Reflections on the 10th Anniversary of Full Liberalization of the Electricity Retail Market: Looking Toward the Next Decade – Striving for Both Decarbonization and Resilience Through the Social Implementation of Renewable Energy and Storage Batteries

As we mark the 10th anniversary of the full liberalization of the electricity retail market, I would like to offer a few words in my capacity as the newly appointed President.

Tokyu Power Supply, which launched its "Tokyu Denki" service concurrently with the full liberalization of the electricity retail market on April 1, 2016, celebrates its 10th anniversary today. On this milestone, I would like to express my heartfelt gratitude for the support we have received from our customers, business partners, local communities, and all other stakeholders who have supported our company.

Over the past decade, the environment surrounding energy has changed significantly. In addition to the progress of liberalization, the global trend toward realizing a decarbonized society has accelerated further. Currently, international instability, including the situation in Iran, is having a major impact on fuel prices and the stable supply of energy. In such an era, I recognize that energy providers are required to play a role not only in simply supplying electricity, but also in building sustainable and resilient systems that serve as the foundation for society and daily life.

Under our corporate slogan, "New life experiences, together with energy," we have developed services that are close to our customers' lives, primarily along the Tokyu lines, as an energy service provider within the Tokyu Group. In addition to providing electricity and gas for households, we have accumulated initiatives to create new value for lives and communities starting from energy, such as expanding the use of renewable energy, supporting the introduction of renewable energy for corporate customers through corporate PPAs, and implementing measures to encourage peak shifting of electricity demand and behavioral changes.

Looking toward the next decade, our company will focus even more on creating mechanisms to effectively utilize renewable energy. To realize the 2050 carbon neutrality goal promoted by the Tokyu Group, it is important not only to "introduce" renewable energy but also to "store" and "optimally use" it to maximize its value.

The core of this effort will be large-scale grid-connected storage batteries and distributed residential storage batteries. While renewable energy is essential for decarbonization, it has the characteristic that power generation is dependent on weather and other factors. In addition to stabilizing power supply and demand through the use of grid-connected storage batteries, we will actively work on the social implementation of residential storage batteries and a centralized management system for charging and discharging through group control, aiming to achieve both the widespread adoption of renewable energy and the improvement of urban resilience.

We expect these to serve as preparations that support peace of mind during emergencies, while also becoming important social infrastructure for using energy more intelligently and without waste during normal times.

The 10th anniversary is a milestone to look back on our journey so far, as well as a starting point for new challenges. We will continue to work with our various stakeholders to solve social issues and create new value, striving to realize a future where decarbonization and a comfortable, secure life can coexist.

We look forward to your continued support.

Tokyu Power Supply Co., Ltd.

President and Representative Director

Kazuhide Miyo

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Tokyu Power Supply Co., Ltd.

Representative: Kazuhide Miyo, President and Representative Director

Location: Setagaya Business Square Tower, 4-10-1 Yoga, Setagaya-ku, Tokyo

Established: October 2015

Business Description: Electricity retail business, gas agency business

Retail Electricity Provider Registration Number: A0069

Capital: 100 million yen [Tokyu Corporation: 66.7%, Tohoku Electric Power Co., Inc.: 33.3%]

URL: https://www.tokyu-ps.co.jp/

Service Launch Date: Electricity retail service: April 1, 2016

Gas retail service: October 1, 2018

Target Customers: Primarily general households

Service Area: Electricity

Metropolitan Tokyo area, Hokkaido, Chubu area *Excluding remote islands

: Gas

Tokyo Gas pipeline supply area *Excluding parts of Ibaraki, Gunma, and Chiba prefectures