News Release

Toshiba Energy Systems & Solutions Corporation and Toshiba Electronic Components Taiwan Corporation, a Taiwan-based Toshiba Group subsidiary, have signed a memorandum of understanding with Taiwan's Industrial Technology Research Institute (ITRI) to explore collaboration that leverages Toshiba Group's Virtual Power Plant (VPP) technology and ITRI's knowledge of the Taiwanese energy market.

Taiwan is promoting a substantial enhancement of its renewable energy sector, and aims to raise the share of renewables in the energy mix from 8%^*1 in 2022 to 27%-30%^*2 by 2030. This initiative will require robust measures to ensure the stability of the power grid, prompting exploration of VPP technology as a viable solution for balancing electricity supply and demand.

ITRI, Taiwan's largest government funded research and development organization, with approximately 6,000 researchers, is dedicated to advanced science and technology research that promotes industrial development, creates economic value and enhances social welfare. In its VPP business in Japan, Toshiba Group sells renewable energy to retailers and consumers, and is an aggregator that bundles power producers, manages balancing^*3 and supports trading in the balancing market.

Under the MOU, the two companies will validate and demonstrate market trading operations and resource management strategies can reinforce the stability of Taiwan's power infrastructure. The collaboration will bring together Toshiba Group's expertise in resource aggregation technologies, including predictive analytics for power generation, renewable energy, and battery storage, with ITRI's comprehensive knowledge of Taiwan's energy market framework and its technologies for the Demand Response^*4 system and battery energy storage system (BESS) integration.

Toshiba Group and ITRI will mutually leverage the knowledge and technological capabilities to advance discussions that aim to resolve issues in Taiwan's energy sector.

Note 1: Report from Taiwan's Energy Administration, Ministry of Economic Affairs (2022)

Note 2: News release from Taiwan's Ministry of Economic Affairs (December 28, 2022)
https://www.moea.gov.tw/MNS/populace/news/News.aspx?kind=1&menu_id=40&news_id=104155

Note 3: A system used in Japan's electricity industry to ensure simultaneous balancing of anticipated power generation and consumption, for the purpose of ensuring a stable supply. Electricity generators and retail electricity providers make adjustments every 30 minutes to match the demand plan (or generation plan) with actual demand (or actual generation).

Note 4: An initiative to manage demand for electricity in order to balance supply and demand.