TOKYO, May 29 (Pulse News Wire) – JALCO Holdings Inc. (6625.T) announced today that its board of directors resolved to acquire land rights and grid connection privileges for a high-voltage battery storage facility in Kumamoto City, Oita Prefecture.
The project, named Ooita, Kitsuki Shi Battery Storage Facility (provisional name), has an expected capacity of 2 MW output and 10 MWh storage, with key equipment supplied by Gotion and SMA. The facility's commercial operation is scheduled to begin in June 2027. The acquisition price remains undisclosed due to confidentiality agreements but is below the company’s net assets as of the end of the previous fiscal year. Funding for the project will come entirely from internal resources. JALCO plans to leverage its expertise gained through real estate leasing, financial services, and project development to manage the project's technical specifications, stakeholder coordination, and operational schedules.
Looking ahead, JALCO anticipates that the facility will contribute significantly to revenue streams beginning in the March 2028 fiscal year. Expected sources of income include arbitrage trading in power markets, demand-side management, and capacity market provision. However, these revenues could fluctuate based on various factors such as market prices, supply-demand conditions, regulatory changes, bidding outcomes, performance metrics, and maintenance costs. Further details on the specific impact on earnings for the fiscal year ending March 2028 remain undetermined pending final negotiations on operational methods and contractual terms. JALCO will disclose additional information as soon as concrete plans are finalized.
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