The Stonepeak/CHC energy storage platform has secured 20-year fixed revenue capacity market contracts for five battery energy storage system (BESS) projects, totalling 348MW, through Japan’s second long-term decarbonisation auction.
The awarded contracts from the auction will enable the platform to formalise 20-year government offtake agreements with the Organization for Cross-regional Coordination of Transmission Operators, Japan (OCCTO).
The platform was jointly created by investment firm Stonepeak and CHC, a BESS project development company, in May 2024.
These agreements are a step forward for the platform, following its initial success in the inaugural auction in 2024. The platform secured contracts for four BESS projects with a combined capacity of 131MW in the first round of the auction.
Stonepeak senior managing director Ryan Chua said: “We are delighted with the results of the latest long-term decarbonisation 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.”
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By GlobalDataUnder the terms of the auction, the platform will advance to late-stage development of the five BESS projects. This development phase is crucial to prepare the projects for the upcoming construction and operational phases.
CHC director Ahmed Al-Awa said: “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.”
