Table 6: Key Policy and Initiatives in Japan

Japan faces challenges with self-sufficiency and is prone to severe natural disasters, which have reoriented the energy policy of the country. The government also established storagemanufacturing targets to help sustain its strong domestic industry and support it seco-towns and smart cities initiatives. Japan established several policies and initiatives that facilitate the utilization of battery energy storage, as illustrated in table 6. The country is a strong advocate of energy efficiency and conservation, which have been the critical aspects of its energy strategy. Gains in energy efficiency would help the government reduce its reliance on fuel imports. Japan has significant policy support for energy storage, resulting in a large base of commissioned energy storage projects in the country. The allocation of $779millionsubsidiesto help factories and small businesses would improve energy efficiency and encourage ESS deployment. The Ministry of Economy, Trade, and Industry (METI) announced a lithium-ion battery subsidy program worth $100 million, which was well-received by the public. In 1974, following the oil crisis, the government launched the Sunshine Project, which focused on renewable energies, coal gasification, and liquefaction. Later in 1978, the governmentsponsored research and development with a focus on heat pumps, energy storage, and gas turbine technologies. In the following years, the government established the Moonlight Project and New Sunshine Project, which promoted the development of different battery technologies such as sodium-sulfur, lead-acid, flow, and zinc bromide battery technologies. In 2012, METI

TABLE 6: Key Policy and Initiatives in Japan Governing organization Regulations and initiatives METI Technical Requirements Guidelines for Grid Interconnection to Secure Electricity Quality (2004, revised in 2013)

Japan Electric Association Grid Interconnection Code (JEAC 9701-2006)(superseded by JEAC 9701-2012)

METI

Fire and Disaster Management Agency, Ministry of Internal Affairs and Communications Electricity Business Act: Required approval for large electricity storage system more than 80,000kWh Fire Service Act and Fire Prevention Ordinance

Ministry of Land, Infrastructure, Transport, and Tourism METI Building Standards Act:

Government support of energy storage projects to demonstrate the ability to time-shift demand by 10% in conjunction with expanded use of renewable generation resources. METI funding up to 75% of storage system cost to drive down the total cost METI has set aside JPY81 billion to resolve grid-related issues and to increase renewable energy. Additionally, the Ministry provides incentives for energy storage systems, which can be implemented onto solar power stations or substations.