Renova, Inc. (Chuo-ku, Tokyo; President and CEO Yosuke Kinami; hereinafter referred to as "the Company") announced today that its consolidated subsidiary, R1 Battery Storage LLC, has signed a loan agreement for project finance amounting to approximately 6 billion yen for the "Kikugawa Nishimura Battery Storage Facility (planned output 90MW, planned capacity 270MWh)" currently under development in Kikugawa City, Shizuoka Prefecture. Against the backdrop of the recent proliferation of AI leading to the new establishment and expansion of data centers and other facilities, future electricity demand is expected to increase, making the securing of stable, CO2-free power sources an urgent issue. This project is an advanced example of establishing large-scale project finance for a "market sales type"*1 storage battery business that contributes to the stabilization of the power grid by participating in markets such as the supply-demand adjustment market, without relying on subsidies or the Feed-in Tariff (FIT) system. In 2023, the Company achieved project finance for the Himeji Battery Storage Facility (planned output 15MW, planned capacity 48MWh), which was the first in Japan for a market sales type storage battery business. Leveraging the financing capabilities cultivated at that time, we have now successfully arranged financing for this project, which will be the largest in Japan. *1 Market Sales Type: A business model that secures revenue by providing "ancillary services" and "capacity" in markets such as the "Supply-Demand Adjustment Market" and the "Capacity Market," without relying on government price guarantees (like the FIT system) or long-term fixed-price contracts with specific counterparties. ■ Four Features of This Project 1. Development of Japan's Largest Scale Infrastructure (90MW/270MWh) as a Market Sales Type Facility This project boasts Japan's largest scale of 90MW/270MWh as a "market sales type" storage battery facility that flexibly accesses multiple markets, including the supply-demand adjustment market and the capacity market, without being tied to specific contracts. By providing large-scale ancillary services, it will play a central role as "energy infrastructure" supporting the next generation of power grids. 2. Achievement of High "Cost Competitiveness" through Scale and In-house Operations This project leverages the economies of scale of Japan's largest project to reduce the project cost per MW. Furthermore, by internalizing the operation of the storage battery facility and utilizing the expertise in optimal operation cultivated in-house, we aim not only to suppress operating costs but also to maximize revenue through agile operations that respond to market conditions. With an eye on intensifying competition among storage battery facilities in the future, we are building a robust business foundation that combines sustainable revenue generation with a competitive advantage. 3. High Reliability Based on Track Record in Battery Storage Project Finance This project has established an advanced financing scheme for a large-scale battery storage project in Japan. The fact that SBI Shinsei Bank, Ltd. has highly evaluated the stability and future prospects of the business for our sophisticated market-linked operation model demonstrates our strong fundraising capabilities. 4. Contribution to Effective Utilization of Renewable Energy and Stabilization of Power Supply By providing "ancillary services" that suppress output curtailment of renewable energy and utilize electricity without waste, we contribute to alleviating power supply-demand tightness. Furthermore, through active participation in the "Supply-Demand Adjustment Market," which maintains a constant quality of electricity, and the "Capacity Market," which secures future supply capacity, we fulfill our responsibilities as an infrastructure provider to reduce overall electricity costs and ensure stable supply for society. With this investment decision, the Company's storage battery business (including operations and commencement of construction) has reached 352MW. This represents a significant step, accounting for approximately 40% of the target of "a cumulative total of 900MW by 2030" set in our medium-term management plan. Guided by our mission to "build a green and self-sustaining energy system," Renova will continue to accelerate investments and contribute to the realization of a sustainable society by building the foundation for next-generation energy infrastructure. [Kikugawa Nishimura Battery Storage Facility - Construction Site]

【Supplement】For details regarding this matter (financial impact, contract specifics, etc.), please refer to the "Announcement of Loan-Related Agreement for Our Battery Storage Business" published today (March 31st) as a timely disclosure.

Overview of Kikugawa Nishimura Battery Storage Facility Business Entity R1 Battery Storage LLC Construction Site Kato, Kikugawa City, Shizuoka Prefecture Planned Output / Planned Capacity 90MW / 270MWh Scheduled Start of Construction FY2025 Scheduled Start of Operation FY2028 (Planned) Investing Companies Renova, Inc. NCS RE Capital Co., Ltd. SMFL Mirai Partners Co., Ltd.

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  • Source: PR TIMES
  • Category: Funding