RENON POWER and OF Announce Alliance to Launch "Storage Power Plants with Extended Warranty and O&M"

RENON POWER Inc. (Headquarters: Chuo-ku, Tokyo; Representative Director: Zhang Yiwen, hereinafter "RENON") and OF Inc. (Headquarters: Minato-ku, Tokyo; Representative Director: Kohei Nishiyama, hereinafter "OF"), which develops nationwide energy infrastructure O&M services, are pleased to announce their alliance and the launch of sales for "Storage Power Plants with Extended Warranty and O&M." Through this initiative, RENON will sell energy storage systems such as BESS (Battery Energy Storage System) with an extended product warranty provided by a Japanese warranty company, and OF will be responsible for long-term O&M (Operation & Maintenance) thereafter. This will reduce the long-term risks of equipment failure and repair costs in storage power plant projects, while realizing a seamless maintenance and operation system that integrates manufacturer warranty and O&M. Background In recent years, the market for grid-connected energy storage systems has been rapidly expanding, driven by the widespread adoption of renewable energy and the increasing need for grid stabilization. However, the following challenges have become apparent in the storage power plant business: - Risk of failure in major equipment such as PCS and batteries, leading to revenue fluctuations due to unexpected repair costs. - Disconnection between manufacturer support and O&M, causing delays in response to failures. - Ensuring a stable long-term operational system required by financial institutions and investors. In particular, conventional storage power plant operations often involve separate contracts and operations for manufacturer warranties and O&M. In cases of failures caused by the manufacturer, significant time is often required for: - Coordination of on-site response by the manufacturer - Cause determination - Confirmation of warranty scope - Arrangement of repair services This has led to extended periods of power plant downtime and increased operational burdens. Overview of this Initiative Under this service, RENON will provide energy storage systems with a standard extended product warranty from a Japanese warranty company. OF, having received technical training from RENON, will perform O&M duties and on-site maintenance. This will establish an integrated long-term operational system without the separation of product warranty and O&M. Key Strengths of this Service 1. Sales of Storage Power Plants with Extended Product Warranty Storage power plants sold by RENON come with an extended warranty from a Japanese warranty company from the outset. This ensures that in the event of equipment failure, repairs can be covered within the warranty scope, reducing the risk of additional costs. It mitigates the risk of sudden, high repair costs impacting OPEX, as seen in the past, and stabilizes long-term project financial performance. 2. Seamless Maintenance and Operation through Manufacturer-Certified O&M The most significant feature of this initiative is that OF, trained by RENON, can perform on-site maintenance, including manufacturer-related support. Typically, on-site support for warranty claims can only be performed by the manufacturer itself, leading to multiple coordination efforts between: - Manufacturer - O&M Company - EPC (Engineering, Procurement, Construction) - Owner However, with this service, OF, as a manufacturer-certified O&M company, handles on-site response, achieving: - Rapid initial response to failures - Improved on-site recovery speed - Reduced downtime - Centralized maintenance contact point - Stable long-term operation This represents an advanced operational model in the industry, seamlessly integrating "product warranty" and "O&M." 3. Stabilization of OPEX through CAPEX Investment By incorporating "extended product warranty + O&M" from the initial stage, this service suppresses future repair risks and operational cost fluctuations. Specifically, it offers a comprehensive package model for long-term operation, including: - Years 1-10: ¥4.5 million to ¥5 million per year (including product warranty, remote monitoring, O&M, on-site response, communication costs, chief engineer fees) - Battery + PCS Product Warranty: Approx. ¥2 million/year - 24/7 Remote Monitoring + Communication Costs + Chief Engineer Fees + On-site Response Service: Approx. ¥2.5 million/year onwards - Years 11-15: ¥5 million per year onwards (including product warranty, remote monitoring, O&M, on-site response, communication costs, chief engineer fees) - Battery + PCS Product Warranty: Approx. ¥2.5 million/year onwards - 24/7 Remote Monitoring + Communication Costs + Chief Engineer Fees + On-site Response Service: Approx. ¥2.5 million/year onwards - Year 15 onwards: Monitoring system costs and chief engineer fees only - 24/7 Remote Monitoring + Communication Costs + Chief Engineer Fees + On-site Response Service: Approx. ¥2.5 million/year onwards This contributes to: - Improved accuracy of long-term financial forecasts - Cash flow stabilization - Enhanced explanations to financial institutions - Increased transparency in investment decisions - Maintenance and improvement of asset value And overall enhances the financial viability of storage power plant projects. Industry First Initiative This scheme is the first of its kind in the industry for storage power plants, combining: - Extended warranty from the equipment manufacturer - Manufacturer-certified O&M with a nationwide maintenance network - Long-term operational support This is not merely a maintenance contract but an "integrated long-term productivity model" that unifies manufacturer sales, warranty, and O&M, aiming to maximize storage power plant availability and stabilize long-term revenue. *As researched by both companies. Future Outlook RENON and OF will promote the provision of integrated services from equipment sales to long-term operation in the expanding grid-connected energy storage market. Furthermore, by accumulating O&M data and analyzing failures, they aim to further improve operational quality and availability, contributing to the healthy development of the storage power plant market. Additionally, through their alliance, both companies are working to establish nationwide maintenance and monitoring systems for the low-voltage grid-connected battery storage sector, which is expected to grow in the future. For projects like bulk introduction in the low-voltage grid sector, where establishing maintenance systems has traditionally been a challenge, they aim to provide a maintenance scheme enabling stable long-term operation by combining RENON's battery warranty and expertise with OF's nationwide O&M network. *All costs mentioned in the materials are pre-tax amounts. Company Profile RENON POWER Inc. Location: VORT Hakozaki 5F, 20-5 Nihonbashi Hakozaki-cho, Chuo-ku, Tokyo Representative: Zhang Yiwen Business Activities: BESS-related business, provision of energy storage systems, etc. URL: https://renonpower.jp/ OF Inc. Location: New Pier Takeshiba North Tower 14F, 1-11-1 Kaigan, Minato-ku, Tokyo Representative: Kohei Nishiyama, Representative Director Business Activities: Energy infrastructure O&M, monitoring center operation, nationwide maintenance services, etc. URL: https://www.o-f.jp/ Product Inquiries: Contact: RENON POWER, KuraTani MAIL: kuratani@renon-jp.com O&M Inquiries: Contact: OF, Iwasaki MAIL: om-sales@o-f.jp