[Japan] Tokyo Electric Power and Nippon Telegraph and Telephone Launched a Joint Demonstration Test for a Renewable Energy Direct Current Power System in Chiba City

On January 14, 2021, Tokyo Electric Power (TEPCO, Headquarters: Tokyo) announced that its partner company, NTT Anode Energy (Headquarters: Tokyo), has launched a demonstration test for a renewable energy direct current (DC) power system in Chiba City. NTT Anode Energy is a subsidiary of Nippon Telegraph and Telephone (NTT, Headquarters: Tokyo), a Japanese telecommunications company that offers smart energy solutions. The project will also collaborate with TN Cross (Headquarters: Tokyo), jointly owned by TEPCO and NTT, which provides smart energy management systems.

 

The demonstration test is part of their pilot project “Toward the Realization of a Smart Energy City for Chiba City” which was launched in April 2020. The project is studying the following items:

1)   Supporting the development of backup power systems at evacuation shelters,

2)   Promoting the use of renewable energies and improve disaster resilience by utilizing the DC power system,

3)   Maximizing the energy value through the effective use of Information and Communications Technology (ICT) in both normal times and emergencies.

The project aims to achieve the 2) goal above in order to support Chiba city’s transition to a smart city that promotes the introduction of renewable energies and enhance the disaster resilience. According to NTT Anode Energy, this is the first project of its kind to provide DC power from private companies and municipalities to off-site third parties’ facilities, using their own lines.

 

The test will install and use a 59 KW solar power generation system with 36 kWh storage batteries at an idle area of land owned by NTT East (Headquarters: Tokyo[1]). In the event of a power outage, Shirai Junior High School, one of Chiba city’s designated evacuation shelters, will be supplied with renewable energy generated by the installed equipment. The project will demonstrate and verify the operational procedure and the power quality of the power supply system for shelters during emergencies; the power supply system by solar power generation and energy storage battery for communications equipment in normal times; and the utilization of the power system with solar power generation with storage batteries during disasters.[2]

[1] https://www.ntt-east.co.jp/en/aboutus/profile.html

[2] https://www.tepco.co.jp/press/release/2021/1570026_8711.html

[Japan] Japanese energy minister says nuclear critical to hitting 2050 net zero goal

In an interview with the Financial Times published on February 1, 2021, Japan’s Minister for economy, trade, and industry Hiroshi Kajiyama said nuclear power will be crucial for meeting Japan’s energy goals and that the energy shortages this winter have helped to shift public debate over the nuclear sector.[1] In October 2020, Prime Minister Yoshihide Suga announced that Japan will aim to be net-zero emissions by 2050. Analysis by the Ministry of Economy, Trade and Industry (METI) has found that it will be hard to supply more than 60% of Japan’s electricity needs from renewables. The country’s lack of flat empty land for solar panels and its deep oceans that raise the cost of offshore wind “mean it is not as easy to introduce renewables as in Europe or North America,” said Kajiyama.

Prior to the 2011 Fukushima disaster, Japan's nuclear generating capacity provided around 30% of the country's electricity. However, most of Japan’s nuclear generation has laid dormant pending regulatory change and just 9 of the country’s 33 operable reactors have been restarted. Another 16 reactors have applied to restart and two reactors under construction are under review, but opinion polls show continuing opposition to the industry. Kajiyama, who has previously worked in the nuclear industry, said, "Personally, I think nuclear power will be indispensable." Kajiyama described Japan’s electricity supply as “touch-and-go” during heavy snowfall in January 2021, saying, “Solar wasn’t generating. Wind wasn’t generating.” The issue in a portion of customers experiencing high electricity bills due to tight energy supplies in the country and the subsequent soaring wholesale power market prices. “I’m trying to persuade everybody that in the end we need nuclear power,” he said.


[1] https://www.ft.com/content/47b189de-bb5e-409b-87b9-86405661fc03

[USA] National Academies report maps path to zero-carbon goal

On February 2, 2021, the National Academies of Sciences, Engineering and Medicine (NASEM), a private, nonprofit organization of researchers, released a report that provides a road map for achieving a carbon-free economy by 2050.[1] The report estimates that by decarbonizing, the U.S. economy could add 1-2 million jobs and Americans could be paying roughly the same share of income for energy as they do today due to declining costs for technology. The report notes that the road map is "technologically feasible… But it is on the edge of feasibility” and that the plan may not be as feasible politically.

