#Japan #ESG Management #Shibuya #EGS Corporation #Computer Breaker

Introduction

The energy landscape surrounding businesses has significantly changed in recent years. Rising electricity costs, soaring material prices, labor shortages, and the necessity for decarbonization are just a few of the challenges that management faces year by year. For companies seeking to expand their retail locations or factories, the issue of electrical infrastructure has become a crucial operational hurdle that directly affects business growth.

EGS Corporation (based in Shibuya, Tokyo, led by CEO Goji Nozaki) offers tailored solutions centered around its successful Computer Breaker technology, which has been implemented in over 4,000 facilities nationwide. The company not only focuses on reducing energy costs but also supports business expansion, promotes energy efficiency, reduces CO₂ emissions, and aids in ESG management. On June 8, EGS announced that a company that had previously given up on expansion managed to generate 150 million yen in annual revenue by integrating the Computer Breaker.

The Invisible Barrier to Expansion

A rising trend among retail development managers is the challenge of securing adequate electrical capacity, often even when the ideal location has been found. Businesses may find themselves forced to abandon opportunities due to insufficient power supply, even if the site’s location, rent, and market potential are perfect. High-energy-demand establishments like restaurants require substantial power for kitchen and refrigerating equipment, drugstores rely on refrigeration units, and fitness clubs need large air conditioning systems, all of which draw significant electrical loads.

Challenges of High Voltage Solutions

Typically, businesses needing large quantities of electricity consider high-voltage supply as a solution. However, the cost of high-voltage receiving facilities has been on the rise, often exceeding 1.5 times the previous price. Furthermore, a shortage of transformers and related components can lead to lengthy lead times—occasionally as long as a year. In urban settings, it may also be challenging to secure the space needed for such installations, causing entire plans to stall.

The Impact of Lost Revenue

For instance, envision a store with an average customer spend of 3,000 yen, 150 daily visitors, and 350 operational days per year, generating annual revenues of approximately 157.5 million yen. A mere one-year delay in opening can result in missing out on this revenue potential, overshadowing the initial investment costs with lost time and business opportunities.

The Computer Breaker as a New Alternative

EGS's Computer Breaker is a system that automatically controls the peak electricity usage, optimizing the contracted capacity. In implemented facilities, there have been cases where contracted capacity and basic fees were reduced by up to 65%. Facilities that were deemed required to transition to high-voltage supply may still operate efficiently under their current low-voltage contracts.

A Model Case

In a particular case, a company had planned its location expansion based on the assumption that high-voltage receiving equipment would be installed. However, due to prolonged lead times, uncertainty regarding the launch date necessitated a reevaluation of their plans. By employing the Computer Breaker for power optimization, they avoided the need for high-voltage setups and achieved a faster opening than originally planned, securing their revenue opportunities while keeping a lid on equipment investments.

Economic Effects Estimated at 200 Million Yen

This model case anticipates an annual revenue generation of approximately 157.5 million yen, avoiding high-voltage installation costs around 30 million yen, alongside a reduction in electricity fees exceeding 10 million yen. Cumulatively, these benefits amount to an economic impact estimated at around 200 million yen, positioning it as a strategic improvement rather than a mere cost-cutting measure.

Contribution to Energy Efficiency and Decarbonization

The Computer Breaker not only supports business expansions but also contributes to energy conservation. When combined with LED lighting and high-efficiency air conditioning systems, facilities can achieve optimized energy consumption. Compared to air conditioning units from around 2010, models projected for 2024-2025 show significant efficiency improvements, likely leading to greater reductions in power usage.

ESG Management and Scope 2 Compliance

Leading companies are accelerating their efforts toward ESG management and carbon neutrality. Reducing electricity consumption directly corresponds with lowering Scope 2 emissions, thereby enhancing corporate value. Notably, the Computer Breaker enables companies to simultaneously achieve profit improvements while addressing environmental concerns.

Track Record

With implementations across over 4,000 facilities, including restaurants, factories, drugstores, nursing homes, hotels, and commercial complexes, EGS has accumulated a wealth of expertise allowing for tailored proposals specific to each facility's needs.

Conclusion

In an era where businesses are increasingly expected to optimize electricity usage rather than just reduce it, the Computer Breaker stands out as a solution that simultaneously facilitates opportunities for expansion, mitigates equipment investment, promotes energy conservation, reduces CO₂ emissions, and supports ESG initiatives. As long lead times for crucial infrastructure persist, this innovative option is gaining traction as a means of supporting business growth.

A Message to Executives

Simply stating "reducing electricity costs" does not fully encapsulate the true value of the Computer Breaker. Its intrinsic value lies in its ability to safeguard the revenue and growth opportunities businesses deserve. In a landscape marked by delayed openings, rising equipment investments, and increased environmental compliance costs, the Computer Breaker provides solutions through a fresh perspective on power optimization.