[Japan] Ministry of Economy, Trade and Industry Continues the Sale of Non-Fossil Fuel Energy Certificates

On March 25, 2019, Japan’s Ministry of Economy, Trade and Industry (METI) announced that it would continue selling non-fossil fuel energy certificates in Fiscal Year 2019. In May 2018, METI began to issue the certificates to certify electricity generated by renewable energy sources under the Feed-in-Tariff (FIT) Scheme for Renewable Energy, and established a non-fossil fuel energy trading market, which allows retail electricity providers (REPs) to purchase certificates representing the non-fossil fuel value.

If REPs sell electricity with the non-fossil fuel energy certificates, it is considered as renewable energy, which enables energy users to utilize their compliance with RE 100, an initiative launched by the Climate Group of the United Kingdom (UK) and the CDP, which is championing the use of 100% renewable energy for electricity for business operations.[1] The Climate Group of the UK, which seeks to accelerate action on climate change, is committed to work with global leaders and enterprises to tackle climate change.[2] CDP is a British non-profit organization that provides a discussion platform for companies, states, and investors to control their environmental impacts.

In February 2019, METI conducted a demonstration project in collaboration with many REPs and power producers to identify the origin of renewable energy sources based on their non-fossil energy value, as well as to confirm that it would be able to improve the FIT scheme. The non-fossil fuel energy trading market aims to encourage electric buyers to achieve the target ratio of non-fossil fuel energy set by the Act on the Promotion of Use of Non-Fossil Energy Sources and Effective Use of Fossil Energy Materials by Energy Suppliers.[3] 

[1] http://there100.org/

[2] https://www.theclimategroup.org/about

[3] https://www.meti.go.jp/press/2018/03/20190325005/20190325005.html

[Japan] Kansai Electric Power and Caulis’ Demonstration Project to Detect Unauthorized Bank Account was Approved under the Regulatory Sandbox Scheme

On March 6, 2019, the Ministry of Energy, Trade and Industry (METI), Government of Japan, approved a demonstration project to detect unauthorized activities on opening bank accounts through the internet, by using financial and electricity data under the Act of Special Measures for Productivity Improvement. The demonstration project is being developed by Kansai Electric Power (KEPCO) and Caulis, a Japanese cyber security solutions company[1]. The project will examine the viability of a new technology which is designed to effectively detect unauthorized activities on opening bank accounts at the Seven Bank[2] by combining financial information with electricity data collected from KEPCO’s electric facilities.

The objective of the project is to explore the cooperation between electricity companies and IT security providers in order to address social security problems. The results of the project will also shape the framework and regulations that promote the adoption of innovative technologies in businesses. The Act of Special Measures for Productivity Improvement entered into force on June 6, 2018. Under the Act, the Scheme for Demonstration of New Technologies, namely the Regulatory Sandbox Scheme, will encourage companies to adopt new technologies and innovative business models.[3]

[1] https://caulis.jp/en/#contact

[2] https://www.sevenbank.co.jp/corp/

[3] https://www.kepco.co.jp/souhaiden/pr/2019/0306_1j.html

[Japan] Kyushu Electric Power and Softbank Signed a Business Alliance Agreement for Joint Product Development

Kyushu Electric Power and Softbank[1], a Japanese mobile service company, signed a business alliance agreement on joint product and service development on March 12, 2019. The first joint services, ‘Home Discount Kyushu Electric Power Electric Set,’ a 100-yen monthly discount service, will begin to be offered on April 12, 2019, at both Softbank’s and Y Mobile’s mobile phone retail stores within the Kyushu Electric Power service area. This discount service will be available for existing customers who currently subscribe on Kyushu Electric Power’s rate plans and are using Softbank and Y Mobile’s mobile services and fixed communication services. It is also targeted to these mobile providers’ users who have already subscribed or will subscribe to ‘Kirei (beautiful) Life Plus, a web-portal service which enables consumers to access their energy and gas consumption/rate plan. The two companies plan to continue to work together to develop and provide valuable services for customers.[2]

