HD Renewable Energy, listed on the Taiwan Stock Exchange under code 6873, has strengthened its presence in Japan’s energy storage market. The company secured five new Battery Energy Storage System (BESS) projects totalling approximately 300MW, equivalent to an energy capacity of 1.5GWh, as part of the 2025 auction for the Japanese government’s long-term decarbonised power source support scheme.
Reinforced position in a strategic market
The five awarded projects will be located in the prefectures of Aomori, Fukushima and Hokkaido. The largest site is approaching a capacity of 100MW. All projects will receive government-backed capacity payments for a 20-year period. This follows HD Renewable Energy’s success in 2024, when it became the first Taiwanese company to secure projects under this initiative. At that time, the firm won two projects in Mie and Fukuoka prefectures totalling 73MW, scheduled to begin operation in 2027.
Significant share of total allocation
Out of the 1.37GW awarded for BESS in the 2025 auction, HDRE accounts for approximately 20% of the allocated capacity. It remains the only Taiwanese-origin company to secure large-scale storage projects in Japan. The firm is targeting the development of over 3GW of renewable capacity in the country, including 400MW in solar and 2.6GW in storage.
Structuring partnerships and public subsidies
Among recent projects outside the capacity market, the Gunma project, developed in partnership with Tokyu Fudosan Holdings, received a JPY1.19bn ($7.73mn) subsidy from the Tokyo Metropolitan Government. It is scheduled for completion in early 2028. Another major initiative, “Project Hikari”, located in Sapporo, Hokkaido and co-developed with Brawn Capital, is expected to reach commercial operation by the end of 2025.
Industrial support and strategic fundraising
HDRE is also reinforcing its local alliances. A strategic partnership with Mitsubishi Electric led to the establishment of a joint venture focused on energy aggregation. Additionally, Mitsubishi Electric acquired a 3.06% equity stake in HDRE during its first private placement. The company plans to expand its strategy further in Japan and aims to replicate this model in other international markets.
