LS ELECTRIC said on the 8th that last year's orders for energy storage system (ESS) projects in Japan totaled 61.2 billion won. It is the largest volume of Japan orders recorded by a Korea-based power equipment company. Japan is considered one of the world's four largest ESS markets.
LS ELECTRIC strengthened its presence in Japan's ESS market by expanding its business portfolio across the ESS value chain, including engineering, procurement and construction (EPC), power conversion system (PCS) supply, and investment in renewable power plants.
In particular, LS ELECTRIC noted that it is being recognized in Japan's notoriously demanding power market based on its technical capability to provide a full lineup of ESS core equipment, excluding batteries, in an integrated supply and the business capabilities it has steadily built.
LS ELECTRIC launched a full-fledged push into the local ESS market in 2017 by successfully building Hokkaido's "Chitose Solar Power Plant," Japan's first solar-ESS linked renewable power plant. Since then, it has expanded its business base centered on the Tokyo metropolitan area by winning nearly half of the Tokyo metropolitan subsidies-linked ESS projects in 2024, and in April last year secured the Miyagi "Watari ESS Project," a 36 billion won project with 20 megawatts (MW) of PCS and 90 megawatt-hours (MWh) of batteries, and in November won 19 billion won in the ESS system integration (SI) segment, which involves integrated supply of project development and power equipment such as PCS, steadily increasing revenue.
Japan's ESS market is growing rapidly on the back of expanding renewable energy and rising demand for grid stabilization. The market size is projected to grow from $343.6 million (about 497.9 billion won) in 2024 to about $1.09649 billion (about 1.5888 trillion won) in 2030.
An LS ELECTRIC official said, "Recording the largest order performance by Korea-based corporations in Japan, a major global ESS market, is the result of comprehensive recognition of our technology, business capabilities, and localization strategy," adding, "We will not only expand our business in Japan with customized solutions, but also accelerate our push into overseas ESS markets, including the United States and Europe."