Tender for low-carbon energy storage system

Can energy storage projects take part in low-carbon capacity auctions?

Energy storage projects will be eligible to take part in low-carbon capacity auctions set to be launched this month in Japan.

What is the 'long-term decarbonization power source auction'?

The new ‘Long-term Decarbonization Power Source Auction’ hosted by the Organisation for Cross-Regional Coordination of Transmission Operators (OCCTO) is essentially a capacity market for low-carbon energy resources.

Which energy storage resources will be limited to 1GW?

According to an official guidance document issued by OCCTO (in Japanese), energy storage resources including batteries and pumped hydro energy storage (PHES) will be limited to 1GW in the initial auction.

What is round-trip eficiency in energy storage?

Sandia National Laboratories, “DOE/EPRI 2013 Electricity Storage Handbook in Collaboration with NRECA,” DOE, 2013. Round-trip eficiency takes into consideration energy losses from power conversions and parasitic loads (e.g., electronics, heating and cooling, and pumping) associated with operating the energy storage system.

Will the capital cost of residential energy storage systems fall?

A continuous fall in the capital cost of building grid-scale ESSs is also projected (Figure 2.5). Benchmark capital costs for a fully installed residential energy storage system. The capital cost of residential ESS projects are similarly foreseen to drop over the next few years (Figure 2.6).

Will ESS save a lot of electricity fees?

As ESS special fees will be applied until 2020, installing 1 MWh ESS for industrial use can save directly about 100 million won in electricity fees. If industrial electric fees are raised in the future, ESS demand for reducing peak demand is likely to grow mainly among manufacturers with high power usage.