Takara Leben Infrastructure Fund: Notice of Conclusion of Specified Wholesale Supply Agreement by Solar Power Plant Lessee and Power Producer







March 1, 2022

For immediate release

Infrastructure fund issuer

Takara Leben Infrastructure Fund, Inc.

Representing:

Masahide Kikuchi,

Executive Director

Value code: 9281

Management company

Takara Asset Management Co., Ltd.

Representing:

Mamoru Takahashi,

President and CEO

Contact:

Masahide Kikuchi,

vice president

TEL: +81-3-6262-6402

Notice of conclusion of a wholesale supply contract specified by the tenant of the solar power plant and the electricity producer

Takara Leben Infrastructure Fund, Inc. (the “Fund”) hereby announces that a Specified Wholesale Supply Agreement (the “Specified Wholesale Agreement”) has been entered into by and between UPDATER Inc. (“UPDATER ”) and Katsuura Okitsu Solar GK (“Katsuura Okitsu Solar”), the tenant and power producer of the Fund’s LS Chiba Katsuura power plant (the “Power Plant”). Details are as follows.

1. Overview of the Specified Wholesale Contract

(1) Specified Wholesale Contract Diagram

(2) Reason for entering into the Specified Wholesale Agreement

By providing electrical power, UPDATER advances initiatives to revitalize local communities in recognition of the new common practice in society of focusing on electricity produced and electricity consumed. As a result, UPDATER launched a renewable energy company called Minna Denryoku to facilitate regional collaboration through electricity. Completion of the Specified Wholesale Agreement between UPDATER and Katsuura Okitsu Solar, the power plant’s tenant and electricity producer, will enable Katsuura Okitsu Solar to focus on contributing to society by continuing decarbonization efforts. and by promoting the adoption of renewable energy as a generator of electricity. by supplying electrical energy* via Minna Denryoku to individuals and companies concerned about using energy with a lower environmental footprint. The Fund intends to cooperate on all fronts as it believes that the above initiative contributes to its fundamental policy of creating value through the use of natural energies, creating jobs in the community, promoting the development of society and the economy, to fight against global warming and to contribute to improving energy autonomy.

The Fund believes that as a result of entering into the Specified Wholesale Agreement, the following three points

will lead to maximization of the Fund’s policy base and its value to investors.

Note: Electricity generated at the power plant is first purchased by TEPCO Power Grid, Inc. (“TEPCO Power Grid”), a general power transmission and distribution company, under an agreement specified in feed-in tariff (FIT) system. where renewable energy is purchased at a fixed price. TEPCO Power Grid then provides wholesale supply to Minna Denryoku under a wholesale supply agreement specified with UPDATER. Purchase costs under the FIT system are covered by renewable energy taxes collected from electricity consumers nationwide, hence the unique advantage of this CO2-free electricity.2 emissions purchased through the FIT system belong to all consumers, not the specific consumer to whom the electricity was supplied.

  1. Contribute to the adoption of renewable energies

Providing electricity to consumers who integrate environmental considerations into their business management and strive to promote a carbon-free society and adopt environmentally friendly energy sources will help improve energy self-sufficiency.

  1. Promote regional collaboration through the supply of electrical energy

Being aware of the new common practice of focusing on electricity generated and electricity consumed by supplying electricity to Minna Denryoku to foster regional collaboration through electricity will propel initiatives to revitalize communities local.

  1. Maximize value for investors by leveraging asset characteristics

In the lease agreement with Katsuura Okitsu Solar, the Fund has adopted a lease arrangement that combines both a guaranteed minimum rent and a performance-related rent. With the recent conclusion of the specified wholesale agreement for the power plant, Katsuura Okitsu Solar will collect an agreed premium rate* from Minna Denryoku based on the volume of electricity sold only if electricity consumers through UPDATER have been matched with electricity plant. It should be noted that under the Power Plant Lease Agreement between the Fund and Katsuura Okitsu Solar, the agreed premium rate collected from UPDATER is substantially split equally between the Fund and Katsuura Okitsu Solar and the Fund l included in the calculation of performance-related rent.

Note: The agreed premium rate is the amount (plus the corresponding amounts of consumption tax and local consumption tax) obtained by multiplying the agreed premium unit cost (¥/kWh) by the volume of electricity produced at the power station which is supplied as specified wholesale to Minna Denryoku through the General Electricity Transmission and Distribution Company and then sold to consumers in Minna Denryoku. Any amount less than one yen is rounded down. However, in the event of a change in the calculation of avoidable expenses provided for in point (ii) of Article 29 of the Law on special measures concerning the purchase of electricity from renewable energy sources by electric utilities, UPDATER may change the agreed premium unit cost after consultation with Katsuura Okitsu Solar. Avoidable expenses are the amount calculated according to the method specified by order of the Ministry of Economy, Trade and Industry as the amount of expenses that would be incurred to produce or procure electricity for an amount equivalent to the amount of electricity from renewable energy sources used that was purchased by the electric utility on the basis of a specified contract if that electric utility generated or purchased the electricity by itself . This amount is deducted from the cost of purchasing electricity from renewable energy sources under the FIT system. Also, in some cases, the agreed increased rate may be waived or changed in the first year (or upon extension of the contract). It will be the same below.

The Fund believes that these activities contribute to the following three of the 17 United Nations Sustainable Development Goals, or SDGs for short.

  1. Affordable and clean energy
  2. Responsible production and consumption
  3. Climate action

In May 2019, the Fund established a sustainability policy for initiatives aimed at realizing its core policy and achieving a sustainable society. Going forward, it will continue to tackle environmental issues and contribute to regional communities.

(3) Details of the specified wholesale contract

Property number

S-42

Power plant1

LS Chiba Katsuura

Effective date of the agreement2

February 28, 2022

Expected start of specified wholesale supply

April 30, 2022

electricity producer

Katsuura Okitsu Solar

Specified wholesale destination

UPDATE

Note 1: LS is an abbreviation of Leben Solar, the name of the series of solar power plants acquired by the Fund. It will be the same below.

Note 2: The duration of the specified wholesale contract is one year from the day the specified wholesale supply begins. Unless either party notifies the other party up to four months before the end of the term, or unless otherwise provided in the Specified Wholesale Agreement, the term of the Specified Wholesale Agreement will be automatically renewed for one additional year. with the same conditions. and conditions.

2. Forecast of operating results

The impact on the Fund’s results of operations of entering into the Specified Wholesale Agreement between Katsuura Okitsu Solar and UPDATER will be minor. No changes have been made to the forecast operating results for the financial periods ending May 31, 2022 (December 1, 2021 to May 31, 2022), November 30, 2022 (June 1, 2022 to November 30, 2022) and May , 2023 (December 1, 2022 to May 31, 2023).

*Fund website: https://tif9281.co.jp/

Warning

Takara Leben Infrastructure Fund Inc. published this content on March 01, 2022 and is solely responsible for the information contained therein. Distributed by publicunedited and unmodified, on March 01, 2022 08:27:03 UTC.

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