GS Yuasa Corporation (Tokyo Stock Exchange: 6674; “GS Yuasa”) announced that it, together with

13 other companies* including The Kansai Electric Power Company, Incorporated (“Kansai Electric

Power”), was chosen for the Virtual Power Plant (VPP) Construction Verification Project subsidized by

the Agency for Natural Resources and Energy, the Ministry of Economy, Trade and Industry, and

received the grant notification on July 21, 2016.

The verification project is aimed at realizing a new, non-conventional energy management for the

construction of energy infrastructure that contributes to efficient energy utilization by the society as a

whole, amid advancing electric power deregulation and electric power system reforms.

In particular, we will connect customer devices (resources) that dot the power system via IoT

(Internet of Things) and centrally control them to effectively utilize the supply-demand adjusting

capacity that can be produced from customer facilities, and ultimately construct a mechanism to make

them function as if it were one electric power plant (virtual power plant).

GS Yuasa will install large-size storage batteries at its company dormitory in Muko City, Kyoto

Prefecture, as its in-house facility, connect the interface of the storage batteries and control program to

the Internet and then to the storage battery server, and verify whether signal transmission and

reception can be carried out in accordance with the requirements.

Through this verification project, GS Yuasa aims to realize new energy management that links

storage batteries and IT technology, optimization of energy use employing such management and

further expanding introduction of storage batteries, which are installed with renewable energy power

sources, and contribute to the realization of low carbon society.

* The 14 companies of The Kansai Electric Power Company, Incorporated, Fuji Electric Co., Ltd.,

Sansha Electric Manufacturing Co., Ltd., GS Yuasa Corporation, Sumitomo Electric Industries,

Ltd., Nihon Unisys, Ltd., NTT Smile Energy Inc., Enegate Co., Ltd., ELIIY Power Co., Ltd.,

Obayashi Corporation, Kansai Electrical Safety Inspection Association, Daihen Corporation,

Nature Japan Co., Ltd., and Mitsubishi Corporation

■The image of the Virtual Power Plant Construction Verification Project

■Image of the virtual power plant system configuration