Stonepeak and CHC’s energy storage platform will develop five new battery storage projects in Japan. These projects have a combined capacity of 348 megawatts (MW). The deals were finalized under Japan’s Long-term Decarbonization Auction.
These projects were selected as part of Japan’s latest long-term auction focused on low-carbon energy. The selected developers will receive payments for maintaining capacity over a 20-year period under agreements supported by the national grid authority.
The contracts were awarded by the Organisation for Cross-regional Coordination of Transmission Operators (OCCTO), which manages Japan’s electricity transmission. The auction system is designed to support the shift away from fossil fuels by supporting the development of energy storage and low-carbon electricity projects.
This is not the platform’s first time participating in the auction. In the earlier round held in 2024, it won contracts for four BESS projects totaling 131 MW. Combined with the current round, the company now holds a portfolio of nine BESS projects in Japan with a total capacity of 479 MW.
The awarded BESS projects are now in late-stage planning. Construction will begin after preparations are completed. Once operational, the battery storage systems will help balance supply and demand on the national power grid.
Battery storage is viewed as an important part of Japan’s decarbonization plans. Storage systems like BESS help keep power systems stable, especially when more electricity comes from solar and wind sources.
Other projects in Japan include a municipal BESS project in Iida City, Nagano Prefecture. This small-scale system, with an installed capacity of 2 MW/4 MWh, is operated by a city-owned energy company. It is used to stabilize power from local solar panels and support community resilience.
Another example is the Kitakyushu Smart Community Project, which involves various forms of energy management including a 1 MW BESS system.
