#Japan #Minato-ku #Energy Policy #Remix Point #DR Services

Remix Point's Subsidy Support for Storage Systems

In a significant move to tackle Japan's energy challenges, Remix Point, Inc. (TSE: 3825), headquartered in Minato-ku, Tokyo, has successfully registered as a retail electricity provider offering Demand Response (DR) services. This initiative is part of the government-led program to promote business and industrial storage systems under the fiscal support scheme for 2025. Through this initiative, the company aims to aid the implementation of energy storage systems while facilitating financial support for businesses.

Overview of the Subsidy Program

The Ministry of Economy, Trade, and Industry (METI) is backing this subsidy program aimed at boosting renewable energy adoption and stabilizing supply and demand in the electricity market. Businesses that wish to implement energy storage systems can benefit from this financial assistance, significantly reducing their initial investment costs. Typically, the deployment of industrial energy storage systems incurs several millions of yen in startup expenses. However, by subscribing to Remix Point’s market-linked electricity plan, the “JEPX Standard Plan,” along with a suitable energy storage system offered by the company, businesses can leverage this subsidy to ease their initial financial burdens.

Addressing Japan's Energy Landscape

Given the current geopolitical situation in the Middle East, Japan is grappling with rising costs of oil and liquefied natural gas (LNG), which has led to increased trading prices at the Japan Electric Power Exchange (JEPX). Market-linked electricity plans adjust consumers’ electricity bills based on 30-minute market rates. During the day when renewable energy sources like solar power ramp up production, prices typically drop, but in the present climate, there’s an undeniable risk of price spikes. In regions like Kyushu and Shikoku, where renewable energy generation is more consistent, businesses may find price advantages even amid rising costs.

For example, simulations for two types of businesses in the Kyushu area indicated potential annual electricity savings of approximately 3.97 million yen for the meat processing industry with a contract power of 750 kW, and 3.4 million yen for the manufacturing sector with a 428 kW contract. The prospects of substantial savings are particularly favorable for industries with higher contract capacities.

What is Demand Response (DR)?

Demand Response refers to a system where consumers help balance electricity supply and demand during peak times by regulating their consumption. Remix Point offers DR services featuring two types of energy storage systems from SolaX Power and Growatt, tailored to meet varying customer needs. These systems efficiently manage charge and discharge cycles based on market prices, allowing users to minimize operational complexities while optimizing energy management. For customers enrolled in the market-linked electricity plan, there’s added motivation to invest in storage systems to mitigate risks during power price surges.

Key Benefits of Implementing Storage Systems

Remix Point’s offerings bring several advantages:
1. Mitigating Price Surge Risks: Utilizing a market-linked electricity plan can help businesses save on electricity costs; however, it also exposes them to the risk of surging prices. By integrating a storage system, businesses can charge during cheaper periods and discharge during high-price times, ultimately controlling electricity costs more effectively.
2. Tax Benefits for Small Businesses: The “Small Business Management Enhancement Tax System” aids small enterprises in lowering their tax burdens associated with capital investments, allowing for immediate depreciation of certain expenses.
3. Cost of Ownership Reduction with “Battery Discount”: Remix Point’s “battery discount” initiative reduces monthly operational costs by partially covering electricity charges associated with charging the storage system, offering up to 1.02 million yen per year.
4. Initial Cost Relief through Subsidy Programs: Companies can access 1/3 funding support under the METI’s fiscal program, mitigating their initial implementation costs.

Who Can Benefit?

This assistance is most impactful for businesses that:

• - Are already using market-linked electricity plans
• - Seek to stabilize electricity cost fluctuations
• - Operate in energy-intensive sectors like manufacturing, storage, and refrigeration
• - Are located in areas where electricity prices are more stable, such as Kyushu and Shikoku.

About Remix Point

Remix Point is dedicated to creating new standards for society and the environment, aiming for a decarbonized future. As a publicly traded company on the Tokyo Stock Exchange, its core business lies in retail electricity, supported by consulting for energy efficiency, subsidies, and energy storage solutions. As part of its commitment to achieving carbon neutrality, Remix Point is also prepared to start maintaining Bitcoin and other cryptocurrencies as alternative assets from 2024, positioning itself as a significant player in both energy and digital asset markets. The company is committed to leveraging its expertise to facilitate sustainable societal advancements in both domains. For more information, visit Remix Point.