Strong H1 Operational Performance as Japan Energy Storage Projects Deliver Initial Power Trading Revenue
Hongde Energy reported consolidated revenue of NT$3.078 billion for the first half of 2026, with operating gross profit of NT$758 million, a gross margin of 24.63%, and operating income of NT$112 million. While revenue recognition for some 2MW energy storage projects in Japan during the second quarter was deferred to the third quarter due to delays in finalizing transaction terms, the company’s energy storage assets in Japan have begun generating substantial returns.
A 2MW energy storage project in Japan’s Chubu region, operational in the demand adjustment market since mid-July, has accumulated revenue exceeding 15 million yen, averaging approximately 700,000 yen per day. This data highlights the revenue potential of energy storage assets in power trading markets. The company stated that as more energy storage projects come online, power trading and energy storage operation services will become key growth areas for its overseas business.
Deepening Presence in Japan with Third Consecutive Win in Long-Term Decarbonized Power Source Auction
Hongde Energy continues to expand its footprint in Japan. Its Helios energy storage project in Hokkaido recently completed Japan’s first green project bond financing backed by system-wide energy storage assets, successfully entering the wholesale power and demand adjustment markets. This milestone not only provides a new financing channel for the company’s energy storage operations in Japan but also strengthens its competitive position in the local energy market.
Additionally, Hongde Energy has secured capacity in Japan’s Long-Term Decarbonized Power Source Auction (LTDA) for three consecutive years, accumulating a total of 560MW. This achievement underscores the company’s leading position in Japan’s energy storage market. Through collaborations with major Japanese energy firms such as Tokyo Gas and Chubu Electric Power Miraiz, Hongde Energy is expanding its energy storage operation services and power insurance offerings, further enhancing its market influence in Japan.
The company emphasized that as global investments in AI and data centers continue to grow, large-scale electricity consumers are increasingly demanding stable power, low-carbon energy, and energy management solutions. Hongde Energy plans to integrate its renewable energy and energy storage assets with the green power supply, power trading, and energy management capabilities of its subsidiary, Star Power, to target data centers and other large-scale electricity consumers with comprehensive energy solutions.
Expanding Australian Operations into Green Industry While Smart Energy Equipment Targets Overseas Markets
In Australia, Hongde Energy is leveraging its ZEBRE platform to expand its energy asset portfolio. Its Dartmoor energy storage project successfully secured a long-duration energy storage tender from the South Australian government, further penetrating the local capacity market. This tender win not only establishes a foundation for the company’s energy storage business in Australia but also provides strong support for future market expansion.
Hongde Energy has also acquired 30% equity stakes in local Australian companies specializing in green steel and green fuels, extending its business from renewable energy and energy storage into green industry and renewable fuels. This strategic expansion enables the company to capitalize on more opportunities in the global energy transition and achieve vertical integration across the industrial chain.
In the smart energy equipment sector, Hongde Energy’s TAITEN brand is actively pursuing international certifications, targeting overseas markets and high-specification applications such as data centers. The company stated that TAITEN’s global expansion will further enhance its industrial chain, covering energy assets, power services, and smart energy equipment, thereby improving overall competitiveness.
Looking ahead to the second half of 2026, Hongde Energy will continue to focus on the markets of Taiwan, Japan, and Australia, diversifying its operations to mitigate risks associated with reliance on a single market. The company highlighted that the power trading revenue from its Japanese energy storage projects has preliminarily validated the feasibility of its business model. Moving forward, Hongde Energy will continue to expand its energy storage and green energy operations in Japan and Australia to align with global energy transition trends.
