JALCO Holdings agreed to take a 24.5% economic interest in Japan Power Storage 1 LLC, a special purpose company (SPC) affiliated with Taoke Energy, via a TK-GK (silent partnership) structure on June 30, 2026.
According to a statement issued on the same day, the SPC owns six 2MW/8MWh grid-scale battery storage projects, including four that have already been connected to the grid (two in the Chubu area and one each in Tohoku and Tokyo areas) and two that are under construction (both in the Chubu area).
“The SPC’s main revenue source will be balancing services,” JALCO Holdings said, adding that wholesale market arbitrage and participation in the capacity market will provide complementary income opportunities. Taoke Energy will handle the projects’ operation and maintenance (O&M), its affiliate Power Pool will aggregate them, and Compass Asset Management will be in charge of asset management.
JALCO Holdings did not disclose the exact amount it invested but said that it issued 1 billion yen in unsecured bonds to a firm wholly-owned by its representative director to fund the transaction. Power Pool, which owned the projects through a separate SPC before their transfer to Japan Power Storage 1, previously announced the total investment in the SPC would be about 4.5 billion yen, valuing the stake at approximately 1.1 billion yen.
The company estimates the portfolio could generate an annual EBITDA of approximately 1.51 billion yen, assuming revenues of 360 million yen per asset and 30% operation and maintenance (O&M), aggregation, and other operating expenses. The fund size disclosed by Power Pool suggests an expected capital recovery period of approximately three years.
Power Pool announced the launch of the SPC in March 2026. Other known investors in the vehicle include Taoke Energy, which holds a 20% stake, and Kuradashi, which took a 13.37% interest for 600 million yen.
The TSE Standard-listed JALCO Holdings has focused on pachinko-related real estate prior to its expansion into grid-scale battery storage. In addition to the newly acquired stake in Japan Power Storage 1, the company is also building a wholly-owned 2MW/8MWh asset in Chiba Prefecture and holds 70% economic interest in two planned 2MW projects in Oita Prefecture with energy capacities of 8MWh and 10MWh, respectively.
