Daiwa Energy & Infrastructure has started construction on a 38MW/160MWh Battery Energy Storage System (BESS) in Chitose, Hokkaidō Prefecture. The project is held by the dedicated special purpose company Chitose Chikudensho LLC, while asset management is handled by Daiwa Real Estate Asset Management. The group plans to commission the facility in 2027, but has not yet disclosed the name of the engineering, procurement, and construction (EPC) contractor.
An asset for balancing and capacity markets
The land allocated for the infrastructure is directly owned by Daiwa Energy & Infrastructure. Once operational, the battery will be active in Japan’s wholesale electricity market and participate in balancing and capacity mechanisms. This strategy allows the operator to strengthen its position in grid services while diversifying revenue streams through large-scale energy storage infrastructure.
Expansion of the high-voltage portfolio
The project forms part of Daiwa’s broader development strategy focused on high-voltage storage systems. In 2023, the company invested in a 50MW/100MWh unit in Sapporo, also located in the Hokkaidō region, in partnership with Fuyo General Lease and Astmax. In 2025, it announced a second 25MW/100MWh project in Kumamoto Prefecture, along with a JPY13bn ($86.1mn) EPC contract for another site at an undisclosed location.
2GWh target within three years
In February 2025, Daiwa Energy & Infrastructure signed a strategic partnership with TESS Holdings to deploy 2GWh of grid storage capacity within three years. It has not been confirmed whether the Chitose site is part of this initiative. However, the group continues to follow an active development model, combining direct land acquisition with the establishment of dedicated legal entities.
