A joint energy storage platform formed by Stonepeak and CHC has successfully secured 20-year fixed revenue capacity market contracts for five Battery Energy Storage System (BESS) projects, totaling 348 megawatts (MW), under Japan’s second Long-term Decarbonization Auction.
This win marks the platform’s second consecutive success in the Japanese government’s capacity market initiative. In the inaugural auction held in 2024, the platform was awarded contracts for four projects with a combined capacity of 131 MW. The current contracts will be executed with the Organization for Cross-regional Coordination of Transmission Operators, Japan (OCCTO), formalizing the government’s 20-year offtake arrangement.
The awarded BESS projects are now set to enter the late stages of development, moving toward construction and operational readiness. These systems are designed to enhance grid reliability and stability, contributing significantly to Japan’s goal of achieving carbon neutrality.
Ryan Chua, Senior Managing Director at Stonepeak, expressed satisfaction with the outcome, noting that the contracts solidify the platform’s foothold in Japan’s energy transition landscape. “We’re proud to support Japan’s decarbonization roadmap while maintaining energy system reliability,” he said.
Ahmed Al-Awa, Director at CHC, echoed the sentiment, emphasizing the strategic role of CHC in advancing battery storage projects. “This success underscores our value as a partner to Stonepeak and our long-term commitment to Japan’s clean energy future,” he stated.
The platform’s consistent performance in government tenders showcases growing momentum in Japan’s energy storage sector as it scales up to meet ambitious climate targets.
