
Plan to expand global ESS output by 1,000 MW by 2030
AI-generated summary
As concerns over oil and gas supply and demand increase due to political instability in the Middle East, major Japanese companies are actively engaging in large-scale energy storage system (ESS) projects to stabilize power supply and demand. Last May, Sumitomo Corporation participated by investing a 25% stake in five ESS projects promoted by Gresham House, the UK's largest energy storage (ESS) specialist company.
As concerns over oil and gas supply and demand increase due to political instability in the Middle East, major Japanese companies are actively engaging in large-scale energy storage system (ESS) projects to stabilize power supply and demand.
According to the Yomiuri Shimbun on the 4th, Sumitomo Corporation participated in five ESS projects promoted by Gresham House, the UK's largest energy storage (ESS) specialist company, last May by investing 25% of the shares.
The total output of this project, which has a total investment of close to 100 billion yen (about 850 billion won), is about 700 megawatts (MW), which is enough to supply electricity to about 1.75 million households for several hours.
Sumitomo Corporation plans to increase global ESS output, including Japan and the UK, to 1,000 MW by 2030.
As Asian countries such as Korea and the Philippines, which are highly dependent on Middle Eastern crude oil due to the recent Iran crisis, rush to introduce new and renewable energy, demand for ESS is expected to increase even more rapidly.
In response to this, Itochu Corporation is expanding the market with a model that maximizes power trading profits by not only constructing ESS but also predicting power supply and demand and weather conditions using artificial intelligence (AI).
According to Sumitomo Corporation, the United States, the United Kingdom, and Australia have ESS facilities that account for about 10% of their total renewable energy power generation capacity, while Japan's capacity is still only around 1% and is considered to have great room for growth.
However, some point out that there is a risk that profits may not meet expectations due to overheating competition due to the increase in participating companies in this field and falling market transaction prices.
AI outlook — possibilities, not facts
Sumitomo Corporation will expand global ESS output, including Japan and the UK, to 1,000 MW by 2030.
Likely · Within years
If political instability in the Middle East continues, demand for ESS from Asian countries such as Korea and the Philippines will increase more rapidly.
Likely · Within years

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