Tokyo Electric Power, NEC Corporation, Global Engineering and 17 other companies launched a Virtual Power Plant (VPP) Project on June 6, 2018. The project aims to build a VPP to aggregate energy resources. In FY 2018, the group will improve and demonstrate the systems used by Aggregation Coordinators[1] to accommodate changes in electricity energy supply and demand and will examine different approaches to stabilize the distribution system.

Japan has been promoting the introduction of renewable energy as part of its measures to reduce greenhouse gas emissions. However, due to the rapid introduction of renewable energy sources such as photovoltaic power generation, various problems that affect power systems are emerging, such as output fluctuations and excess power generation. TEPCO and its partner companies will work on building a VPP to adjust and distribute energy resources at the megawatt level in order to introduce renewable energy while stabilizing the power system.[2]

This project is being conducted as part of the Ministry of Economy, Trade and Industry (METI)’s FY2018 Demonstration Project on Virtual Power Plant (VPP) Utilizing Demand Side Energy Resources, an initiative that will invest 4 billion yen to fund various VPP demonstration projects over FY 2018. The initiative will focus on implementing control technologies in VPPs with over 50 MW capacity by 2020, as part of METI’s goals to increase renewable energy usage.[3]

[1] Aggregation Coordinators are organizations that aggregate energy resources, which are controlled by resource aggregators through VPP service contracts, and directly trade with transmission/distribution service providers and electricity retailers.

[2] http://www.tepco.co.jp/press/release/2018/1495474_8707.html

[3] Virtual Power Plants - Support From the Government (PDF)