KS Energy Co., Ltd. and Hitachi, Ltd. have announced a collaboration to develop an Extra-High Voltage Grid Battery Energy Storage System in Kumamoto Prefecture, aiming to enhance power stability in the Kyushu region. This joint initiative is designed to support the area's transition towards carbon neutrality.
The planned energy storage system is expected to have a rated output of 50,000 kW and a capacity of 112,880 kWh, with operations slated to begin in January 2029. This project marks a significant milestone as the first instance of a bank subsidiary renewable energy business engaging in an extra-high voltage grid-connected energy storage in Japan.
Hitachi will provide project development support, leveraging its extensive experience with battery energy storage systems and collaborating with KS Energy in project management efforts. This includes connections with various stakeholders for grid connections and relevant regulatory procedures.
The partnership will also explore power trading opportunities. KS Energy aims to implement Hitachi's forthcoming power trading support system, enabling better energy resource utilization. This system will use Hitachi's Lumada 3.0 AI technologies, enhancing trading efficiency by optimizing storage battery asset management.
The initiative responds to fluctuating renewable energy generation, aggravated by weather changes that challenge the power supply-demand balance. With Kyushu's advancing renewable energy adoption, this project seeks to address the frequent output curtailments in the region.
In shifting from the Feed-in Tariff to the Feed-in Premium system, power generators must develop their electricity trading capabilities. Aggregators, responsible for consolidating and controlling energy resources, play a crucial role in this change. They help stabilize energy supply and promote the efficient use of renewable sources within local communities.
Through this collaboration, both companies aim to mainstream renewable energy as a primary power source and achieve stable power supply, contributing to regional carbon neutrality. The support from Higo Bank, Ltd., which established KS Energy in January 2024, underscores the financial sector's evolving role in renewable energy projects.
As the power sector continues to evolve, KS Energy and Hitachi's collaborative efforts highlight the potential for innovative solutions to drive both economic and environmental progress in regional energy systems.
