2025.12.09Achieving Second-Level Response—Gotion High-Tech Successfully Enters Japan’s Primary Adjustment Market　

Gotion High-Tech (hereinafter, “Gotion”) recently announced that the Sakura Energy Storage Facility, jointly developed with Edison Power Co., Ltd. (hereinafter, “Edison Power”), successfully passed the comprehensive testing required for Japan’s Primary Adjustment Market. The testing confirmed that the facility can respond to power supply and demand conditions on a second-by-second basis and adjust its output rapidly and precisely. This makes Gotion the first Chinese energy storage system manufacturer to enter this market.
This achievement demonstrates the full-scale adoption of a Chinese-made energy storage system in Japan’s most important ancillary electricity service market, bringing new value to improving the flexibility and stability of Japan’s power system operations.

*Sakura Energy Storage Facility in operation

Having completed grid interconnection in November 2024, the Sakura Energy Storage Facility has a capacity of 2MW/7MWh and adopts an integrated AC/DC configuration. Its remote digital monitoring system and high-speed communications technology ensure a high level of responsiveness and reliability.
The facility had traditionally been operated primarily for electricity price arbitrage, utilizing peak/off-peak price differentials on JEPX, but has now entered the ancillary electricity service sector. From September 2025, it is scheduled to officially participate in the Primary Adjustment Market of the Balancing Market (EPRX).

■ Main Revenue Sources for Energy Storage Facilities in Japan
The energy storage facility business in Japan is primarily based on the following three markets.
1. JEPX Wholesale Electricity Market
Electricity arbitrage trading involving charging during low-price periods and discharging during high-price periods.
2. Balancing Market (particularly the Primary Adjustment Market)
A market in which frequency is adjusted on a second-by-second basis and capacity revenue is earned for the “standby capacity” provided. Only power resources with a response time of 10 seconds or less may participate.
3. Capacity Market (OCCTO)
A market that provides fixed revenue by supplying stable reserve capacity over the long term.
Combining these multiple revenue sources makes it possible to significantly increase the return on investment for energy storage facilities.

■ Importance of the Primary Adjustment Market and Performance of the Sakura Energy Storage Facility
The Primary Adjustment Market is the segment of Japan’s power supply and demand control system that requires the fastest response. It is characterized by providing compensation for standby capacity rather than for the amount of electricity supplied. As a market that complements electricity arbitrage on JEPX, it is expected to generate additional annual revenue on the order of tens of millions of yen, substantially improving the business stability of energy storage facilities.
The Sakura Energy Storage Facility demonstrated millisecond-level response capability and highly precise adjustment performance, proving the significant role that high-performance energy storage systems can play in primary adjustment services. This expands the applications of energy storage businesses from “peak shifting” to “power system stabilization” and provides an important foundation for advancing future business models.

■ Business Development in the Japanese Market
Gotion began a strategic collaboration with Edison Power in March 2023 and has since promoted the development of energy storage businesses in Japan. The Sakura Energy Storage Facility is the first project resulting from this collaboration and is positioned as a model case in the service area of Tokyo Electric Power Company.
In addition, the Kikukawa Energy Storage Facility in the Chubu Electric Power service area also passed the testing for the Primary Adjustment Market, becoming Gotion’s first primary adjustment project in the region. This project was jointly developed by Hanwa Co., Ltd. and Edison Power, and, as a high-revenue model combining JEPX arbitrage and primary adjustment, is scheduled to expand into regions including Kansai, Kyushu, and Hokkaido.

■ Gotion’s Future Outlook
Gotion’s entry into Japan’s Primary Adjustment Market has been made possible by its strong frequency regulation performance and system integration capabilities. In Japan, where thermal power generation is being reduced and the share of renewable energy is increasing, these capabilities represent important solutions for supporting power system stability.
Going forward, Gotion will apply the technical and commercial achievements gained through this project to other projects and accelerate its expansion in Japan’s high-value-added energy storage market while working in cooperation with partner companies.