TAIPEI, April 16, 2026 /PRNewswire/ — HD Renewable Energy Co., Ltd. (TWSE: 6873, "HDRE") announced a multi-faceted collaboration with Tokyo Gas Co., Ltd. (TSE: 9531, "Tokyo Gas") as part of its continued expansion in Japan. The partnership includes both operational service agreements and long-term offtake arrangements across multiple battery energy storage system (BESS) projects, with a total collaboration scale of approximately 340MW. The collaboration reflects HDRE’s ongoing engagement with Japanese energy companies in storage development and asset management.
HDRE and Tokyo Gas have a ~340MW collaboration portfolio, including operational service agreements in Aomori and offtake arrangements across Japan.
The operational service projects are located in Aomori Prefecture, with a combined capacity of approximately 149MW. These projects were awarded under Japan’s Long-Term Decarbonization Auction (LTDA) scheme and are scheduled to commence commercial operations in FY2029, with HDRE responsible for development and construction and Tokyo Gas overseeing operations upon commissioning. By combining HDRE’s expertise in storage development and asset integration with Tokyo Gas’s experience in power market operations, the projects are designed to secure stable revenue through capacity market mechanisms while also participating in power trading to enhance overall asset performance.
Under the long-term offtake framework, HDRE has signed agreements with Tokyo Gas covering projects in Miyazaki, Iwate, Miyagi, and Fukushima, totaling approximately 190MW. Tokyo Gas will obtain operational usage rights to the assets and pay usage fees over a period of approximately 20 years. This structure enhances revenue visibility and supports asset value, while also demonstrating a scalable commercial model for energy storage deployment.
As electricity increasingly shifts from a cost center to a strategic asset, the role of energy storage and market operation capabilities is becoming more critical. In Japan, HDRE is advancing a development pipeline of approximately 3GW, spanning project development, power trading, and asset management, while working with local partners to support the energy transition.
Over the past two years, the company has secured approximately 400MW under the LTDA scheme, providing a stable policy-backed foundation for its portfolio. Meanwhile, its 50MW Helios BESS project in Hokkaido has entered market operations, participating in wholesale and ancillary service markets to capture value from growing system flexibility needs driven by market liberalization and rising renewable penetration.
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