Eshi BESS

The Long-Term Decarbonisation Power Source Auction (LTDA) is a policy mechanism introduced to promote the decarbonization of Japan's power system and support Japan's goal of achieving carbon neutrality by 2050. This auction promotes the development of new stable and low-carbon power sources while ensuring long-term stability of electricity supply. By offering long-term revenue certainty for projects—such as retrofitting thermal power plants, renewable energy, and battery storage, the LTDA reduces investment risk and drives new development.

OCCTO stands for the Organization for Cross-regional Coordination of Transmission Operators, Japan. Established in 2015, OCCTO is an authorized corporation under the jurisdiction of the Ministry of Economy, Trade and Industry. It is responsible for coordinating the nationwide operation of Japan's power grid system. OCCTO's main functions include formulating electricity supply-demand plans, managing inter-regional transmission lines, promoting wide-area operation of power systems, and administering various mechanisms including the Long-Term Decarbonisation Power Source Auction (LTDA). OCCTO plays a crucial role in ensuring stable electricity supply and maintaining grid reliability throughout Japan.

We have been awarded a Capacity Agreement under the Long-Term Decarbonisation Power Source Auction (LTDA) by OCCTO (Organization for Cross-regional Coordination of Transmission Operators, Japan). This agreement includes the following key points:

• A fixed income for approximately 20 years corresponding to our bid amount, which significantly improves the predictability of our long-term business planning and investment recovery.
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• A revenue sharing mechanism that returns a portion of market revenue to OCCTO during the operational period, helping reduce the financial burden on consumers as the project generates revenue.
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• The agreement also formally recognizes our BESS's contribution to Japan's energy transition and decarbonization goals. Securing this agreement highlights the strength of our technology and the reliability of our project.

Eku Energy is committed to transparent, open and proactive consultation with local stakeholders and the broader community. As the project is still in the early stages of development, we are actively engaging with the local authority and near neighbours to provide early insight into our business and how BESS can support grid stability.

As the project progresses, we will share details such as site layout and timelines to ensure any potential impacts are clearly communicated and minimised. This engagement may include door-to-door visits or dedicated community sessions, where residents can learn more about the project, meet the team, and ask questions directly.We are continuing ongoing information and consultation activities with details to be released via ekuenergy.com/eshi and direct communication channels.

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