ORIX Corporation announced today that it has signed an agreement with Kansai Electric Power Co., Inc. (KEPCO) for the joint operation of an energy storage plant business.
ORIX and KEPCO will jointly establish Kinokawa Energy Storage LLC and begin construction of an energy storage plant in August 2022, on the premises of the Kinokawa Substation (Kinokawa, Wakayama) of Kansai Transmission and Distribution, Inc. Large-scale grid storage batteries with a rated output of 48 MW and a rated capacity of 113 MWh will be installed, with the aim of starting operations in 2024.
This project aims to stabilize the supply and demand of electricity by connecting large-scale storage batteries to the power grid, charging electricity when there is a surplus and discharging it when there is a shortage. Since storage batteries have the characteristic of being able to flexibly charge and discharge electricity, it is possible to quickly adjust supply depending on the state of electricity demand. In this project, KEPCO will primarily be responsible for the operation of the storage batteries, while ORIX will primarily be responsible for maintenance and asset management.
Renewable energy is promoted as the main source of power in order to achieve carbon neutrality in 2050. The percentage of electricity generated from renewable energy in Japan has increased from 10.4% in fiscal 2011 to 18.1% in fiscal 2019, and is expected to continue increasing in prevalence in the future. On the other hand, power generation from solar and wind power is prone to fluctuations depending on weather conditions such as the amount of sunlight and wind conditions, causing supply shortages due to insufficient power generation and excessive supply leading to output curtailment on a daily basis. Through this project, the two companies will contribute toward solving these issues, and will attempt to strengthen power system resilience.
ORIX Group will continue to expand its wide range of renewable energy businesses, including the energy storage plant business, and contribute toward both stabilizing the supply and demand of electricity and realizing a carbon-free society.
