RENOVA, Inc.
9519・Prime Market・Electric Power & Gas
Renewable Energy Power Generation Business
Power plant ownership and operation business centered on stable long-term electricity sales under the FIT/FIP scheme and PPAs
| Period | Current | Previous | Change |
|---|---|---|---|
| Revenue (including intersegment) | ¥86,429 million | ¥68,292 million | ↑ |
| Segment profit (EBITDA) | ¥33,862 million | ¥26,823 million | ↑ |
| EBITDA margin (segment) | 39.2% | 39.3% | — |
| Total capacity of power plants and battery storage facilities in operation | approx. 1,228.7MW | approx. 970.5MW | ↑ |
| Revenue from external customers | ¥86,429 million | ¥68,292 million | ↑ |
| Corporate PPA contracted capacity (solar) | 206MW | 207MW | — |
| Corporate PPA contracted capacity (biomass) | 145.4MW (3 power plants) | ― | ↑ |
Business Details
Consolidated subsidiaries and equity-method affiliates own and operate solar, biomass, onshore wind, and geothermal power plants and battery storage facilities (total capacity of approximately 1,228.7MW), selling the electricity generated and its environmental value to offtakers under the FIT scheme, FIP scheme, and Corporate PPA contracts. Major customers are Tohoku Electric Power Network (¥19,732 million), NTT Anode Energy (¥18,599 million), Kyushu Electric Power Transmission and Distribution (¥16,068 million), Shikoku Electric Power Transmission and Distribution (¥12,383 million), and Chubu Electric Power Grid (¥9,986 million). Purchase prices are fixed on a long-term basis under the relevant schemes or contracts, providing a stable revenue structure.
Recent Overview
Revenue increased 26.6% year on year, driven by the commencement of operations and consolidation of the Karatsu Biomass plant and increased electricity sales at Tokushima Tsuda
The Karatsu Biomass Power Plant (49.9MW) commenced commercial operation and became a consolidated subsidiary in September 2025 (revenue contribution: +¥3,842 million). The Omaezakiko Biomass Power Plant completed repair work and resumed normal operations in October 2025 (revenue contribution: +¥7,677 million). Electricity sales revenue at Tokushima Tsuda Biomass Power Plant GK increased by +¥6,369 million year on year. In October 2025, the Himeji Battery Storage Facility commenced operation as the Group's first grid-scale battery storage business. Small-scale/distributed solar power plants also commenced operations sequentially, increasing electricity sales revenue by +¥730 million. Segment EBITDA was ¥33,862 million (+26.2% year on year).
Key Products
Growth Drivers
- Increased revenue and EBITDA from the full-year contribution of the Karatsu Biomass Power Plant (49.9MW) (consolidated from Q2 of FY2026, ending March 2026)
- Full-year contribution of the Himeji Battery Storage Facility (15.0MW) and the new commencement of operations at the Yasugi Battery Storage Facility (2MW) (April 2026)
- Sequential commencement of operations of small-scale/distributed solar power plants (total of approximately 534.6MW expected by the end of FY2027, ending March 2027)
- Promotion of the shift from FIT electricity sales to Corporate PPAs at biomass power plants (FIT price plus environmental premium)
- Establishment of the business model through project financing arrangement for small-scale/distributed solar (approximately 170MW) for Corporate PPAs
- Market expansion driven by the Japanese government's '7th Strategic Energy Plan' (targeting a 40-50% renewable energy ratio by 2040) and increasing electricity demand (data centers, semiconductor plants)
- Pipeline of large-scale battery storage projects, including the Kikugawa Nishimura Battery Storage Facility (90MW/270MWh, scheduled to commence operation in FY2028)
Risks
- Curtailment risk: lost generation volume due to output curtailment in March 2026 was 0.270% of the annual planned electricity sales volume (minor in the current period), but may expand in the future as renewable energy adoption increases
- Risk of unplanned outages at biomass power plants: the Omaezakiko Biomass Power Plant was shut down for an extended period from late June 2025 for repair work
- Fuel price volatility risk: fluctuations in the market prices of imported wood pellets and PKS materials affect earnings (some spot procurement is planned)
- Foreign exchange risk: changes in the fair value of foreign exchange forward contracts held by biomass power plants affect the financial statements (fuel costs, comprehensive income) (adjustment amount of -¥4,446 million in the current period)
- Risk of FIT scheme changes and purchase price reductions: potential future decline in profitability due to regulatory changes
- Risk of tightened regulations on large-scale solar power generation: regulatory tightening trends stemming from inappropriate development cases
- Risk of intensifying market competition in the grid-scale battery storage business: potential decline in profitability due to intensifying competition among battery storage facilities
Last updated: June 17, 2026