[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.

[USA] "Georgia Power Announces New Microgrid Project with Georgia Tech"

[Southern Company, 6 March 2019]

Georgia Power will build a new 1.4MW microgrid - the Tech Square Microgrid- at Georgia Tech in Atlanta, Georgia. The microgrid will begin operations this fall. It will serve as a research microgrid and be used to determine how well a microgrid can be integrated into and operate as part of the wider electrical grid. The microgrid will include fuel cells, battery storage, diesel generators, and a natural gas generator- but it will also be able to integrate and "accomodate microturbines, solar panels and electric vehicle chargers." Paul Bowers, Chairman, President, and CEO for Georgia Power, stated of the collaboration, " "Working with Georgia Tech gives us an opportunity to drive innovation by collaborating with one of the nation's leading research institutions while students and faculty get a firsthand learning experience on an operating power system."

[USA] "Clean and Green: Duke Energy Issues Second Green Bond"

[Duke Energy, 7 March 2019]

Duke Energy's subsidiary, Duke Energy Progress, has issued $600 million in green bonds; the money generated from these bonds will go towards green energy projects such as the development of new solar farms in North and South Carolina. The green bonds are priced at a 3.45% fixed-rate coupon and with a 10-year maturity. This is the second round of green bonds Duke Energy has issued; the first round amounted to $1 billlion of green bonds issued in November 2018 by Duke Energy Carolinas. Duke Energy's green initiatives have already reduced the company's by 31% from 2005 levels. Steve Yoing, Duke Energy's Executive Vice President and CFO, stated, "We are providing our customers and communities with ever-cleaner energy – and these investments help us get there even faster as we expand renewable energy across the Carolinas. We saw strong interest in our first green bond last year and are excited to expand these offerings for investors.”

[USA] “After Busy 2018, Duke Energy Plans to Deliver More Solar Power to Customers in 2019”

[Duke Energy, 29 January 2019]

Duke Energy is helping more of their customers access solar power in North and South Carolina through various programs, incentives, and new solar energy projects. For instance, the company offers a $62 million solar rebate program, which is valid for another three years, for residential, commercial, and nonprofit customers in North Carolina. In fact, the program was so popular that, for 2019, the rebate allotment for residential customers has already been met. In South Carolina, Duke Energy has its $50 million solar rebate program that began in 2015, though it will soon expire. Duke has also added over 500 MW of solar capacity to North and South Carolina in 2018 alone – and over the last four years, over 2500 MW of solar capacity has been connected. The company also offers solar leasing to commercial customers through a subsdiary, and a “Shared Solar program” that allows customers to access solar energy without having solar panels in their home/business. Additionally, Duke Energy is waiting for the approval of their new “Green Source Advantage Program” for industrial customers; this program allows customers to “negotiate directly with solar developers to add more renewable energy to the grid, with no cost to other customer classes.”

[USA] “FPL’s Four Newest Solar Power Plants Now Powering Customers, Adding More Than 1 Million Solar Panels to One of the Cleanest Systems in the Country”

[FPL, 31 January 2019]

Florida Power & Light Company (FPL) has begun operations for four new solar power plants located in St Lucie County, Miami-Dade Country, Volusia County, and Columbia County. Each plant has a capacity of 74.5 MW – a total of 300 MW of additional solar capacity for FPL amounting to a total of 1,250 MW of universal solar capacity. The new plants are expected to provide over $40 million in savings for FPL customers. Eric Silagy, President and CEO of FPL, acknowledged the company’s clean energy efforts saying, “These solar plants are the latest tangible evidence of our unparalleled commitment to investing in clean energy technologies for Florida affordably – a strategy that has already dramatically reduced emissions and produced billions of dollars in savings for Floridians.” These four new plants are part of FPL’s “’30-by-30’ plan to install more than 30 million additional solar panels across Florida by 2030’” – amounting to about 11,000 MW of installed capacity.

