Hyosung Heavy Industries (298040) is accelerating its push into Japan's energy storage system (ESS) market with a string of successive project wins. The company is being credited with proving its capabilities in Japan's high-barrier electricity market and laying the groundwork for business expansion in its first year of local entry.
Hyosung Heavy Industries announced Thursday that it recently signed a contract worth approximately 11 billion won with a Japanese energy development company for a high-voltage grid-connected ESS engineering, procurement, and construction (EPC) project.
The project involves building high-voltage ESS facilities with a combined capacity of 10 MW/40 MWh across five locations in Japan: Oita, Kumamoto, Yamaguchi, Okayama, and Mie. Hyosung Heavy Industries will oversee the entire system design and supply of key equipment, and will also provide operation and maintenance (O&M) services for up to 20 years after completion.
Hyosung Heavy Industries, which entered the Japanese ESS market this year, also won an extra-high-voltage ESS EPC project with a capacity of 48.5 MW/228 MWh in Shiranuka, Hokkaido, in February. Including the latest contract, cumulative orders in Japan in the first half of this year reach approximately 64 billion won. This is the largest among Korean power equipment companies.
By securing extra-high-voltage transmission grid connections in northern Hokkaido and now high-voltage distribution grid connections in the central-southern Kansai and Kyushu regions, the company has demonstrated its capability to execute projects across all power grid environments in Japan.
The Japanese government is pursuing a policy to expand the share of renewable energy generation to more than 30% by 2030 to strengthen energy security and achieve carbon neutrality. Accordingly, demand for ESS to stabilize the power grid amid the high output volatility of solar and wind power is surging.
According to market research firm Grand View Research, Japan's ESS market is projected to grow at a compound annual rate of 34.9% from approximately $13.4 billion in 2025 through 2030. Hyosung Heavy Industries plans to further strengthen its overseas ESS business based on its track record in the Japanese market, where safety and specification standards are stringent.
