On February 28, 2025, Renova secured funding for three grid-scale battery storage projects with a total power capacity of 215MW it was awarded in Japan’s first long-term decarbonization auction, the company said on March 3, 2025.
According to the statement, project finance for the three assets was arranged by MUFG Bank. The company did not provide further details including other participants in the loan facility and the amount.
Renova disclosed the ownership breakdown of R2 Chikudensho, the special purpose company (SPC) owning the three projects. In addition to its 39% share, Japan Green Investment Corporation for Carbon Neutrality (JICN) and SMFL Mirai Partners own 24% each, Kuribayashi & Company owns 10%, and Matsui Corporation owns 3%.
Based on a memorandum of understanding signed with JICN and SMFL Mira Partners, Renova will have the option to acquire the two companies’ stakes in the SPC once the assets’ capacity contracts awarded in the long-term decarbonization auction come into effect, which is currently planned for April 2029. If it exercises that option, it will own 87% of the projects.
Construction of the assets is expected to begin in FY2026 with commissioning planned for FY2028.
The projects include a 90MW facility in Tomakomai City and a 50MW facility in Shiraoi Town, both Hokkaido, and a 75MW facility in Mori Town, Shizuoka Prefecture. They are three of the 30 BESS projects awarded in Japan’s first long-term decarbonization auction, accounting for approximately 15% of the total awarded BESS capacity (166MW of 1.1GW, adjusted for derating factors).
