ORIX to Commence Operation of Joint Venture with Kansai Electric Power in 2024 and Enter into the Energy Storage Plant Business
Jul 14, 2022
TOKYO, Japan - July 14, 2022 - ORIX Corporation (“ORIX”) announced today that it has signed an agreement with Kansai Electric Power Co., Inc. ("KEPCO") for the joint operation of an energy storage plant business.
ORIX and KEPCO will jointly establish Kinokawa Energy Storage LLC and begin construction of an energy storage plant in August 2022, on the premises of the Kinokawa Substation (Kinokawa, Wakayama) of Kansai Transmission and Distribution, Inc. Large-scale grid storage batteries with a rated output of 48 MW and a rated capacity of 113 MWh*1 will be installed, with the aim of starting operations in 2024.
This project aims to stabilize the supply and demand of electricity by connecting large-scale storage batteries to the power grid, charging electricity when there is a surplus and discharging it when there is a shortage. Since storage batteries have the characteristic of being able to flexibly charge and discharge electricity, it is possible to quickly adjust supply depending on the state of electricity demand. In this project, KEPCO will primarily be responsible for the operation of the storage batteries, while ORIX will primarily be responsible for maintenance and asset management.
Renewable energy is promoted as the main source of power in order to achieve carbon neutrality in 2050. The percentage of electricity generated from renewable energy in Japan has increased from 10.4% in fiscal 2011 to 18.1% in fiscal 2019*2, and is expected to continue increasing in prevalence in the future. On the other hand, power generation from solar and wind power is prone to fluctuations depending on weather conditions such as the amount of sunlight and wind conditions, causing supply shortages due to insufficient power generation and excessive supply leading to output curtailment on a daily basis. Through this project, the two companies will contribute toward solving these issues, and will attempt to strengthen power system resilience.
ORIX Group will continue to expand its wide range of renewable energy businesses, including the energy storage plant business, and contribute toward both stabilizing the supply and demand of electricity and realizing a carbon-free society.
*1 Rated output refers to the value of instantaneous output, and rated capacity refers to the duration of possible discharge. The rated capacity in this project is equivalent to the daily usage of approximately 13,000 average households when one cycle of charging and discharging is performed per day.
*2 Source：Ministry of Economy, Trade and Industry Future Renewable Energy Policies for 2030[2.02MB] (in Japanese)
■Mechanism of the Energy Storage Plant Business
|Name||Kinokawa Energy Storage Plant|
|Start of operations||April 2024 (planned)|
|Place of installation||Premises of Kansai Transmission and Distribution, Inc. Kinokawa Substation|
|Rated output||48 MW|
|Rated capacity||113 MWh|
|Site area||Approximately 8,000 m2|
|Established||June 1, 2022|
|Address||3-1-1 Marunouchi, Chiyoda, Tokyo
Tokyo Kyodo Accounting Office
|Shareholding percentages||Kansai Electric Power Co., Inc.: 50%; ORIX Corporation: 50%|
Investor Relations and Sustainability Department
ORIX Corporation (TSE: 8591; NYSE: IX) is a financial services group which provides innovative products and services to its customers by constantly pursuing new businesses.
Established in 1964, from its start in the leasing business, ORIX has advanced into neighboring fields and at present has expanded into lending, investment, life insurance, banking, asset management, automobile related, real estate and environment and energy related businesses. Since entering Hong Kong in 1971, ORIX has spread its businesses globally by establishing locations in 28 countries and regions across the world.
Going forward, ORIX intends to utilize its strengths and expertise, which generate new value, to establish an independent ORIX business model that continues to evolve perpetually. In this way, ORIX will engage in business activities that instill vitality in its companies and workforce, and thereby contribute to society. For more details, please visit our website: https://www.orix.co.jp/grp/en/
(As of March 31, 2022)
Caution Concerning Forward Looking Statements:
These documents may contain forward-looking statements about expected future events and financial results that involve risks and uncertainties. Such statements are based on our current expectations and are subject to uncertainties and risks that could cause actual results that differ materially from those described in the forward-looking statements. Factors that could cause such a difference include, but are not limited to, those described under “Risk Factors” in the Company’s annual report on Form 20-F filed with the United States Securities and Exchange Commission and under “(4) Risk Factors” of the “1. Summary of Consolidated Financial Results” of the “Consolidated Financial Results April 1, 2021 – March 31, 2022.”
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