METI to Limit Grid Connection Study Applications by Region to Manage Surge in BESS

The Ministry of Economy, Trade and Industry (METI)’s expert committee has recently decided to introduce a cap on the number of grid connection study applications per operator for grid-scale battery energy storage systems (BESS). The cap will be set by transmission system operators’ (TSOs) service areas, using either the average of past applications plus two standard deviations (sigma) or five applications, whichever is higher. METI plans to apply the measure “as early as possible” after revising the relevant rules of the Organization for Cross-regional Coordination of Transmission Operators (OCCTO).

According to METI, both the “average plus two sigma” threshold and the five-application threshold cover approximately 90% of current application levels. The new measure is designed to avoid constraining appropriate connection studies, yet it also recognizes that multiple applications may be required for a single project site due to changes in grid connection conditions.

The new policy will create regional differences in the estimated cap among TSOs: 11 applications in Tokyo,10 in Kansai, eight each in Hokuriku and Kyushu, and five in Chubu, Chugoku, and Shikoku. The cap will be regularly reviewed based on its interaction with other policies and its effectiveness. The government will also consider introducing similar caps for other types of power sources as needed.

🔍 Shulman Commentary: This policy is part of a broader effort to reduce TSO burden across the grid connection process, following this month’s increase in the upfront application cost from 5% to 10%. The cap is likely to curb speculative behavior by brokers submitting multiple applications to secure and resell land for BESS projects, while allowing TSOs to focus their resources on more credible and mature project proposals.

METI to Limit Grid Connection Study Applications by Region to Manage Surge in BESS