Shizen Connect Inc. (*1), the market leader in Virtual Power Plant (VPP) platforms that integrate and manage distributed energy resources, announces that its 'Device-Control DR Support Service' (*2, hereinafter 'the Service') has been adopted by Tokyo Gas Co., Ltd. (*3, hereinafter 'Tokyo Gas') as the control system for heat pump water heaters (*4, hereinafter 'Eco Cute') in its 'Eco Cute Network Service'. This adoption (*5) enables compliance with Tokyo Metropolitan Government's demand response (DR) subsidy requirements for Eco Cute systems.

Background: The Need for Eco Cute-Based Demand Response (DR)

Strengthening energy security to protect lives from geopolitical risks such as those involving Iran, and achieving decarbonization to mitigate global warming, are urgent challenges. Both require reducing excessive dependence on fossil fuels in electricity supply systems.

One key solution lies in expanding solar power generation. However, frequent 'output control' measures during peak daylight generation hours have become a major issue, suppressing renewable energy output and hindering solar adoption by reducing revenue for generators.

To address this, Demand Response (DR), which utilizes household energy resources such as home batteries and Eco Cute systems, is gaining attention as a means to effectively use generated electricity and simultaneously achieve energy security and decarbonization. In the 'Seventh Strategic Energy Plan' approved by the Cabinet in February 2025, DR was positioned as a crucial demand-side approach for ensuring supply-demand balance (*6).

In response, the Tokyo Metropolitan Government, with Cool Net Tokyo as the implementing body, is supporting the deployment of household energy resources eligible for DR through its 'Home Aggregation Business Implementation Project' (*7).

Shizen Connect launched the Service in May 2023. The Service is now adopted by retail electricity providers representing a combined 38% market share (Table 1). It has been selected based on its proven track record in diverse control operations targeting home batteries and Eco Cute systems (Table 2). Furthermore, using 'Shizen Connect' enables eligibility for various subsidies (Table 3).

The Service has been commercially deployed by Tokyo Gas since May 2023 (*8), was adopted in April 2024 as the control platform for home batteries in the 'IGNITURE Battery' solution (*9), and will expand to capacity market control in January 2026 (*10), demonstrating its broad application in the low-voltage VPP sector. The two companies are advancing collaboration across multiple areas under a capital and business alliance agreement (*11, *12).

Through this adoption, Tokyo Gas will utilize Eco Cute systems to perform remote control that meets the requirements of the 'Home Aggregation Business Implementation Project'. Specifically, by shifting the water heating times of Eco Cute units to periods of high renewable energy generation, the initiative will promote effective use of renewable energy and demand leveling.

Under this scheme, Tokyo Gas will formulate control plans and issue commands, while Shizen Connect will execute remote control of Eco Cute units via manufacturer cloud systems through its proprietary energy management platform, 'Shizen Connect' (Figure 1).

Shizen Connect will continue to contribute to the realization of a decarbonized society in partnership with leading companies across various industries.

*1 Virtual Power Plant (VPP): A collective term for digital technologies that centrally control distributed energy resources (such as generation units, batteries, EVs) and demand-side equipment as if they were a single power plant. *2 DR (Demand Response): Adjusting consumer electricity usage to change consumption patterns, aimed at balancing electricity supply and demand. *3 Agency for Natural Resources and Energy, 'Seventh Strategic Energy Plan' https://www.enecho.meti.go.jp/category/others/basic_plan/ *4 Cool Net Tokyo, 'Home Aggregation Business Implementation Project' https://www.tokyo-co2down.jp/subsidy/aggre_home/ *5 Launch of 'Device-Control DR Support Service' for retail electricity providers to address supply-demand crunches and reduce costs (Press release dated May 15, 2023) https://www.shizenenergy.net/2023/05/15/digital_dr_support/ *6 'Shizen Connect' adopted as control platform for Tokyo Gas's 'IGNITURE Battery' solution (Press release dated April 23, 2024) https://www.shizenenergy.net/2024/04/23/shizen_connect_igniture_saas/ *7 Shizen Connect commences commercial provision of capacity market control for Tokyo Gas's low-voltage VPP (Press release dated January 21, 2026) https://www.se-digital.net/pressrelease_260121_tokyogas-capacity-market/ *8 Shizen Connect concludes capital and business alliance agreements with eight companies, including three major power utilities, to promote VPP deployment (Press release dated July 9, 2024) https://www.shizenenergy.net/2024/07/09/sc_capital_business_alliance/ *9 Shizen Connect raises 2.7 billion yen in Series A Round 1st Close (Press release dated May 25, 2026) https://www.se-digital.net/pressrelease_260525_funding-series-a-1st-close/

