The energy storage platform formed through a joint venture between Stonepeak and CHC has announced that it has secured 20-year fixed revenue contracts for five Battery Energy Storage System (BESS) projects in Japan. These projects, with a combined gross capacity of 348 megawatts (MW), were awarded as part of the latest round of Japan’s Long-term Decarbonization Auction. This marks the platform’s second consecutive success in the national auction process.
In the 2024 inaugural round, the platform had previously secured contracts for four BESS projects totaling 131 MW. The consistent performance highlights the platform’s growing role in supporting Japan’s clean energy transition and energy storage infrastructure. Under the terms of the auction, the platform will now enter into capacity market contracts with the Organization for Cross-regional Coordination of Transmission Operators, Japan (OCCTO).
Ryan Chua, Senior Managing Director at Stonepeak, commented, “We are delighted with the results of the latest Long-term Decarbonization Auction, which position the Platform well to continue supporting grid stability and reliability while facilitating Japan’s carbon neutrality objectives. We are grateful for the consideration of the Review Committee throughout this process. We look forward to continuing to work with CHC to further the Platform’s strong position in Japan’s energy storage market.”
Ahmed Al-Awa, Director at CHC, stated, “CHC is pleased with the Platform’s success in the latest Auction round, which highlights the value we bring to Stonepeak as a trusted partner and reinforces CHC’s commitment to the ongoing development of battery energy storage projects in Japan. CHC looks forward to continuing to play a major role in the development of the Japanese BESS market and supporting Japan in meeting its energy transition goals.”
These 20-year contracts formalize the government’s commitment to purchase capacity from the awarded projects, ensuring long-term revenue stability. With the contracts now in place, the platform will continue advancing late-stage development activities to prepare the BESS projects for construction and eventual operation. These storage systems are expected to play an essential role in enhancing grid reliability, managing peak demand, and supporting the integration of renewable energy into Japan’s power system.
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