A significant stride towards Japan's carbon neutrality goals has been made as the energy storage platform backed by leading infrastructure investment firm Stonepeak and CHC announced a major win in the Japanese government’s second Long-term Decarbonization Auction. The Platform has been awarded 20-year fixed revenue capacity market contracts for five battery energy storage system (BESS) projects, boasting a total gross capacity of 348MW.

This substantial achievement marks the Platform's second consecutive success in this government tender. Following their initial triumph in the inaugural 2024 auction, where they secured contracts for four BESS projects totaling 131MW, this latest win solidifies their position as a key player in Japan's rapidly expanding energy storage market.

Under the terms of the Auction, the Platform will formalize 20-year government offtake agreements with the Organization for Cross-regional Coordination of Transmission Operators, Japan (“OCCTO”) for the five newly awarded BESS projects. This agreement provides a stable long-term revenue stream, enabling the Platform to confidently advance these projects through the late stages of development, ultimately leading to construction and operational phases.

Ryan Chua, Senior Managing Director at Stonepeak, expressed his enthusiasm for the results, stating, “We are delighted with the results of the latest Long-term Decarbonization Auction, which position the Platform well to continue supporting grid stability and reliability while facilitating Japan’s carbon neutrality objectives. We are grateful for the consideration of the Review Committee throughout this process. We look forward to continuing to work with CHC to further the Platform’s strong position in Japan’s energy storage market.”

Ahmed Al-Awa, Director at CHC, echoed this sentiment, highlighting the strength of their partnership with Stonepeak and their commitment to the Japanese market. “CHC is pleased with the Platform's success in the latest Auction round, which highlights the value we bring to Stonepeak as a trusted partner and reinforces CHC’s commitment to the ongoing development of battery energy storage projects in Japan. CHC looks forward to continuing to play a major role in the development of the Japanese BESS market and supporting Japan in meeting its energy transition goals.”

Battery energy storage systems are increasingly recognized as vital components in modern power grids, particularly as the integration of intermittent Renewable Energy sources like solar and wind power accelerates. BESS solutions, typically consisting of Lithium-Ion Battery storages, enhance grid stability by storing excess energy during periods of high generation and releasing it when demand peaks. This capability is crucial for ensuring a reliable and resilient electricity supply while reducing reliance on fossil fuels.