Commencement of Construction for Grid-Scale Battery Storage Stations in Nagano Prefecture

Sumitomo Mitsui Finance and Leasing Company, Limited (President and CEO: Tetsuro Imaeda, hereinafter 'SMFL') announces that its strategic subsidiary SMFL Mirai Partners Co., Ltd. (President and CEO: Akira Ueda, hereinafter 'SMFL Mirai Partners') has established the limited liability company OPTIRON Hokushin through a joint investment with Fujimaki Construction Co., Ltd. (President: Atsushi Fujimaki, hereinafter 'Fujimaki Construction') and Toshiba Plant Systems & Services Corporation (President: Takao Konishi, hereinafter 'Toshiba Plant Systems'), and has commenced construction to start the grid-scale battery storage business (hereinafter 'this business').

This business involves the construction of new battery storage stations at two locations: in Shimotakai District, Nagano Prefecture (Kijimadaira Storage Station) and in Iiyama City, Nagano Prefecture (Hasu Storage Station). The Kijimadaira Storage Station has an output of approximately 52MW and a capacity of approximately 160MWh, with construction commencing in June 2026. The Hasu Storage Station has an output of approximately 32MW and a capacity of approximately 90MWh, with construction scheduled to commence in August 2026. Both stations are expected to begin operation in fiscal 2028.

In this collaboration, the project sites were selected in 2023, and project development has been carried out over approximately three years. In March 2026, the three companies concluded EPC contracts and other project-related contracts, as well as loan-related contracts for non-recourse project finance. SMFL Mirai Partners handles connection study applications, procurement support for non-recourse project finance, and SPC management as asset manager. Fujimaki Construction supports securing of land rights, community consensus building, government discussions, and civil engineering design including ground surveys. Toshiba Plant Systems supports applications to power companies and various technical consultations.

This business is a market-based operation that directly connects grid-scale storage batteries to the transmission and distribution network, charging and discharging in various electricity markets depending on the time of day. By providing adjustment functions to stabilize the supply of renewable energy, which fluctuates with weather and time, it contributes to the stabilization of the power grid and the expansion of renewable energy introduction.

The SMFL Group offers financing services for capital investment in renewable energy and energy-saving equipment, supply of CO2-free electricity through renewable energy businesses such as solar, wind, hydro, and biomass, and subsidy support services for decarbonization. Going forward, the Group aims to realize a sustainable society by providing one-stop solutions to support customers' decarbonization management.