Renova plans to make the final investment decision on three grid-scale battery storage projects totaling 215MW awarded in the first long-term decarbonization auction within FY2024 (by March 31, 2025), the company disclosed in its quarterly presentation on February 7, 2025.
The three projects include a 90MW project in Tomakomai City and a 50MW project in Shiraoi Town, both in Hokkaido, alongside a 75MW project in Mori Town, Shizuoka Prefecture.
According to the presentation, the projects are in the “final stages of discussions with battery manufactures, EPC contractors, financial institutions, etc.” Based on the current plan, Renova plans to begin construction of all three projects in FY2026 with commissioning planned for FY2028. While currently it owns 39% of the projects, after their completion, it plans to increase its stake in each project to approximately 90%.
Once the assets’ long-term decarbonization auction capacity contracts come into effect in FY2029, Renova is expecting the three projects to generate approximately 2.5 to 3.0 billion yen in EBITDA and 1.0 to 1.5 billion yen in operating profit per year.
In addition to the three projects under development, Renova also owns a 22% stake in the under construction 15MW/48MWh Himeji Power Storage Station, which is expected to start commercial operation in October 2025. The project majority-owned by Idemitsu was Renova’s first foray into the BESS business.
