PowerX, Inc. and Smart Energy Co., Ltd. have signed a memorandum of understanding to explore collaboration on deploying battery energy storage systems co-located with power plants in Japan, the two companies announced on September 1, 2026.

Partnership Brings Together Manufacturing and O&M Expertise

The agreement pairs PowerX, headquartered in Tamano City, Okayama Prefecture, with Smart Energy, a Tokyo-based firm described as Japan's largest provider of operation and maintenance services for solar power plants, according to a survey by trade magazine PVeye published in May 2026.

Smart Energy was established in 2007 and is led by Representative Director Takuya Ogushi. PowerX is led by Director, President, and CEO Masahiro Ito and trades on the Japanese securities market under code 485A.

Under the terms of the MOU, the two companies intend to bring together their respective capabilities to advance co-located battery energy storage system, or BESS, projects across the full project lifecycle, from origination through deployment and operation.

Smart Energy will draw on its network of sales offices across Japan to identify and evaluate candidate projects through its relationships with solar power producers and will provide operation and maintenance services after systems are deployed. PowerX will supply BESS that it develops and manufactures domestically in Japan.

Market Pressures Driving Demand for Co-Located Storage

The partnership is framed against a backdrop of structural shifts in Japan's renewable energy market. With renewable energy increasingly positioned as a central pillar of Japan's power supply, revisions to the country's feed-in tariff and feed-in premium schemes, known as FIT and FIP, combined with growing output curtailment, are prompting more power producers to consider installing batteries alongside their generation assets.

The companies stated that co-located battery systems can help power producers secure revenue by enabling participation in supply-demand balancing and wholesale electricity markets.

The announcement acknowledged that realizing these opportunities as viable businesses requires expertise spanning multiple domains, including project identification and structuring, equipment procurement, operation and maintenance, and aggregation. The MOU is intended to allow the two companies to address that complexity by combining their individual strengths.

Aggregation Role to Be Determined Project by Project

On the question of market participation, the two companies said they will jointly pursue aggregation with a view to accessing Japan's supply-demand balancing and wholesale electricity markets.

However, the specific structure of each project, including which company will serve as the aggregator and how revenue and risk will be allocated between them, will be determined through separate discussions on a project-by-project basis.

Smart Energy's existing business lines include aggregation services and regional electricity retailer support, in addition to its core O&M work across solar and wind power plants and brokerage of renewable energy power plant transactions. PowerX has stated it will continue contributing to its electricity businesses beyond BESS supply, including aggregation, market trading, and retail supply.

Targets Set for Project Rollout Through 2028

The companies have outlined a phased deployment schedule. They aim to develop approximately one project by December 2026, three projects by December 2027, and ten projects by December 2028. The announcement did not specify the scale or locations of the projects targeted under these milestones.

PowerX stated that its supply of domestically developed and manufactured BESS is part of a broader goal of contributing to the expansion of renewable energy in Japan and improving Japan's energy self-sufficiency.

MOU Is Non-Binding and Subject to Further Discussions

Both companies noted that the collaboration described remains at an exploratory stage. The MOU is not legally binding, and the terms of any future cooperation are subject to change through ongoing discussions.

PowerX also stated that the financial impact of signing the MOU on its results has not been determined, and that it will make any required disclosures promptly should material developments arise.

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