Press release
June 21, 2024
Shizen Connect Inc.

TEPCO Energy Partner selects Shizen Connect forlow-voltage VVP operation- DR support service for “Eco & Energy Saving Challenge Equipment Control Option” Shizen Connect Inc.(Shizen Connect), a VPP*1 platform developer, announces that its
Equipment Control DR Support Service, which supports the low-voltage VPP operations ofelectricity retailers, has been selected by TEPCO Energy Partner, Inc.(TEPCO EP) for its “Eco& Energy Saving Challenge Equipment Control Option”, which started applications from June21, 2024.

In order to achieve carbon neutrality by 2050, it is considered important to build a stable
power system by making the best use of distributed resources such as renewable energy
sources and storage batteries. In this context, low-voltage VPPs that control energy
resources such as residential storage batteries in an aggregated manner are expected to play
an important role in stabilizing the power system, as they will be allowed to participate in thebalancing market from fiscal 2026.
This service utilizes the energy management system "Shizen Connect" developed andoperated by Shizen Connect, and works in conjunction with the remote control system ofresidential storage battery manufacturers to remotely control residential storage batteries via
the cloud. It is intended to be used as a measure to alleviate supply and demand constraints,
to reduce electricity procurement costs and capacity payments of electricity retailers, and to
be used in various electricity markets in the future (Figure 1). Following the launch ofcommercial services in May 2023, it has already been adopted by major electricity retailers *2*3.
The selection of this service by TEPCO EP is the result of the joint demonstration*4 with eight
major retail electricity retailers announced in December 2023. In the future, Shizen Connect
aims to provide this service commercially to many electricity retailers, including many of thecompanies that participated in the demonstration.
For the control targets of this service, Shizen Connect is currently connected to the cloudwith five residential storage battery manufacturers, and the total domestic market share ofmanufacturers that can be controlled is approximately 57%*5. In the future, Shizen Connect

will also expand its collaboration with manufacturers of electric vehicles (EVs) and heatpump water heaters (EcoCute).
Shizen Connect will also successively begin offering commercial control functions, such asbalancing market and capacity market control, and reverse demand response control*6 tocreate demand and avoid curtailment*7 of renewable energy.
Shizen Connect will continue to work with a wide range of partners to contribute to therealization of a decarbonized society.
TEPCO EP Details of “Eco & Energy Saving Challenge Equipment Control Option”
URL：https://www.tepco.co.jp/ep/private/savingenergy/lp/equipmentdr.html (Japanese)
Figure 1: Service Scheme*1 Currently deso not include balancing market and capacity market*2 Currently only includes residentail storage batteries

Figure 2: Mechanism for Reducing Power Procurement Costs

*1 Virtual Power Plant (VPP): a generic term for digital technology that collectively controls
distributed power sources (power generation facilities, storage batteries, EVs, etc.) anddemand-side facilities as if they were a single power plant.
*2 "Shizen Connect” selected as control platform for Tokyo Gas IGNITURE storage batteries (April23, 2024 Press release)https://www.shizenenergy.net/2024/04/23/shizen_connect_igniture_saas/*3 ENEX LIFE SERVICE selects Shizen Connect for low-voltage VPP operation (May 22, 2024Press release）
https://www.shizenenergy.net/2024/05/22/sc_enex_adopt_dr_support/*4 Eight leading electricity retailers to conduct joint low-voltage VPP demonstration with Shizen
Connect（December 5, 2023 Press release）*5 Calculations based on storage battery manufacturer market share on Smart House monthly
magazine No.108（Feb. 2024 issue)*6 Demand response (DR): the process of changing the pattern of electricity demand by allowing
consumers to manage their electricity use wisely. This helps to balance the supply and demandof electricity. In particular, deliberately increasing electricity demand to help balance the grid
during periods of excess renewable generation by operation of customer-side equipment or thecharging of storage batteries is called "reverse demand response"*7 renewable energy curtailment: the practice of stopping the generation of electricity fromrenewable energy sources when the amount of electricity supplied in an area exceeds demandEMS “Shizen Connect” https://www.se-digital.net/ (Japanese website)“Shizen Connect” is an aggregation energy management system (EMS). It can provide individual
control for storage batteries and EV chargers, control for microgrids connecting multiple
buildings with their own private transmission lines, as well as control of VPPs for large scaleenergy resources. Individual control and VPP control tended to be separate, but Shizen Connect
provides a one-stop service allowing energy resources to be used multi-purposefully, which also
improves economic efficiency. The system can be adapted with any equipment supplier, allowing
energy resources to be chosen freely without relying on a certain manufacturer.
Shizen Connect Inc.
Head Office: 2-4-7 Nihonbashi-honcho, Chuo-ku, Tokyo
Founded: October 2, 2023
Shareholder: Shizen Energy Inc. 100%
Representative Director: Munekazu Matsumura
Business: VPP platform, energy management service, IoT equipment sales, etc.
URL: https://se-digital.net (Japanese only)<For inquiries regarding this press release>
Shizen Energy Group, Public Relations Department
E-mail: se-comm@shizenenergy.net