[1] https://www.softbank.jp/en/

[2] http://www.kyuden.co.jp/press_h190312b-1.html

[Japan] Japan’s Agency for Natural Resources and Energy Released a Revised Strategic Roadmap for Hydrogen and Fuel Cells

On March 12, 2019, the Agency for Natural Resources and Energy under Japan’s Ministry of Economy, Trade, and Industry (METI) released a revised version of the Strategic Roadmap for Hydrogen and Fuel Cells. The revised strategic roadmap sets new specifications and cost breakdowns for basic hydrogen and fuel cell technologies, and provides goals and measures to promote the utilization of hydrogen resources and optimize hydrogen supply chains. The strategic road map aims to reduce the costs of hydrogen technologies considerably, accelerate the research and development of hydrogen and fuel cell technologies, explore potential markets for hydrogen electricity, and facilitate cooperation with other countries. The Agency for Natural Resources and Energy will host an expert working group to review the current progress of the achievements and implementation in the areas depicted in the roadmap.

The Strategic Road Map for Hydrogen and Fuel Cells was first released in 2014 and revised in 2016. The Agency developed three policy documents after the release of the strategic road map. The Basic Hydrogen Strategy was published in December 2017, the Fifth Strategic Energy Plan was released in July 2018, and the Tokyo Statement was issued in October 2018. Based on the strategic road map and these related policy documents, the Japanese government will promote public education about hydrogen and fuel cell technologies, and will seek cooperation with experts, academia, and other countries like the U.S. and France, in order to advance research activities and develop a legal framework.

[Japan] Kansai Electric Power Company’s Venture Capital Arm Invested in Genome Editing Company EditForce

K4 Ventures, a corporate venture capital subsidiary of Kansai Electric Power Company, announced on March 1, 2019, that it has invested in EditForce, a genome editing company, by the issuance of new shares through third-party allocation. EditForce is a venture company with a unique DNA/RNA editing technology.[1] EditForce has been focusing on pentatricopeptide repeat (PPR) protein platform technology, designed for the editing of not only DNA but also RNA. PPR technology is expected to be used in a wide range of fields, including medicine, agriculture, and chemistry. The firm’s investors include the University of Tokyo Edge Capital, QB Capital, and KISCO (an advanced materials maker).

K4 Ventures is investing new technologies development and deployment in areas like energy storage, mobility, Artificial Intelligence (AI), Internet of Things (IOT), big data, and robotics, as part of the Kansai Electric Power Group’s mid-term business plan to explore new business opportunities.[2]

[1] https://www.editforce.jp/company_info_top/about/

[2] https://www.kepco.co.jp/corporate/pr/2019/0301_4j.html

[Japan] TEPCO Power Grid and Tokyo Electric Power Services Signed an Underground Substation Consulting Agreement with Dhaka Electric Supply Company

On February 21, 2019, TEPCO Power Grid and Tokyo Electric Power Services (TEPSCO) announced that they has signed an underground substation consulting agreement with Dhaka Electric Supply Company (DESCO), a leading electric distribution company based in Dhaka, Bangladesh. The project is funded by the Japan International Cooperation Agency (JICA), and TEPCO Power Grid along with TEPSCO will serve as consultants for DESCO. While TEPCO Power Grid has over 40 years of experience with the construction and operation of underground substations, this is its first overseas consulting agreement, with supervision of the bidding process and the construction. The project will be conducted from March 2019 to June 2025.

Given the high population density and increasing power consumption in Dhaka, the capital of Bangladesh, its government plans to construct the first underground substation to stabilize the power supply and meet the increasing demand, which will contribute to economic development. In the project, TEPCO Power Grid and TEPSCO will assist DESCO in the underground substation’s design, contractor management, safety assessment, and risk reduction. In the future, DESCO plans to build commercial facilities atop on the underground substation, and it has also decided to introduce a gas-insulated transformer, which is a unique Japanese technology that will make the facility non-flammable.