Under the road map, direct federal budget support for clean energy would total $350 billion over 10 years. The report identified 5 technology goals: 1) get to 75% of energy from non-carbon emitting sources by 2030, 2) reduce energy use by new buildings by 50% by 2030, 3)50% of new vehicle sales to be zero-emission vehicles by 2030, 4) increase transmission capacity by about 40% by 2030, and 5) triple federal investment in research development, and demonstration (RD&D) of emerging technologies such as advanced nuclear reactors, carbon capture and sequestration, and hydrogen fuel. The report also proposes policy actions necessary to benefit affected communities, workers hit with job losses, and lower-income families. The report proposes a federal green bank which could provide funding for economic redevelopment. The report also recommends the adoption of a $40 per ton carbon tax, increasing by 5% annually, with rebates to protect lower income customers.


[1] https://www.nap.edu/resource/25932/interactive/index.html#tech-goals

[USA] Supreme Court to hear PennEast pipeline case on eminent domain

On February 3, 2021, the U.S. Supreme Court agreed to review a 2019 ruling from the 3rd U.S. Circuit Court of Appeals that prevented PennEast Pipeline Co. LLC from suing New Jersey to seize 42 parcels of state-owned land to build a 116-mile natural gas pipeline between Pennsylvania and New Jersey.[1] Under a provision in the U.S. Natural Gas Act (NGA), pipeline companies can use the federal government’s eminent domain power. After gaining approval for the pipeline from the Federal Energy Regulatory Commission (FERC) in 2018, PennEast sued to gain access to land that is either owned or partially controlled by New Jersey. The 3rd Circuit, which is based in Philadelphia, found that while the AGA lets companies use eminent domain, it does not allow them to sue states to enforce that power. The panel cited the 11th Amendment of the Constitution, which limits the situations in which private entities can sue states without their consent. In recent friend of the court briefs, PennEast and other industry groups claim that the 3rd Circuit decision overturned precedent and would be disruptive to the energy industry.[2] The Supreme court will hear arguments in April 2021, with a ruling likely by late June 2021.


[1] https://www.bloomberg.com/news/articles/2021-02-03/supreme-court-agrees-to-hear-appeal-from-penneast-pipeline

[2] https://www.eenews.net/stories/1062692321/

[USA] Colorado regulators approve Xcel’s $110 million transportation electrification plan

On January 11, 2021, the Colorado Public Utilities Commission (PUC) formally approved Xcel Energy’s $110 million “2021-2023 Transportation Electrification Plan,” which includes installing approximately 20,000 electric vehicle (EV) charging stations at residential, commercial, and public sites across Xcel's Colorado service territory.[1][2] Xcel’s plan, which was first filed in 2020, comes as a result of a bipartisan bill passed in 2019 that directed Colorado’s electric utilities to file applications to enable the deployment of EV charging stations and support EV adoption. Colorado has set a goal of having 940,000 EVs on the road by 2030 and Xcel has stated that their plan is designed to help the state achieve that goal. Xcel's plan includes an emphasis on ensuring EV adoption for all customers, with approximately 15% of the program budget directed toward equity-focused programs. The approved plan includes a $5 million pilot to provide rebates to income-qualified customers to support low-income adoption of EVs. Through this pilot, Xcel will offer upfront $5,500 rebates for new EV purchases and $3,000 for used EVs for qualifying customers. Xcel’s plan also includes adding programs and rates to help manage the new charging load. According to Utility Dive, Xcel's plan will add about 67 cents to monthly customer bills.

[1] https://www.dora.state.co.us/pls/efi/EFI_Search_UI.Show_Decision?p_session_id=&p_dec=28011

[2] https://www.nrdc.org/experts/miles-muller/colorado-approves-110m-transportation-electrification-plan

[USA] EIA: Wind and solar will make up 70% of new capacity in 2021

According to a U.S. Energy Information Administration (EIA) update on the latest inventory of electricity generators, wind and solar will represent more than two-thirds of new energy production to come online in 2021, while battery storage capacity is set to quadruple over the next year.[1] 39.7 GW of new electricity generating capacity is set to start commercial operation in 2021. 15.4 GW of that capacity will be solar photovoltaic (PV), making it the largest source of new capacity at 39%. More than half of new utility-scale solar PV capacity is planned for four states: Texas (28%), Nevada (9%), California (9%), and North Carolina (7%). 12.2 GW of wind capacity is scheduled to come online in 2021, putting it at 31% of new capacity with more than half of additions in Texas and Oklahoma. This is a decrease from 2020, which saw 21 GW of wind come online. 4.3 GW of battery power capacity additions are expected to come online in 2021 which will more than quadruple battery storage capacity. About 3% of the new capacity in 2021 will come from the new nuclear reactor at the Vogtle power plant in Georgia. Planned natural gas capacity additions are set at 6.6 GW, with more than 70% of these planned additions in Texas, Ohio, and Pennsylvania.

