PowerX and Smart Energy Sign MOU on Collaboration to Deploy Battery Energy Storage Co-Located with Power Plants

TOKYO, JAPAN --- PowerX, Inc. (Head Office: Tamano City, Okayama Prefecture; Director, President and CEO: Masahiro Ito; Securities Code: 485A) has signed a memorandum of understanding (MOU) with Smart Energy Co., Ltd. (Head Office: Minato City, Tokyo; Representative Director: Takuya Ogushi), Japan's largest provider* of operation and maintenance (O&M) services for solar power plants, to explore collaboration on the deployment of battery energy storage systems (BESS) co-located with power plants.

With renewable energy increasingly established as a mainstay of Japan's power supply, revisions to the FIT/FIP schemes and growing output curtailment are prompting more power producers to install co-located batteries and secure revenue by participating in the supply-demand balancing and wholesale electricity markets. Turning these opportunities into viable businesses, however, requires expertise across many areas—from identifying and structuring candidate projects to equipment procurement, O&M, and aggregation.

Against this backdrop, the two companies will bring together their respective strengths to jointly advance co-located BESS projects, from origination through deployment and operation.

Roles of the Two Companies

Smart Energy, with sales offices across Japan, will identify and evaluate candidate projects through its extensive network of solar power producers and will provide O&M after deployment. PowerX will supply BESS developed and manufactured in Japan. The two companies will jointly pursue aggregation, with a view to participating in the supply-demand balancing and wholesale electricity markets; which company serves as the aggregator and how revenue and risk are shared will be decided through discussions on a project-by-project basis.

Deployment Targets

The two companies aim to develop approximately one project by December 2026, three projects by December 2027, and ten projects by December 2028.

In addition to supplying BESS developed and manufactured in Japan, PowerX will continue contributing to the expansion of renewable energy and the improvement of Japan's energy self-sufficiency through its electricity businesses, including aggregation, market trading, and retail supply.

*Based on a survey by the trade magazine PVeye (May 2026 issue).

■ About Smart Energy

• Company Name: Smart Energy Co., Ltd.

• Established: 2007

• Representative: Representative Director Takuya Ogushi

• Head Office: Minato City, Tokyo

• Business: Operation and maintenance (O&M) of solar and wind power plants; brokerage of renewable energy power plant transactions; aggregation and regional electricity retailer support services

• Website: https://www.smart-energy.jp/

^{*The collaboration described in this release is at an exploratory stage based on the MOU and is subject to change through future discussions. The MOU is not legally binding. The impact of the signing of this MOU on the Company's financial results has not been determined at this time. Should any matters requiring disclosure arise, PowerX will disclose them promptly.}

^{This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail.}