By Katya Golubkova
TOKYO (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 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)