[1] https://www.eia.gov/todayinenergy/detail.php?id=46416

[USA] Gov. Cuomo announces largest procurement of offshore wind by a state

On January 13, 2020 during a multiday series of State of the State speeches, New York Governor Andrew Cuomo (D) announced the largest award of offshore wind contracts by a U.S. state as part of the state’s broader plan to scale up renewable power over the next decade.[1] New York selected Equinor and incoming strategic partner bp to develop two new offshore wind farms about 20 miles off the coast of Long Island.[2] Empire Wind 2 will provide 1,260 MW of renewable offshore wind power and another 1,230 MW of power will come from Beacon Wind 1. Equinor has not released expected commercial operations dates for these projects, yet. Combined with Equinor’s existing commitment to provide 816 MW of renewable power from Empire Wind 1—expected to come online in 2024—Equinor will provide 3.3 GW of offshore wind power to New York. According to Cuomo, the newly announced wind farms will bring $8.9 billion in investment and create more than 5,200 jobs. Cuomo also announce that New York will contract 23 solar farms and one hydroelectric facility in 2021, which will produce more than 2,200 MW of clean power.  When the large-scale renewable and offshore wind facilities are complete, more than half of the state’s electricity will come from renewable sources, putting the state ahead of schedule for reaching its goal of 70% renewable energy by 2030.

[1] https://www.nyserda.ny.gov/About/Newsroom/2021-Announcements/2021-01-13-Governor-Cuomo-Outlines-2021-Agenda-Reimagine-Rebuild-Renew

[2] https://www.equinor.com/en/news/202101-us-offshore-wind.html

[Japan] Kyushu Electric Power and SB Power Launched a Joint Demonstration Test for a Demand Response Smartphone Service for Residential Customers

Kyushu Electric Power (Kyuden, Headquarters: Fukuoka City, Fukuoka Prefecture) and SB Power, a retail electric provider which is a subsidiary of the SoftBank Group (Headquarters: Tokyo), announced on December 17, 2020, that they have launched a joint demonstration test for a Demand Response (DR) Smartphone Service for residential customers.

The demonstration test will operate in FY2020 through SB Power's DR service for residential customers. The service is an AI-based demand forecasting system which utilizes electric energy data that is obtained every 30 minutes from Kyushu Electric Power Transmission and Distribution (Headquarters: Fukuoka City, Fukuoka Prefecture). Kyuden customers who have registered to join the demonstration test will use an app called Beautiful Life Plus DR, which was designed by SB Power and customized by Kyuden. As an incentive for customers to save energy through the program, the participants will receive PayPay Bonus, an e-payment credit to be utilized for shopping. The platform was provided by PayPay, a mobile payment provider jointly owned by SoftBank and Yahoo Japan (Headquarters: Tokyo).

DR has recently become more critical in Kyushu Prefecture due to the increase in the use of solar power generation, and the new DR service therefore aims to help optimize the local supply and demand balance of electricity. Kyuden and SB Power hope that the service will assist Kyuden to reduce its supply costs, while also helping customers to save energy and costs.[1]

[1] http://www.kyuden.co.jp/press_h201217-1.html

[Japan] Federation of Electric Power Companies Established the 2050 Carbon Neutral Realization Promotion Committee

On December 18, 2020, the Federation of Electric Power Companies (FEPC, Headquarters: Tokyo[1])[2] announced that it has established the 2050 Carbon Neutral Realization Promotion Committee. FEPC is an industry organization of the electric utilities in Japan that supports the harmonization of electric development planning. The committee will consider and discuss solutions to overcome various barriers for electric power businesses to achieve Japan’s 2050 carbon neutrality goal, which was announced by the Suga administration in October 2020.

