A financing agreement has been executed for the grid-connected energy storage business jointly developed and operated by Nippon Chikudenchi and Remixpoint, establishing non-recourse project finance for 7 high-voltage energy storage facilities nationwide. SMTB Lease is the senior lender, and the SPC is NC Pioneer GK.
On 8 October, Nippon Chikudenchi announced that it had entered into a non-recourse project finance agreement with SMTB Lease as senior lender for the grid-connected energy storage business it is developing and operating jointly with Remixpoint. The project covers 7 high-voltage grid-connected energy storage facilities distributed nationwide, with revenue expected from the balancing, wholesale electricity and capacity markets.
Nippon Chikudenchi has built more than 30 energy storage facilities and commenced receiving electricity at them. Under this project, the Shunan City Yuno Energy Storage Facility, Maniwa City Tabane Energy Storage Facility and Kainan City Kizu Energy Storage Facility are being installed and brought into operation. Each facility uses CATL batteries and TMEIC power conversion systems. Shunan entered the balancing market in September, while Maniwa began receiving electricity on 30 September.
As a new framework for risk diversification and financing, the establishment of project finance bundling multiple energy storage facilities into a single portfolio, together with assessments by financial institutions of asset value and business profitability, has been identified as an important milestone.
Nippon Chikudenchi is proceeding with the supply of grid-connected energy storage batteries for emergencies to local governments with which it has signed disaster-prevention agreements. Initiatives including the use of these batteries as emergency power sources during disasters have also been reported.