TEPCO and Daiwa House Industry Co., Ltd. signed a business alliance agreement pertaining to the co-development of the grid-connected battery storage station.

Tokyo Electric Power Company Holdings, (Head Office: Chiyoda-ku, Tokyo; President: Tomoaki Kobayakawa; hereinafter referred to as, “TEPCO HD”) and Daiwa House Industry Co., Ltd. (Head Office: Osaka City, Osaka; Representative Director and President: Hirotsugu Otomo; hereinafter referred to as, “Daiwa House”) signed a business alliance agreement pertaining to the co-development of the grid-connected battery storage station.

In recent years, having the ability to balance power supply and demand for stability has become more important with increases in output fluctuations and curtailment caused by the expanded adoption of renewable energies. Furthermore, the Ministry of Economy, Trade and Industry’s “Battery and Power Industry Strategy” announced in June this year puts forth the goal of tripling the storage battery-related revenue of Japanese companies over the next 10 years, by 2035, thereby positioning storage batteries as a future growth industry and creating heightened expectations for the growth of related markets. Under this situation, both companies seek to promote the development of assets that can be stably operated over the long-term in locations suitable for storage batteries, and build infrastructure that can effectively leverage renewable energies and provide a stable supply of power by combining the TEPCO Group’s knowledge about the procurement of storage batteries and the operation of storage battery stations with the know-how of Daiwa House pertaining to land development and construction.

With the target of developing the grid-connected battery storage station with a combined output of 1GW (1,000MW) and a capacity of 4GWh (4,000MWh)-scale throughout the nation by 2035, Daiwa House will be in charge of acquiring/developing the premises, and designing/constructing the facilities, while the TEPCO Group will procure the storage batteries, performing the electrical construction, and maintaining and operating the facilities. Management of the battery storage stations shall be handled by TEPCO Energy Partner, Inc., which can engage in market transactions and has a plenty and extensive experience cultivated over many years with balancing power supply and demand. During the development of each battery storage station, allowing investment by outside investors
is being considered and we plan to own the battery storage stations through a special purpose company established for that purpose.
Grid-connected battery storage station has been positioned as a growth industry by both companies that seek to contribute in the long run to stabilizing power supply and demand, and achieving a carbon neutral society by engaging in more projects that leverage our strengths.