#Japan #Tokyo #Corporate PPA #Clean Energy Connect #Hormuz Strait

Understanding Power Price Risks Amidst Global Tensions

As geopolitical situations evolve, particularly the tensions surrounding the Hormuz Strait, businesses must adapt to the changing landscape of energy procurement. Numerous factors, including the Russia-Ukraine conflict, soaring fuel prices, currency depreciation, and tight electricity supply and demand, are reshaping the energy procurement environment for companies around the world.

The Impact of the Hormuz Strait Situation on Energy Costs

Given that the Hormuz Strait is a vital passage for oil and liquefied natural gas (LNG), any disruption in this area could directly influence the procurement prices of these essential resources. These fluctuations can impact wholesale electricity market prices, which ultimately affect corporate electricity bills and operating costs. Thus, understanding how these dynamics work is more important than ever for businesses.

Identifying Energy Procurement Risks

It's crucial for companies to assess the risks associated with their energy contracts, especially in terms of:

• - The degree to which fuel and market price fluctuations will affect their electricity contracts.
• - Timing and methodology for how pricing changes will be reflected in electricity costs.
• - The overall impact of rising energy costs on annual budgets and business profitability.
• - Proactive measures they can take now to prepare for future price surges.

Upcoming Webinar on Energy Pricing

To help businesses navigate these complex issues, our upcoming webinar will provide an in-depth look at how developments in the Hormuz Strait may impact electricity pricing. We will break down:

• - The mechanisms through which fuel and wholesale electricity market price changes affect corporate electricity costs.
• - The different pricing risks associated with fixed-price, fuel-adjusted, and market-linked contracts.
• - Essential points companies should consider in their current electricity contracts to mitigate risks.

Moreover, we will explore options for stabilizing long-term electricity costs while also advancing decarbonization efforts. This discussion will include insights into Off-site Corporate Power Purchase Agreements (PPAs), their features, and vital decision-making factors for implementation.

Who Should Attend?

This seminar is geared toward:

• - Executives wanting to understand how soaring electricity prices impact business profitability and budget.
• - Financial and strategic planners analyzing energy cost forecasts and risk management strategies.
• - Procurement and administration teams looking to reassess their electricity contracts and pricing frameworks.
• - Professionals interested in grasping the nuances of market-linked contracts and fuel adjustment mechanisms.
• - Those evaluating approaches to harmonize energy cost stability with decarbonization goals.
• - Decision-makers considering the adoption of Off-site Corporate PPAs.

Key Takeaways from the Webinar

Attendees will gain:

• - Insights on how the Hormuz Strait developments could shape electricity pricing for Japanese companies.
• - Understanding of how crude oil and LNG prices, along with market dynamics, are reflected in electricity pricing.
• - An overview of pricing fluctuation risks associated with various types of contracts.
• - Five critical points to consider in current contracts to prepare for potential future price increases.
• - Practical insights on utilizing Off-site Corporate PPAs to ensure stable electricity costs while committing to decarbonization.
• - Guidelines for assessing long-term renewable energy PPAs with an emphasis on contract duration, costs, and demand considerations.

Webinar Logistics

Date: September 3, 2026 (Thursday) 13:00 - 13:30
September 4, 2026 (Friday) 13:00 - 13:30
September 7, 2026 (Monday) 13:00 - 13:30
September 8, 2026 (Tuesday) 13:00 - 13:30
Format: Online
Cost: Free
Speaker: Sawako Hori, Vice President, Clean Energy Connect Inc.

By understanding the delicate balance between energy procurement risks and market dynamics, companies can better prepare for future uncertainties. This webinar is a crucial step toward devising effective cost management strategies against rising electricity prices.

About Clean Energy Connect Inc.

Location: Otemachi 2-2-1, Chiyoda, Tokyo
CEO: Teppi Uchida
Business Overview: Corporate green power solutions and Non-FIT renewable energy generation.
URL: Clean Energy Connect