Tensor Energy Collaborates with KS Energy of the Higo Bank Group on Aggregation for FIP-Colocated Storage Batteries (DC Link Method)

Tensor Energy Inc. (Headquarters: Chuo-ku, Fukuoka City; Representative Directors: Nana Hori, Carlos Vincent Filter / hereinafter 'Tensor Energy') announces that it has been contracted to provide aggregation services for the Feed-in Premium (FIP) *1 transition and battery co-location project (hereinafter 'this project') of low-voltage FIT solar power plants promoted in Miyazaki Prefecture by KS Energy Inc. (hereinafter 'KS Energy'), a wholly-owned subsidiary of Higo Bank that operates renewable energy services such as solar power, PPA businesses, and storage battery businesses.

Background and Purpose of This Project In the Kyushu region, where the introduction of renewable energy is advancing, output curtailment has already become normalized and is expected to increase in the future. Given this business environment, KS Energy has decided to transition 9 low-voltage FIT power sources it owns and operates in Miyazaki Prefecture to the FIP scheme and add storage batteries using the DC link *2 method to improve profitability. This initiative to introduce storage batteries using the DC link method upon the FIP transition of low-voltage power sources is the first attempt of its kind in Japan *3. This project aims to sophisticated operations based on market price signals under the FIP scheme, including the optimal control of solar-colocated (DC link method) storage batteries, thereby improving profitability.

*1 A system where a certain subsidy (premium) is added to the selling price when renewable energy producers sell electricity to the wholesale power market, such as JEPX. *2 A configuration in which solar power (PV) and storage batteries are connected on the direct current (DC) side and linked to the grid with a single PCS (power conditioner), offering benefits such as reduced conversion loss and lower equipment costs. *3 According to our company's research.

Aggregation Services Provided by Tensor Energy Under the FIP scheme, in addition to responding to the fluctuation risks of wholesale power market prices, the refinement of power generation plans and imbalance management greatly affect profitability. Furthermore, when storage batteries are co-located, formulating highly sophisticated charging and discharging plans that combine solar power generation forecasting and market price forecasting, along with real-time control, is essential.

Therefore, KS Energy has selected Tensor Energy's aggregation service as the means to achieve such highly sophisticated operations at low cost and early on.

Tensor Energy will utilize its proprietary aggregator operation system, Tensor Cloud, to provide KS Energy with aggregation services including:

- Precise power generation forecasting using AI models optimized for each power plant - Wholesale power trading market price forecasting - Formulation of optimal operation plans based on power generation amounts and market prices - Submission of power generation plans, performance management, and imbalance settlement handling - Real-time control of storage batteries

Additionally, this marks the first project handling the DC link method for optimal storage battery operation using Tensor Cloud.

Future Prospects Tensor Energy...