KS Energy Co., Ltd., a renewable energy business company, and Hitachi, Ltd. have agreed to collaborate on the development and operation of an Extra-High Voltage Grid Battery Energy Storage System in Kumamoto Prefecture, along with the joint development of power trading businesses. The agreement was reached on February 6.
Under the collaboration, Hitachi will provide comprehensive project development support for KS Energy’s battery energy storage initiative and jointly promote the development and operation of the storage facility. KS Energy is also considering the adoption of a power trading support system currently under development by Hitachi to strengthen its electricity market operations. The initiative is expected to support a stable power supply in the Kyushu region and contribute to the achievement of carbon neutrality.
Addressing renewable energy variability in Kyushu
The output of renewable energies changes significantly depending on meteorological conditions. In balancing supply and demand of electricity, various frictions arise. In Kyushu, where the penetration of renewable energies is rapidly increasing, the curtailment of power generation is now frequently caused in a situation of excessive supply against demand. Ensuring adequate balancing power to stabilize the grid has therefore become a critical priority.
In addition, as Japan transitions from the Feed-in Tariff (FIT) scheme to the Feed-in Premium (FIP) system, power generators are increasingly required to develop their own power trading capabilities. Against this backdrop, the role of “aggregators” that manage and optimize distributed energy resources is gaining importance.
KS Energy, incorporated in January 2024 and wholly owned by Higo Bank, Ltd., a member of the Kyushu Financial Group, aspires to contribute to the stability of the regional energy supply by positioning the Kyushu region as a prime renewable energy circulation zone. Hitachi’s established power business has developed advanced capabilities in the field of energy realms, including energy storage, transmission, distribution, and protection technologies.
Key initiative details
Nation’s first regional bank-led extra-high voltage BESS project:
This marks the first time in Japan that a renewable energy company backed by a regional bank group is undertaking a grid-connected battery energy storage project in the extra-high voltage range.
End-to-end project development support:
Hitachi will support the project from early-stage development through operation, including grid connection coordination, regulatory procedures, feasibility assessments, supply of Hitachi Energy-manufactured power conditioning systems (PCS), and overall project management.
Power trading and aggregation collaboration:
KS Energy plans to manage power trading in-house, covering forecasting, charge-discharge planning, facility control, and market monetization. The company is also evaluating Hitachi’s power trading support system under its Lumada 3.0 initiative and “HMAX by Hitachi,” which combines AI and domain expertise to optimize asset operations and market value.
Through the joint development of battery energy storage systems and enhanced aggregation and power trading capabilities, KS Energy and Hitachi aim to enable stable, large-scale integration of renewable energy and support the realization of regional carbon neutrality across the Kyushu region.
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