Energy storage firm Energy Vault Holdings has announced its entry into the Japanese energy market with the acquisition of an 850 MW battery energy storage system (BESS) portfolio.
The California-based firm said that the acquisition includes a pipeline of BESS projects, including both advanced-stage and early-stage projects, as well as the integration of a local development team.
The portfolio includes 350 MW of projects that are expected to begin construction in the second half of 2027, and commence operations in 2028, as well as an additional 500 MW of early-stage BESS projects, providing a ‘robust, multi-year growth pipeline’, the company said.
‘A key component’
“Entering the Japanese market is a key component of our high growth markets expansion strategy and represents one of the most compelling energy storage growth opportunities globally,” commented Robert Piconi, chairman and chief executive of Energy Vault.
“This acquisition provides us with a foundational leadership position in Japan with advanced stage, attractive storage IPP projects coupled with critical local execution capabilities necessary to deliver at the highest performance levels within the Japanese BESS market.”
The acquisition will take Energy Vault’s global portfolio of owned and operated assets to more than 1 GW, across multiple regions and technologies. These assets are expected to yield more than $180 million in annual earnings when fully operational in the next 12 to 36 months.
Energy storage systems
Demand for energy storage systems is on the rise in Japan, while the Asian country has also set the target of achieving carbon neutrality by 2050, Piconi added.
“Despite being a highly developed economy, Japan’s energy storage market remains significantly underpenetrated and is now entering a period of accelerated growth driven by renewable expansion and structural grid constraints,” he said.
“Importantly, storage demand in Japan is not tied to load growth, but to the increasing need for flexibility, resilience, and system stability – creating a powerful, long-duration growth tailwind for our broad portfolio of solutions.” Read more here.
