Eshi BESS

About Eshi BESS

What is the size of Eshi BESS and where will it be located?

Eshi BESS is a utility-scale 150MW/600MWh lithium-ion battery energy storage system located in Eshi, Okayama Prefecture. It is one of the largest proposed BESS to date in Japan. With a proposed operational life of 20+ years, the project will provide vital flexibility to enable more renewable energy generation and increase the resilience of the electricity network in Japan.

The project is currently in development with planning and environmental studies underway.

How does the Eshi BESS operate?

Our Battery Energy Storage System (BESS) primarily operates on a charge during daytime and discharge during nighttime pattern. This site was strategically chosen in an area with abundant solar generation, allowing efficient storage of excess power during peak production hours.

The system charges during daylight hours when renewable energy sources like solar are at maximum output and then discharges in the evening through the night when solar generation is unavailable. This operational cycle significantly reduces curtailment of renewable energy while contributing to grid stability.

Furthermore, this BESS project enhances regional energy self-sufficiency and plays a vital role in accelerating the energy transition toward carbon neutrality.

What is the Long-Term Decarbonisation Power Source Auction (LTDA) and who is OCCTO?‍

The Long-Term Decarbonisation Power Source Auction (LTDA) is a mechanism introduced to promote decarbonization in Japan's power system and achieve Japan's carbon neutrality by 2050. This auction aims to encourage the development of new stable and low-carbon power sources while ensuring long-term stability of electricity supply. By providing stable revenue streams over extended periods for decarbonized power sources such as decarbonization of existing thermal power plants, renewable energy, and battery storage systems, the LTDA reduces investment risks and stimulates new development.

OCCTO stands for the Organization for Cross-regional Coordination of Transmission Operators, Japan. Established in 2015, OCCTO is an authorized corporation under the jurisdiction of the Ministry of Economy, Trade and Industry. It is responsible for coordinating the nationwide operation of Japan's power grid system. OCCTO's main functions include formulating electricity supply-demand plans, managing inter-regional transmission lines, promoting wide-area operation of power systems, and administering various mechanisms including the Long-Term Decarbonisation Power Source Auction (LTDA). OCCTO plays a crucial role in ensuring stable electricity supply and maintaining grid reliability throughout Japan.

What is the Agreement that Eku Energy was awarded by OCCTO?

We have been awarded a Capacity Agreement under the Long-Term Decarbonisation Power Source Auction (LTDA) by OCCTO (Organization for Cross-regional Coordination of Transmission Operators, Japan). This agreement includes the following key points:

1. A fixed income for approximately 20 years corresponding to our bid amount, which significantly improves the predictability of our long-term business planning and investment recovery.
2. A mechanism requiring us to return a certain percentage of market revenue to OCCTO during the operational period. Through this mechanism, as our project generates revenue, the financial burden on consumers is reduced.

The agreement also formally recognizes our BESS's contribution to Japan's energy transition and decarbonization goals. Securing this contract from OCCTO is a testament to the high regard for the reliability of our technology and project.

Community engagement and impact

Has the community been consulted on this project and how did this consultation occur?

Eku Energy are committed to transparent, open and proactive consultation with local stakeholders and the broader community.

As the project is in early stages of development, we are engaging with the local authority and near neighbours as part of the first phases of engagement. This allows communities to gain early insight into our business and how BESS can benefit the grid systems.

As the project progresses, we will share the layout and timeline with the local community to ensure that impact to them will be minimal. This may be done by visiting them at their homes or via the Community Session. This allows community to learn more about the project, meet the team to ask questions and support any enquiries they may have.

We are continuing ongoing information and consultation activities with details to be released via ekuenergy.com/eshi and direct communication channels.

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