ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Keita Ishii, President and COO; hereinafter "ITOCHU") announced today that it was selected as the co-manager of the fund for promoting energy creation and storage being created by the Tokyo Metropolitan Government jointly with Gore Street Capital Limited (headquartered in London; Alex O’Cinneide, CEO; hereinafter "GSC"). ITOCHU and GSC will establish a company to operate this government-industry fund in which the Tokyo Metropolitan Government will invest and participate. The Tokyo Metropolitan Government will contribute 2.0 billion yen to this fund in FY2023, and funds will be solicited from private enterprises including ITOCHU for investing in utility scale energy storage.

As activity in the development of renewable energy increases, it is increasingly necessary to develop functions for the adjustment of supply to meet demand for renewable energy sources of electricity as their output fluctuates greatly. Utility scale energy storage, which can provide power grids with the ability to adjust supply to meet demand, is essential for the future carbon-free society. The Tokyo Metropolitan Government has decided to create a government-industry fund to accelerate the ubiquitization of utility scale energy storage which contributes to the stabilization of power grids.
This fund is the first in Japan that is intended exclusively for utility scale energy storage, following the establishment of similar funds in Europe and the United States. As the managers of this fund, ITOCHU and GSC will increase the number of utility scale energy storage systems in the Kanto area and provide the electricity market with a function able to adjust supply to meet demand, increasing the ubiquity of renewable sources of electricity and accelerating decarbonization.

While utility scale energy storage is expected to be used widely, it is still in its early days in Japan. Funding methods are therefore limited, and it is necessary to build a financing model for it. Adopted as the managers (general partners) of the fund for advancing energy creation and storage, promoted by the Tokyo Metropolitan Government, ITOCHU together with GSC will use the dedicated fund for utility scale energy storage, as a new funding method that contributes to the diversification of funding methods.

ITOCHU operates multiple utility scale energy storage businesses in Japan and it is developing utility scale energy storage projects with a cumulative total output of more than 100 MWh. ITOCHU will work on these business leveraging its network for procuring energy storage battery systems and knowledge of electricity trading. In addition, it will collaborate with GSC, which has been active since 2016 and is an international pioneer in engaging in the utility scale energy storage business, managing one of the world's largest listed utility-scale energy storage funds with assets in Europe and the United States, to leverage the history and experience of the two companies.

ITOCHU offers a lineup of products, ranging from home storage batteries to large-scale storage systems for industry and power grids, and is promoting the implementation of diverse energy systems, including demand response technology that utilizes remotely controlled software installed on home storage batteries and investments in utility scale energy storage projects using its large power storage systems. In this context, ITOCHU will continue to proactively promote utility scale energy storage businesses which effectively use renewable energy to push forward with the decarbonization of Japan. ITOCHU will work on this business together with GSC to ensure that the ability to adjust supply to meet demand achieved by this business can contribute to the further introduction and stable supply of renewable energy.
　　　

■Gore Street Capital Limited

■Scheme