HEXA Energy Services Awarded Two Grid-Scale Battery Energy Storage Projects in the FY2025 Long-Term Decarbonization Power Source Auction

Awarded projects in the Chugoku and Tohoku areas, totaling 90,470 kW, will contribute to the further deployment of renewable energy and the stabilization of Japan’s power grid

Tokyo, Japan – HEXA Energy Services G.K. (Head Office: Chiyoda-ku, Tokyo; Executive Officers: Yuko Sha and Yoichiro Mizuta; “HEXA” or the “Company”), which develops grid-scale battery energy storage system (“BESS”) projects with the aim of promoting the further deployment of renewable energy while enhancing grid stability, today announced that two BESS projects under development by the Company have been selected in the “Capacity Market Long-Term Decarbonization Power Source Auction Results (Auction Year: FY2025)” published by the Organization for Cross-regional Coordination of Transmission Operators, Japan (“OCCTO”) on May 13, 2026.*1

The two awarded projects are “HC25 Chugoku Daiichi Battery Energy Storage System” and “HC25 Tohoku Daini Battery Energy Storage System,” with awarded capacities of 46,927 kW and 43,543 kW, respectively, totaling 90,470 kW.

The Long-Term Decarbonization Power Source Auction was established in FY2023 as part of Japan’s Capacity Market. The scheme is designed to promote investment in decarbonized power sources, including new power source investments, and to secure long-term supply capacity from decarbonized power sources. HEXA has already been awarded a total of 11 projects in the FY2023 Long-Term Decarbonization Power Source Auction. The projects awarded this time are in addition to those previously awarded projects.

*1 OCCTO: Announcement of Capacity Market Long-Term Decarbonization Power Source Auction Results (Auction Year: FY2025) (Japanese)

Comment from HEXA Energy Services

“We are very pleased that two of our grid-scale BESS projects in the Chugoku and Tohoku areas, totaling 90.47 MW, have been selected in the FY2025 Long-Term Decarbonization Power Source Auction.

As renewable energy deployment continues to expand, grid-scale battery energy storage systems are becoming increasingly important power infrastructure, particularly in light of growing uncertainties in the energy environment, including rising energy costs and concerns over stable supply. BESS plays a critical role in balancing electricity supply and demand, alleviating grid congestion, and stabilizing power supply. Projects selected through the auction are also expected to contribute to reducing the public cost burden associated with grid stabilization.

HEXA is steadily advancing the realization of the projects selected in the FY2023 Long-Term Decarbonization Power Source Auction. Leveraging the development, investment, and operational expertise cultivated through those efforts, we will also steadily advance the projects selected in this latest auction.

We will continue to place importance on coexistence with local communities, ensuring safety, and giving due consideration to the environment, while contributing to the realization of a decarbonized society and the advancement of energy infrastructure in Japan.”

Outlook

With these latest awards, HEXA will advance the commercialization of BESS projects totaling 90,470 kW in the Chugoku and Tohoku areas. Together with the 13 projects cumulatively selected through the auction and other ongoing initiatives, the Company’s portfolio now reaches approximately 650 MW of transmission-end capacity and approximately 3 GWh of rated capacity.

The Company will proceed appropriately with the prescribed auction procedures and work closely with relevant local governments, local communities, transmission and distribution operators, business partners, financial institutions, and other stakeholders to steadily advance the commercialization of the awarded projects.