[Japan] Marubeni and LO3 Energy Launched a Blockchain Pilot Project in Japan

Marubeni Corporation and LO3 Energy, a New York-based blockchain technology vendor, announced on February 20, 2019, that they have launched a blockchain pilot project in Japan. The project aims to evaluate the effectiveness of the technology when applied to the power sector, as well as better improving Marubeni’s understanding of how to provide its customers with additional offerings using the blockchain technology. LO3 Energy, founded in 2012 in New York, has had extensive experience in developing blockchain-based peer-to-peer (P2P) energy trading platforms in the United States, Europe, and Australia. Marubeni is Japan’s fifth largest trading company, with a strong electrical and industrial plant business. The global rapid transition of the power sector towards decarbonization, decentralization, and digitalization is expected to accelerate P2P energy trading among DERs (Distributed Energy Resources), which are owned and operated by end-users. Marubeni has decided to partner with LO3 Energy in order to be at the forefront of the market change.

In the project, LO3 Energy will use blockchain to create a virtual electric marketplace, helping Marubeni to promote P2P energy trading among its self-owned power generators and its customers/end-users. It will test the virtual energy transaction network through LO3 Energy’s platform, by installing blockchain-enabled meters at energy sources and customers’/end-users’ sites and facilities.

[Japan] NEDO Initiated a Floating Offshore Wind Power Generation System Demonstration Test Aimed at Reducing Generation Costs

On December 20, 2018, the New Energy and Industrial Technology Development Organization (NEDO) announced that it will begin a demonstration test for a Floating Offshore Wind Power Generation System, aiming to reduce the generation cost to approximately 20 yen / kWh (approximately $185 / MWh[1]) or less in 2030. The project will adopt advanced components, such as a single buoy turret mooring system, which will reduce the weight of the system and the cost of power generation. Several partners will join the project, including Toyota Tsusho, a trading company under Toyota Group, Glocal, a management consulting firm, Teraoka, a shipbuilding company that recently started a solar power installation business, the University of Tokyo, Kyushu University, and the National Institute of Maritime, Port, and Aviation Technology.

For the feasibility study of the project, NEDO will conduct research on basic designs that are suitable for the selected demonstration site, marine area survey, and preliminary consultation. The results of the feasibility study will be reviewed by outside experts. If the system is determined to be feasible and viable, NEDO will then build the generation system and will conduct a demonstration test for more than one year in actual sea areas to verify the system’s performance and cost. The project period is from FY2018 to FY2022. NEDO has been developing component technologies to lower the cost of floating systems since FY2016.

[1] Exchange rate as of January 14th, 2019.

[Japan] Toshiba Energy Systems & Solutions Will Launch an Integrated Control Service Using Storage Batteries with IoT Technology

Toshiba Energy Systems & Solutions Corporation (Toshiba ESS) announced on December 17, 2018, that it will launch a service that uses optimal control storage batteries with IoT for Virtual Power Plant (VPP), starting from January 1, 2019. The service was commissioned by TEPCO Energy Partner, an electricity retailer company operating under the TEPCO (Tokyo Electric Power Company) brand throughout mainland Japan.

Toshiba ESS will install 15kWh storage batteries at 11 elementary schools in Yokohama City and will control them and monitor their efficiency in order to manage demand response for the electric grid, while making sure there is sufficient electricity left to respond to any emergency situations. The program will use Toshiba’s lithium-ion rechargeable battery which is designed for high safety and long battery life.

Toshiba ESS, Yokohama City, and TEPCO EP have worked together since 2016 on this project, including designing the control technology for the storage batteries and conducting the VPP demonstration test.

Toshiba ESS aims to become a Cyber Physical System (CPS) technology company in the energy industry and plans to develop various distributed energy resources for the supply and demand balancing market in Japan, which is expected to open in 2021.

[Japan] Kansai Electric Power and K-Opticom Initiated a Smart City Project to Visualize People Flow in Kobe city, Hyōgo Prefecture

On December 18, 2018, Kansai Electric Power and K-Opticom, a telecommunications company under Kansai Electric Power, announced that they launched a project for the Visualization of People Flow in Sannomiya area, Kobe city in Hyōgo Prefecture. The project will use data collected from infrared sensors to visualize and map the movement of people throughout the city in real time.