The Committee will discuss five significant issues for achieving carbon neutrality: 1) Maximizing the use of nuclear power; 2) Making renewable energy Japan’s main energy source; 3) Promoting the development of low-carbon thermal power generation and decarbonization technologies; 4) Innovating new technology development (technologies include hydrogen, ammonia, Carbon Capture Utilization and Storage (CCUS)), carbon recycling, and next-generation furnaces); and 5) Promoting electrification. Based on the discussions, the committee will create and publish a roadmap and action plan.

The major members of the committee include Hokkaido Electric Power (HEPCO, Headquarters: Sapporo City, Hokkaido Prefecture[3]), Tohoku Electric Power (Tohoku, Headquarters: Sendai City, Miyagi Prefecture), Tokyo Electric Power (TEPCO, Headquarters: Tokyo), Chubu Electric Power (Chuden, Headquarters: Nagoya City, Aichi Pref.), Hokuriku Electric Power (Rikuden, Headquarters: Toyama City, Toyama Pref.), Kansai Electric Power (KEPCO, Headquarters: Osaka City, Osaka Pref.), Chugoku Electric Power (‎EnerGia, Headquarters: Hiroshima City, Hiroshima Pref.), Shikoku Electric Power (Yonden, Headquarters: Takamatsu City, Kagawa Pref.), Kyushu Electric Power (Kyuden, Headquarters: Fukuoka City, Fukuoka Pref.), Okinawa Electric Power (OEPC, Headquarters: Urasoe City, Okinawa Pref.), Japan Nuclear Fuel (JNFL, Headquarters: Aomori Pref.[4]), Japan Atomic Power Company (JAPC, Headquarters: Tokyo), and J-Power (Headquarters: Tokyo).[5][6]

[1] https://www.fepc.or.jp/about_us/outline/soshiki/index.html

[2] https://www.fepc.or.jp/about_us/pr/oshirase/__icsFiles/afieldfile/2020/12/18/press_20201218.pdf

[3] http://www.hepco.co.jp/english/company/corporateprofile.html

[4] https://www.jnfl.co.jp/ja/company/about/

[5] https://www.fepc.or.jp/about_us/outline/soshiki/index.html

[6] https://www.fepc.or.jp/about_us/pr/oshirase/__icsFiles/afieldfile/2020/12/18/press_20201218.pdf

[Japan] Japanese Ministry of Economy, Trade and Industry Issued its Green Growth Strategy towards 2050 Carbon Neutrality Action Plan

On December 25, 2020, the Ministry of Economy, Trade and Industry of Japan (METI) unveiled the Green Growth Strategy towards 2050 Carbon Neutrality Action Plan, which describes actions to achieve a carbon neutral society by 2050, a goal that was declared by Prime Minister Suga in October 2020.

The Action Plan describes comprehensive policies to achieve a carbon neutral society by 2050, including timelines, budgets, taxes, regulation reforms and standardization, and international collaboration. It identifies the current challenges and future actions for the following fourteen policy priority areas:

1.   Offshore Wind Generation: Promoting the development of offshore wind generation;

2.   Ammonia: Increasing the use of ammonia to meet Japan’s power needs and reduce CO2 emissions;

3.   Hydrogen: Increasing the use of hydrogen to make it one of the major power sources;

4.   Nuclear: Advancing nuclear technology studies on Small Modular Reactor (SMR), High-Temperature Gas-Cooled Reactor, and Nuclear Fusion Energy;

5.   Electric Vehicles (EVs) and Battery Energy Storage: Ending the sales of all new gasoline-powered vehicles by 2030 and expanding the adoption of EVs and battery energy storage;

6.   Digital Transformation: Accelerating the digital transformation of the energy industry in order to improve operational efficiency and reduce CO2 emissions;

7.   Ship Energy: Improving ship energy efficiency by utilizing Liquefied Natural Gas (LNG) and exploring alternative fuels, such as hydrogen and ammonia;

8.   Smart Transportation and Green Logistics: Promoting the adoption of smart transportation technologies and green logistics;

9.   Smart Farming Technologies: Reducing agriculture emissions through the development of smart farming technologies;

10. Aircraft Efficiency: Reducing aviation's climate impact by adopting sustainable lower-carbon alternative fuels and efficient flight operations;

11. Carbon Recycling: Advancing carbon recycling technologies and facilitating international collaborations and partnerships;

12. Smart Home and the Internet of Things (IoT): Making use of IoT and Artificial Intelligence (AI), and accelerating the introduction of solar power to optimize the energy usage;

13. Recycling and Waste Management: Improving recycling technologies and utilizing biogas; and

14. Zero Energy Building/Housing and Shared Services: Promoting the adoption of net Zero Energy Buildings (ZEB) and net Zero Energy Houses (ZEH) as well as shared services in the public transportation sector.

