RENOVA, Inc. (Chuo-ku, Tokyo; Yosuke Kiminami, Founding CEO; hereinafter “RENOVA”) announces that today, through its affiliate company R6 Energy Storage Facility G.K., it executed a project finance loan agreement of approximately JPY 7.2 billion to fund the development of the Fukuroi Ugari Energy Storage Facility (projected output: 99.9 MW, projected capacity: 280 MWh) in Fukuroi City, Shizuoka Prefecture.
The project is one of the largest merchant-type^*1 energy storage facilities in Japan, following on from the Kikugawa Nishimura Energy Storage Facility (Kikugawa, Shizuoka Prefecture, 90 MW/270 MWh), announced in March 2026. The conclusion of this finance-related agreement is a good example of how RENOVA leverages not only its impressive project execution capabilities but also its proven track record in arranging finance for merchant-type energy storage facility projects and its energy storage facility operational knowhow.

 

^*1 Merchant-type: A business model that secures revenue by offering balancing authority (balancing power) and supply capacity in competitive markets—such as the Supply and Demand Balancing Market and the Capacity Market—without relying on government price guarantees (e.g., FIT schemes) or long-term fixed-price contracts with specific counterparties.

 

Key Features of the Project
1. Large-scale next-generation energy infrastructure with capacity of approx. 100 MW
This is a mega-project with a capacity of approximately 100 MW, surpassing the scale of the Kikugawa Nishimura Energy Storage Facility (90 MW/270 MWh). By combining cost competitiveness through economies of scale with advanced, in-house operational optimization expertise gained from prior projects, RENOVA will ensure sustainable profitability and maximize project value, even under an environment of intensifying future market competition.

 

2. Evidence of RENOVA’s strong capacity to finance or arrange financing to support consecutive construction starts
The quick conclusion of finance-related agreements to support consecutive construction starts is evidence of the high trust financial institutions place in RENOVA’s strong capacity to arrange financing cultivated in other projects such as the Himeji Energy Storage Facility and the Kikugawa Nishimura Energy Storage Facility projects. Including this project and another large-scale merchant-type energy storage facility (75 MW) planned during the current fiscal year, the cumulative capacity of RENOVA’s storage battery projects in operation and under construction is expected to reach 527 MW/1.6 GWh.

 

3. Stabilization of power grid through utilization of energy storage facilities in supply and demand balancing market and capacity market
The storage facility is planned to operate primarily in the Supply and Demand Balancing Market and Capacity Market. The facility will fulfill the function of adjusting the balance between supply and demand of renewable energy which fluctuates depending on the weather (balancing function) and the function of maintaining a stable supply of energy to society in future years (supply function) and will play an important part in supporting the use of renewable energy as a major power source.

 

4. In-House Market Operations and Trading
RENOVA will leverage its operational experience in the grid-scale energy storage business and, in this project as in the Kikugawa Nishimura Energy Storage Facility project (90 MW/270 MWh), RENOVA will assume responsibility for market operations. Through the in-house optimization of operations that anticipate complex market fluctuation characteristics and the long-term operation of energy storage facilities, RENOVA will support the stable operation of multiple large-scale projects and revenue maximization.
Through this latest investment decision, the cumulative capacity of RENOVA’s storage battery projects in operation and under construction will reach 452 MW/1.3 GWh. This is equivalent to around 50% of the 2030 cumulative capacity target of 900 MW set out in the Medium-term Management Plan, indicating steady progress towards achievement of the plan. In recent years, a surge in electricity demand driven by the construction of new data centers and semiconductor manufacturing plants to support the spread of AI and heightened geopolitical risks around the world including the Strait of Hormuz have made the procurement of domestically produced energy sources that will help achieve energy self-sufficiency a national priority. Given these circumstances, renewable energy sources are becoming increasingly important. Against this backdrop, alongside the development of renewable energy sources, RENOVA is driving the energy storage business, which will support the establishment of renewable energy sources as a major power source. Under its mission of “Creating green and self-sustainable energy systems,” RENOVA will continue to accelerate investment in the energy storage business, reinforce its position as a top domestic player, and contribute to the realization of a sustainable society.

 

[Fukuroi Ugari Energy Storage Facility – Rendering of the Completed Project^*2]

 

^*2 The render shown is an image generated using generative AI based on design drawings, and may differ from the actual project. In addition, the details are subject to change due to future construction, specification changes, or other factors.

 

[Note] For further details regarding the project (including financial impact and contract specifics), please refer to today’s (July 31) timely disclosure announcement titled “Notice Concerning Execution of Financing Agreements Related to Battery Energy Storage Business.”

 

 

■ Overview of the Fukuroi Ugari Energy Storage Facility

Operator	R6 Energy Storage Facility G.K.
Planned construction site	Ugari, Fukuroi City, Shizuoka Prefecture
Projected output / Projected capacity	99.9 MW / 280 MWh
Planned start of construction	FY2026
Planned start of operation	FY2029 (tentative)
Sponsors	RENOVA, Inc. NCS RE Capital Limited SMFL Mirai Partners Company, Limited