Tensor Energy Collaborates with Higo Bank Group's KS Energy on Aggregation for FIP-Integrated Battery Storage (DC-Link System)

Tensor Energy Inc. (Headquarters: Chuo-ku, Fukuoka; Representative Directors: Nana Hori, Carlos Vincent Filter; hereinafter "Tensor Energy") is pleased to announce that it has been contracted to provide aggregation services for a project (hereinafter "the Project") involving the conversion to the Feed-in Premium (FIP) scheme*1 and the installation of battery storage for low-voltage FIT solar power plants in Miyazaki Prefecture, promoted by KS Energy Co., Ltd. (hereinafter "KS Energy"), a wholly-owned subsidiary of Higo Bank that engages in renewable energy service businesses such as solar power generation, PPA, and battery storage.

Background and Purpose of the Project In the Kyushu region, where the adoption of renewable energy is advancing, output curtailment has already become routine and is expected to increase in the future. Given this business environment, KS Energy has decided to convert nine low-voltage FIT power plants it owns and operates in Miyazaki Prefecture to the FIP scheme to improve profitability, and to add battery storage using the DC-link*2 method. This initiative to introduce battery storage via a DC-link system during the FIP conversion of low-voltage power sources is the first of its kind in Japan*3. The Project aims to enhance operational sophistication based on market price signals under the FIP scheme, including the optimal control of solar-integrated (DC-link) battery storage, thereby improving profitability.

*1 A system where a certain subsidy (premium) is added to the selling price when renewable energy power producers sell electricity to the wholesale electricity market such as JEPX. *2 A configuration where solar power (PV) and battery storage are connected on the direct current (DC) side and linked to the grid via a single PCS (Power Conditioning System). This offers benefits such as reduced conversion loss and lower equipment costs. *3 Based on company research.

Aggregation Services Provided by Tensor Energy Under the FIP scheme, in addition to managing the volatility risks of wholesale electricity market prices, the refinement of power generation plans and imbalance management significantly impact profitability. Furthermore, when battery storage is integrated, the formulation of advanced charge/discharge plans combining solar generation forecasts and market price forecasts, as well as real-time control, becomes essential.

Therefore, KS Energy selected Tensor Energy's aggregation service as a means to realize such sophisticated operations at a low cost and in a timely manner.

Tensor Energy will provide aggregation services to KS Energy utilizing "Tensor Cloud," an aggregator operation system developed and provided by the company, including the following: - Precise power generation forecasting using AI models optimized for each power plant - Wholesale electricity market price forecasting - Formulation of optimal operation plans based on generation volume and market prices - Submission of generation plans, performance management, and imbalance settlement support - Real-time control of battery storage

This project marks the first case of supporting a DC-link system for optimal battery storage operation using Tensor Cloud.

Future Outlook Tensor Energy will continue to promote the provision of aggregation services for FIP projects, including those with integrated battery storage, and contribute to the sophistication of distributed renewable energy sources and their smooth integration into the power market. We also provide support for transitioning to the FIP scheme, so please feel free to contact us at the inquiry address below.

About Tensor Cloud A cloud platform that supports the financial and power management of power generation businesses from the planning stage of renewable energy plants and battery storage through their 30-year operational lifespan. It provides services utilizing cutting-edge AI and digital technology via SaaS. It is an essential solution for transforming the business model of renewable energy projects and building sustainable growth businesses.

About Tensor Energy Company Name: Tensor Energy Inc. Location: 1-11-1 Tenjin, Chuo-ku, Fukuoka, Fukuoka Prefecture Established: November 2021 Representatives: Nana Hori, Carlos Vincent Filter Business Description: Development, sales, and service provision of software for asset management, control, and power trading of power generation systems, energy storage systems, and other distributed energy systems. Inquiries: hello@tensorenergy.jp (Contact: Hori)

Overview of the Project Target Power Plants: 9 low-voltage solar power plants (with integrated battery storage) Location: 4880-62 Matsugao, Kitakata, Kobayashi City, Miyazaki Prefecture Solar Power Equipment: 49.5kW (per plant) Integrated Battery Equipment: DC capacity 84.2 kW, battery capacity 215kWh x 2 units (per plant) Scheduled Start of Operation: Second half of 2026

About KS Energy KS Energy is a renewable energy business company established with full funding from Higo Bank, Ltd. The company's home region of Kumamoto, and Kyushu as a whole, are leading regions in the adoption of renewable energy such as solar power. As decarbonization efforts become a global trend, it is necessary to promote the local production and consumption of energy. Against this backdrop, the company is actively working to realize regional carbon neutrality and decarbonization by creating a virtuous cycle of people, goods, money, and green energy within the region.

Company Name: KS Energy Co., Ltd. Location: 1-13-5 Konyamachi, Chuo-ku, Kumamoto City, Kumamoto Prefecture Established: January 2024 Representative: Takayuki Nishida Business Description: Renewable energy power generation and supply business