LS Electric’s energy storage system (ESS) in Hiki District in Saitama Prefecture, Japan / Courtesy of LS Electric
LS Electric has broken ground on a grid-connected energy storage system (ESS) plant in Japan for the stable storage and supply of electricity, thereby stabilizing fluctuations in renewable energy generation from solar and wind power there, the company said Friday.
The ground-breaking ceremony took place in Ichihara, Chiba Prefecture, Thursday. LS Electric’s grid-connected ESS plant will be equipped with a 2-megawatt power conversion system and an 8-megawatt-hour battery.
LS Electric also plans to supply key electric equipment for the facility and build an energy management system (EMS) there.
This is the first major milestone for the firm’s business in Japan, as LS Electric carries out both direct investment and management of the new plant. The company expects the latest achievement to propel its Japanese business across the full ESS value chain.
Most global ESS projects have so far been conducted under partnerships between financial institutions and electric equipment players, but LS Electric has expanded its footing into the financing sector with its latest project.
The company did not disclose the exact value of the latest contract.
In April, LS Electric also won its bid for an ESS plant project in the town of Watari in Miyagi Prefecture.
LS Electric views Japan as its next major overseas revenue source, as the Japanese government is expanding renewable energy adoption under its goal of achieving carbon neutrality by 2050. Energy storage systems (ESS) are essential to the renewable energy sector and local authorities in Japan offer subsidies to electric equipment manufacturers participating in ESS projects.
“The latest project is the first step for LS Electric to move forward as a key energy transition player in the Japanese power industry,” said Cho Wook-dong, director at the firm’s global business group.
“Backed by our proven ESS project records there, we are going to expand our presence into direct investment in Japan and take part in the Japanese ESS market more aggressively.”
AloJapan.com