Japan’s Ministry of Economy, Trade and Industry is to subsidise the installation of distributed battery storage and energy-efficient technologies with a $779m incentive scheme.
The programme is aimed to encourage factories and small businesses to be more energy efficient. The incentive should also increase the installation of energy storage systems at PV power plants and grid substations. The deployment of the battery systems should strengthen electricity grids to facilitate growing levels of renewable energy sources.
The budget still needs parliament’s approval.
Consultant company RTS and several Japanese utilities warned last year that many regional electricity grids have limited grid capacity and reached its maximum to absorb intermittent solar power. Japan’s utilities function essentially as regional monopolies with interconnectivity between the grids.
Parts of the budget will also be spent to help clean energy producers in the region hit by the 2011 Fukushima earthquake and tsunami.