Sumitomo Corporation (Head Office: Chiyoda-ku, Tokyo; Representative Director, President and Chief Executive Officer: Shingo Ueno; "Sumitomo Corporation"), through BS Holdings Co. Ltd. ("BS Holdings"*1), is developing a grid-scale battery energy storage system ("the Storage Facility") in Namie, Fukushima Prefecture, with a rated output of 62 MW and a storage capacity of 291 MWh. Sumitomo Corporation has arranged project financing with MUFG Bank Ltd. serving as lead arranger and will now begin construction of the Storage Facility. The project was selected as part of the Long-Term Decarbonization Power Source Auction*2, which was launched in 2024, and commercial operations are scheduled to begin in 2029. By leveraging the Sumitomo Corporation Group's expertise in battery energy storage and digital technologies, the Storage Facility will support the further adoption of renewable energy in the region, help stabilize the power grid, and contribute to the realization of carbon neutrality.
Growing Demand for Grid-Scale Battery Energy Storage
The amount of electricity generated by renewable energy sources such as solar and wind varies depending on weather and other natural conditions, meaning that electricity is not always available when it is needed. While the adoption of renewable energy is expanding in the Tohoku region, output may be curtailed when electricity supply exceeds demand. Battery energy storage systems are therefore expected to play an increasingly important role in balancing electricity supply and demand. To make more effective use of valuable renewable energy, battery charging and discharging are expected to be deployed flexibly, in coordination with power utilities responsible for operating the grid, to help achieve the supply/demand balance. Under a partnership agreement with the Namie Town, Sumitomo Corporation has worked with the town government on community development and improvements around Namie Station. With the town's support, the Company has also pursued locally rooted initiatives, including a battery storage project for on-site renewable energy consumption. In addition to these initiatives, the development of the Storage Facility will support the further adoption of renewable energy in the surrounding region, contribute to a stable electricity supply, and help promote the sustainable development of Namie.
Sumitomo Corporation's Battery Energy Storage Business
Sumitomo Corporation has accumulated experience in developing and operating battery energy storage businesses across Japan, including a grid-scale battery energy storage demonstration project on the Koshiki Islands in Satsumasendai, Kagoshima Prefecture, and an EV Battery Station project in Chitose, Hokkaido. Including projects currently under construction, Sumitomo Corporation is involved in a total of 9 battery energy storage projects with a combined output of approximately 200 MW.
Drawing on the expertise it has developed in the construction and operation of battery energy storage facilities, Sumitomo Corporation will accelerate the expansion of its battery energy storage portfolio in Japan. In addition, it will further develop energy management businesses that utilize battery storage. By deepening collaboration with local communities and other stakeholders, the Company will contribute to sustainable development in each region and greater power grid stability as it works toward the realization of a decarbonized society.
*1: A wholly owned subsidiary of Sumitomo Corporation that owns battery energy storage assets.
*2: A government-led auction scheme in Japan designed to promote new investments in decarbonized power sources, such as renewable energy and battery storage systems, by enabling project operators to secure long-term revenue visibility.
Project Overview
| Location | : | Namie, Fukushima Prefecture |
| Project company | : | Namie Battery Storage LLC |
| Investor | : | Sumitomo Corporation (through BS Holdings): 100% |
| Rated output | : | 62 MW |
| Storage capacity | : | 291 MWh |
| Commercial operations | : | 2029 (scheduled) |
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