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Blue Sky Energy Initiates FIP Transition Project

In a significant move towards sustainable energy, Blue Sky Energy Corporation, based in Chuo-ku, Tokyo, has announced the commencement of a project geared towards verifying the business viability of low-pressure solar power plants transitioning to the Feed-in Premium (FIP) system. This project is a collaborative effort with Remix Point Inc., also Tokyo-based, and its subsidiary, Seal Engineering Co., Ltd.

The main aim of the project is to utilize the renewable energy generation platform, Tensor Cloud, provided by Tensor Energy Corporation from Chuo-ku, Fukuoka, to optimize the operational efficiency of Blue Sky Energy’s ten low-pressure solar power plants located in Shibushi City, Kagoshima Prefecture. The focus is on integrating a battery storage system while transitioning from the existing Feed-in Tariff (FIT) system to the FIP system.

Project Goals and Challenges

Low-pressure solar power plants currently account for a staggering 90% of all installed solar power generation systems in Japan, reflecting a substantial market potential. However, challenges such as efficiency in energy production and the burdensome regulatory processes have resulted in profitability concerns, rendering it difficult for new entrants in the market. This project, recognized as the first collaborative effort aimed at transitioning to the FIP system, seeks to establish the economic feasibility of low-pressure solar power systems with an integrated energy storage solution.

By leveraging the operational and maintenance expertise of Blue Sky Energy, the expansion endeavors of Remix Point into FIP projects, and the advanced technology from Tensor Energy, the project aims to explore new business opportunities within the realm of low-pressure solar energy generation.

Understanding the FIP and FIT Systems

The FIP system allows renewable energy providers to sell electricity on the wholesale market, such as JEPX, with a premium added to the selling price as a form of subsidy. In contrast, the FIT system guarantees that electricity generated from renewable sources will be purchased by power companies at a fixed price for a set duration. Transitioning from FIT to FIP is essential as it allows for greater market flexibility and possibly higher returns for energy producers.

Structure of the Verification Project

The project encompasses ten low-pressure solar sites in Shibushi City under Blue Sky Energy and another ten in Kikuchi City managed by Remix Point. The aggregation operation will be facilitated by Remix Point, utilizing Tensor Energy’s Tensor Cloud platform for enhanced operational management.

Project Timelines and Expectations

The following tentative schedule has been proposed for the transition process:

• - Construction and installation of battery systems expected to begin in spring 2026.
• - Transition process to FIP to begin in autumn 2026.
• - Completion and operational commencement under the FIP system targeted for winter 2026, subject to progress.

About Blue Sky Energy

Blue Sky Energy is focused on linking renewable energy to the future, emphasizing the importance of making renewable energy the primary source of power. Their operations include the comprehensive project and management of solar power systems and energy storage facilities. They currently have 24 locations nationwide and aim to expand their developments further, especially in repowering and energy storage projects, with a goal of establishing over 50 energy storage systems by 2027.

For more information, visit Blue Sky Energy.

About Tensor Energy

Tensor Energy specializes in the asset management and control of energy systems and offers software development and services related to energy trading, targeting decentralized energy sources. Their innovative approaches are central to facilitating the aggregation project outlined in this initiative.