Tesla is set to expand its virtual power plant (VPP) operations across Japan, partnering with local firms to install Powerwall home battery systems for commercial clients at no upfront cost. The move builds on the success of Tesla’s 2021 pilot project in Miyakojima and marks a significant step toward grid modernization in the country.
Under a new agreement, Powerwall batteries will be deployed at offices and factories within Global Engineering’s electricity service network. The batteries will be owned by Fuyo General Lease, while Global Engineering will manage the customer relationships and energy optimization services.
The first phase of the national expansion aims to install 100 units by the end of 2025, with initial deployments starting in June, according to a report by Nikkei Asia.
Tesla’s VPP model enables Powerwall owners to charge their batteries during periods of low demand and discharge them when grid demand peaks. This load-balancing capability reduces pressure on the power grid, enhances resilience during emergencies, and improves energy cost efficiency for end users.
The Japanese government is expected to introduce a new regulatory framework in 2026 that would allow the trading of electricity stored in residential and commercial batteries. The development could provide further momentum for the VPP model and open new opportunities for distributed energy systems.