Participation in a Grid Battery Storage Project in Kitahiroshima City, Hokkaido, Japan

Mar. 18, 2024
Marubeni Corporation

Marubeni Corporation (hereinafter, “Marubeni”) through its wholly-owned subsidiary, Kitahiroshima Grid Battery Storage LLC (hereinafter, the “LLC”), will participate in a grid battery storage project (hereinafter, the “Project”), by means of the construction and ownership of a grid battery storage system*1  (generation capacity 25.0MW,  storage capacity 103.7MWh) in Kitahiroshima City, Hokkaido, Japan and thereby enter the capacity*2, supply-demand adjustment*3, wholesale electricity, and related markets.

The Project is being undertaken following selection for the Sustainable open Innovation Initiative’s “FY2022 Supplementary Subsidy for Projects to Support the Adoption of Distributed Energy Sources Contributing to Greater Adoption of Renewable Energy (Projects to Support Grid Storage Battery Systems/Water Electrolysis Equipment)”, and aims to commence operations in FY2025.

External view of Project site External view of Project site

The Japanese government is promoting the adoption and dissemination of renewable energy (hereinafter, “renewables”) with the aim of achieving CO2 reduction targets, enhancing the efficiency of the entire power system including transmission and distribution systems, and ensuring a disaster-resistant energy supply. However, as the adoption of renewables such as solar and wind power progresses, the destabilization of power grids due to the influence of seasonal conditions, times of day, and weather statuses on generation capacities has become a challenge. A grid battery storage system, which can adjust the supply-demand balance by charging and discharging according to power demands, is expected to play a crucial role in stabilizing power grids and has been identified as an indispensable component in promoting the adoption of renewables.

Through the Project, Marubeni aims to contribute to the stabilization of Japan’s power grid and to expediting the adoption of renewable energy sources by leveraging the grid battery storage system to adjust the supply-demand balance, thereby contributing to the construction of sustainable social infrastructure.

*1 A battery storage system connected to and utilized within a grid system.
*2 A market designed to secure a supply capacity (kW) equivalent to future power demand, which invites the participation of power plants throughout Japan through an auction system.
*3 A market for the broad-base procurement of the adjustment capacity needed for frequency control and power balance adjustment.

Overview of the LLC
Company Name: Kitahiroshima Grid Battery Storage LLC
Location: 1-4-2 Otemachi, Chiyoda-ku, Tokyo
Establishment: 2023
Main Business: Construction, operation, supply, and sale of power through a grid battery storage system