ITOCHU and Kyudenko to Add 12-MW Battery to Saga-Ouchi Solar Plant in FIP Shift

Japanese conglomerate ITOCHU Corporation (TYO:8001) is partnering with Kyudenko Corporation (TYO:1959) to install a 12-MW/49.35-MWh battery energy storage system at their jointly owned 17-MW Saga-Ouchi solar power plant, as part of a project to shift the facility from a feed-in tariff (FIT) scheme to a feed-in premium (FIP) model.

Announced on Monday, the initiative aims to enhance the plant's profitability by allowing it to sell electricity at market rates with an added premium, made possible under Japan’s FIP framework. The addition of the battery system is expected to optimize energy management and revenue generation from the plant.

Under the plan, ITOCHU will handle the sourcing of competitive battery storage systems, while Kyudenko will lead the engineering, procurement, and construction (EPC) work.

The Saga-Ouchi solar facility began operations in 2024 and is equally owned by ITOCHU and Kyudenko. Its electricity output is currently being sold to Kyushu Electric Power Co. under a 20-year agreement.