Battery storage accounted for 22% of the awarded capacity in the latest round of Japan’s LTDA, up by around 25% on the first auction. 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.
BESS was the most oversubscribed technology, with only 20% of the bid capacity awarded.
The auction results were published on April 28. Altogether, Japan’s transmission system operators OCCTO awarded 6.3 GW on a derated basis across 38 projects. This accounted for 47% of the 13.6 GW bid capacity.
In addition to BESS, one six-hour-plus pumped hydroelectric storage and two hydro projects were also awarded.
The total sought capacity ahead of the auction was 5 GW, up from the previous auction’s sought capacity of 4 GW.
The government initially sought 750 MW BESS and pumped-storage hydro able to supply power for three to six hours and 750 MW of BESS and pumped-storage hydro able to supply power for more than six hours.
A joint venture established by Singapore-based BESS project developer CHC and global alternative investment firm Stonepeak secured contracts for five BESS projects in this edition of the LTDA.
The duo’s venture – a platform focused on development, construction, and operation of energy storage projects in Japan – will enter 20-year capacity market contracts with OCCTO for the five projects which total 348 MW of gross capacity.
CHC and Stonepeak’s venture was previously awarded contracts for four BESS projects totaling 131 MW in Japan’s first LTDA. It was set up in May 2024, the same month Japan held its first LTDA. That auction allocated 1.09 GW of storage.
“CHC looks forward to continuing to play a major role in the development of the Japanese BESS market and supporting Japan in meeting its energy transition goals,” said Ahmed Al-Awa, a director at CHC, on the platform’s second LTDA success.
Ryan Chua, senior managing director at Stonepeak, said the result positioned the venture well to continue supporting grid stability and reliability while facilitating Japan’s carbon neutrality objectives.
“We look forward to continuing to work with CHC to further the platform’s strong position in Japan’s energy storage market.”
