RENOVA, Inc.
9519・Prime Market・Electric Power & Gas
Business
Renova, Inc. is an independent company that entered the renewable energy business in 2012, developing, owning, and operating multiple power sources including solar, biomass, onshore wind, geothermal, and battery storage. As of the end of March 2026, the total capacity of facilities in operation and under construction reached approximately 1.6GW, with power plants and battery storage facilities located throughout Japan. Its main customers are electric power companies (purchasing obligors under the FIT/FIP schemes) and RE100-compliant companies, etc. (Corporate PPA). The company also has bases in Vietnam, the Philippines, South Korea, and the United States, and is promoting business development in Asia and North America.
Business Model
The company establishes an SPC for each power plant and battery storage facility, raising highly leveraged funding through project finance (cumulative total of over ¥500 billion). Electricity sale prices are fixed under the FIT/FIP system or long-term Corporate PPA contracts, securing stable revenue over the project period. In the Development & Operation Business, the company accumulates Asset Management Fee (AM Fee), Business Development Fee, dividends, and Anonymous Partnership Distribution Gains & Dividends. After the start of operations, the company acquires additional equity interests (through exercise of call options, etc.) to consolidate the entities, adopting a structure that expands earnings.
Company Strengths
As of the end of March 2026, the cumulative contract-based project finance arranged by consolidated subsidiaries and equity-method affiliates exceeded ¥500,000 million. The company has established a financial scheme that enables it to simultaneously advance numerous large-scale projects with minimal equity capital through high-leverage financing, and possesses a financial institution network and track record that would be difficult for competitors to replicate in a short period.
Key functions—engineering, local consensus building, project finance arrangement, and operation management—have been brought in-house. Know-how for stable operation across 7 biomass power plants is shared internally, and expertise in optimal battery storage operation is also being internalized. As an independent operator, the flexibility to collaborate with diverse partners is also one of its competitive advantages.
All operating solar power plants have secured FIT purchase prices of either ¥36/kWh or ¥40/kWh, providing high revenue predictability throughout the FIT period. Biomass power plants have also secured FIT prices of either ¥24/kWh or ¥32/kWh. Furthermore, under Corporate PPA (Non-FIT Solar), the company achieves electricity sales prices that add an environmental premium on top of the FIT price.
ENVALITH's Perspective
Performance Trend
Revenue expanded roughly threefold over five fiscal periods, from ¥29,207 million in FY2022 (ended March 2022) to ¥87,622 million in FY2026 (ending March 2026). Growth accelerated in FY2026, up +24.7% year on year. Operating profit doubled (+103.7%) from ¥4,066 million in FY2025 (ended March 2025) to ¥8,283 million, and the EBITDA margin also improved from 33.2% to 34.8%. The main drivers were increased electricity sales revenue from the Tokushima Tsuda biomass power plant (+¥4,701 million), the consolidation of Omaezaki Port and Karatsu biomass facilities, and recognition of subsidy-related income (+¥1,007 million). On the other hand, profit was squeezed by an increase in interest expense (-¥924 million) associated with the commencement of operations at biomass power plants, and by higher fuel costs (¥40,524 million). Comprehensive income surged to ¥49,960 million (+483.5% year on year), but this was driven by fair value changes in foreign exchange forward contracts held by consolidated subsidiaries (the effective portion of cash flow hedges, +¥47,242 million), which differs in nature from profit recognized in the income statement.
Growth Strategy
Diversifying the earnings base through the full-scale launch of the battery storage business, expansion of small-scale distributed solar power, and conversion of biomass to Corporate PPA
Contracted capacity of small-scale distributed solar for Corporate PPA reached 206MW, and in December 2025, project financing covering approximately 170MW was arranged. Having established the business model, total operating capacity of approximately 534.6MW is expected by the end of FY2027 (ending March 2027). The company will strengthen its completion and operation structure toward the mid-term target of 0.9GW (in operation and under construction) by FY2030.
Following the Himeji Battery Storage Station (15MW, began operation in October 2025) and the Yasugi Battery Storage Station (2MW, began operation in April 2026), development is progressing on the Ishikari Battery Storage Station (30MW, scheduled for FY2027) and the Kikugawa Nishimura Battery Storage Station (90MW/270MWh, scheduled for FY2028, the largest domestic market-sale-type facility). The company aims to internalize expertise in market-based battery operation and maximize revenue in the balancing and capacity markets.
By adding an environmental premium to the FIT price in the conversion to Corporate PPA, the company aims to improve long-term stable earnings. As of the end of March 2026, the contracted capacity under Corporate PPA for the Biomass Power Generation & Electricity Sales Business stood at 145.4MW (3 power plants). The company is promoting the value of biomass as a baseload power source capable of stable supply around the clock, capturing decarbonization demand from data centers and other users.
The Quang Tri wind power business in Vietnam (3 projects totaling 144.0MW, 40% equity stake) contributes to consolidated results under the equity method. Domestically, one onshore wind company and one hydropower company are under construction. In geothermal, the Minami-Aso Yunotani Geothermal plant (2.0MW, 30% equity stake) is in operation. The company aims to reduce dependence on specific power sources and enhance earnings stability.
Last updated: July 19, 2026