By Andy Colthorpe
October 1, 2025
Asia & Oceania, Central & East Asia, Southeast Asia
Grid Scale
Business, Policy, Technology
Dr Mahdi Behrengrad, head of energy storage at Pacifico Energy, shares critical insights ahead of the Energy Storage Summit Asia 2025 in Manila, emphasizing practical lessons from Japan’s complex energy storage market.
Speaking on the panel Proven Storage Deployment Strategies from Singapore, Japan, and Australia, Behrengrad will highlight real-world experiences, stating, “We are all part of the same industry and sharing these kinds of learnings and pitfalls, based on real projects, rather than PowerPoints and guesses, it’s going to be very helpful in the long run.”
Pioneering Energy Storage in Japan
Pacifico Energy made history two years ago by deploying Japan’s first battery energy storage system (BESS) assets for electricity trading markets. Behrengrad underscores the importance of treating energy storage projects as infrastructure investments rather than speculative tech ventures. This approach requires deep community engagement and robust stakeholder relationships to ensure project success.
“It’s our job to make these packages so investable and so attractive as an infrastructure business and project,” he says, noting that this strategy enhances resilience against regulatory and political shifts.
Drawing on over 12 years of solar PV development in Japan, Pacifico Energy has adopted a cautious approach to energy storage, guided by the Japanese proverb, “Ishibashi wo tatai te wataru”—knocking the stones of a bridge before crossing to ensure stability.
Navigating Japan’s Complex Regulatory Landscape
Japan’s energy storage market is marked by rapid regulatory changes and volatile market dynamics. Behrengrad cites an instance where the Ministry of Economy, Trade and Industry (METI) reduced ancillary service procurement to zero in one region, highlighting the need for developers to adopt flexible business models and strong risk management strategies.
While high ancillary service prices and long-term capacity market contracts through the Long Term Decarbonization Auction (LTDA) have spurred investment, Behrengrad warns that “past price signals in Japan have absolutely nothing to do with future revenue opportunities.” He describes the market as “brutal,” with potential boom and bust cycles requiring careful navigation.
“Making money out of energy storage in Japan is a brutal job. It’s a difficult thing, and there are many, many pieces to be understood and done smartly in order to make sure you don’t fail,” he explains.
Despite these challenges, Pacifico Energy remains confident in its business case and plans to announce new projects later this year. However, Behrengrad cautions that project or technology failures could lead to reduced government support, impacting the broader industry.
Lessons for the Asia-Pacific Region
Japan’s unique challenges provide valuable insights for other Asia-Pacific markets, particularly those with heavy government involvement in energy planning. Behrengrad’s approach emphasizes:
- Treating energy storage as critical infrastructure.
- Building strong stakeholder and community relationships.
- Maintaining flexibility in rapidly changing regulatory environments.
- Developing economically viable projects to attract investment.
“It’s a small world, and we will end up working with each other, so I’m very much looking forward to in-depth discussions about how to make projects or how to de-risk the projects to be considered as an infrastructure package,” he says.
Join the Conversation at Energy Storage Summit Asia 2025
The Energy Storage Summit Asia 2025 (7-8 October) in Manila, Philippines, hosted by Solar Media, will explore these themes and more. With the Asia-Pacific region projected to account for 68% of the $10.84 billion energy storage market by 2026, the Summit brings together independent generators, policymakers, financiers, and technology providers to discuss procurement, deployment, policy, supply chains, financing, co-location, safety, and microgrids.
For more details, including the full agenda and ticketing, visit the official site. EcoBusinessNews readers and ESN Premium subscribers can enjoy special discounts.
