Market Overview

The renewable energy O&M market in FY2024 is projected to be 1,210,000 million yen. As the installation of renewable energy power plants continues to expand, the significance of the operation and maintenance (O&M) of these facilities is on the rise. Furthermore, there is a heightened demand for O&M for the progressively adopted grid-scale battery storage systems that seek to stabilize power supply from renewable energy sources such as photovoltaic power plants and wind farms, which are susceptible to substantial output fluctuations.

In view of the O&M market in FY2024 by energy facility, biomass power plants constituted the largest share, followed by photovoltaic plants, hydropower plants, wind farms, and grid-scale battery storage systems, in the descending order. The prominence of biomass power plant share is due to the fact that, in comparison to other renewable energy facilities, the operational and maintenance costs are currently higher for biomass power plants.

Noteworthy Topics

Trends of Grid-Scale Battery Storage Systems O&M Market

Coupled with the rise in renewable energy installations in recent years, there exists an escalating necessity for energy storage systems (ESS) that are designed to stabilize fluctuations in power supply and maintain supply-demand equilibrium. Grid-scale battery storage system is one of the ESSs that aims to stabilize power grid operation and supply-demand balance by responding flexibly to fluctuations in renewable energy supply, particularly indispensable in photovoltaic output and wind power output, which are impacted by weather conditions and operation hours. Against the background, the number of grid-scale battery storage system installments is increasing rapidly and is projected to expand further hereafter.

The size of grid-scale battery storage system O&M market in FY2024 is estimated at 4,600 million yen. Along with the expanding installation of grid-scale battery storage systems, the demand for O&M for grid-scale battery storage system is expected to increase two-fold compared to the preceding fiscal year.

Future Outlook

The renewable energy O&M market is forecasted to reach 1,526,500 million yen by FY2030. Compared to the market situation in FY2024, growth appears promising in the domains of grid-scale battery storage systems and wind farms. The grid-scale battery storage systems O&M market is anticipated to generate 27,200 million yen by FY2030. In light of substantial increases in the installation of grid-scale battery storage systems, the market is expected to expand five-fold relative to FY2024. In the wind power O&M market, there will be a significant rise in demand for O&M for offshore wind farms. The proportion of O&M for offshore wind farms in relation to the total of O&M for wind farms is projected to increase from 5% in FY2024 to 20% by FY2030. Furthermore, within the photovoltaic power O&M market, the demand for O&M services is expected to rise for facilities that do not enroll in the Feed-in Tariff (FIT) program, including photovoltaic panel intended for self-consumption and photovoltaic farms designated for Power Purchase Agreement (PPA)*.


*A Power Purchase Agreement (PPA) denotes an electricity supply agreement between a power producer (an entity that invests in a renewable energy generation facility, which oversees, operates, and maintains the installed facility) and a demander, which ensures the provision of electricity at a predetermined price for an extended duration. Because the power generation facility is run by a third party rather than a demander, it is referred to as a third-party possession model. The PPA typically extends for as long as 20 years, and throughout this period, a demander pays fixed prices for both electricity supply and environmental value.

Research Outline