Grid-scale battery connection review applications surged 6x year-over-year. To eliminate "speculative reservations," deposit increases and mandatory land usage rights submissions begin in April 2026. We explain what this means for already-developed projects.
In FY2024, general transmission and distribution operators received 14,276 connection review applications in total, doubling from 6,725 in the previous year. Of these, grid-scale batteries accounted for 9,544, surging approximately 6x from 1,599 in FY2023.
The problem is that a large number of these applications have low feasibility. Disaster prevention parks, land with others' buildings, locations clearly unconvertible by land classification -- such "speculative reservations" occupy grid capacity, creating backlogs for serious operators.
Source:ANRE "7th Next-Generation Power Grid Working Group" Document 1-1 (February 9, 2026)
From applications submitted from January 2026 onward, submission of land survey results is now required at the time of connection review application. Specifically, the following are needed:
This applies not only to grid-scale batteries but to all new generation equipment requiring connection review, from the perspective of fairness across power source types. The approach of "casually identifying available spots on a map and applying" has become virtually impossible. Note that at the connection review stage, the land does not need to be in the applicant's name; proof that a survey was conducted is required.
Source:OCCTO "Publication of New Forms for Connection Review Application Changes" (December 15, 2025), form revision notices from each T&D operator
The rule change with greater impact is for contract applications. Going forward, submission of documents proving usage rights for the project site becomes a mandatory contract requirement.
As additional anti-speculation measures decided at the 6th Next-Gen Grid WG (December 24, 2025), the following apply to contract applications from April 2026 onward.
| Measure | Details |
|---|---|
| Deposit Increase | The deposit paid at the time of contract application is increased from 5% to 10% of the estimated connection charges. This doubles the cost of "reserving capacity and waiting." |
| Stricter Installment Payments | Stricter operation of the connection charges installment payment system. Prevents long-term occupation through payment delays or non-payment. |
| Scope | Limited to grid-scale batteries. Positioned as provisional and additional measures until permanent connection rules are established. |
Source:ANRE "7th Next-Gen Grid WG" Document 1-1
In parallel with tighter regulations, the connection review process itself is being streamlined. Newly introduced is a system where operators specify "whether upper-tier grid reinforcement is acceptable" and "the cap amount for connection charges" at the time of application.
Previously, connection review results took 3 months in principle (2 months for high-voltage inverter output under 500kW). Many cases only discovered "connection charges were several billion yen" upon receiving the response, leading to project abandonment. Under the new system, a prompt "no" response is given when conditions exceed operator-specified limits during review. This is expected to accelerate processing of economically viable projects.
These regulatory changes raise the bar for new projects applying for grid access. Conversely, the relative value of existing projects that meet the following conditions increases.
| Item | New Rule Requirements | Existing Project Status |
|---|---|---|
| Land | Proof of usage rights required | Secured |
| Connection Review Response | New applications face delays | Obtained |
| Connection Charges | More rejections with pre-disclosed caps | Confirmed |
| Deposit | Increased to 10% (was 5%) | Paid at old rate |
Securing grid connection typically requires 1-2 years of development. With tighter regulations, obtaining new connection review responses is expected to become even more difficult, further increasing the scarcity of projects that have already obtained responses.
The essence of anti-speculation measures is institutional design to allocate grid capacity -- a public resource -- to operators with the intention and ability to actually develop projects. By eliminating speculative applications without land, connection review processing speeds will improve, allowing truly viable projects to connect to the grid.
At the same time, these changes make the battery business structure -- where "the early development stage carries the highest risk" -- even more apparent. The gap between "already-developed projects" that have completed the entire process of land acquisition, landowner negotiations, connection review application and response, and connection charge confirmation and payment, and projects just starting, will continue to widen.
Note that all current measures are provisional. The permanent solution under consideration -- "forward power flow non-firm connection" (connecting only when grid capacity is available even on the charging side) -- is still expected to take 5-7 years to institutionalize. Until then, the advantage of already-developed projects will be maintained.
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