In order to fulfill the goal of a carbon neutral society by 2050, METI aims to minimize the use of thermal power and to maximize the introduction of renewable energies, particularly offshore wind generation, battery energy storage and hydrogen energy. The Action Plan also prioritizes next-generation nuclear power technologies that are currently in the developmental stage while ensuring their safe usage. METI will collaborate with the related ministries and agencies to further discuss the action plan and its implementation.[1] [2]

[1] https://www.meti.go.jp/press/2020/12/20201225012/20201225012.html

[2] https://www.meti.go.jp/press/2020/12/20201225012/20201225012-1.pdf

[USA] U.S. federal government says SolarWinds hack hit fewer than 10 agencies

In a joint statement on January 5, 2021, the Federal Bureau of Investigation (FBI), the Cybersecurity and Infrastructure Security Agency (CISA), the Office of The Director of National Intelligence (ODNI), and the National Security Agency (NSA)—which make up the Cyber Unified Coordination Group (UCG) task force—said that the compromise of IT service provider SolarWinds in 2020 was part of an ongoing information gathering effort and was likely Russian in origin.[1] The massive breach started in March 2020 when hackers compromised IT management software from SolarWinds. The breach compromised an email system used by senior leadership at the Treasury Department and systems at several other federal agencies. According to the joint statement, of SolarWinds’ 18,000 customers, USG believes that “a much smaller number” were targeted following the initial hack. Additionally, USG said that fewer than ten agencies were targeted by the hack and the task force is now working to identify and notify nongovernment entities that may have also been affected.

The joint statement also outlined USG’s actions and the next steps of the investigation. The FBI will remain focused identifying victims, collecting evidence, analyzing the evidence to determine the group responsible, and sharing results with stakeholders. CISA will focus on sharing information quickly and has created a free tool for detecting unusual and potentially malicious activity related to the SolarWinds hack. ODNI is coordinating the intelligence community to ensure the UCG has the most up-to-date intelligence and is also providing information to key stakeholders. Finally, the NSA is supporting the UCG by providing intelligence, cybersecurity expertise, and actionable guidance to the UCG partners.

[1] https://www.cisa.gov/news/2021/01/05/joint-statement-federal-bureau-investigation-fbi-cybersecurity-and-infrastructure

[USA] Dominion and Duke release plan to dismantle cancelled Atlantic Coast Pipeline

In a filing dated December 16, 2020 but made public on January 5, 2020, developers of the now canceled Atlantic Coast Pipeline—Dominion Energy and Duke Energy—proposed a plan to the Federal Energy Regulatory Commission (FERC) for dismantling the project.[1] The Atlantic Coast Pipeline was an $8 billion natural gas project that would have crossed West Virginia, Virginia, and North Carolina, but was cancelled in July 2020 due to delays from legal proceedings. The plan outlines a two-year timeline for decommissioning parts of the pipeline that were nearly complete and restoring effected land. It also defines where the developers intend on clearing felled trees and where they plan to leave the area alone. The plan includes abandoning roughly 31 miles of pipe that has already been placed in the ground. The developers noted that an additional 83-mile stretch of terrain has been cleared but have no pipe laid. According to spokesperson Aaron Ruby, Dominion will not release easement agreements with landowners to use their property.[2] Land seized through eminent domain also remains in Dominion and Duke’s possession despite landowners fighting the eminent domain proceedings in court.