In this project, data on people’s movement will be collected and measured with IoT, using infrared sensors installed at approximately 150 places in the area. The project adopts K-Opticom’s LPWA wireless technology (LoRa system), which can cover a wide area with low power consumption. Two base stations for the LPWA system will be installed . Kobe University will then conduct a people flow analysis using the collected data.

This is the largest-scale people flow analysis project in Japan to date in terms of covered geographic areas. It will be implemented from December 18, 2018 to March 31, 2019. The collected data is expected to be used for improving the safety and security of the city, such as detecting lost children and people in bad physical condition.

[Japan] Kansai Electric Power, Eliiy Power, and Sansha Electric Manufacturing Company Will Test Frequency Control Technology Using Battery Storage for Virtual Power Plant Applications

Kansai Electric Power, Eliiy Power, and Sansha Electric Manufacturing Company announced on December 17, 2018 that they will launch a demonstration project to test frequency control technology using battery storage for Virtual Power Plant (VPP) Demonstration applications.

The project will test a remote control system (called K-LIBRA) that was jointly developed by Kansai Electric Power and NEC, which can remotely control batteries. The tests will measure the response time and control accuracy of the system, in order to evaluate the batteries’ response performance when used to manage short-term load fluctuations. Sansha Electric Manufacturing Company’s industrial storage battery and Eliiy Power’s household battery will be used for this project. The project will be carried out from January 7 - 31, 2019.

This demonstration project will be the first Japanese project to examine a technology solution capable of remote controlling approximately 10,000 units of batteries simultaneously in seconds.

The VPP project was funded by Japan’s Ministry of Economy, Trade and Industry (METI) Agency for Natural Resources and Energy’s FY2018 Demonstration Project on Virtual Power Plant (VPP) Utilizing Demand Side Energy Resources. Kansai Electric Power will submit the results of the demonstration project to the Agency for Natural Resources and Energy by the end of FY 2018.

[Japan] Kansai Electric Power Acquired 20% of the equity of the construction of St. Joseph Energy Center in the U.S.

Kansai Electric Power announced on December 11, 2018, that KPIC USA, its wholly owned subsidiary, reached an agreement with Ares EIF Management to acquire 20% of the equity capital of the second-phase construction of St. Joseph Energy Center (SJEC) in the U.S. The deal will be the fourth power investment by Kansai Electric Power in the U.S. market and its first investment in the regulated electricity market.

The SJEC, located in Indiana State, is a proposed gas-fired combined-cycle power plant with a total output of approximately 710MW. Once completed, it will supply electricity to the MISO market. It is expected that SJEC’s construction will start in 2020 and that the SJEC will initiate commercial operations in 2023.

By leveraging its technology and expertise developed in the Japanese market, Kansai Electric Power has been seeking to expand its business overseas, particularly in the North American electricity market.

[Japan] Tokyo Gas Initiated its First Private Natural Gas Distribution Business in Thailand

On December 7, 2018, Tokyo Gas announced that Tokyo Gas Asia, its wholly owned subsidiary, had initiated a natural gas distribution business in the WHA Eastern Seaboard Industrial Estate 2 in Thailand on December 1, 2018. It is the first time that Tokyo Gas has opened a private natural gas distribution business for industrial users in Thailand.

The Industrial Estate is a special economic zone that was established by the Thai government to facilitate investment and is located in Thailand’s Eastern Economic Corridor (EEC).

The business will be operated by the Gulf WHA MT Natural Gas Distribution Company, which has been invested in by the Gulf Energy Development Public Company, WHA Utilities and Power Public Company, and MITG, a joint venture between Tokyo Gas Asia and Mitsui & Co.

Tokyo Gas is seeking to expand its business in South East Asia and North America by leveraging its experience with natural gas distribution in Japan and its knowledge of the LNG value chain.

