Mitsubishi HC Capital Energy and Tohoku Electric Power Conclude Shareholder Agreement for Joint Development of Off-site Corporate PPA Solar Power Generation

Mitsubishi HC Capital Energy Inc. (President & CEO: Eiichi Kihara; hereinafter, Mitsubishi HC Capital Energy), a group company of Mitsubishi HC Capital Inc., and Tohoku Electric Power Co., Inc. (President & CEO: Kazuhiro Ishiyama; hereinafter, Tohoku Electric Power) have agreed to collaborate on the development and operation of "non-FIT-centric solar power generation facilities" to be utilized for off-site corporate PPAs*, and have concluded a shareholder agreement.

Based on this agreement, a limited liability company (hereinafter, SPC) will be established as the business entity for the development and operation of solar power generation facilities, aiming to develop 20MW of solar power generation mainly in the six prefectures of Tohoku and Niigata Prefecture by fiscal year 2028.

Furthermore, the electricity generated by the solar power generation facilities owned and operated by the SPC will be fully purchased by Tohoku Electric Power, a retail electricity provider, and supplied to customers, along with environmental value, through off-site corporate PPAs.

Mitsubishi HC Capital Energy provides development and operation, investment, and asset management services for solar power generation businesses. In this SPC, by leveraging its accumulated expertise in renewable energy (hereinafter, RE) and financial knowledge necessary for business investment, the company will work to further expand its solar power generation business and contribute to the realization of a carbon-neutral society, which is a social issue, through accelerating strategic partnerships.

Tohoku Electric Power Group will continue to work on new development of RE power sources and contribute to the realization of carbon neutrality in Japan across the entire value chain by providing optimal services that combine various "Green Energy Solutions," including RE-derived corporate PPAs.

* A service where Tohoku Electric Power, a retail electricity provider, purchases RE-derived electricity from a power generator that owns solar or wind power plants located off the customer's premises, and sells it to the customer via the grid network of a general transmission and distribution utility.

1. Overview and Scheme Diagram of This Project

2. Company Profiles

Company Name: Mitsubishi HC Capital Inc. (https://www.mitsubishi-hc-capital.com/) Location: Shin-Marunouchi Building, 1-5-1 Marunouchi, Chiyoda-ku, Tokyo Representative: Daiju Hisui, Representative Director, President and CEO Established: April 12, 1971 Capital: 33,196 million yen Business Activities: Leasing of various properties, installment sales of various properties, various financial services, etc.

Company Name: Mitsubishi HC Capital Energy Inc. (https://www.mhc-energy.com/) Location: Shin-Marunouchi Building, 1-5-1 Marunouchi, Chiyoda-ku, Tokyo Representative: Eiichi Kihara, Representative Director, President Established: October 15, 2015 Capital: 150 million yen Business Activities: Renewable energy power generation business, storage battery business, energy-related asset management business, etc.

Company Name: Tohoku Electric Power Co., Inc. (https://www.tohoku-epco.co.jp/) Location: 1-7-1 Honcho, Aoba-ku, Sendai City, Miyagi Prefecture Representative: Kazuhiro Ishiyama, Representative Director, President and CEO Established: May 1, 1951 Capital: 251.4 billion yen Business Activities: Electricity business, etc.

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