Tesla appears to be making a play for Japan’s energy sector, with recent reports stating that the company is looking to provide local power companies with large battery storage and energy management systems. Both Tesla’s giant batteries and energy software have the potential to support the country’s shift to renewable energy. 

The initiative was initially reported by Nikkei, though the noted Japanese newspaper did not cite its sources. As per the newspaper, Tesla would be starting its foray into Japan’s energy sector by delivering batteries for an energy storage project in Hokkaido. The installation would be a 6 MW system, and it would be capable of meeting the energy needs of about 500 households in the area. 

The Tesla Hokkaido project would be overseen by Global Engineering Company, and according to a representative of the company, the massive battery system is expected to begin operations next year. 

Tesla’s foray into Japan comes as the country is pushing its efforts to increase its reliance on renewable energy. So far, solar, wind, hydropower, and other renewables make up about a fifth of the country’s power generation. Japan is aiming to have renewables account for a third of its power generation within the coming decade. 

Tesla, for its part, has remained silent about its battery storage push in Japan. 

While the company is still severely cell-constrained, Tesla’s Energy division is still growing at a fairly rapid rate. A serious push for the installation of grid-scale batteries is also underway in the United States, for example, with the Moss Landing Megapack farm being expanded to a capacity of 400 MW/1,600 MWh. A Tesla subsidiary is in the process of setting up a 100 MW battery storage installation in Texas as well. 

Tesla has also set up its batteries in Japan in the past. Back in 2019, Tesla completed the installation of some Powerpack batteries in Osaka. The installation was set up to provide emergency backup power to trains in the area.