Figure 1: Scheme Overview

Table 1: Adoption Status of the Service by Retail Electricity Providers (Partial List) (○: Commercial Use, △: Demonstration)

Listed with permission from respective companies; not all adopters are listed if permission is not granted.

#

Company

Economic DR Control

Supply-Demand Crunch DR Control

Demand Creation DR Control

Capacity Market Control

Supply-Demand Adjustment Market Control

1

TEPCO Energy Partners

○ ※1

○ ※1

○ ※1,2

2

Kansai Electric Power

3

Chubu Denryoku Mirai

4

Kyushu Electric Power

△ ※3

5

Tohoku Electric Power

○ ※4

○ ※4

6

Chugoku Electric Power

7

Tokyo Gas

○ ※5

○ ※5

○ ※5

○ ※5

△ ※6

8

Hokkaido Electric Power

○ ※7

9

Hokuriku Electric Power

○ ※8

○ ※8

○ ※8

10

Shikoku Electric Power

11

Osaka Gas

...

14

ENEOS Power

...

19

Toho Gas

Total Share※9: Commercial Use: 38%, Commercial + Demonstration: 70%

※1 TEPCO Energy Partners 'Eco & Energy Saving Challenge - Device Control Option' https://www.tepco.co.jp/ep/private/savingenergy/lp/equipmentdr.html ※2 Shizen Connect implements DR to suppress output curtailment in the Tokyo area as Tokyo Electric Power's low-voltage VPP platform (Press release dated March 17, 2026) https://www.se-digital.net/pressrelease_260317_tokyodenryokuep-output-curtailment/ ※3 Participated in the 2020 Virtual Power Plant Construction Demonstration Project (Press release dated June 1, 2020) https://www.shizenenergy.net/2020/06/01/vpp-second-experiment/ ※4 Tohoku Electric Power Co., Inc. 'Device-Control Eco Challenge' (targeting batteries and Eco Cute) https://www.tohoku-epco.co.jp/dprivate/sl-denka/saving/dr/ ※5 Tokyo Gas Co., Ltd. 'Battery Network Service' (formerly 'IGNITURE Battery Service') https://solar-battery.tokyo-gas.co.jp/equipment/dr_battery/ ※6 Shizen Connect and Tokyo Gas conduct joint technical demonstration of control for low-voltage resources in the supply-demand adjustment market's primary offline framework (Press release dated November 25, 2025) https://www.se-digital.net/pressrelease_251125_tokyogas_poc/ ※7 Hokkaido Electric Power adopts 'Shizen Connect' for low-voltage VPP operations (Press release dated March 30, 2026) https://www.se-digital.net/pressrelease_260330_hokuden/ ※8 Hokuriku Electric Power Co., Ltd. 'Easy Solar' Generation & Storage Plan https://www.h-living.co.jp/easy_solar/index.php and 'Easy Cute' Demand Response Service https://www.rikuden.co.jp/home/easy_cute.html ※9 Based on New Power Network's national sales ranking (low-voltage, lighting) for October 2025 https://pps-net.org/ppscompany?ppskey=pps184

Table 2: Low-Voltage VPP Control Services

Service Name

Menu Name

Menu Description

1 Device-Control DR Support Service

Electricity Tariff Optimization Control

Control linked to electricity tariff plans to reduce household electricity bills. Supports various plans, including time-of-use and market-price-linked options.

