Opal Energy, Jasper, Atlas, and Others
15 Subsidiaries Including Overseas Entities Incorporated
Transition to Long-Term Energy Infrastructure Assets
Hanwha Corporation has established a series of new subsidiaries this year to strengthen its large-scale Battery Energy Storage System (BESS) business within its energy division. This move is interpreted as an attempt to shift its portfolio away from a structure focused on short-term, solar power projects that are liquidated after brief operation, toward energy infrastructure assets that can be operated over the long term.
According to the Financial Supervisory Service’s electronic disclosure system on May 26, Hanwha Corporation newly incorporated a total of 15 subsidiaries into its energy division this year, including overseas entities pursuing BESS projects. Notable examples include Opal Energy Storage, Jasper Energy Storage, and Atlas BESS 4, all of which are currently working on large-scale BESS projects in the United States with capacities ranging from 150 to 200 MW.
Among these, Opal Energy Storage is pursuing a 200 MW BESS project in Nevada. The project aims to connect to a local power company’s (NV Energy) substation via a 230 kV transmission line, with completion targeted within this year. Jasper Energy Storage and Atlas BESS 4 are each responsible for 150 MW (600 MWh) projects in South Carolina and Arizona, respectively.
Hanwha Corporation’s decision to incorporate these entities as subsidiaries is seen as a move to restructure its portfolio around large-scale BESS projects that offer both profitability and stability. An industry insider stated, “Profitability can vary greatly between ESS projects, but large-scale BESS projects tend to offer higher stability due to guaranteed contract structures and operation periods. Hanwha’s incorporation of these companies as subsidiaries ultimately reflects its intention to enhance profitability within its energy business.”
BESS is a system that stores electricity using batteries and supplies it when needed. As the expansion of renewable energy sources such as solar and wind has made power generation more irregular depending on weather and time of day, demand for large-scale batteries to address this issue has also increased. In major markets such as the United States and Europe, the trend of supplying electricity with batteries or storing surplus electricity is spreading, leading to a growing number of BESS projects at the hundreds-of-megawatt scale, particularly among power plants and utilities.
Until now, Hanwha Corporation has operated its energy subsidiaries mainly around solar power projects, establishing and liquidating separate entities for each project. This year as well, companies involved in solar projects such as Johnson City Solar and Plateau Solar were dissolved as their projects concluded. A Hanwha official explained, “For overseas solar projects, it is common to establish multiple entities for each project and liquidate them naturally upon project completion. This structural factor was partially reflected in the changes in the number of subsidiaries this quarter.”
This round of liquidations also included Forest Abbey Energy Storage, in which Hanwha Corporation held a 100% stake. Previously, Forest Abbey Energy Storage had been working on a 5 MW standalone BESS project in New York, United States. However, the project faced opposition from local residents, and Hanwha ultimately determined that the business lacked sustainability, leading to the sale of the entity.
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