Shizen Connect Achieves No. 1 Market Share for AC/RA Systems for Grid-Scale Storage Batteries in FY2025

Shizen Connect Inc., a Virtual Power Plant (VPP) platform development company, announced it has been ranked No. 1 in market share for fiscal year 2025 based on the number of corporate contracts for its AC and RA systems, which handle market operation and control of energy devices like grid-scale storage batteries. The ranking comes from a market research report issued by Fuji Keizai Co., Ltd. Shizen Connect also achieved the No. 1 share in the DR/VPP platform market for fiscal year 2023, solidifying its leading position in key VPP areas, including both the "supply-side" (operation and control of grid-scale and co-located renewable energy storage) and the "demand-side" (DR for industrial and residential storage batteries).

About the Survey In the report "Current Status and Future Prospects of Distributed Energy Resource Related Markets 2026" published by Fuji Keizai, Shizen Connect accounted for approximately 26% of the market share for AC and RA systems in FY2025 based on corporate contracts, making it No. 1.

Overview of the Grid-Scale Storage Battery Business VPPs are gaining attention as a key solution for enhancing energy security against geopolitical risks and for decarbonization to combat global warming. The grid-scale storage battery business, a primary VPP resource, is booming due to the development of related systems and market environments. Its market size is projected to surge from about 45 billion JPY in FY2024 to 424 billion JPY in FY2030. The Japanese government has also positioned storage batteries and DR as crucial in its 7th Strategic Energy Plan, with the Ministry of Economy, Trade and Industry forecasting a cumulative installation of 14.1 to 23.8 GWh of grid-scale batteries by 2030.

AC/RA Systems and Shizen Connect's Track Record AC and RA systems are essential for the grid-scale battery business. They optimize various electricity market transactions and remotely control energy devices on both the supply and demand sides based on directives from power markets. Shizen Connect has provided its systems to many companies, including major electric power and city gas utilities. The company believes this result is a high evaluation of its strengths: compatibility with a wide range of devices, a control AI that can stack diverse revenues, and flexibility in meeting customer needs.

Towards Domestic Leadership in VPP Systems With this result, Shizen Connect has now achieved the No. 1 domestic share in both "AC/RA systems" for market operation of grid-scale batteries and "DR/VPP platforms" which include DR control. The company views this top share in both surveys as proof of its platform's top-tier technical capabilities and versatility.

Moving forward, Shizen Connect plans to leverage its strength in handling both supply and demand sides to realize advanced, integrated supply-demand control, such as achieving the hourly matching required by large-scale data centers. The company stated it will continue to enhance the profitability and convenience of battery operation through advanced VPP technology, contributing to energy security and a decarbonized society.