RENOVA doubles operating profit to $52.4m with BESS expansion

The Tokushima Tsuda and Omaezakikou biomass plants also contributed to the increase.

RENOVA, Inc. reported a 104% increase in operating profit to $52.4m (JPY8.28b) for the fiscal year ended March 2026, up from $25.8m (JPY4.07b) a year earlier, due to accelerated battery energy storage system (BESS) projects and expanded earnings from biomass operations.

Earnings before interest, tax, depreciation, and amortisation (EBITDA) swelled to 31% to $193.4m (JPY30.53b), whilst revenue climbed to $555.0m (JPY87.62b) from $444.9m (JPY70.25b).

The company said in its financial report that its results were driven by full-year contributions from the Tokushima Tsuda and Omaezakikou biomass plants, the start of operations at the Karatsu Biomass plant in September 2025, and business development fees.

It also reached a final investment decision and started construction on the 90-megawatt (MW) / 270-megawatt-hour (MWh) Kikugawa Nishimura BESS project in March 2026.

The company said it arranged $38.0m (JPY6b) in project finance for the project, which it described as Japan’s largest financing deal for a merchant battery storage project. Commercial operations are scheduled for fiscal year 2028.

The company said total battery storage capacity in operation and under construction is expected to reach 450 MWs / 1.3 gigawatt-hours (GWh) as development progresses on additional 100MW-class merchant BESS projects.

For the fiscal year ending March 2027, RENOVA forecast revenue of $606.2m (JPY95.7b), up 9% year on year, and operating profit of $71.6m (JPY11.3b), up 36%. EBITDA is expected to rise 11% to $214.1m (JPY33.8b).

The company said annual downtime from biomass plant maintenance is projected to fall to 194 days from 251 days in the previous year, although maintenance concentrated in the first quarter could weaken quarterly profit performance.

As of May 2026, RENOVA had 389 MW of projects under construction, including battery storage, wind and solar developments.

The company estimated these projects could contribute $41.2m (JPY6.5b) to $47.5m (JPY7.5b) in EBITDA by fiscal year 2030.

Projects under construction include the Reihoku Amakusa Onshore Wind project, scheduled to begin operations in fiscal year 2027, and four battery storage projects in Tomakomai, Shiraoi, Morimachi Mutsumi, and Kikugawa Nishimura, all targeted for fiscal year 2028 commercial operations.

RENOVA said its domestic battery storage pipeline is expected to reach 527 MW, or 1.6 GWh, by the end of fiscal year 2027.

The company estimated the portfolio could generate $57.0m (JPY9b) to $63.3m (JPY10b) in annual EBITDA by fiscal year 2030.

The company also cited higher electricity prices in Japan as support for renewable energy demand, noting that Japan Electric Power Exchange spot prices have risen 50% to 80% since February 2026.

Under its medium-term management plan to 2030, RENOVA targets five GW of capacity and $380.0m (JPY60b) in EBITDA by 2030.

The company said projected consolidated EBITDA under the plan ranges from $373.7m (JPY59b) to $424.2m (JPY67b), supported by battery storage growth.

(US$1 = JPY157.88)