[Japan] TEPCO Power Grid Invested in a Vietnamese Power Distribution and Retail Company, Deep C Green Energy

On November 29, 2018, TEPCO Power Grid (TEPCO PG) announced that it and Infra Asia Investment (IAI), a Hong Kong company, reached an agreement for TEPCO to acquire 50% of the ordinary shares of Deep C Green Energy (DCGE HK). Deep C Green Energy is IAI’s subsidiary company, and operates power distribution and retail services in Hai Phong City, Vietnam. The two sides held a ceremony to confirm the agreement at the Embassy of Belgium in Tokyo, Japan.

It is the first time that TEPCO PG has invested in power distribution projects overseas, as the company is starting to expand its business globally, leveraging Japan’s cutting-edge technology and experience. IAI and TEPCO PG will work together to advance Deep C Green Energy’s business. TEPCO PG will be mainly responsible for facility construction and technical inspection, and IAI will be in charge of the facility’s operations and contract-related matters.

[Japan] Kyushu Electric Power and Mitsui Jointly Initiated a Virtual Power Plant Project

Kyushu Electric Power announced on November 26, 2018, that it and Mitsui will jointly launch a demonstration project to offer services that utilize a Virtual Power Plant (VPP) Platform to lower the electricity bill for residential PV system owners. The project will utilize battery storage, which will be controlled and aggregated by a Dynamic VPP platform based on software developed by Sunverge, a U.S. company. The system is planned to launch ahead of the expiration of Japan’s feed-in tariff (FiT) for renewable energy.

The system is expected to optimize solar power generation and lower electricity bills for customers. In addition, the project aims to develop Kyushu Electric Power’s technological understanding of VPP and battery storage to help the company design new businesses and services to balance electricity demand and supply, and to stabilize the power grid system. The project will be conducted for approximately one year, starting in spring 2019.

[Japan] Tokyo Electric Power Company Holdings Launched its First Commercial Offshore Wind Power Facility

On November 27, 2018, Tokyo Electric Power Company Holdings (TEPCO) announced that it will launch its first commercial offshore wind power facility on January 1, 2019. TEPCO has been conducting an offshore wind power facility demonstration project in the south of Choshi City, Chiba Prefecture. The facility is equipped with a bottom-fixed foundation turbine with a rated output of 2,400 kW. The demonstration project confirmed that the facility can be operated safely at a high capacity factor under harsh weather and marine conditions.

TEPCO aims to expand its renewable energy businesses in order to ensure a stable electricity supply. TEPCO’s ultimate goal is to increase its domestic output of offshore wind power to 2-3 GW. In order to achieve this goal, on November 1, 2018 TEPCO initiated a seabed survey off the coast of Choshi City to examine the feasibility of building an additional offshore wind farm in the area.

[Japan] Tokyo Electric Power Company and NTT Data Jointly Initiated a Grid Databank Limited Liability Partnership

On November 7, 2018, Tokyo Electric Power Company (TEPCO) and NTT DATA jointly announced that they had reached an agreement on a Grid Databank Limited Liability Partnership. The two firms agreed to invest a total of 300 million yen and co-establish a data laboratory in Tokyo, aiming to address social issues as well as producing value-added services by utilizing data. The partnership will test a wide variety of use cases and validate the effectiveness of solutions, integrating utility data with other types of data and analyzing them. For instance, a data set which combines smart meter data with mapping data can be used to calculate the shortest evacuation route for areas that are close to flooded rivers. Another possible use case is that businesses developing a retail store opening plan can use the real-time data collected by TEPCO as a reference.

In the project, TEPCO will provide grid-related data, while NTT DATA will conduct the data analysis. The project partners are expected to invite more participants, including end-users, start-up companies, and service providers. Currently, about 20 companies and local public organizations will join the use case examination.