[1] https://atlanticcoastpipeline.com/resources/docs/public_acp%20disposition%20and%20restoration%20plan.pdf

[2]https://www.eenews.net/energywire/2021/01/06/stories/1063721877?utm_campaign=edition&utm_medium=email&utm_source=eenews%3Aenergywire

[Japan] Japan increases monitoring as electricity market prices reach record high

According to Reuters, after electricity prices reached 103.1 yen ($1)/kWh on January 6, 2020, Japanese energy regulators say they have increased scrutiny of the electricity market.[1] Electricity prices on the Japan Electric Power Exchange (JPEX) have surged since December 2020 and are now at the highest level since trading started in 2005. Colder-than-normal winter weather has increased demand for heating. At the same time, many power producers have had to lower run rates or suspend operations due to delayed imports of liquefied natural gas (LNG). According to Yoshiaki Kuroda, the director of market policy planning, the Electricity and Gas Market Surveillance Commission closely monitoring trading on JPEX. So far, the commission has not found any improper trades. The Organization for Cross-regional Coordination of Transmission Operators (OCCTO), Japan’s electricity grid coordinator, also stepped in to avoid power shortages in Tokyo and Osaka. OCCTO directed power suppliers to operate at full capacity and offer surplus supplies to the market.

[1] https://www.reuters.com/article/japan-electricity-idUSL1N2JH0YD

[Japan] Japan Gas Association Discussed Focus Areas for Japan’s Gas Industry to Transition to Carbon Neutral

On November 24, 2020, Michiaki Hirose, the Chairman of the Japan Gas Association (JGA, Headquarters: Tokyo), held a press conference to discuss the Japanese gas industry’s perspective on Prime Minister Suga's recent announcement to achieve a carbon neutral society by 2050. JGA is an industry association that promotes the development of city gas utilities in Japan.

JGA recognizes the importance of the goal to achieve a carbon neutral society and made a commitment to accelerate decarbonization efforts in the industry. It laid out the focus areas for the industry to meet the ambitious goal of transitioning to carbon neutral by 2050, while ensuring a stable energy supply. JGA’s priorities are:

1)   Promoting innovation in gas technologies: support innovation and the implementation of technologies such as hydrogen, methanation, biogas, and Carbon Capture Utilization and Storage (CCUS) that reduce CO2 emission and facilitate carbon recycling, while expand the use of carbon neutral Liquefied Natural Gas (LNG).

2)   Expand the use of natural gas and its applications: potential applications include the use of natural gas for balancing the grid to support the expansion of renewable energy and distributed energy systems, such as co-generation and fuel cells.

3)   Strengthen international cooperation: facilitate sharing of advanced gas-related technologies, including hydrogen, with the international community.

JGA expects that the future of the Japanese gas supply and infrastructure will change with as a result of technological advancement. JGA expects to see the development of infrastructure to support the production and transportation of methane gas produced from imported hydrogen. JGA also predicts that there will be increased use of methane produced through methanation in the urban and regional areas in Japan to ensure a secure carbon neutral energy supply. [1]

[1] https://www.gas.or.jp/newsrelease/20201124.pdf

[Japan] J-Power and Genex Power Signed a Development Funding Agreement to Develop a New Wind Power Project in Australia

Tokyo-based Japanese power producer J-Power announced on November 27, 2020 that it has signed a Development Funding Agreement with Genex Power, a renewable energy development company in Sydney, Australia, to develop a 150MW capacity wind project, “Kidston State-3 Wind (KS3)”, in the state of Queensland in north-eastern Australia. The construction of the wind power plant is expected to begin in 2022 and it is expected to commence commercial operations in 2024.

Genex Power currently operates a 50MW solar firm, Kidston Stage 1 (KS1), and is working on four other renewable energy projects with a total additional capacity of 720MW in Australia. [1] [2]

J-Power and Genex Power will develop the Kidston wind power project by leveraging J-Power’s technical expertise in wind power operation in Japan and overseas, and Genex Power’s experience in the development of renewable energy in Australia. This project is J-Power’s first renewable energy project in Australia. J-Power will continue to work on its overseas expansion for power generation businesses, including renewable energy.[3] [4]

 

List of J-Power’s Renewable IPP Project (Overseas)

[Japan] JERA Has Begun a Demonstration Test for a Battery Energy Storage System Data Platform

On November 25, 2020, JERA announced that it has begun a demonstration test for a Battery Energy Storage System Data Platform (BESS Platform). JERA is a major Japanese energy company that was established through a joint venture between Tokyo Electric Power Fuel & Power (Headquarters: Tokyo) and Chubu Electric Power (Headquarters: Nagoya City, Aichi Prefecture).

The BESS Platform is a membership-based platform that provides users services by utilizing the operational data collected from the battery storage installed on the user's premises. It was built on JERA’s Internet of Things (IoT) platform.

