Shizen Connect Raises 2.7 Billion Yen in Series A 1st Close, Forms Strategic Alliances with 6 Major Utility Companies

Shizen Connect Inc., a developer of Virtual Power Plant (VPP) platforms, has raised approximately 2.7 billion yen through a third-party allotment of shares in its Series A 1st close. Concurrent with this funding, the company entered into capital and business alliance agreements with six companies: BIPROGY Inc., Tokyo Gas Co., Ltd., Panasonic Electric Works Co., Ltd., Kyushu Electric Power Co., Inc., Toho Gas Co., Ltd., and Nishi-Nippon Railroad Co., Ltd.

Furthermore, this funding triggered the conversion of convertible bonds issued during the Pre-Series A round (conducted from 2024 to early 2025). As a result, ten additional companies became shareholders, including Hokkaido Electric Power, Hokuriku Electric Power, Shikoku Electric Power, JERA, Osaka Gas, Tokyu Land, Daikin Industries, Shin Nippon Air Technologies, SORACOM, and one undisclosed corporate partner. This brings Shizen Connect's total external funding to 3.26 billion yen and its total number of capital and business alliance partners to 16.

Energy security and decarbonization are urgent global challenges. VPPs, which integrate and control distributed energy resources such as renewables, storage batteries, and EVs using AI and IoT, are key to this transition. VPPs are expected to reduce reliance on thermal power plants and minimize renewable energy curtailment. The Japanese government's '7th Strategic Energy Plan' targets a total storage battery capacity of 50GWh by 2030.

Shizen Connect provides a cross-industry digital platform designed for shared use across society. It currently holds the #1 market share in Japan for both grid-scale battery storage and residential Demand Response (DR) sectors. The platform is adopted by major electric power and city gas utilities. With this new capital and strategic network, the company plans to further scale its network and advance its technology to support a carbon-neutral future.