[Japan] Toyota Tsusho and Chubu Electric Power Launch Vehicles-to-Grid Demonstration Tests in Toyota City, Aichi Prefecture

Chubu Electric Power and Toyota Tsusho jointly announced on November 7, 2018 that they will launch Vehicle-to-Grid (V2G) demonstration tests in Toyota City, Aichi Prefecture, from November 14 to 16 and December 12 to 14, respectively. The tests will validate the effectiveness of value-added services such as battery charging and discharging, examine how the V2G system will balance the supply and demand of electricity, and study the impacts of V2G on power grids.

Renewable energy sources such as solar and wind energy have been increasingly deployed worldwide, but challenges remain in managing the fluctuation of renewable energy output and surplus power generation. In order to utilize the excess energy, Toyota and the U.S.-based Nuvve Corporation have collaborated to design the V2G system. The design aims to control the power supply and demand, storing surplus power in Electric Vehicles (EVs)/Plug-in-Hybrids (PHVs) and later discharging it back to the power grid. Chubu Electric Power and Toyota plan to submit a report with the project’s results to a Japanese regulator, the Agency for Natural Resources and Energy, by February 2019.

[Japan] Chubu Electric Power Invested in SPARX Group’s Mirai Renewable Energy Fund to Promote Renewable Energy Resources

Following up from a joint statement from SPARX Group and Toyota Motor on September 19, 2018, SPARX Group announced on November 9 that its subsidiary SPARX Asset Management has started operating the Mirai Renewable Energy Fund. The newly-established fund aims to make investments that will accelerate the deployment of renewable energy sources in Japan. The fund has a current capital total of 23.6 billion yen, and is expected to increase to 30 billion yen. Investors in the fund include Toyota, Chubu Electric Power, Sumitomo Mitsui Banking Corporation, and Mizuho Bank.

The United Nations’ Intergovernmental Panel on Climate Change (IPCC) has emphasized the need to meet a carbon dioxide (CO2) emissions reduction target of 40 percent below 2010 levels, as well as reaching ‘net zero’ by 2050 in order to tackle global rising temperatures.[1] The Japanese Government, with its commitment to IPCC, has set its goals under the Fifth Energy Basic Plan, aiming to promote renewable energy sources nation-wide. Chubu Electric Power decided to invest in the Mirai Renewable energy Fund to develop renewable energy and reduce its produced CO2 emissions through the entire value chain, from power generation to electricity sales. Chubu Electric Power has been promoting Environmental, Social and Governance (ESG) activities under the Chubu Electric Power Group.[2]

[1] https://www.ipcc.ch/pdf/session48/pr_181008_P48_spm_en.pdf

[2] http://www.chuden.co.jp/corporate/publicity/pub_release/press/3269336_21432.html

[Japan] Kansai Electric Power Started a R&D Project on a System that Determines the Price of Surplus Electricity and Allows Direct Electricity Transactions, Using Blockchain Technologies

On October 15, 2018, Kansai Electric Power announced a joint research and demonstration project with the University of Tokyo, Nihon Unisys, and Mitsubishi UFJ Bank to develop a new system for surplus electricity trading that will be able to determine the price of surplus electricity generated by photovoltaic power. The system allows “prosumers”[1] and consumers to trade surplus electricity directly without the involvement of utility companies, using blockchain technologies.

With the widespread implementation of renewable energy, the current power supply system has been shifting from conventional large-scale generation assets to self-sustained distributed generation assets. In the future, it is possible that consumers and power producers will be able to trade electricity directly through a platform. The joint research project was developed based on the expectation that blockchain technologies will be adopted in direct electricity transactions in the future.

The system will be installed at the Kansai Electric Power’s Tatsumi Research Center for demonstration purposes. The surplus electricity generated at the prosumers’ households will be traded with consumers based on the electricity price, which was calculated based on two parties’ desired prices using various methods. The electricity is then traded using blockchain technologies and distributed to consumers. In this project, Nihon Unisys will develop the system, Kansai Electric Power will test the system, and the University of Tokyo will evaluate the research. Mitsubishi UFJ Bank will give advice on applying blockchain technologies to transactions.[2]

[1] “Prosumers” is the term that combines the term electricity producers and consumers, and it refers to consumers who consumes the electricity generated by himself/herself and sells surpluses power to others.