Vena Energy Secures 46.8 MW Contract for NRE Nakagawa 2 Storage Project in Japan

The NRE Nakagawa 2 Battery Storage Project, currently in development by Vena Energy, was awarded a capacity of 46,828 kilowatts in the FY2025 Long-Term Decarbonised Power Source Auction, administered by the Organisation for Cross-regional Coordination of Transmission Operators, known as OCCTO.

Vena Group announced the selection on 25 September 2026.

A Nagano Storage Asset Gains Long-Term Revenue Backing

A battery energy storage system taking shape near Matsumoto City in Nagano Prefecture is now backed by a long-term contract under Japan's competitive auction scheme for decarbonised power.

The award places the project among the assets chosen to receive support under the fiscal year 2025 round of the scheme, which is commonly abbreviated as the LTDA. As a grid-connected system, NRE Nakagawa 2 is positioned to interact directly with Japan's power network, storing and dispatching electricity as part of the broader system.

How the Auction Mechanism Works

Introduced in fiscal year 2023, the Long-Term Decarbonised Power Source Auction is designed to encourage investment in decarbonised power generation by providing long-term revenue certainty to selected projects.

According to the information supplied by Vena Group, this revenue visibility facilitates the recovery of development and capital costs, making investment in decarbonised power more attractive to developers and investors. The programme supports Japan's ambition to achieve carbon neutrality by 2050.

Battery energy storage systems such as NRE Nakagawa 2 fall within the scope of the auction, which OCCTO conducts as the body responsible for coordinating transmission operators across Japan's regions.

Vena Energy Responds to the Selection

In a statement issued alongside the announcement, the company said that to accelerate the adoption of renewable energy as a key source of decarbonised power, it is essential to deploy battery storage systems capable of addressing intermittency and enabling the efficient use of electricity.

Vena Energy expressed that it is honoured the project was selected in the FY2025 auction, enabling the company to contribute to strengthening the reliability and resilience of Japan's power system.

On development plans, the company stated that as it advances the project it will continue to engage closely with local communities and pursue responsible development with careful consideration for the surrounding environment.

It added that it remains committed to delivering stable, long-term energy solutions that support Japan's decarbonisation goals and contribute to the development of sustainable energy infrastructure.

The Project in Brief

NRE Nakagawa 2 is a grid-connected battery energy storage system located near Matsumoto City in Nagano Prefecture and is currently in the development phase, now with a secured contract carrying the awarded capacity of 46,828 kW.

Battery storage of this kind is regarded within the industry as a means of addressing the intermittency associated with renewable energy generation and enabling more efficient use of electricity on the grid. No construction timeline or commercial operation date was disclosed in the announcement.

A Japanese Portfolio Moving in Both Directions

The company describes the selection as another significant milestone in its growing battery storage portfolio in Japan.

The project builds on the successful commencement of commercial operations at the Hikone Battery Storage Project last year, meaning the company's Japanese battery storage presence now spans both the operational stage and the development stage.

Vena Energy is the renewable energy arm of Vena Group and positions itself as a leading provider of green energy solutions across the Asia-Pacific region. Through its parent organisation, the company has been advancing renewable energy assets across the region.

Storage Within Japan's Policy Architecture

The FY2025 round forms part of a policy framework that Japan established in fiscal year 2023 to support the commercial deployment of decarbonised power sources. Under the LTDA, selected projects receive long-term revenue certainty, an arrangement intended to facilitate the recovery of development and capital costs for participating assets.

Storage holds a specific role within this framework. As Vena Energy's statement indicates, deploying battery systems is considered essential to addressing the intermittency of renewable generation and enabling efficient use of electricity, which supports the acceleration of renewable adoption as a key decarbonised power source in Japan.

The OCCTO-run auction thus provides a route by which storage developers can secure the revenue visibility needed to advance projects like NRE Nakagawa 2.

Where the Project Stands Now

With the FY2025 LTDA contract secured, NRE Nakagawa 2 moves forward in development at its Nagano Prefecture site.

In line with its stated commitments, Vena Energy has indicated it will engage closely with local communities near Matsumoto City as the project advances and will pursue development with careful consideration for the surrounding environment.

The company has framed the award as part of its broader commitment to stable, long-term energy solutions supporting Japan's decarbonisation goals and the build-out of sustainable energy infrastructure. Details on construction timing or the commercial operation date were not provided in the announcement.