TOKYO, Feb 10, 2026 - (JCN Newswire) - KS Energy Co., Ltd. ("KS Energy"), a renewable energy business company and Hitachi, Ltd. (TSE:6501, “Hitachi”) agreed on February 6 to collaborate on the development and operation of an Extra-High Voltage Grid Battery Energy Storage System*1 within Kumamoto Prefecture, as well as the development and operation of power trading businesses. Hitachi will provide project development support for KS Energy's development of the project and jointly promote the development and operation of this battery energy storage system (tentative name)*2 . Additionally, KS Energy will also explore the introduction of a power trading support system planned for development by Hitachi.
This initiative will support stable power supply in the Kyushu region and contribute to achieving carbon neutrality.
*1 Extra-High Voltage Grid Battery Energy Storage System: Large-scale battery storage facilities directly connected to the power grid (such as transmission lines) with a capacity of 2,000 kW or more.
*2 Power Trading Support System: A power trading support system for operators managing large-scale grid-connected storage batteries. It supports traders' daily operations comprehensively—from bid planning and market transactions to submitting plans to OCCTO—across both the supply-demand adjustment market and the wholesale electricity market. System development also incorporates collaboration with other companies, such as bid plan optimization services. This contributes to improved profitability through trading based on optimal bid plans and streamlines routine daily tasks like plan submission.
Background
Renewable energy generation fluctuates due to weather changes and other factors, significantly impacting the power supply-demand balance. Particularly in the Kyushu region, where renewable energy adoption is advancing, output curtailment occurs frequently when generation exceeds demand. Securing balancing power to stabilize the power grid is an urgent priority. Furthermore, as the policy framework for promoting renewable energy shifts from the FIT (Feed-in Tariff) system to the FIP (Feed-in Premium) system, power generators are now required to develop their own electricity trading capabilities to formulate strategies for selling electricity in the power market. Against this backdrop, the importance of "aggregators" – entities that consolidate and control energy resources to adjust supply-demand balance – is growing. They are expected to contribute to the effective utilization and stable supply of renewable energy by engaging in both the electricity market and the power trading market.
To address this situation, KS Energy, established in January 2024 with full investment from Higo Bank, Ltd. (part of the Kyushu Financial Group), has adopted a policy to contribute to stabilizing power supply as a regional energy company, aiming to make the entire Kyushu region a leading area for renewable energy circulation. Meanwhile, Hitachi has a long history in the power sector, providing a wide range of advanced solutions from energy storage systems to transmission and distribution infrastructure and grid protection devices.
Through this collaborative effort, both companies will combine their respective strengths. By developing and operating energy storage facilities and engaging in power trading, they aim to achieve carbon neutrality in the Kyushu region.
Initiative Details
KS Energy and Hitachi have decided to jointly develop and operate battery energy storage system in the Kyushu region. This initiative contributes to stabilizing local power supply by charging and discharging in response to electricity demand-supply balance, thereby providing balancing power.
1. Nation's First Extra-High Voltage Battery Energy Storage System project launched by a regional bank group This marks the first instance nationwide of a bank subsidiary's renewable energy business company undertaking a grid energy battery business in the extra-high voltage range. Through this initiative, we aim to contribute to stable power supply. Additionally, KS Energy is considering managing the power trading for the storage facility in-house. The plan involves handling the entire operational process: forecasting electricity market prices, creating power generation (charging/discharging) plans for the batteries, controlling the storage facility, and monetizing through market transactions. In the future, leveraging its operational expertise in storage facilities and collaborating with Higo Bank, KS Energy will enhance support for power generators and provide financing support to storage facility developers. This will enable the delivery of services extending beyond the financial sector, promote efficient electricity usage within local communities, and contribute to achieving regional carbon neutrality and decarbonization.
2. Joint Promotion of Project Development from the Early Stage Leveraging Hitachi’s extensive experience in battery energy storage systems, Hitachi and KS Energy will jointly promote the development of energy storage facilities. The Hitachi Group will work together to promote project development through to operational launch. This includes cooperation from grid connection application discussions with transmission and distribution operators to applications and procedures with relevant ministries and agencies, provision of business feasibility evaluation information, supply of Hitachi Energy-manufactured PCS, and project management covering equipment design, procurement, and installation. Hitachi will sustainably support KS Energy's stable operations of the storage facility.
3. Collaboration in Power Trading Business To stably utilize rapidly expanding renewable energy, the need for aggregation functions that balance electricity supply and demand is growing. KS Energy is considering introducing Hitachi's planned power trading support systemto achieve efficient energy resource utilization and aim for stable power supply. Under Hitachi's Lumada 3.0 initiative, the company is deploying "HMAX by Hitachi" (hereinafter HMAX), a next-generation AI solution suite that tackles the most complex challenges facing social infrastructure. This is achieved by combining vast data from both physical and digital assets with advanced AI enhanced by Hitachi's unique deep domain knowledge. In the electric power trading area as well, Hitachi will realize services that optimize the operation of storage battery assets and maximize market value, and aim to deploy them as HMAX.
Future Developments
KS Energy and Hitachi will collaborate to achieve both the mainstreaming of renewable energy as a primary power source and stable supply through the development of battery energy storage system and enhanced aggregation functions, working together toward realizing regional carbon neutrality.
Overview of Grid-Connected Storage Facility
Storage Facility Name : (Provisional name) KSE Kumamoto Battery Energy Storage System
Storage Facility Location (Planned) : Within Kumamoto Prefecture
Rated Output/Rated Capacity (Planned) : 50,000 kW / 112,880 kWh
Scheduled Start of Operation : January 2029