The Japanese branch of HD Renewable Energy has successfully secured two bids for Japan’s long-term decarbonized energy storage system capacity market, with a total capacity of 73MW. This achievement marks HD Renewable Energy as the first Taiwanese company to enter this crucial market. The bidding process, part of Japan’s initiative to support decarbonization, saw a total bid volume of over 5GW, with only 1.09GW awarded. HD Renewable Energy’s winning bid includes energy storage device capacities totaling 97.9MW, with project sites in Kinki Mie and Kyushu Fukuoka, expected to be operational by 2027.
General Manager Chou Shih-Chang highlighted HD Renewable Energy’s ambitious goal of establishing a 1.5GW energy storage system in Japan within three years, requiring an estimated capital expenditure of NT$50 billion. The company’s participation in Japan’s inaugural long-term decarbonization capacity market tender, securing 73MW, confirms 20 years of subsidy support from the Japanese government.
Japan’s energy market comprises three segments: frequency regulation, spot, and capacity. Chou explained that HD Renewable Energy plans to use AI optimization models to predict and strategize energy trading, ensuring maximum profitability by analyzing various factors such as regional differences, trading markets, and commodities.
HD Renewable Energy aims to position itself as a leading smart power company, targeting international power markets starting with Japan and Australia. The company plans to leverage its competitive edge in green energy to develop a Virtual Power Plant (VPP), integrating supply and demand using TITAN software and hardware services to create a robust power wholesale and retail business.
Chou emphasized the importance of AI and big data in managing energy market variables. He cited an incident in Australia where a power tower collapse caused spot market prices to surge to NT$300 per kilowatt hour, underscoring the need for sophisticated analysis of power generation, consumption, weather, and other factors to maximize revenue.
In line with global net-zero carbon emission trends, Japan launched a long-term decarbonized power supply development plan in 2023, including capacity market bids for generator sets and energy storage systems. Winners must go online within a specified period and are eligible for 20 years of government subsidies. To meet the demands of a high-renewable energy future, energy storage systems must provide at least three hours of service daily, ensuring flexible dispatch resources for the power market.
