Demand-area battery storage batteries by the end of FY2024^*1Aiming to start providing VPP services utilizing

(headquartered in Meguro-ku, Tokyo; Shuichi Ishibashi, President; hereinafter referred to as "Sassor"), has been selected as one of the "Demonstration Projects for Next-Generation Technology Development Using Distributed Energy Resources such as Storage Batteries in FY2023" by the Ministry of Economy, Trade and Industry (METI), as part of the "Demonstration Project for Next-Generation Technology Development Using Distributed Energy Resources such as Storage Batteries".Demonstration project for further utilization of distributed energy resources(hereafter referred to as "the Demonstration") as a resource aggregator. We are pleased to report on the results of the project, as well as our future outlook.

2023 Demonstration Project for Further Utilization of Distributed Energy Resources

■Purpose of the Demonstration
(headquartered in Chiyoda-ku, Tokyo; Minoru Tsudzuki, President & CEO) as the consortium leader, along with Sassor, with the aim of developing a profit optimization logic model and verifying the technical feasibility of entering the supply-demand adjustment market.

■Summary of Demonstration
Two commercial storage batteries installed in condominiums with our bulk power receiving service^*2to control the supply and coordination power and to build a revenue optimization logic model as an independent demonstration.

■Major Results Points
The potential for increased earnings through multiple use of commercial storage batteries installed at demand sites has been confirmed.
The technical feasibility of entering the supply/demand adjustment market has been confirmed.

■Future Outlook
We will aim to implement control technology for commercial storage batteries installed at the point of demand with the aim of starting to provide VPP services for businesses with storage batteries installed at the point of demand by the end of FY2024.

*1 A type of storage battery installed on the customer's premises. In the case of MHI, storage batteries are installed in some condominiums that provide "bulk power receiving service for condominiums.
*2 Participating in this demonstration project by installing storage batteries in two condominiums where MHI's condominium bulk power service is installed; Resil will install storage batteries and photovoltaic power generation systems at the condominiums where its "condominium disaster prevention service" will be deployed from April 2023, at its own expense. The resilience of the condominiums will be enhanced because one of the electricity generated and stored will be used for VPP business during normal times and controlled for use in the common areas of the condominiums during a disaster power outage.
(Reference) About the Condominium Disaster Prevention Service: https://der.rezil.jp/bousai/
*3 Secondary Adjustment Power➁: Adjustment power to accommodate forecast errors that occur after gate close (the planning deadline for retail electricity providers and generators).
Tertiary Adjustment Power➁: Adjustment power corresponding to the forecast error of renewable energy that uses some FIT special exception systems.
(Reference) HP of the Japan Electric Power Supply and Demand Coordination Exchange, Inc:https://www.eprx.or.jp/outline/outline.html