ENECHANGE: Notice Regarding Investment in Leapfrog Power, Inc.

Press release

November 29, 2021

ENECHANGE Ltd.

ENECHANGE announces an investment in Leap, supplier of an energy market

access platform designed for distributed energy resources

ENECHANGE Ltd. (Headquarters: Chiyoda-ku, Tokyo; Representative Director and CEO: Yohei

Kiguchi; Representative Director and COO: Ippei Arita) is pleased to announce that it has invested in Leapfrog Power, Inc. (“Leap”) through an overseas-focused low-carbon technology fund managed by Japan Energy Fund (JEF).

In their recent Series B round of funding, Leap raised $ 33.5 million (around 3.7 billion yen) *, led by Park West Asset Management (US investment firm), followed by Climate Capital, Union Square Ventures, Congruent Ventures, National Grid Partners, and more.

* 1 USD = 110 JPY

Source: Jump

■ Context

Japan’s journey to net-zero is accompanied by widespread political reforms in the energy sector, which will come into effect between 2016-2024. By 2024, the new capacity market and the balancing market are expected to be fully open and implemented. Additionally, as detailed in the Japanese government’s green growth strategy, there will be an increase in renewable energy sources in the country’s energy mix by 2050, which are cleaner but less predictable than traditional fossil fuels. Therefore, there is a growing need for efficient grid balancing solutions. We believe Leap is a strong competitor in this area as partners like Stem, Inc. use Leap’s solution, enabling smart energy devices to respond to market pricing signals that reflect grid needs. This allows these devices to ensure network stability while enabling new sources of income for asset owners. By aggregating flexible loads from a wide range of distributed energy resources (DERs) to support the grid, Leap accelerates tThe ability to phase out the most expensive fossil gasolinethe peak power plants on which the network currently relies. ENECHANGE is firmly committed to advancing the 4Ds of energy (decarbonization, digitization, decentralization and deregulation) in Japan, and believes that Leap’s solutions are a promising development on the road to full decarbonization.

■ About Leap’s energy market access platform

Leap’s platform makes it easy for DERs to participate in energy markets. In collaboration with the technology and service providers that manage and operate the devices connected to the grid, Leap automates access to the energy market and creates new value chains for its partners and their customers. Through Leap’s Universal API and a single point of entry, Leap partners can connect devices of any type and size of load to a wide range of revenue-generating opportunities.

■ About Leap

Leap is the leading global platform for generating new value from resources and grid-connected devices through integration with energy markets. Leap does all the heavy lifting, seamlessly connecting technology partners to high value-added revenue streams and providing a simplified and automated access point for market participation with batteries, electric vehicle recharges, smart thermostats, HVAC systems, industrial plants and other flexible assets. By facilitating the participation of new distributed resources in energy markets, Leap lays the foundation for Virtual Power Plants (VPPs). Leap enables its partners to deliver resilient, zero-carbon capacity to the network while strengthening engagement withh their customers through new value chains. Leap is a privately held company with offices in San Francisco and the Netherlands. Since its founding, Leap has raised USD 44.1 million (JPY 4.85 billion) in total, including funding received from Elemental Excelerator and Powerhouse Ventures.

Website: https://leap.energy/

■ Comments

Yohei Kiguchi, Founder and CEO of Japan Energy Fund and ENECHANGE Ltd.

“We are delighted to invest in Leap, whose innovative technology is helping more parties participate in grid balancing. ENECHANGE is committed to achieving the 4Ds of energy, and Leap’s solutions advance digitization, decentralization and decarbonization in the sector. Leap’s technology has been proven successful through their partnerships with companies such as Stem, Inc., and we look forward to seeing them develop further. ”

Thomas Folker, CEO of Leap

“This new investment will help us evolve our platform and open up more opportunities for distributed energy resources to participate in grid service programs. We are delighted that ENECHANGE and the Japan Energy Fund share our vision of creating resilient, carbon-free power grids, and we look forward to exploring the opportunity to expand our solutions into Japanese energy markets. ”

■ Japan Energy Fund – Objectives and investment policy

Backed by leading Japanese companies, the Fund aims to build a sustainable society by investing in innovative international companies with carbon-free technologies. The Fund’s initiative revolves around two main axes: JEF Renewables and JEF Ventures. The first invests in renewable energy companies in emerging countries, and the second invests in energy start-ups with advanced technologies in European and North American countries with advanced energy markets. Through these investments, the Fund aims to build a sustainable society by focusing on five SDG goals.

Website: https://japanenergy.fund/

The Fund invests in renewable energies based on the following strategy:

  • Specialized in renewable energy power plants operating in emerging countries Institutional investors have pledged to divest the equivalent of USD 6 trillion in fossil fuels worldwide. Investment in renewable energy amounted to 280 billion USD in 2017 (up 2% from the previous year) and is led by emerging countries. Characterized by low energy self-sufficiency and a high need for infrastructure development using renewable energies, the Fund will support sustainable development in these emerging countries

by investing in energy infrastructure in close cooperation with the Japanese government, target country governments and local businesses.

The Fund makes venture capital investments based on the following strategy:

  • Collaboration with ENECHANGE Insight Ventures operated by the ENECHANGE group In collaboration with ENECHANGE Insight Ventures, an energy business development program managed by the ENECHANGE group, we will proactively develop business relationships with venture capital firms equipped with peak in Europe and North America. By investing in decarbonization technologies, we will foster innovation to help achieve Japan’s decarbonization goals.

■ Japan Energy Fund – Summary

Fund name

Japan Energy Capital 1 LP (“Japan Energy Fund” (JEF))

Creation date

December 6, 2019

Investment method

Capital call method

Investment objective

● Renewable energy activity in Turkey and Jordan

● Energy technology companies in Western countries

Fund size

US $ 100 million

Operating period

Until December 2029

General partner

Japan Energy Capital Limited Liability Company

Limited partners

ENECHANGE Ltd.

* As of November 29, 2021

Buckle inc.

Daiwa Energy & Infrastructure Co. Ltd.

Hokuriku Electricity Company

EnBio Holdings, Inc.

■ About ENECHANGE Ltd.

ENECHANGE is an energy technology company whose mission is to Changing energy for a better world, and promotes a carbon-free society thanks to digital technology. Founded in 2015 and listed on the Tokyo Mother’s Exchange in 2020 (security code: 4169), ENECHANGE works in the 4Ds of energy: deregulation, digitization, decarbonization and decentralization. We offer a range of SaaS solutions for energy companies and are experiencing rapid growth. The roots of our company come from an energy data lab at the University of Cambridge, UK, a country where liberalization is mature. ENECHANGE has a UK subsidiary, SMAP Energy Limited, which has developed analytical technology for energy data and provides us with links to a global network.

Url: https://enechange.co.jp/en

■ For inquiries ENECHANGE Ltd.

RP: Contact by mail: [email protected]

RP: mail [email protected]

Note: The purpose of this press release is not to provide investment management services or solicit specific investment products from ENECHANGE, Looop, Daiwa Energy & Infrastructure Co. Ltd., Hokuriku Electric Power Company or EnBio Holdings, Inc.

This press release does not constitute a solicitation by ENECHANGE, Looop, Daiwa Energy & Infrastructure Co. Ltd., Hokuriku Electric Power Company or EnBio Holdings, Inc. for any of the aforementioned funds.

Disclaimer

Enechange Ltd. published this content on November 29, 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on November 29, 2021 06:19:13 AM UTC.

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