
On July 9, 2024, Shizen Connect, Shizen Energy’s subsidiary focused on developing a VPP platform, signed agreements with eight companies including three of Japan’s ten major utilities. In addition to the eight companies providing assets for Shizen Connect to control, they also invested in the company through convertible bonds.
The new partnerships will provide Shizen Connect with the ability to control the following assets:
- EVs and residential batteries: Hokkaido Electric Power, Hokuriku Electric Power, Shikoku Electric Power, Tokyo Gas
- Electric buses: Nishitetsu, Shikoku Electric Power
- Co-located batteries: JERA, Nishitetsu, Shin Nippon Air Technologies, Tokyu Land
- 24/7 CFE service-related batteries: JERA, Tokyu Land
“The charging and discharging capacity of each EV and storage battery is as small as a speck of dust when viewed from the perspective of the power grid. However, when hundreds of thousands or millions of vehicles are involved, the charging and discharging capacity becomes significant. … We believe that the fact that major energy companies and others chose to participate in this ‘pile up dust to make a mountain’ initiative is a big step for VPPs in Japan,” said Shizen Connect’s CEO Munekazu Matsumura when announcing the new alliances.
Between the convertible bonds that are part of the new business and capital alliances and a loan from its parent company, Shizen Connect raised 860 million yen (5.3 million USD). That brings the total capital raised by Shizen Connect to 1.36 billion yen (8.4 million USD).
Prior to Shizen Connect concluding these tie-ups, Shizen Connect (and Shizen Energy prior to Shizen Connect’s founding) worked on multiple VPP demonstration projects (primarily involving residential batteries) with eight out of the country’s ten mainland utilities among other companies.