U-POWER and UPDATER Initiate Collaboration in Joint Procurement and Power Sharing: Two New Power Companies Strengthen Renewable Energy Supply Systems to Improve Corporate Energy Self-Sufficiency

U-POWER Co., Ltd. (Headquarters: Shinagawa-ku, Tokyo; President: Naoki Yamashita; hereinafter 'U-POWER'), a member of the USEN & U-NEXT GROUP, and UPDATER Co., Ltd. (Headquarters: Setagaya-ku, Tokyo; President: Eiji Oishi; hereinafter 'UPDATER') will begin a collaboration aimed at expanding the widespread use of renewable energy, which balances corporate growth and decarbonization by breaking away from dependence on imported fossil fuels.

By linking the power procurement and sales functions of both companies, they will promote joint procurement and power sharing of renewable energy that is less affected by market price fluctuations. Through this, they will build a power supply system for companies that offers 'price predictability,' supporting both price stability and decarbonization.

Background and Purpose

In recent years, against the backdrop of instability in the Middle East and other factors, the challenges of Japan's energy supply structure, which relies on imported fossil fuels, have once again been highlighted. Fluctuations in energy prices significantly impact corporate management, making the securing of 'highly self-sufficient energy' and a 'stable power source' that are largely unaffected by the external environment a critical management issue.

Furthermore, the standards for renewable energy procurement required of companies for decarbonization are becoming more sophisticated every year. There is a growing need to address advanced power procurement, such as transparency of power plant origins and matching power consumption with renewable energy generation on an hourly basis.

On the other hand, amidst ongoing reviews of power systems and market price fluctuations, it is not easy to build a supply system tailored to the needs of individual companies while stably securing diverse renewable energy sources. In light of this background, the two companies have decided to go beyond mere market share competition and collaborate to solve Japan's energy challenges.

By combining UPDATER's expertise in providing environmental value and its 'Traceable Power®'* leveraging blockchain technology, with U-POWER's procurement capabilities and sales network that continues to grow in corporate power supply, they aim to expand the utilization of renewable energy and build a supply system that meets the increasingly sophisticated needs for renewable energy procurement.

* A power supply mechanism that utilizes UPDATER's blockchain technology to prove the traceability of electricity and visualizes the thoughts and backgrounds of power generation businesses, connecting producers and consumers of renewable energy and deepening their relationship.

Main details of this collaboration

The two companies will gradually expand their collaboration in the following areas, comprehensively promoting everything from the procurement to the supply of renewable energy.

Joint procurement and sharing of renewable energy sources

They will conduct joint bidding and procurement of power sources with suppressed impacts from market price fluctuations, and implement wholesale supply of renewable energy from U-POWER to UPDATER, thereby building a stable power supply system while reducing procurement costs.

Joint marketing and rollout of new value-added plans

They will carry out sales collaborations and joint proposals tailored to diverse needs, such as the business scale and environmental goals of consumers. Both companies will realize flexible power plan proposals that meet market needs, including the development of menus that balance price stability and environmental value.

Operational cooperation in off-site PPA

In 'off-site PPA,' which supplies power from remote power plants, they will utilize the procurement capabilities and operational know-how of both companies to build a scheme capable of supplying renewable energy stably and efficiently.

Comments

Naoki Yamashita, President of U-POWER Co., Ltd.

As uncertainty increases in the global market environment and situation, securing stable energy that is unaffected by the external environment and promoting decarbonization have become inseparable top-priority issues for Japanese companies.

'Traceable Power®' and the advanced traceability technology that UPDATER has pioneered as a forerunner are wonderful added values that guarantee the critically important 'quality' and 'transparency' in future renewable energy procurement.

Precisely because we are at a turning point where the nature of the industry is being questioned, I firmly believe that the significance of two like-minded new power companies joining forces is immense.

Through the collaboration of our two companies, we will balance the expansion of the quantity and quality of clean energy with economic rationality at a high level, and we will move forward together to provide value that encourages even more positive changes for our domestic customers than ever before.

Eiji Oishi, President of UPDATER Co., Ltd.

Geopolitical risks, including the situation in the Middle East, continue to cast a shadow over the stable supply of energy. We stand in an era where we are once again questioned about how fragile our dependence on imported fossil fuels is.

U-POWER is a companion fighting in the same field, as well as a rival. I feel that the value of this collaboration is condensed in the fact that these two companies are joining hands.

Since our founding in 2011, we at UPDATER have been earnestly confronting the visualization of 'who generated the electricity, where, and with what thoughts' under the concept of 'Traceable Power®'.