1 Device-Control DR Support Service

Economic DR Control

Control designed to maximize economic benefits from market price differentials, reducing wholesale electricity procurement costs for retail electricity providers.

1 Device-Control DR Support Service

Retail Demand Curve Optimization Control

Control to shape the retail provider's demand curve into an optimal form.

1 Device-Control DR Support Service

Demand Creation DR Control

Control that charges batteries or heats water with Eco Cute units to reduce renewable energy curtailment.

1 Device-Control DR Support Service

Supply-Demand Crunch DR Control

Control that discharges batteries during supply-demand crunch alerts or warnings, or when a retail provider faces supply shortages.

1 Device-Control DR Support Service

Capacity Market Control

Discharge control triggered by capacity market dispatch instructions.

1 Device-Control DR Support Service

Supply-Demand Adjustment Market Control

Charge/discharge control based on supply-demand adjustment market contract results.

2 Remote Meter Reading Service

Stores measurement data for grid connection points and generation output in the cloud to calculate self-consumption, required for PPA and other billing.

3 HEMS Service

Provides visualization and advanced energy management functions to meet HEMS requirements for subsidies targeting ZEH/ZEH+ and GX-oriented homes.

Table 3: Subsidies Compatible with Shizen Connect

Category

Key Requirements (FY2026)

Official Website / Call for Proposals

GX-Oriented Homes

Insulation Grade 6 or higher, 35% reduction in energy consumption excluding renewables, adoption of advanced HEMS

Future Eco Homes 2026

ZEH+

30% or greater reduction in consumption plus adoption of advanced energy management

ZEH Web

ZEH

20% or greater reduction in primary energy consumption, visualization

ZEH Web

Home Battery DR Subsidy (SII)

Installation of a battery and participation in supply-demand crunch DR

Home Battery DR Program (SII)

DR Subsidy (Tokyo Metropolitan)

Installation of batteries, Eco Cute, etc., and participation in DR (electricity supply-demand adjustment)

Cool Net Tokyo

[About the Energy Management System 'Shizen Connect']

'Shizen Connect' is a Virtual Power Plant (VPP) platform that controls energy devices—including grid-scale and renewable-integrated batteries, home batteries, Eco Cute systems, and EVs—using IoT and AI technologies, enabling optimal electricity market transactions.

It holds the No.1 market share in Japan for corporate contracts in both DR/VPP platforms (Fujieconomics survey, FY2023) and for AC and RA systems (Fujieconomics survey, FY2025).

In the home DR sector, it is adopted by Tokyo Gas, TEPCO Energy Partners, Tohoku Electric Power, Hokuriku Electric Power, and Hokkaido Electric Power. In the grid-scale battery sector, it is adopted by Osaka Gas, Tokyo Gas, JERA Cross, Shikoku Electric Power, and Hokuriku Electric Power.

[Company Overview: Shizen Connect Inc.]

Company Name: Shizen Connect Inc.

Headquarters: 2-4-7 Nihonbashi-Honcho, Chuo-ku, Tokyo

Founded: October 2, 2023

Major Shareholder: Shizen Denryoku Inc.

Capital and Business Alliance Partners: Osaka Gas Co., Ltd., Kyushu Electric Power Co., Ltd., JERA Co., Inc., Shikoku Electric Power Co., Inc., Shin-Nippon Air Conditioning Co., Ltd., SORACOM, Inc., Daikin Industries, Ltd., Tokyu Real Estate Co., Ltd., Tokyo Gas Co., Ltd., Toho Gas Co., Ltd., Nishitetsu Co., Ltd., Panasonic Electric Works Co., Ltd., BIPROGY Co., Ltd., Hokuriku Electric Power Co., Ltd., Hokkaido Electric Power Co., Inc., and others

Representative: Munekazu Matsumura, CEO and Representative Director

Business: VPP Platform Business, IoT Device Sales, etc.

URL: https://se-digital.net

FACT BOX

  • Source: PR TIMES
  • Category: 採用
  • Organizations: Shizen Connect / ENEOS Power