Cosmo Eco Power to Start Supplying Electricity and Environmental Value Generated at its Goto-Hassakubana Wind Power Plant to U-NEXT HOLDINGS and U-POWER Customers via U-POWER ~Three-year Short-term Corporate PPA Concluded to Contribute to Renewable Energy Uptake~

November 6, 2024

Cosmo Energy Holdings Co., Ltd.

Cosmo Eco Power Co., Ltd.

U-NEXT HOLDINGS Co., Ltd.

U-POWER Co., Ltd.

Cosmo Energy Group company, Cosmo Eco Power Co., Ltd. (hereafter, “Cosmo Eco Power”), and U-POWER Co., Ltd. (hereafter, “U-POWER”), a subsidiary of U-NEXT HOLDINGS Co., Ltd. (hereafter, “U-NEXT HOLDINGS”), are pleased to announce that they have launched an initiative to procure and supply renewable energy-derived electricity (including effective supply).

U-POWER and Cosmo Eco Power have concluded an agreement to supply the entire amount of renewable energy generated at the Goto-Hassakubana Wind Power Plant (facility capacity: 1,200kW; hereafter, “the Plant”) for three years under a short-term corporate PPA¹. In addition, the two companies have signed a one-year retail supply agreement for in-house generated electricity needed to operate the Plant. Under this agreement, Cosmo Eco Power will supply the electricity and environmental value generated by the Plant, which it owns and operates, under the FIP scheme² to U-POWER. At the same time, U-POWER will supply (including effective supply) renewable energy-derived electricity to the Plant and U-NEXT HOLDINGS (some of its own office buildings), as well as stores, facilities, and other customers.

The Cosmo Energy Group and the USEN & U-NEXT GROUP have concluded this agreement with the goal of fulfilling their social responsibility to help realize a carbon-neutral society by contributing to the uptake of renewable energy. Going forward, the two groups remain committed to driving initiatives to reduce their environmental impact and build a sustainable society.

1.　A corporate PPA is a long-term contract between a power producer and a consumer for the purchase of electricity and environmental value derived from renewable energy sources. Since this agreement covers a period of three years, it is referred to as a short-term corporate PPA.

2.　Feed-in Premium (FIP): A scheme under which a premium is provided in addition to the revenue power producers receive from selling electricity. Enacted in April 2022, this scheme aims to facilitate the further uptake of renewable energy and make it a main power source. Under the FIT scheme, electricity generated at power plants is purchased by electric power companies, while under the FIP scheme, power producers can choose the buyer (sales to the wholesale electricity market, direct transactions with consumers = corporate PPAs, etc.).

【Corporate profiles】

■Cosmo Energy Holdings Co., Ltd.

■Cosmo Eco Power Co., Ltd.

～The Cosmo Energy Group’s Efforts to Achieve Carbon Neutrality～

As a member of the Cosmo Energy Group, Cosmo Eco Power is striving to achieve net zero carbon emissions by 2050. With the country transitioning from the FIT scheme³ to the FIP scheme for renewable energy, the expertise gained from this agreement is expected to be applied to the development and operation of future offshore and onshore wind power plants in which we hope to be involved, contributing to the establishment of renewable energy as a main power source in Japan.

■U-NEXT HOLDINGS Co., Ltd.

■U-POWER Co., Ltd.

3.　Feed-in Tariff (FIT): A scheme under which the Japanese government guarantees the purchase of electricity generated from renewable energy sources by electric power companies at a fixed price for a certain period of time, with the aim of promoting the uptake of renewable energy. Enacted in 2012.

～USEN & U-NEXT GROUP’s Efforts to Promote Sustainability～

U-NEXT HOLDINGS operates under the corporate slogan, "NEXT for U," driven by a desire to "create a better future." The company delivers new forms of value to society through a wide range of businesses, namely Content Distribution, Store & Facility Solutions, Communications & Energy, and Finance, Realty, & Global.

The USEN & U-NEXT GROUP's sustainability management policy embodies the corporate slogan and promotes sustainable group management centered on two axes: that businesses operated by U-NEXT HOLDINGS directly contribute to solving societal challenges, and that U-NEXT HOLDINGS itself is sustainable.

Furthermore, as part of its efforts to address climate change, the USEN & U-NEXT GROUP aims to achieve net zero greenhouse gas emissions from all business activities by FY2050. Efforts include transitioning company vehicles to electric vehicles (EVs) and hybrid vehicles (HVs), as well as switching business site power sources to electricity essentially generated from renewable energy sources.

The conclusion of this agreement is expected to serve as a catalyst for strengthening efforts to achieve carbon neutrality across the entire group.

※U-NEXT HOLDINGS sustainability website：https://unext-hd.co.jp/sustainability (available in Japanese only)

～USEN & U-NEXT GROUP’s Efforts to Achieve Carbon Neutrality～

U-POWER promotes the uptake of green energy in Japan by selling electricity essentially generated from renewable energy sources to businesses and individuals, as well as supporting companies in their decarbonization efforts. Additionally, U-POWER supports the forest conservation activities of the C.W. Nicol Afan Woodland Trust through its "GREEN Home" renewable energy-derived electricity plan for individuals. The trust has been recognized by the Ministry of the Environment as a "Nationally Certified Sustainably Managed Natural Site," designating it a “site where biodiversity conservation is being promoted through private-sector initiatives.”

※U-POWER “Forest Conservation Activity: Afan Woodland” initiative：https://u-power.jp/afan/ (available in Japanese only)

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(The official language for Cosmo Energy Group's filings with the Tokyo Stock Exchange and Japanese authorities, and for communications with our shareholders, is Japanese. We have posted English versions of some of this information on this website. While these English versions have been prepared in good faith, Cosmo Energy Group does not accept responsibility for the accuracy of the translations, and reference should be made to the original Japanese language materials.)