Pacifico Energy K.K. Commences Commercial Operation of Grid-Scale Battery Storage Facility in the Tokyo Area
Pacifico Energy K.K. (Head Office: Minato-ku, Tokyo; President & CEO: Hiroki Matsuo; hereinafter “Pacifico Energy”) has announced the commencement of commercial operations at a newly developed grid-scale battery energy storage facility in the Tokyo metropolitan area. This milestone marks a significant step in the company’s strategic expansion of energy storage assets in Japan and underscores its growing role in supporting the stability, flexibility, and resilience of the nation’s power system.
The Tokyo-area project is particularly notable because it has been developed under a fully self-funded “full merchant” business model. Unlike many recent battery energy storage system (BESS) projects that rely on government subsidies or incentive schemes, this facility has been realized entirely without public financial support. By assuming full exposure to market risks and opportunities, Pacifico Energy is demonstrating strong confidence in its market expertise, analytical capabilities, and long-term vision for Japan’s evolving electricity markets.
A Full-Merchant Model Backed by Integrated Capabilities
The newly operational facility builds on Pacifico Energy’s extensive experience in grid-scale battery storage and reflects the company’s vertically integrated approach to project execution. From the earliest stages of development through to commercial operation, Pacifico Energy has established in-house capabilities covering project development, engineering and system design, procurement, construction management, market trading strategy, and ongoing asset management.
This integrated framework allows the company to optimize decision-making across the entire project lifecycle. Design and technology choices can be aligned closely with market participation strategies, while construction schedules and commissioning processes are coordinated to ensure timely entry into revenue-generating markets. Once operational, assets are actively managed using proprietary trading methodologies and data-driven market analysis, enabling Pacifico Energy to respond dynamically to changing grid conditions and price signals.
Such an approach is especially critical in Japan’s wholesale electricity market, which is characterized by regional variations, evolving regulatory frameworks, and increasing penetration of variable renewable energy sources. By operating without subsidies, Pacifico Energy has positioned itself as a market-driven player, relying on operational excellence and trading sophistication rather than external support mechanisms.
Leadership Perspective: Confidence in Market-Based Growth
Commenting on the launch of the Tokyo-area battery storage facility, President & CEO Hiroki Matsuo emphasized the strategic significance of the full-merchant model for the company’s future.
“We take great pride and find deep meaning in boldly taking on the challenge of operating as a full-merchant player, independent of subsidies, in the complex and unpredictable wholesale power market,” Matsuo said. “This approach is grounded in our proprietary market analysis and trading methodologies, as well as the strong track record we have built since entering the market in 2022.”
He further highlighted the company’s long-term ambitions in the storage sector, noting that Pacifico Energy plans to significantly scale up its operations in the coming years. “Looking ahead, we plan to further scale up our operations and achieve 660MW/2.9GWh of installations by 2030,” Matsuo added, signaling the company’s intent to become one of Japan’s leading battery storage developers and operators.
Supporting Grid Stability and Market Efficiency
Through its participation in Japan’s wholesale electricity market and balancing market, the Tokyo-area battery storage facility will play a key role in enhancing grid stability. As renewable energy capacity continues to expand across the country, the need for flexible resources capable of responding rapidly to supply-demand imbalances has become increasingly important. Grid-scale batteries are uniquely suited to this role, providing fast-response capacity that can absorb excess generation or supply power during periods of scarcity.
In addition to stabilizing the grid, the facility is expected to contribute to the mitigation of power price volatility. By charging during periods of low prices and discharging when prices are high, the BESS can help smooth extreme price fluctuations, benefiting both the market and end consumers over time. Participation in the capacity market will further strengthen supply reliability, ensuring that sufficient resources are available to meet peak demand and unexpected system stresses.
Expanding Regional Footprint Across Japan
With the commencement of operations in the Tokyo power market, Pacifico Energy has now entered its third regional electricity market, following earlier deployments in Hokkaido and Kyushu. Operating across multiple regions has enabled the company to accumulate valuable experience in addressing diverse grid characteristics, regulatory requirements, and market structures.
Each region in Japan presents unique challenges and opportunities, from differences in renewable energy penetration and demand profiles to variations in transmission constraints and market liquidity. By developing and operating assets in multiple locations, Pacifico Energy has built a flexible and resilient business model capable of adapting to these regional nuances. This multi-market presence also supports portfolio diversification, reducing overall risk and enhancing long-term returns.
Looking ahead, the company plans to continue expanding the development of both standalone battery storage projects and co-located BESS installations integrated with solar power plants across the country. Co-located systems, in particular, offer the potential to maximize the value of renewable generation by enabling energy shifting, curtailment reduction, and more predictable power output profiles.
Leveraging a Strong Renewable Energy Track Record
To date, Pacifico Energy has developed and commissioned a cumulative total of 1,172 MW (DC basis) of solar power plants, making it one of the largest renewable energy portfolios in Japan. This extensive experience in solar development provides a strong foundation for the company’s expansion into energy storage, as the operational characteristics of renewable generation and storage are increasingly interconnected.
By leveraging its domestic expertise alongside insights gained from advanced overseas markets, Pacifico Energy is well positioned to apply global best practices to Japan’s energy transition. The company remains committed to achieving grid parity for renewable energy, aiming to make clean power competitive with conventional generation sources without reliance on subsidies.
Commitment to Communities and a Sustainable Energy Future
Beyond its commercial objectives, Pacifico Energy emphasizes the importance of coexistence with local communities in the development and operation of its power assets. The company works to ensure that projects are developed responsibly, with careful consideration of environmental impacts, safety, and long-term community benefits.
As Japan continues its transition toward a more sustainable and resilient energy system, grid-scale battery storage will play an increasingly central role. By commencing commercial operations of this Tokyo-area facility under a full-merchant model, Pacifico Energy has demonstrated both technical capability and strategic confidence in the future of market-driven energy storage.
Through continued investment in renewable generation and storage, active participation in electricity markets, and a commitment to clean, safe, and affordable energy, Pacifico Energy aims to contribute meaningfully to Japan’s energy security and decarbonization goals. The company’s latest achievement represents not only a new operational milestone, but also a clear statement of intent as it works toward shaping a more flexible and sustainable power system for the years ahead.
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