[USA] “In Civil Settlements with the United States and California, Fiat Chrysler to Settle Allegations of Cheating on Federal and State Vehicle Emissions Tests”

[EPA, 10 January 2019]

Fiat Chrysler Automobiles N.V., FCA US, and affiliates were accused of violating the Clean Air Act and California laws. But the company managed to reach a settlement with the Department of Justice, the EPA, and the State of California. The resulting settlement requires Fiat Chrysler to start a recall program that would repair over 100,000 non-compliant diesel vehicles sold or leased sin the US and would have to offer an extended warranty on these repaired cars. In addition, the automobile company needs to pay $305 million to settle the claims of manipulating emission tests and failing to disclose the illegal devices used to defeat the emission tests. Finally, the company will have to create a program to mitigate the excess pollution caused by the exploitation of emission tests by their vehicles. Fiat has also entered into a separate settlement with the state of California which requires the company to pay another $19 million for Fiat’s non-compliant vehicles in California. Separately, the company must pay $6 million to United States Customs and Border Protection to resolve accusations of the illegal importation of 1,700 non-compliant vehicles. It is important to note that these settlements do not “resolve any potential criminal liability.”

[USA] “U.S. Department of Energy Awards $25 Million for Next-Generation Marine Energy Research Projects”

[DOE, 8 January 2019]

The DOE has allotted $25 million in funding for 12 research projects categorized as “next-generation marine energy devices.” These chosen projects are meant to help reduce capital costs and stimulate innovation in the marine energy industry. Marine energy devices “includes ocean wave power, tidal and river/ocean current” devices that can be used to generate electricity. There are three separate subcategories under which these projects can fall under: early stage device design research, controls and power take off design integration and testing, dissemination of environmental data and analyses to facilitate the marine energy regulatory process. The Under Secretary of Energy, Mark Menezes, stated that “these early-stage research and development projects are key to the development of water power as part of DOE’s ‘all-of-the-above’ energy strategy.”

[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.

[USA] “Xcel Energy Aims for Zero-Carbon Electricity by 2050”

[Xcel Energy, 4 December 2018]

Xcel Energy has announced their intention to achieve a zero-carbon electricity mix by 2050. On the way towards this goal, Xcel will reduce CO2 emissions 80% by 2030 (from 2005 levels). Xcel’s vision is the most ambitious within the electricity industry so far. Xcel does note, however, that it’s 2050 goal requires the integration of technologies that are not cost-effective/commercially available today. For this reason, the utility is focused on the development of advanced technologies and encouraging policies that aid this technological growth. Ben Fowke – Chairman, President, and CEO of Xcel Energy – stated, “This is an extraordinary time to work in the energy industry, as we’re providing customers more low-cost clean energy than we could have imagined a decade ago. We’re accelerating our carbon reduction goals because we’re encouraged by advances in technology, motivated by customers who are asking for it and committed to working with partners to make it happen.”

[USA] “EEI President Tom Kuhn Congratulates Newly Confirmed FERC Commissioner Bernard McNamee”

[EEI, 6 December 2018]

The Senate has voted in favor of Bernard McNamee’s FERC Commissioner nomination 50 to 49.  McNamee will replace Robert Powelson, who was nominated by Trump to FERC in May of 2018. McNamee has faced controversy for his ties to the fossil fuel industry and what can be seen as aversion to the renewable industry and environmental sector in general. Tom Kuhn, President of the Edison Electric Institute (EEI), congratulated McNamee for his Senate confirmation saying, “EEI and America's electric companies thank Senate Majority Leader Mitch McConnell and the Senate for recognizing the importance of maintaining a full Commission and for voting to confirm Commissioner Bernard McNamee. There are many critical issues impacting EEI member companies and their customers. Among them, we need to update the transmission planning process, streamline the siting and permitting process, and develop predictability for the return on equity for transmission projects in order to attract investment, all while ensuring the reliability and security of the energy grid. We also need to modernize the Public Utility Regulatory Policies Act (PURPA) because market abuses are creating billions of dollars in unnecessary costs for customers.”