With the increasing demand for renewable energy, large-scale battery storage will be required to conserve energy for a stable supply. According to NikkeiAsia, Huawei will start selling the large-scale battery system for renewable energy storage in Japan in March 2022.
According to reports, Japan is moving away from fossil fuels and towards renewable energy. The country aims for renewable energy to account for 36% to 38% of energy production by 2030. The lack of additional capacity in its electricity grid makes temporary storage facilities all the more important.
However, Huawei is already a supplier of the small home battery system in Japan. Now, the Chinese tech maker will buy small batteries from CATL and bundle them into shipping container-sized units that can each store 2,000 kilowatt hours of energy, about 200 times more than a standard household battery. .
Moreover, the capacity of the container can be adjusted according to the buyer’s needs. To be mentioned, Huawei is setting foot in the renewable energy storage systems business, which is also already occupied by Tesla. Since last year, Tesla has been selling its own large battery system in Japan.
According to research firm Fuji Keizai, the Japanese battery storage market for solar and wind power is expected to grow from around 16.7 billion yen ($146 million) in 2020 to 45.8 billion yen in 2030. .
Additionally, Huawei’s Japanese arm is eyeing the Hokkaido market, where there is great potential for renewable power generation but a lack of spare network capacity. In addition, Huawei Japan President James Chen said that “the rapid development of solar power technology and cost reduction” in Japan.
On the other hand, Tesla already installed its first Megapack in Japan last April at a research center in Ibaraki prefecture run by Takasago Thermal Engineering. The system there controls the energy flows from solar gasification plants and biomass.
This summer, it is set to start a Megapack in Hokkaido connected directly to the transmission grid, which will be operated by emerging electricity supplier Global Engineering. However, Japan Renewable Energy, a power company recently acquired by oil wholesaler Eneos Holdings, said it was using a Tesla battery system in a demonstration project.
Japan has its own producers of large battery systems, such as NGK Insulators and Sumitomo Electric Industries, which ship dozens a year to customers inside and outside Japan.
But power companies, including Tokyo Electric Power Co. Holdings, and trading houses such as Sumitomo Corp. and Marubeni are eager to bring to market large storage systems comprised of bonded automotive batteries.
Tesla Japan is expected to sell its systems for $440 per kWh or less, and Huawei aims to be competitive with that price. Meanwhile, an executive from an emerging power company in Japan said, “When we get batteries, we choose the company with the lowest cost,” which is involved in renewable energy.