SPARX Group Co., Ltd. announced it established the SPARX Green Battery Energy Storage System Fund to invest in energy storage facility projects as a new initiative to help realize carbon neutrality in Japan. Battery Energy Storage System, also called grid battery storage, are directly connected to the power grid to provide power regulation and supply to the market. The SPARX Green Battery Energy Storage System Fund will invest in developing energy storage plants in Japan and aim to conduct stable operations by utilizing new systems in markets for balancing electricity supply and demand, auctions for decarbonized power supply in capacity markets, and wholesale power markets.

As the Fund's general partner (GP), SPARX entered into an agreement in January with limited partners (LP) from the banking, life insurance, and leasing industries for a total capital contribution of JPY 26.3 billion. A SPARX subsidiary, SPARX Asset Management Co., Ltd., will be the fund manager. Another subsidiary, SPARX Green Energy & Technology Co., Ltd. (SGET), has a track record in renewable energy business development and operation, with 727 MW of electricity generated from 349 solar and wind power plants nationwide.

SGET will add battery energy storage systems to its business portfolio to achieve a carbon-neutral society by developing and operating projects rooted in their local communities. Fund name: SPARX Green Battery Energy Storage System Investment Limited Partnership - SPARX Green Battery Energy Storage System Fund. Investments: Equity interests in domestic battery energy storage projects and other investment securities.

Investors: General partner: SPARX Group Co., Ltd. Limited partners: Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., JOYO BANK, Ltd., Asahi Mutual Life Insurance Company, RICOH LEASING COMPANY, LTD., and more. Fund manager: SPARX Asset Management Co., Ltd. Fund size: JPY 26.3 billion (as of January 19, 2024). Fund term: 25 years.