LS ELECTRIC announced on November 27 that it has begun construction of a grid-connected energy storage system (ESS) power plant in Ichihara City, Chiba Prefecture, Japan, marking its first project in the country involving direct investment in addition to system supply.
The new plant will consist of a 2 MW power conversion system (PCS) and an 8 MWh battery storage system. The ESS will connect to the national grid to store and deliver electricity, improving overall power utilization efficiency and enabling stable integration of variable renewable sources such as solar and wind.
Under the project, LS ELECTRIC will not only supply major electrical equipment including PCS but also deploy a complete energy management system (EMS), overseeing efficient power operations and stable site management.
Significantly, this marks the first time LS ELECTRIC has participated in the Japanese market across the entire project lifecycle — from design, supply, and construction to direct investment and operational management. The company plans to expand its business model in Japan based on a full value-chain structure spanning investment, operation, and power trading.
Traditionally, global ESS projects have been funded primarily by financial institutions or local utilities, while power equipment manufacturers typically handle EPC and O&M services. LS ELECTRIC is accelerating its market expansion by leveraging a proven track record of successful execution in Japan to expand its role to direct investment.
Japan’s ESS market is rapidly expanding due to growing renewable energy initiatives such as FIP (Feed-in Premium) and VPP (Virtual Power Plant) programs. LS ELECTRIC has already secured major projects in the country, including a 20 MW / 90 MWh large-scale ESS order in Watari, Miyagi Prefecture earlier this year — one of the largest in Japan. The company also completed Japan’s first grid-connected ESS in Hokkaido and Kyushu in 2022, and recently won more than half of projects under Tokyo’s ESS subsidy program.
The Japanese government is pushing toward carbon neutrality by 2050 and aims to raise the share of renewable energy to 36–38% by 2030, with subsidies supporting ESS installation and market acceleration.
“This project represents LS ELECTRIC’s first step into direct participation in Japan’s energy transition,” said Cho Uk-dong, Executive Vice President of LS ELECTRIC. “Building on our proven ESS deployment capabilities, we will expand into investment and power trading to move more aggressively in Japan’s fast-growing ESS market.”