A survey conducted by JERA reported that the main reason that users install battery storage is to securely back up their electricity supply during a disaster. Therefore, the batteries have surplus capacity in normal times. JERA aims to develop services to enable optimal energy use, such as the visualization of power consumption and peak-loading shifts. The demonstration test will verify the performance of the BESS platform, including the automatic collection of battery storage operational data, and JERA evaluate the services based on the data collected. The demonstration test started in November 2020 and will run until the end of March 2021.

JERA aims to become the leading company to offer innovative clean energy solutions. The BESS Platform demonstration project is JERA’s latest effort to contribute to achieving a carbon-free society.[1] [2]

[1] https://www.jera.co.jp/information/20201125_553

[2] https://www.jera.co.jp/english/information/20201125_553

[Japan] TRENDE, the University of Tokyo, and the Frontier Research Center of Toyota Motor Corp. Completed a Demonstration Test for a Next-Generation Peer-to-Peer Electricity Trading System

On November 13, 2020, TRENDE (Headquarters: Tokyo), a subsidiary of TEPCO Ventures; the University of Tokyo; and the Frontier Research Center of Toyota Motor Corp. (Toyota, Headquarters: Aichi Prefecture), which develops robotics and technologies for medical care and energy, announced that they had completed a demonstration project for a peer-to-peer (P2P) electricity trading system.

The system uses blockchain technologies to enable P2P electricity transactions between customers who are using distributed energy resources (DER), including solar generation systems, battery storage, and plug-in hybrid (PHV). The transaction is conducted based on consumers’ electricity consumption and generation forecasts created through Artificial Intelligence (AI).

The demonstration test was conducted from June 17, 2019 to August 31, 2020 at Toyota’s Higashifuji Technical Center in Susono City, Shizuoka Prefecture, and in the surrounding areas. The test examined the performance of the P2P electricity trading system and its impact on lowering electricity bills for commercial and residential customers. The demonstration test verified that the system enabled homes and businesses to trade electricity from DERs and contributed to reducing electricity bills by approximately 9% among residential participants.

TRENDE, the University of Tokyo, and Toyota plan to provide the system to households and EV users. They expect that it will contribute to reducing electricity bills and CO2 emissions, as well as enhancing disaster resiliency. The team is also considering collaborating with various companies and universities for overseas expansion.[1][2]

[1] https://www.tepcoventures.co.jp/news/news-367/

[2] https://trende.jp/news/press/20201113/

[Japan] Keidanren Released the “New Growth Strategy”

Keidanren, also known as Japan Business Federation, released a “New Growth Strategy” on November 17, 2020 describing its action targets for 2030 in several areas. Keidanren is an economic organization that represents 1,444 domestic companies, 109 nationwide industrial associations, and 47 of Japan’s regional economic organizations (as of April 1, 2020).[1]

The New Growth Strategy focuses on sustainable capitalism, and urges Japanese companies to address various environmental, societal, and economic challenges that have worsened due to the COVID-19 pandemic. The Strategy lays out vision and action targets for 2030 in each of the five following areas: (1) achieving new growth through digital transformation (DX), which aligns with one of the priorities of the newly established Suga administration; (2) reforming the traditional time-based work management to allow various work styles; (3) regional revitalization; (4) rebuilding the international economic order, and 5) achieving green growth.

As part of the mission to achieve green growth, the Strategy has addressed the importance for Japan to take the following measures in order to become carbon-neutral by 2050, which is the goal established in Prime Minister Suga's recent policy speech:

1)   Accelerating innovation towards a carbon-free society: promoting innovations such as battery storage, hydrogen, and carbon capture utilization and storage (CCUS); supporting innovation through public-private partnerships (PPP); and addressing challenges through the Challenge Zero[2] project;

2)   Prioritizing support for the development of renewable energy: developing policy measures, infrastructure and supply chain to accelerate the installation of renewable energy that is expected to be cost competitive and can be installed at a large scale, such as rooftop solar power and large-scale offshore wind power;

3)   Utilizing nuclear power that can achieve both decarbonization and economic efficiency: facilitate the restart of existing nuclear power plants and the development of advanced nuclear reactors while improving safety and building public acceptance;

4)   Accelerating electrification: promote the electrification of homes, office buildings, and cars; encourage investment in Japan’s energy sector by facilitating the creation of large-scale power demand such as data centers; and

5)   Formation of the Green Growth National Alliance: lead the formation of a Green Growth National Alliance and introduce a wide range of green technologies while promoting sustainable financing.

