LS Electric, a Korean producer of power solutions, announced Friday that it has secured a 36 billion won ($20.7 million) energy storage project in Japan, reinforcing its position in the country’s clean energy market.
As part of the project, LS Electric will build a 90-megawatt-hour energy storage facility in Miyagi prefecture in northeastern Japan. The company is part of a consortium that includes local construction firms.
Scheduled for completion in April 2027, the facility will store electricity generated from local power plants and supply it to the regional grid operated by Tohoku Electric Power, the sole power distributor in the region.
According to LS Electric, this is the largest energy storage project undertaken by a Korean company in Japan.
“This project is highly meaningful for us, as we have secured a large-scale deal in Japan, one of the world’s leading energy storage system markets both in terms of scale and growth,” an LS Electric official said.
Japan’s energy storage systems market is projected to grow at an annual rate of 11.1 percent through 2030, according to US-based market research firm Grand View Research.
With its goal of raising the share of renewables to 38 percent in its energy mix by 2030, the Japanese government is actively subsidizing energy storage systems — a key technology for stabilizing power supply from variable renewable sources — by covering up to half of the installation costs.
Riding the momentum of this rapidly expanding market, LS Electric previously built energy storage facilities in Hokkaido and Kyushu in 2022. Last year, it was also selected as the only foreign company to participate in Tokyo’s energy storage system subsidy project, the company said.
“We aim to establish our energy business as a key driver of future growth through a diversified approach to the Japanese market, including the direct operation of solar power plants in the country,” the official added.
forestjs@heraldcorp.com
