Aquila Capital targets battery storage, more solar power in Japan

Daiwa Securities

21/06/2023 04:39

By Katya Golubkova
       TOKYO, June 21 (Reuters) - Hamburg-based investment
management company Aquila Capital plans to further expand in
solar energy in Japan and looks to add a battery storage
business, Alexander Lenz, chief executive for Aquila's Asia
Pacific region, told Reuters.
    As Japan targets to have 36%-38% of its electricity from
renewable sources by the end of this decade, part of its goal to
be carbon neutral by 2050, companies are expanding in areas from
wind and solar power to battery storage.
    "In Japan, we started with the first acquisition which is
currently under construction - a solar project - but we are now
looking forward to also focus on battery energy storage
systems," Lenz said.
    Lenz said that Aquila, in which Japan's Daiwa Securities
Group Inc  8601.T  has a 40% stake, is looking at battery
storage business not only to allocate solar power but also as
stand-alone batteries to balance power fluctuations. 
    As Asia Pacific countries, including Japan, are aggressively
expanding in renewable power, Lenz sees a great potential for
battery storage as nations need time to upgrade their grids to
rising renewable energy volumes. 
    "I strongly believe that batteries will be much more
important than everyone thinks… I think batteries have a bigger
potential in the short term (compared to solar)," he said.  
    Aquila plans to start commercial operations at its first
Japan solar project in Chiba prefecture in the third quarter of
this year. The company has also acquired a solar project in
South Korea, Lenz said, declining to provide details.
    Aquila has nearly 2 gigawatt of renewable energy capacity in
the region split between solar and wind power, as well as
battery storage business, according to Lenz.

 (Reporting by Katya Golubkova; Editing by Kim Coghill)
 ((ekaterina.golubkova@thomsonreuters.com;))