Through a consolidated subsidiary, TESS Holdings received an order to install approximately 5 MWh of battery storage at a solar power plant in Isa, Kagoshima Prefecture. Delivery is scheduled for October 2027, with the project aimed at improving energy management and profitability in line with the transition to the Feed-in Premium (FIP) scheme.
TESS Holdings received an order from a special-purpose company (SPC) of a fund operated by Global Infrastructure Management to retrofit battery storage at a solar power plant in Isa, Kagoshima Prefecture. The battery storage systems will be manufactured by Itochu Corporation and BYD, with approximately 1,990 kW of output and approximately 5,018 kWh of storage capacity.
Following the transition to the Feed-in Premium (FIP) scheme, the system is expected to store daytime output curtailment in the batteries and discharge it from the evening onward, when demand is higher. Installing battery storage is expected not only to improve the profitability of power producers, but also to help stabilize the regional grid and reduce CO2 emissions. TESS Engineering plans to proceed with the work with the aim of bringing the system into operation in October 2027.
The order for the Kagoshima site was placed by an SPC backed by fund investment and centers on the retrofit installation of a battery storage system. The system will have approximately 1,990 kW of PCS output and approximately 5,018 kWh of storage capacity, with the conversion of the existing Feed-in Tariff (FIT) power plant to the FIP scheme at the core of the project.
Under its medium-term management plan, TX2030, TESS Holdings has positioned its battery storage business as a growth driver and set a target of 150 MW in cumulative battery storage installation capacity. Going forward, the company aims to strengthen proposals combining the expansion of battery storage EPC projects with FIT-to-FIP conversions and to develop new business models, including entry into the balancing market.