Otsuka Group Introduces Its First Battery Energy Storage System in Hokkaido —Aims to Maximize Renewable Energy Use and Stabilize Power Supply in Order to Promote Business Growth and Environmental Initiatives—
July 15, 2026
Otsuka Holdings Co., Ltd. (Head office: Chiyoda-ku, Tokyo, Japan; President and Representative Director, CEO: Makoto Inoue) has introduced the Otsuka group’s first battery energy storage system (BESS) in the Hokkaido region in collaboration with ENERES Co., Ltd. (ENERES) and TESS Engineering Co., Ltd. (TESS). The BESS was installed next to the solar power generation facility at the Kushiro Factory of Otsuka Pharmaceutical Factory, Inc., a group company of Otsuka Holdings, and began operating in July.
The BESS integrates battery storage units with a power supply and demand management system, enabling advanced optimization of power supply and demand across the Otsuka group facilities in the Hokkaido region. By introducing the BESS, the group intends to maximize the use of renewable energy generated on-site from solar power and ensure a stable electricity supply, thereby advancing both business growth and environmental initiatives while contributing to the stabilization of power supply and demand in the market.
In recent years, as the adoption of renewable energy has expanded across society, challenges have emerged because power generation from renewable sources such as solar and wind can fluctuate significantly due to weather conditions, resulting in periods of electricity surplus or shortage depending on the season and time of day. Furthermore, within the power grid1, the balance between electricity supply and demand must be maintained at all times. Therefore, when supply exceeds demand, grid operators curtail output from renewable energy sources, while during periods of tight supply-demand conditions, adjustments are made to rapidly secure additional power generation capacity.
Under its integrated energy services framework2, the Otsuka group has been promoting group-wide initiatives to expand the generation and use of renewable energy and improve energy efficiency. The group aims to maximize its use of the renewable energy it generates and advance its carbon neutrality efforts by introducing the BESS. This system stores surplus electricity during the day, including renewable energy generated by the solar power generation facility at the Kushiro Factory of Otsuka Pharmaceutical Factory, and releases it when needed. The stored electricity is supplied to the Kushiro Factory.
In addition, a newly developed power supply and demand management system, implemented in coordination with this initiative, works in conjunction with the batteries to automatically and optimally manage electricity supply and demand across the entire Hokkaido region. Previously, this process required manual adjustments. By efficiently planning charging and discharging operations, the battery will be operated and controlled based on historical electricity demand data, solar power generation forecasts, etc. from the group’s facilities3 in the Hokkaido region. This contributes not only to stabilizing electricity supply for Otsuka Pharmaceutical Factory’s Kushiro Factory, which receives electricity directly from the batteries, but also to enhancing supply stability across the group facilities in Hokkaido region, thereby strengthening business resilience. Furthermore, during periods when electricity demand tightens in the Hokkaido grid and an output request is issued, stored electricity is released to the Kushiro Factory, reducing the use of externally sourced power and contributing to regional grid stability.
This automated power supply and demand management system was developed by ENERES, which has strengths in power aggregation4 and power business support, and is also responsible for its operation. TESS, a company that specializes in the installation of energy-saving and renewable energy equipment, was responsible for the engineering, procurement, and construction (EPC) of the battery and oversees the integrated control of solar power generation and the battery.
The Otsuka group has established its 2050 Environmental Vision, “Net Zero,” which aims to reduce the total environmental impact of its business activities to zero. In addition to setting a target to reduce CO₂ emissions by 50% by FY2028 (compared to FY2017), the group has set a goal of “20% self-generated renewable energy” to enhance the stability of its energy supply and business resilience, while contributing to the expansion of renewable energy generation in society overall. Self generated renewable energy refers to renewable energy generated by the group's facilities or newly generated in collaboration with power producers. The introduction of the BESS will further expand the utilization of self-generated renewable energy.
The Otsuka group will continue to promote group-wide efforts to reduce its environmental impact through the use of new technologies and solutions with diverse partners, while pursuing its own sustainable growth and contributing to the realization of a sustainable society.
1. Power grid: A series of facilities and systems designed to ensure a stable electricity supply from power plants via transmission lines, substations, and distribution lines.
2. Integrated energy services framework: A system within the Otsuka group that enables the group to centrally manage energy (electricity and steam), including bulk procurement of renewable energy, forecasting power supply and demand, and supplying electricity generated within the group to its facilities.
3. The Kushiro Factory of Otsuka Pharmaceutical Factory, the Kushiro Factory of Otsuka Foods Co., Ltd., etc.
4. Power aggregation: The process of grouping multiple energy resources, such as power generation facilities and energy storage systems, and managing them centrally.
ENERES Co., Ltd.
A subsidiary of au Energy Holdings Co., Ltd. and an affiliate of Electric Power Development Co., Ltd. (J-POWER). Leveraging the expertise in supply and demand management cultivated since its founding in 2004, ENERES provides a wide range of services that support the efficient use of energy. ENERES has been participating in the Virtual Power Plant (VPP) demonstration projects of the Ministry of Economy, Trade and Industry (METI) since 2016. In 2019, ENERES developed our proprietary Distributed Energy Resource Management System (DERMS) to centrally control distributed energy resources through IoT, and in 2021, the company launched its "VPP Platform Service." In April 2022, ENERES became the first company to be certified as a Specified Wholesale Supplier (Resource Aggregator). Today, as an aggregator, ENERES supplies electricity to the Capacity Market and the Balancing Market. In September 2023, ENERES declared its commitment to carbon neutrality, aiming to achieve net-zero greenhouse gas (GHG) emissions from its business activities by fiscal 2030.
TESS Engineering Co., Ltd.
A subsidiary of TESS Holdings Co., Ltd. The group was founded in 1973. The Group, under the management philosophy of “Total Energy Savings & Solutions,” for realizing a sustainable society, focuses on the areas of “renewable energy as main power source,” “energy-efficiency maximization,” and “intelligent- energy infrastructure.” Based on this, TESS operates two businesses: (1) the Engineering Segment, which provides EPC services for energy plants and utility equipment, and (2) the Energy Supply Segment, which includes ownership, operation, and electricity sales of renewable energy power plants, operation and maintenance (O&M), electricity retailing, and resource recycling biomass fuel supply. TESS offers comprehensive solutions to solve the challenges facing various customers in the industrial sector, such as environmental measures, energy conservation, and energy cost reductions.
Otsuka Group Environmental Initiatives
As a total healthcare company, the Otsuka group earnestly strives to reduce its impact on the global environment. In order to contribute to the realization of a sustainable society that leads to a sound future, we promote our 2050 Environmental Vision of “Net Zero,” which aims to reduce the total environmental impacts from our business activities to zero.
For more details, please visit the “Sustainability” section of the Otsuka Holdings website:
https://www.otsuka.com/en/sustainability/