Monthly Report

Energy Power to enter grid-scale BESS business, acquire two 1.98MW/8.23MWh projects for 1.6B yen

November 27, 2024
Energy Power BESS
Both of Energy Power’s first two BESS projects will be 1.98MW/8.23MWh. (Image: Energy Power)

Energy Power will enter the grid-scale BESS business, the company’s Board of Directors resolved on November 27, 2024. The plans to commission its first two projects projects during its fiscal year 2025, which ends on August 31, 2026.

Both of the projects Energy Power decided to acquire will be built in Hyogo Prefecture in the Kansai TSO area and have 1.979MW power capacity and 8.226MWh energy capacity. One will be in Asago City while the other in Tamba City. Construction on the projects is expected to start in February 2025 and last until June of the same year.

The Asago Mega Power Storage Plant, which Energy Power will acquire for approximately 809 million yen, will sit on a 1,151 square meter site and its engineering, procurement, and construction (EPC) will be handled by East Engineering. The Tamba Mega Power Storage Plant will be acquired for approximately 800 million yen, sit on a 1,787 square meter site, and be constructed by BS POWER.

To finance a portion of the projects, Energy Power secured two loans. The larger of the two facilities is a 600 million yen term loan at TIBOR+1.5% from The Kiyo Bank, to be repaid over 17 years after the loan’s commitment period ends on October 31, 2025. The smaller one is a 148 million yen 17-year loan at 1.4% until November 27, 2026, and 1.9% thereafter from Japan Finance Corporation, that is expected to be executed on November 29, 2024.

Energy Power will use the assets for trading power in the wholesale, balancing, and capacity markets through an aggregator, the selection of which the company has likely not finalized yet. It follows numerous other companies that have announced investments in the BESS business, which is expected to grow amid an increasing non-dispatchable renewable capacity coming online in Japan.

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