Completion of FIP switchover at Yatsushiro Mega Solar Power Plant

February 16, 2023

ENEOS Corporation
Japan Renewable Energy Corporation
JRE Trading Corporation
Next Kraftweke Toshiba Corporation

 We are pleased to announce that ENEOS Corporation (President and CEO: Takeshi Saito; hereinafter "ENEOS") completed the switchover from the FIT system^*１ to the FIP system^*１on February 1 (Wednesday) at the Yatsushiro Mega Solar Power Plant^*２ (Yatsushiro City, Kumamoto Prefecture; hereinafter "the plant"), which started commercial operation in December 2021.

 ENEOS has been conducting a verification experiment^*3 with Toshiba Energy Systems & Solutions Corporation (President & CEO: Tadashi Yotsuyanagi, hereinafter "Toshiba ESS"), a pioneer in renewable energy power generation forecasting, regarding power plant operation under FIP system. By taking advantage of the experiment, ENEOS has recently switched this power plant to the FIP system in order to quickly respond to the FIP system, which is a new system to make renewable energy the main power source.

 Under the FIP system, renewable energy power producers have obligation of balancing^*4 based on accurate power generation forecasts. Services related to power generation forecasting for this power plant will be provided by Next Kraftweke Toshiba Corporation　(President: Hideki Shingai, hereinafter "TNK"), a subsidiary of Toshiba ESS. JRE Trading Corporation (President: Takahisa Nakagawa, hereinafter "JRET"), a wholly owned subsidiary of Japan Renewable Energy Corporation (Head Office: Minato-ku, Tokyo; President: Kazuhiro Takeuchi; hereinafter "JRE"), will act as a renewable energy aggregator^*5 to sell the power from the plant as well as the non-fossil value of the FIP system to the electricity market.

 ENEOS, JRET and TNK will make efforts to ensure stable operation of this power plant and promote operation and management in accordance with the FIP system.

＜Outline of Yatsushiro Mega Solar Power Plant＞

※１　FIT: Feed-IN Tariff. Fixed tariff purchase system.
FIP: Feed-in Premium. Unlike the FIT system, this system promotes the introduction of renewable energy by adding a certain premium (subsidy) to the tariff of electricity sold on the assumption that electricity will be sold on the wholesale electricity market, etc.

※２　This power plant is scheduled to be transferred to JRE on April 1, 2023, as  per ENEOS news release on January 16, 2023.「Renewable Energy Businesses Integration」(212KB)

※３　ENEOS, Toshiba ESS, and TNK have been conducting demonstration project under the Renewable Energy Aggregation Demonstration Project promoted by the Ministry of Economy, Trade and Industry(METI).
June 13, 2022 Toshiba ESS, TNK News Release "FY 2022 Renewable energy aggregation demonstration project has been adopted"

※４　Balancing
A system in which power generation operator and electricity retailor adjust their generation plans / actual generation results and demand plans / actual demand results to match on a 30-minute basis.

※５　Renewable Energy Aggregators
A business type that supplies electricity by bundling distributed power sources such as renewable energy and storage battery. Business category newly defined in the Electricity Business Act by the Law for Strengthening Energy Supply enacted in June 2020.

Information in the news release, including product prices and specifications, content of services and contact information, is current on the date of the news release , but is subject to change without prior notice.