Energy Vault Holdings has completed the acquisition of an 850MW battery energy storage system (BESS) development portfolio in Japan from BayWa r.e. AG.
The portfolio includes 350 MW of near term, advanced-stage projects expected to be granted notice to proceed in the second half of next year, with commercial operations set to commence from mid-2028.
In addition, it also includes some 500MW of early-stage developments intended to support longer-term growth and development.
The transaction brings Energy Vault’s global owned asset portfolio for near term projects underway to 1.1 GW, which will reap more than $180 million in expected annual recurring EBITDA as the projects come online.
‘A significant step’
“This acquisition marks a significant step in Energy Vault’s global growth strategy and establishes our direct operating platform in one of the world’s most compelling energy storage markets,” commented Robert Piconi, chairman and chief executive of Energy Vault.
“By completing this acquisition, we have secured not only a premium BESS development portfolio, but also an experienced local team from one of the most respected renewable energy platforms globally. […] Japan’s need for flexible, reliable storage is accelerating, and Energy Vault is well positioned to deliver projects at scale while creating long-term, predictable value for our shareholders.”
Energy Vault noted the Japanese projects are expected to use three-hour duration battery systems, which typically generate higher EBITDA per MW than shorter-duration storage assets common in other markets.
Local expertise
In addition, the deal provides Energy Vault with an immediate in-country platform in BayWa r.e., incorporating expertise in land rights, regulatory permitting, and utility interconnections – all of which are key to navigating Japan’s complex energy storage market.
“Japan is a strategically important market for energy storage, and we are pleased to have successfully transferred this high-quality portfolio to Energy Vault,” added Daniel Gaefke, group chief operating officer of BayWa r.e.
“This transaction reflects BayWa r.e.’s ability to originate, develop, and monetise premium renewable energy assets globally. With its integrated technology platform, execution capability, and asset ownership strategy, Energy Vault is well positioned to advance these projects and support Japan’s energy transition.” Read more here.
