TAIPEI, March 19, 2026 /PRNewswire/ -- HD Renewable Energy (TPEX: 6873), a leading international smart energy company, announced that its Helios 50MW grid-scale battery energy storage system (BESS) project in Hokkaido, Japan, has secured project financing of approximately JPY 5.4 billion.
The financing was arranged with the support of Nomura Capital Investment and Nomura Securities, and raised through a green project bond, marking Japan's first green project bond backed by grid-scale battery storage assets. The transaction highlights growing interest from global capital markets in energy storage infrastructure and market-driven power trading models.
The financing adopts a project finance trust beneficiary right structure (ABL), with the HDRE Group serving as the asset manager. The Helios project operates under a merchant model, generating revenue primarily through electricity trading in Japan's wholesale power market (JEPX) and balancing market (EPRX).
Unlike renewable projects that rely on subsidies or long-term fixed-price contracts, merchant battery storage projects have revenue streams directly linked to market prices, making them a more challenging asset class for traditional project finance. Through a structured operational and cash-flow management framework, the project successfully secured long-term financing with a maturity of up to 19 years, representing an important milestone for battery storage financing in Japan.
As renewable energy penetration continues to rise in Japan, demand for flexible dispatch and grid balancing resources is increasing. Grid-scale battery storage is emerging as a critical infrastructure component to support grid stability and enable higher renewable integration. However, project finance markets have historically favored assets with predictable cash flows, such as FIT-supported projects. Battery storage projects, whose revenues depend on electricity market conditions, have therefore seen relatively limited long-term financing. The successful issuance of the Helios green project bond demonstrates growing investor confidence in energy storage assets and market-based electricity trading models.
"The successful financing of the Helios project marks an important step in establishing a viable financial framework for battery storage assets in Japan," said Jason Chou, General Manager of HD Renewable Energy. "It also reflects increasing market confidence in power trading-driven business models. As our storage portfolio continues to expand, we will further integrate asset operations with power trading capabilities to enhance the flexibility and value of energy asset management."
The Helios BESS project, with a capacity of 50MW, is already participating in Japan's electricity markets and conducting power trading operations. The project is expected to gradually participate in the balancing market and capacity market to further enhance asset performance.
The project has received BBB investment-grade credit and green bond ratings from Rating and Investment Information, Inc. (R&I) and has also obtained a Second-Party Opinion (SPO) confirming its alignment with Green Bond Principles. Going forward, HDRE will continue to strengthen cooperation with international financial institutions including the Nomura Group, while advancing integrated operations of battery storage and power assets and expanding its smart energy footprint in Japan.
SOURCE HD Renewable Energy
