Tensor Energy and KS Energy Co., Ltd. of the Higo Bank Group Collaborate on Aggregation of FIP-Attached Batteries (DC Link Method)

Tensor Energy Co., Ltd. (Headquarters: Chuo-ku, Fukuoka City, Representative Director: Nana Hori, Carlos Vincent Filter / hereinafter referred to as "Tensor Energy") is pleased to announce that it has been entrusted with aggregation services for the FIP (Feed-in Premium)※1 conversion and battery storage co-location project (hereinafter referred to as "this Project") for low-voltage FIT solar power plants promoted by KS Energy Co., Ltd. (hereinafter referred to as "KS Energy") in Miyazaki Prefecture. KS Energy is a wholly-owned subsidiary of Higo Bank and is engaged in renewable energy services such as solar power generation, PPA business, and battery storage business.

Tensor Energy, KS Energy Co., Ltd. of the Higo Bank Group Collaborate on Aggregation of FIP-Attached Batteries (DC Link Method)

Background and Objectives of This Project

In the Kyushu region, where the introduction of renewable energy is progressing, output control has already become commonplace and is expected to increase in the future. Against this business backdrop, KS Energy has decided to convert its nine low-voltage FIT power sources, which it owns and operates in Miyazaki Prefecture, to the FIP system (FIP conversion) and add battery storage using the DC link※2 method to improve profitability. The introduction of battery storage using the DC link method for FIP conversion of low-voltage power sources is a pioneering initiative in Japan※3. This project aims to enhance profitability by optimizing the operation under the FIP system, including the optimal control of battery storage co-located with solar power generation (DC link method), based on market price signals.

※1 A system in which a premium (subsidy amount) is added to the selling price when a renewable energy power producer sells electricity to the wholesale electricity market such as JEPX.

※2 A configuration where solar power generation (PV) and battery storage are connected on the direct current (DC) side, and grid connection is achieved with a single PCS (power conditioner). It offers advantages such as reduced conversion loss and lower equipment costs.

※3 According to our research.

Aggregation Services Provided by Tensor Energy

Under the FIP system, in addition to responding to the risk of fluctuations in wholesale electricity market prices, the accuracy of generation plans and imbalance management significantly impact revenue. Furthermore, when introducing battery storage, the formulation and real-time control of advanced charging and discharging plans that combine solar power generation forecasts and market price forecasts are essential.

Therefore, Tensor Energy's aggregation services were selected as a means to achieve such advanced operations at low cost and in a timely manner.

Tensor Energy will provide aggregation services to KS Energy using the aggregator operation system, Tensor Cloud, developed and provided by our company, including the following:

・ Accurate generation output forecasts using AI models optimized for each power plant.

・ Wholesale electricity market price forecasts.

・ Development of optimal operation plans based on generation output and market prices.

・ Submission of generation plans, performance management, and imbalance settlement.

・ Real-time control of battery storage.

This project marks the first DC link method support for optimal battery storage operation using Tensor Cloud.

Future Outlook

Tensor Energ