Fourteen Japanese companies*1 have come together to launch the “Virtual Power Plant Experimental Project,” an initiative subsidized by the Agency for Natural Resources and Energy, an arm of Japan’s Ministry of Economy Trade and Industry, as part of the government’s plan to rebalance Japan’s energy mix. The subsidy was issued on July 21, 2016 by the Institute of Applied Energy, the project’s executing agency2.
In the context of electricity deregulation and the reform of electric power systems in Japan, the project is aimed at contributing to the development of new energy management systems and the installation of new infrastructure that will facilitate more efficient energy use.
More specifically, bundling end-use devices scattered across power grids through the Internet of Things (IoT) would create a sort of “virtual” power plant, where demand and supply can be more effectively adjusted for available capacity. Enhancing the system for adjusting electricity supply and demand will also make it easier to introduce renewable energy sources into the power grid.
Through the project, the 14 participating companies are aiming to set up a comprehensive system for controlling end-use devices and to develop new energy management systems through bundled technology and the installation of renewable energy sources. The initiative is expected to contribute to the realization of a low-carbon society.
*1: 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, Ltd., Enegate Co., Ltd., ELIIY Power Co., Ltd., Obayashi Corporation, Kansai Electrical Safety Inspection Association, DAIHEN Corporation, Nature Japan Co., Ltd., Mitsubishi Corporation.
*2: Ministry of Economy, Trade and industry subsidize a part of the costs for the demonstration of virtual power plant and negawatt power transaction over grid operators. In this case, the 14 companies applied for A. demonstration of Virtual Power Plant, A-1 Aggregator business among nominated demonstrations and were adapted as indirect subsidized companies.
*3: This does not only refer to communication devices such as personal computers and smart phones but anything that can be connected to the Internet.
