A new battery energy storage system (BESS) with a capacity of 50MW/100MWh has been commissioned in Sapporo, located on the island of Hokkaido. The project, named Shinkawa Power Storage Station, was officially launched on November 1 by Daiwa Energy & Infrastructure, Fuyo General Lease and Astmax. It is the first grid-scale BESS asset of this size for all three companies.
The system is owned by a special purpose company (SPC), DAX LLC, which will operate the site on the wholesale, balancing and capacity markets. Astmax will handle trading optimisation, in line with its broader role in development, construction scheduling and operational readiness.
Government subsidy and Tesla technology
The project received public support through the Japanese Ministry of Economy, Trade and Industry’s (METI) fiscal year 2022 supplementary budget, with a subsidy of JPY2.5bn ($16.5mn). Construction began in 2023, and the facility uses Megapack systems supplied by US-based Tesla.
Daiwa Energy & Infrastructure holds a 50.98% economic interest in DAX LLC, while Fuyo General Lease owns 46% and Astmax the remaining 3.02%. The facility marks a significant addition to the storage portfolios of all three companies.
Regional deployment of high-voltage storage
For Daiwa, this commissioning precedes another large-scale project under construction in Chitose, also on Hokkaido island. That site, with a planned capacity of 38MW/160MWh, is scheduled to begin commercial operations in 2027. Several other projects are reportedly under development in the region.
Fuyo General Lease continues to expand in the storage sector after commissioning a 2MW/7.8MWh system in Chikushino, Fukuoka Prefecture, in July. These investments signal a clear interest by both Japanese firms in strengthening their position in Japan’s emerging high-voltage storage market, as the country gradually reforms its electricity sector.
