Kansai Electric Power established a grid-scale battery storage fund on March 31, 2026, raising 6.5 billion yen from 10 participating companies to invest in extra high-voltage projects, the company announced on June 16, 2026.
According to the statement, the fund, Kan-denchi Fund No. 1 Limited Partnership, plans to operate for 26 years and invest in projects developed and operated by the Kansai Electric Power Group. It targets a portfolio of about 250MW.
The fund’s three general partners include Kansai Electric Power-affiliated Kan-denchi Fund LLC, Kinden Chikudenchi Fund LLC, and MUFG Bank-affiliated MUFG Sustainable Energy. Asahi Mutual Life Insurance, Chugin Energy, JA Mitsui Leasing, JDC Corporation, Kyushu Leasing Service, The Joyo Bank, and Tokyu Construction invested as limited partners.
Completed projects are expected to operate under tolling agreements with Kansai Electric Power, with optimization handled by its subsidiary E-Flow. Operations and maintenance (O&M) will be handled by K2-BatOM, the utility’s joint venture with Kinden. The assets will be managed by Kanden Asset Management.
Kan-denchi Fund No. 1 will invest in projects through Kan-denchi LLC. The portfolio holding company, which also secured project finance from MUFG Bank, will own project-level special purpose companies (SPCs). It will be managed by Kanden Asset Management and Mitsubishi UFJ Trust and Banking. Mitsubishi UFJ Morgan Stanley Securities served as the financial advisor and private placement agent for the fund.
The scheme follows similar initiatives by West Holdings and SPARX aimed at expanding investor participation in Japan’s grid-scale battery storage market.
