Shulman Advisory

Japan’s BESS Market Evolves with a New Battery Strategy, Grid Reforms, and Lower Balancing Market Price Caps

Publication date: July 1, 2026  Key Takeaways Japan’s BESS market continues to expand, but its policy environment is becoming more demanding, with new domestic battery manufacturing targets, tighter grid connection procedures, and lower Balancing Market price caps. As the market matures, project viability will depend less on exceptional balancing revenues and more on securing grid …