Taiwan-listed smart energy firm HD Renewable Energy Co., Ltd. (HDRE) has secured 160MW of lithium-ion battery storage capacity in Japan’s latest Long-Term Decarbonization Power Source Auction (LTDA).
The result marks the company’s third consecutive year of participation in the national capacity market. Since entering Japan’s auction system in 2023, HDRE has built a cumulative awarded capacity of approximately 560MW under the LTDA framework. The auction mechanism guarantees successful projects fixed capacity revenues for up to 20 years, providing financial stability for the company’s expanding international asset portfolio.
In the latest auction round, total awarded capacity for lithium-ion battery storage stood at 552MW, with HDRE capturing nearly 30 per cent of the total allocation. The company previously secured 100MW in the initial 2024 results, followed by an expansion to 300MW in 2025. Its two newest utility-scale battery storage developments will be located in Kagoshima and Miyagi prefectures, combining regulated capacity market revenues with active wholesale power trading to establish a resilient long-term revenue model.
The Japanese market serves as a central pillar of HDRE’s broader international expansion strategy, with the firm targeting a 3.4GW regional project pipeline by 2029. To support this growth, HDRE is advancing several large-scale initiatives across Japan, including:
- Tokyo Gas Collaboration: A 340MW battery storage operation and long-term offtake partnership.
- Chubu Electric Power Miraiz Partnership: A 300MW battery storage venture via subsidiary Star Trade Japan, aimed at mitigating electricity price volatility risks.
- Helios BESS Project: The finalisation of project financing for a 50MW battery energy storage system in Hokkaido.
Globally, HDRE aims to compile a 9.4GW energy pipeline by 2029 across Taiwan, Japan, and Australia, focusing on long-term contracts, integrated power services, and dedicated supply chains for artificial intelligence computing facilities.
In Australia, the company is transitioning a 2.7GW solar and storage pipeline from development into active construction, targeting government-backed revenue streams under the Capacity Investment Scheme (CIS) and the Firm Energy Reliability Mechanism (FERM). Meanwhile, in its home market of Taiwan, HDRE maintains a 3.3GW pipeline, leveraging its cross-border operational experience to scale its domestic asset base and power service operations.