Keidanren noted that Japan faces various energy challenges, particularly since the Fukushima accident in 2011. The investment required to comply with new safety measures for nuclear power plants has made it difficult for utilities to invest in new energy technologies in the last decade. Keidanrenemphasized the importance of creating a mechanism to promote investment in green innovation in order to meet Japan’s carbon-neutral goals.[3] [4]

[1] https://www.keidanren.or.jp/profile/pro001.html

[2] In June 2020, Keidanren launched the Challenge Zero Project in order to accelerate the transition towards a low-carbon society. Under the Challenge Zero Project, the member companies and groups have set their own goals to tackle a total of 305 innovation challenges.

[3] https://www.keidanren.or.jp/speech/kaiken/2020/1109.html

[4] https://www.keidanren.or.jp/policy/2020/108.html

[Japan] Toshiba Energy Systems & Solutions and Next Kraftwerke Agreed to Launch Joint Venture, Next Kraftwerke Toshiba

On November 4, 2020, Toshiba Energy Systems & Solutions Corporation (Toshiba ESS, Headquarters: Tokyo), a subsidiary of Toshiba, announced that it has signed an agreement with Next Kraftwerke GmbH (Headquarters: Cologne, Germany), a German operator of large-scale virtual power plants (VPP), to establish a joint venture called Next Kraftwerke Toshiba.

The joint venture aims to provide services using VPP technology for renewable energy power generation companies and aggregators. Their services will help firms to balance their electricity supply and demand, and to optimize their trading operations for improved profitability. Toshiba ESS and Next Kraftwerke will leverage their experience on power supply and demand forecasting, distributed energy resources (DER) management, and energy trading. Toshiba ESS will own 51% of the shares of the joint venture and Next Kraftwerke will own the remaining 49%. The joint venture is expected to begin operations by the end of November 2020.

The joint venture was launched ahead of Japan’s plans to apply new mechanisms to promote the implementation of renewable energy and DER. Japan is set to launch a control reserve market in April 2021 in order to efficiently utilize DER, including renewable energy and battery storage. Furthermore, Japan will make a shift from feed-in tariffs (FIT) to feed-in premiums (FIP) to make renewable energy the main generation source by April 2022. This change will require utilities to be responsible for balancing their supply and demand based on accurate power generation forecasts while mitigating market risks under fluctuating market prices. Since October 2019, Toshiba ESS and Next Kraftwerke have jointly studied the potential for VPP technology to address these challenges.

The joint venture will primarily focus on the Japanese market but will also consider overseas expansion by leveraging Toshiba ESS and Next Kraftwerke’s global operations and networks.[1] [2]


[1] https://www.toshiba-energy.com/info/info2020_1104.htm

[2] https://www.toshiba-energy.com/en/info/info2020_1104.htm

[USA] DOE releases its first energy storage strategy

On December 21, 2020, the Department of Energy (DOE) released the Energy Storage Grand Challenge Roadmap, the DOE’s first comprehensive energy storage strategy.[1] Announced in January 2020 by Secretary of Energy Dan Brouillette, the Energy Storage Grand Challenge (ESGC) seeks to increase domestic production of energy storage and create American leadership in storage. DOE also released two companion ESGC reports, the 2020 Grid Energy Storage Technology Cost and Performance Assessment and the Energy Storage Market Report 2020, to provide easily accessible data and information to energy stakeholders.

DOE’s roadmap includes a goal to develop and domestically manufacture energy storage technologies that can meet all U.S. market demands by 2030. To achieve this, DOE has a suite of initiative including promoting continued research, boosting the manufacturing and supply chain for batteries, providing relevant energy storage data, and enhancing workforce development programs. The DOE aims to achieve a $0.05/kWh levelized cost of storage for long-duration stationary applications, which include utility-scale battery storage facilities that can store energy for 10 hours or more, by 2030. The reduction would be a 90% reduction in costs and would help facilitate “commercial viability” for storage across a wide range of uses. The DOE also aims to lower the costs of battery packs for EVs with a driving range of 300 miles to $80/kWh by 2030, which is 44% lower than current battery packs. If achieved, the DOE projects that electric cars would be competitive with standard gasoline cars.

[1] https://www.energy.gov/articles/department-energy-releases-energy-storage-grand-challenge-roadmap