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Since 1978, the Agency of Industrial Science and Technology (AIST) of MITI has promoted research and development of “Large-Scale Energy Conservation Technology” popularly known as the “Moonlight Project”. As the first step, “system technology tests” using improved lead acid batteries started at Kansai Electric's Tatsumi Electric Energy Storage System Test Plant on October 1, 1986. The results showed that this system can work not only as a load-leveling apparatus but also as a high-quality power source which can support the utility power system with its load frequency control and voltage regulation capabilities. As the second step of these R&D activities, a 1MW/8MWh sodium-sulfur battery pilot plant was constructed at the same Tatsumi site. On July 11, 1991, 1000 kW× 8H facility, the largest of its type in the world, was completed and started operation. This paper describes the construction experience and operation results of the pilot plant.