HDRE Enters Japan’s Energy Storage Market, Obtaining a 20-Year Government Subsidy for Its Decarbonization Bids

TOKYO, May 29, 2024 /PRNewswire/ — HD Renewable Energy Co., Ltd (HDRE) (6873.TW) announced its Japanese subsidiary’s successful acquisition of two bids for long duration decarbonized energy storage systems in the Japanese market. The systems, with a combined capacity of 73MW and an energy storage capacity of 97.9MW, mark a significant milestone. The two projects, situated in Mie-ken, Kinki, and Fukuoka, Kyushu, are slated to commence operations by 2027. Despite the Japanese market’s total estimated potential exceeding 5GW for such systems, the current bidding volume was only 1.09GW. HDRE’s procurement of 73MW in this round represents a strategic entry for the Taiwanese firm into Japan’s burgeoning energy storage sector.

HDRE's Japanese subsidiary secures two bids in Japan's market for long-duration decarbonized energy storage systems, becoming the first Taiwanese company to enter this sector
HDRE’s Japanese subsidiary secures two bids in Japan’s market for long-duration decarbonized energy storage systems, becoming the first Taiwanese company to enter this sector

Jason Chou, General Manager of HDRE, outlined the company’s ambitious plan to build 1.5GW of energy storage systems in Japan over the next three years, involving a capital investment of approximately NT$50 billion. Following the successful bid in Japan’s first tender for long-duration decarbonization energy storage, HDRE has secured a 73MW capacity and will benefit from a 20-year subsidy. In Japan, the energy storage market is divided into three segments: frequency regulation, spot, and capacity. After establishing the project, HDRE will use AI optimization analysis models that will inform its forecasts and trading strategies across various regional markets and commodities. The approach aims to pinpoint the optimal times for energy storage and release  its systems to maximize returns.

HDRE not only positions itself as a forerunner in the field of intelligent power, but also aims to extend to international power markets. Commencing its global expansion in power-liberalized markets such as Japan and Australia, HDRE plans to fully leverage its comprehensive competitive edge in green energy integration. The company intends to capitalize on its aggregator status to bridge supply and demand gaps, forming a Virtual Power Plant (VPP). Additionally, HDRE plans to establish a robust wholesale and retail electricity business, powered by its TITAN software and hardware integration services.

About HDRE

Founded in 2016, HDRE has been a leading smart energy company in Taiwan, with the goal of becoming an intelligent green power company. HDRE’s diverse business units spanning power generation, electricity retailers, and energy storage have each achieved remarkable milestones. The company offers a wide range of one-stop solutions, encompassing green energy project development, maintenance and operation management, green electricity retailers, and charging services, solidifying its position as a market leader in Taiwan. In recent years, HDRE has made significant strides in expand into international power market, commencing with Japan and Australia. HDRE was listed in 2023 and included in the MSCI Taiwan Index in 2024, further validating its strength and financial performance.

Media Contact:
HD Renewable Energy Co., Ltd.|Murphie Lin|+886-983-619-036|murphie.lin@hdrenewables.com

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