Publication date: Jan 12, 2025
METI Shifts Toward Stricter Screening of BESS Grid Connection Applications
The Ministry of Economy, Trade and Industry (METI) is accelerating discussions on tightening grid access rules and procedures for power generation facilities, particularly measures to prevent so-called “speculative reservations” of grid capacity by grid-scale #BESS projects. As of the end of September 2025, applications for grid connection contracts for grid-scale batteries submitted to transmission system operators (TSOs) nationwide (excluding Okinawa) reached approximately 24 GW – about 3.9 times the level recorded a year earlier.
Among the rapidly increasing number of applications, there are many projects where the likelihood of installing grid-scale batteries and reaching commercial operation remains unclear. For the METI, addressing such speculative reservations has become an urgent issue to ensure that projects with a high probability of realization can connect to the grid promptly. In this context, METI’s expert panels are considering the following measures.
– Require, at the time of submitting a grid connection application, documentation demonstrating legal rights to use the project site, such as a certified copy of the land registry or a copy of a lease agreement.
– Provisionally, increase the security deposit required at the time of application from 5% to 10% of the estimated construction cost contribution.
– Provisionally, tighten the installment payment scheme for construction cost contributions by requiring an initial payment of at least 50% of the total amount.
– Set an upper limit on the number of grid connection applications that a single project developer can submit, and if a developer exceeds this limit, conduct connection studies only for those projects with the highest priority up to the allowed maximum.
Shulman Commentary: METI’s push to accelerate the connection of credible BESS projects marks a clear shift toward filtering project quality at an earlier stage, aimed at curbing speculative applications and easing procedural bottlenecks on an increasingly congested grid. Speculative or weakly grounded BESS projects will likely be pushed out, while execution-ready projects with credible land rights and financing discipline will be prioritized.
For BESS developers and operators, understanding how these rule changes alter application strategy and project timelines is critical, and our team provides tailored consulting services to support project planning under a tightening regulatory framework.