Knowledge

Knowledge Hub

In-depth analysis of renewable energy and power infrastructure regulations, technology, and business models based on primary sources. Use as reference material for your business decisions.

Market Entry19 Articles
Latest First
COLUMN 19NEWContract Design

Contract Design Decides ¥200M Over 20 Years
— The 5-Layer Power Contract Stack of a Grid-Scale Battery Storage

5 layered contracts — wheeling, GSA, retail, BG, market participation. Pumped-storage measure cuts wheeling fees by ¥10M/year; 5-layer 21-contract architecture yields ¥200M differential over 20 years. Includes 11-item pre-transfer checklist.

COLUMN 18NEWRisk Management

BESS Insurance Design
— The Six Insurance Layers Owners Must Arrange During Operation

Solar's "movables + business interruption" package doesn't transfer to battery storage. Six insurance layers — property, machinery, BI, liability, cyber, theft — with insured-value design, BI indemnity criteria, and premium benchmarks.

COLUMN 17NEWRevenue Structure

Aggregator Fees: "Gross vs Net"
— Why the Same 5% Means Different Take-Home Pay

Same 5% rate on gross (total revenue) vs net (market profit) creates ¥1.25M+ annual difference. 3-market payment flows, 5 global contract models, and why operational quality matters more than fee rates.

COLUMN 16NEWMarket Data

Regional Balancing Market Settlement Results
— Reading the Battery Business Environment from 9 Utility Area Data

Analysis of EPRX public data by 9 utility areas and product type. Primary regulation shortfall rates: Tokyo 88.8%, Tohoku 76.6%. April 2026 48-slot settlement graphs and capacity market area-specific unit prices.

COLUMN 15NEWRegulatory Guide

Understanding the 5 Products of the Balancing Market
— Differences Between Online, Offline & Composite Products

Product design for primary through tertiary regulation, GF/LFC/EDC/GC control functions, online vs. offline connection differences, and how the FY2026 day-ahead trading transition affects battery operations.

COLUMN 14Cybersecurity

JC-STAR Certification and Battery Business
— How Cybersecurity Certification Changes Equipment Selection

Impact of METI/IPA's IoT security certification "JC-STAR" on grid connection, subsidies, and equipment procurement, and practical strategies for compatibility with overseas hardware.

COLUMN 13Development Process

Complete Development Process for Battery Storage Sites
— What to Do and in What Order, from Site Selection to Grid Connection

Site screening, community engagement, regulatory confirmation, boundary survey, interconnection study, grading, and EPC. A practitioner's complete guide to battery-specific development processes distinct from solar.

COLUMN 12Revenue Strategy

Can the Full Merchant Strategy Work?
— Economics of Battery Business Without LDA Dependence

LDA award rate is 20%, approximately 90% of market revenue is refunded. Examining the feasibility conditions and decision criteria for a "full merchant" strategy relying solely on 3-market stacking.

COLUMN 11Grid Interconnection

Non-Firm Connections and Curtailment Risk
— How They Affect Battery Business Revenue

Nearly all current battery projects use non-firm connections. Analyzing the impact of output curtailment on revenue and latest developments regarding capacity and balancing market participation eligibility.

COLUMN 10Site Selection

Noise Risk at Battery Storage Sites
— The "Nighttime Standards" Often Overlooked in Site Selection

As grid-scale batteries grow larger, cooling fan and PCS noise becomes a source of community complaints. Reviewing nighttime regulation values by zoning district and cost considerations for soundproofing measures.

COLUMN 09Regulatory Guide

New Rules for Interconnection Studies & Contract Applications
— What Changes with April 2026 "Capacity Hoarding" Countermeasures

Interconnection study applications surged 6x year-over-year. With increased deposits and mandatory land title submissions, capacity hoarding will be eliminated. What this means for already-developed projects.

COLUMN 08Pricing & Transactions

How Development Rights Are Priced
— What You Are Paying For and How Much

The components that make up battery development rights pricing and the framework for evaluating their value. Entirely different logic from solar FIT "ID resale" — understand the fair value of these rights.

COLUMN 07Revenue & Investment

20-Year Cash Flow Structure of Battery Business
— IRR & DSCR Framework

LDA-type and full merchant-type projects have fundamentally different IRR and DSCR profiles. A framework for the cash flow structure that determines project finance feasibility.

COLUMN 06Rights Transfer

Equipment Changes After Interconnection Study Response
— What Changes and What Doesn't

If you want to change the battery or PCS manufacturer after acquiring development rights, does the interconnection study need to be redone? Explaining the OCCTO "interconnection study necessity confirmation" system and practical aspects of equipment changes.

COLUMN 05Business Model

30MW+ vs 2MW — Completely Different Battery Business Models by Scale

Grid-scale batteries are neither "bigger is better" nor "smaller is easier to start." Revenue structure, financing, and risk characteristics fundamentally differ by scale.

COLUMN 04Grid Interconnection

Why Grid Interconnection Costs Vary 10x
— "Location" Determines Everything in Battery Business

Even for the same 50MW battery, interconnection costs range from hundreds of millions to billions of yen. Understanding this "10x gap" structure is what separates success from failure in battery business.

COLUMN 03Regulatory Comparison

Main Auction vs Long-term Decarbonized Power Source Auction
— The Critical Differences Battery Operators Must Know

Despite both being "capacity market" mechanisms, the Main Auction and LDA have fundamentally different design philosophies. Organizing the criteria for deciding which to participate in.

COLUMN 02Revenue Structure

Three Revenue Sources for Batteries
— JEPX, Balancing Market & Capacity Market Stacking Strategy

Grid-scale battery revenue cannot be completed in a single market. How you combine three markets determines business success or failure.

COLUMN 01Regulatory Guide

What Is the Long-term Decarbonized Power Source Auction (LDA)?
— A Complete Guide to the 20-Year Fixed Revenue Mechanism

For those considering entry into the battery business, we explain the basic structure of LDA through the 3rd round regulatory changes, based on primary sources.

Knowledge articles in other categories coming soon

Articles on biomass (black pellet), next-generation energy (SMR, e-fuel), and more will be published in sequence.

Inquiries About Energy Business

For project-specific information that cannot be assessed from articles alone,
we will disclose details after signing an NDA following your inquiry.

Contact Us →