The Environmental Co-creation Initiative (SII), under the jurisdiction of the Ministry of Economy, Trade and Industry, has started accepting applications for support projects in 2024 for grid storage batteries, etc. The project scale is about 39 billion yen, including about 8 billion yen in the first year. The public recruitment period is from August 30 to October 31. The issuance decision is expected to be made in mid-December.
Ministry of Economy, Trade and Industry continues to support the introduction of battery storage into the grid
The official name of the support project is "Fiscal Year 2020 Subsidy for Expanding the Introduction of Renewable Energy and Supporting the Introduction of Electricity Storage Systems Such as Grid Storage Batteries (Support Project for the Introduction of Grid Storage Batteries and Water Electrolyzers)."
This project aims to further accelerate the introduction of variable renewable energy such as solar and wind power in Japan by supporting projects to introduce new equipment that provides regulated power through the electricity market and other means. Aiming at electricity storage systems and water electrolysis equipment. The destinations for capacity regulation are assumed to be the wholesale electricity market, the supply and demand adjustment market, the capacity market, and bilateral contracts.
Energy storage systems are applied to facilities with a maximum receiving capacity of 1000kW (1MW) or more. The condition is that the equipment is directly connected to the grid and contributes to the efficient use and dissemination of renewable energy as well as improving the energy balance through transactions on various electricity markets. Among the types of storage batteries installed on the demand side, there are energy storage systems that provide regulated energy supply through demand response (DR), etc.
On the other hand, electricity storage systems that are tied to specific power generation facilities and connected to the grid are not covered. Even if regulated power is provided through DR etc., storage batteries installed on the demand side at places that operate efficiently such as power plants due to reverse flow from power generation facilities such as renewable energy installed on the demand side are also not covered.
Water electrolysis equipment is applied to equipment with a rated power consumption of 250kW or more. When excess electricity is expected to be generated in the power system, DR can be used to absorb the excess electricity and use it to produce hydrogen (up-DR), and at the same time provide regulated power to different power markets by adjusting the output of the water electrolysis machine. etc. The condition is that the provision of renewable energy is expected to contribute to the efficient use and diffusion of renewable energy, and improve the balance of power.
If the target company has CO2 emissions of 200,000 tonnes or more in the 2020 financial year, it must set a domestic Scope 1 and 2 emission reduction target (direct and indirect emissions from purchased electricity) and monitor its emissions results, provided that it publishes progress towards achieving the target and, if it fails to achieve the target, purchases eligible domestic credits (J Credits, JCMs, etc.) or discloses the reasons for failure. For private companies or SMEs with a production capacity of less than 200,000 tonnes, efforts to reduce other greenhouse gas emissions and contribute to GX are a condition.
The subsidy rate is about 2/3 (up to 2 billion yen) for energy storage systems related to new technology development elements (long-term energy storage technology = LDES). The cost of energy storage systems that reuse batteries to store energy for electric vehicles and other devices will be less than half (2 billion yen). Other energy storage systems (lithium ion, NAS, redox flow, lead, etc.) with a capacity of 1,000kW or more and less than 10,000kW will be within one-third (1 billion yen), 1,000kW or more and less than half (4 billion yen). ) ). Water electrolysis equipment will be less than 2/3 (2 billion yen).
The subsidy will cover the minimum necessary costs for detailed design, the minimum necessary costs for battery storage and water electrolysis equipment, and the minimum necessary costs for construction. The subsidy project will last until the signing of the grid connection contract, installation, commissioning, and full payment of costs, which will be finalized by January 19, 2027.
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