ITOCHU Announces Collaboration in an FIP Conversion Project
Design and Construction of Saga-Ouchi Solar Power Plant Start
July 28, 2025
ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Keita Ishii, President & COO; hereinafter “ITOCHU”) announced today that it decided to run an FIP conversion project*1 for equipping the solar power plant with an energy storage device in collaboration with Kyudenko Corporation (headquartered in Fukuoka-shi, Fukuoka; Kazuyuki Ishibashi, President; hereinafter “Kyudenko”).
Market Condition
In pursuit of optimal use of renewable energy, the Japanese government has taken measures such as preferentially treating FIP power sources in the output curtailment priority*2 and subsidizing projects for additionally installing energy storage devices. Converting a renewable energy power source to FIP and adding an energy storage device will be able to improve operational profitability. A shortage of procurement in the supply-demand adjustment market poses another problem and supply-demand adjustment functions using an energy storage device take on increasing importance.
Aim and scheme of the collaboration
The collaboration will combine (i) the stable procurement of competitive energy storage systems by ITOCHU with (ii) Kyudenko’s reliable EPC*3 to promote the introduction of FIP conversion and an energy storage device in a way that increases the FIT business operator’s profitability.
The first step is the decision to perform FIP conversion at Saga-Ouchi Solar Co., Ltd. (Saga-Ouchi Solar Power Plant, which commenced commercial operation in April 2018) jointly funded by ITOCHU and Kyudenko. An EPC agreement on additionally installing an energy storage device has been concluded with Kyudenko. This project utilizes funds from the Ministry of Economy, Trade and Industry's 2024 subsidies to support the introduction of an energy storage device equipped with a renewable energy power source.
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Outline of the project for equipping Saga-Ouchi Solar Power Plant with an energy storage device
Operator | Saga-Ouchi Solar Co., Ltd. (investment ratio: ITOCHU 50%, Kyudenko 50%) |
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Location | Ouchi-cho, Karatsu-shi, Saga |
Rated output (battery) | 12,000kW |
Rated capacity (battery) | 49,356kWh |
Battery type | Lithium ion batteries |
Start of operations | FY2026 (planned) |
Image of Battery Storage Installation |
Leveraging its diverse procurement network, ITOCHU combines an energy storage device, PCS, EMS and others, supplies an optimal energy storage system and engages in an entire process up to the system's operation and maintenance. Using its many years of knowledge in power trade, ITOCHU seeks to ensure optimal operation of the energy storage device in the power market*4 and to boost profitability. Kyudenko has substantial track records and expertise in running numerous EPC projects of solar power, wind power and other kinds of renewable energy power-generating equipment nationwide. They will be applied to the FIP conversion project in terms of optimal design and construction.
Through the collaboration, we will contribute to expanding the introduction of renewable energy and to the stable supply of electric power with a view to achieving carbon neutrality by 2050.
- *1This is a project for converting a FIT renewable energy power source to FIP (feed-in premium). FIP is a system of granting a certain premium for a market price when a renewable energy power generation company sells electric power in the market.
- *2This involves FIT power sources’ receiving an output curtailment instruction before FIP power sources do, allowing FIP power sources to generate power comparatively longer.
- *3EPC: A project where the contractor agrees to complete an entire process, from design to the procurement of equipment, materials and services, construction and trial operation.
- *4Examples are, among others, the prediction of solar power generation, prediction of market prices, market-based power sales and optimization of a power charge/discharge plan for an energy storage device.