JALCO Holdings has signed an acquisition agreement with Japanese company Taoke Energy for the purchase of a battery energy storage system (BESS) with a capacity of 2 MW/8.1 MWh. The project, located in the city of Narita in Chiba Prefecture, will be transferred to JALCO in April 2026, with commissioning scheduled for September 2026. This marks JALCO’s first investment in the energy sector.
Taoke Energy to remain the asset operator
Under the signed agreement, Taoke Energy will handle engineering, procurement and construction, as well as operation and maintenance once the project goes live. The storage system will use batteries from Chinese company Contemporary Amperex Technology (CATL), a major player in the sector. Taoke Energy will also act as the aggregator of the asset.
JPY1.5bn investment commitment
JALCO Holdings stated it plans to invest approximately JPY1.5bn ($10.2mn) across several similar projects. While the acquisition cost of the Narita site was not disclosed, high-voltage BESS projects in Japan typically sell for between JPY700mn and JPY800mn ($4.8mn to $5.5mn), indicating the group likely has at least one additional project in its short-term pipeline.
A new strategic pillar for JALCO
JALCO Holdings has traditionally specialised in managing real estate assets tied to pachinko parlours. Its entry into the energy storage market is part of a diversification strategy aimed at making energy a second pillar of its business activities. The group confirmed plans to expand its national storage portfolio with Taoke Energy’s support.
Outlook for Japan’s BESS market
Grid-scale battery storage is expanding rapidly in Japan amid efforts to modernise the electricity grid and manage increasing renewable penetration. The 8.1 MWh capacity of the Narita project will support local demand management and contribute to grid stability.
Turnkey projects with delegated operations attract investors from outside the energy sector. For companies such as JALCO, this model reduces operational risk and facilitates gradual entry into a still-evolving market.
