Hyosung Heavy Industries constructs ESS across Japan... "accelerates" market expansion

Hyosung Heavy Industries is accelerating its expansion to Japan after winning consecutive ESS (Energy Storage System) project orders in its first year in the market.

□ Signed EPC contract for high-voltage ESS projects across 5 regions in Japan… Providing "ESS total solution"

Hyosung Heavy Industries announced on the 27th that it has recently signed an EPC (engineering, procurement, construction) contract worth approximately KRW 11 billion for high-voltage linked ESS project with a Japanese energy developer.

This project involves constructing a 10MW/40MWh high-voltage ESS across 5 regions in Japan: Oita, Kumamoto, Yamaguchi, Okayama, and Mie. Hyosung Heavy Industries oversees the overall system design and the supply of major equipment, and it will also provide maintenance (O&M) services for up to 20 years after completion. This demonstrates Hyosung Heavy Industries’ "ESS total solution capabilities" in the Japanese market, covering everything from engineering, construction, and long-term operation management beyond simply providing equipment.

□ Recorded KRW 64 billion in cumulative orders in the first year after entering the market... Largest scale among Korean power equipment companies

Winning this order is an outcome consecutively achieved by Hyosung Heavy Industries in its first year in the Japanese ESS market. In February, the company also won an EPC contract for a 48.5 MW/228 MWh extra-high voltage ESS project in the Shiranuka area of Hokkaido, Japan. Cumulative orders won in Japan for the first half of this year reached approximately KRW 64 billion, the largest among Korean power equipment companies.

In particular, Japan is regarded as a market with high entry barriers since it has different power frequencies and stringent grid connection requirements. Hyosung Heavy Industries won a project for connecting high-voltage distribution networks in the Kansai and Kyushu regions in South Central Japan, following its project of connecting an extra-high voltage transmission network in Hokkaido of Northern Japan; thus demonstrating its project execution capabilities in all power grid environments in Japan.

□ No. 1 in domestic market share, accelerating global ESS business expansion with strong performance in the UK and South Africa

Hyosung Heavy Industries has remained No. 1 in market share in the domestic ESS market since entering the ESS business in 2009. In 2024, the company constructed a 336 MW ESS—the largest capacity in Korea for a single ESS—at the KEPCO Bubuk Substation.

Furthermore, Hyosung Heavy Industries has accumulated experience in carrying out diverse ESS projects in global markets including the UK and South Africa. Notably, Hyosung Heavy Industries was listed as the best ESS supplier (Tier 1) in 2024 by BNEF (Bloomberg New Energy Finance), a prominent research firm in the new & renewable energy market; thus demonstrating its global competitiveness.

Hyosung Heavy Industries plans to expand its global ESS references by building on its expansion to the Japanese market with stringent equipment safety and specification standards, and to strengthen its overseas ESS business focusing on countries expanding the use of renewable energy.

Meanwhile, Japan is pursuing policies to raise the percentage of power generation using renewable energy to over 30% by 2030 to strengthen energy security and achieve its carbon neutrality target. With the continued expansion of solar and wind power generation characterized by high output variability depending on the weather, demand for ESS to stabilize power systems is also growing. According to global market research firm Grand View Research, the Japanese ESS market is forecast to grow at an annual average of 34.9% by 2030 from approximately USD 13.4 billion in 2025.