Establishment of au Energy Holdings

April 7,2022

KDDI Corporation

KDDI is delighted to announce that it established the intermediate holding companies au Energy Holdings Corporation (hereinafter : au Energy Holdings) and au Energy & Life, Inc. (hereinafter : au Energy & Life) on April 6, 2022.

KDDI will transfer au Energy & Life and ENERES Co., Ltd. (hereinafter : ENERES) under au Energy Holdings, and it will succeed to administration of the two companies and function to plan, propose, and execute business strategies for them on July 1, 2022. In addition, au Energy & Life will succeed to electrical power retail business operated by KDDI [1].

The business landscape for energy is expected to undergo changes going forward in light of efforts to realize a decarbonized society. In this context, KDDI has established au Energy Holdings to respond to shifts in the business landscape together with associated partners and to provide dynamic services that match customer demand while maintaining its electricity retail service as a core operation.

■Background

The effects of global warming grow increasingly severe every year, and there are more cases of disasters from meteorological activity. The Japanese Government has established the "Green Growth Strategy Through Achieving Carbon Neutrality in 2050" [2] and it is driving combined efforts between the public and private sectors to create a positive cycle for both the economy and the environment. To realize a decarbonized society in 2050, the government aims to introduce renewable energy at a mass scale. However, renewable power generation is easily affected by seasonal changes as well as the climate, and so it is vital to control battery storage systems and other decentralized power sources in order to regulate power supply.

■Initiatives at the KDDI Group

• Following Japan's electrical power retail market being fully opened for competition in April 2016, KDDI launched the electricity service "au Denki," which has a total of 3.24 million customers (as of December 31, 2021).
• KDDI launched the "eco Plan" in September 2021. This electricity supply plan is effectively comprised of 100% renewable energy and features net-zero CO₂ emissions [3]. The plan also contributes to environmental preservation activities through donations.
• ENERES serves as a "CDP [4] accredited renewable energy provider" to support companies in decarbonization. It offers advice and proposes specific solutions for switching to renewable energy sources or low-energy services in order to realize a net-zero carbon footprint.
• Since fiscal 2016, ENERES and KDDI have joined a "pilot project for virtual power plant (VPP) [5] construction" organized by the Ministry of Economy, Trade and Industry. The two companies have engaged in efforts to build a VPP that can be used to achieve strong supply and regulation by effectively managing and controlling solar power generators, battery storage systems, and other decentralized energy resources.
• KDDI aims to realize net-zero CO₂ emissions in its own business activities by fiscal 2030 [6], and net-zero CO₂ emissions across the whole KDDI Group by fiscal 2050 [7].

■Outline of au Energy Holdings

• (1)

  Name: au Energy Holdings Corporation

• (2)

  Location of the Head Office: 3-10-10, Iidabashi, Chiyoda-ku, Tokyo

• (3)

  Summary of Business: Business administration of subsidiary companies involved in energy

• (4)

  Stated Capital: 100 million yen

• (5)

  Date of Establishment: April 6, 2022

• (6)

  Shareholder: KDDI Corporation 100%

■Outline of au Energy & Life

• (1)

  Name: au Energy & Life, Inc.

• (2)

  Location of the Head Office: 3-10-10, Iidabashi, Chiyoda-ku, Tokyo

• (3)

  Summary of Business: Operation of au Denki and other areas in the electrical power retail business

• (4)

  Stated Capital: 100 million yen

• (5)

  Date of Establishment: April 6, 2022

• (6)

  Shareholder: KDDI Corporation 100% (to be changed to au Energy Holdings 100% on July 1, 2022)

(Reference) Outline of ENERES

• [1]

  This electrical power retail business has been succeeded with the assumption that the relevant authorities will grant permission in this regard.

• [2]

  Ministry of Economy, Trade and Industry website: "Green Growth Strategy Through Achieving Carbon Neutrality in 2050" Formulated

• [3]

  We have effectively achieved a proportion of 100% renewable energy and net-zero CO₂ emissions for our procured electricity by supplying electricity via hydroelectric power, thermal power, nuclear power, FIT electrical power, renewable energy, and other sources together with non-fossil fuel energy certificates that are designated to use renewable energy.

• [4]

  CDP is an international non-governmental organization (NGO) that originated in the United Kingdom. It runs the global disclosure system for investors, companies, states, regions and cities to manage their environmental impacts.

• [5]

  A system that controls battery storage systems, cogeneration systems, and other decentralized power sources within the same area as electrical power users, and that functions like a single electrical power plant by integrating the power coming from these locations.

• [6]

  Covering Scope 1 (direct emissions) and Scope 2 (indirect emissions).

• [7]

  News release from April 7, 2022
  KDDI accelerates schedule to achieving net-zero CO₂ emissions New target year: FY2030
  Net-zero CO₂ emissions from Data Centers by FY2026

Disclosure Material: Establishment of au Energy Holdings ―Accelerating dynamic services for a decarbonized society― (547KB)

• The information contained in the articles is current at the time of publication.
  Products, service fees, service content and specifications, contact information, and other details are subject to change without notice.

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