS Investment
The increasing generation of renewables on the Japanese grid has led to various support policies and CAPEX subsidy schemes to support the deployment of grid-scale Battery
The auction is designed to promote investment in large-scale power generation projects for decarbonisation with a procurement target of 1 GW per annum across BESS and pumped hydro assets. BESS must have a minimum capacity of 10 MW and a 3-hour duration to qualify.
BESS can generate revenue through the wholesale, capacity, and balancing markets, similar to those seen in Great Britain (GB). Currently, the proportion of total revenue from each service mirrors that seen in GB.
They broadly vary due to their response time, with Primary having the shortest response time of within 10 seconds up to Tertiary-2, requiring a response over 30 minutes. BESS can participate in multiple of these products simultaneously. Contracted Revenue Streams
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