[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.

[Japan] The Ministry of Economy, Trade and Industry Initiated a Working Group on Electricity Resilience

The Ministry of Economy, Trade and Industry (METI) announced that it will initiate a Working Group on Electricity Resilience on October 9, 2018. The working group was jointly established by the Electricity and Gas Basic Policy Subcommittee under the Electricity and Gas Industry Committee of the Advisory Committee for Natural Resources, and the Electric Power Safety Subcommittee under the Industrial Safety and Consumer Product Safety Committee of the Industrial Structure Council.

The 2018 Hokkaido Eastern Iburi Earthquake caused a large-scale power outage in the Hokkaido region. The local residents, the utility company, and the government worked together to reduce their energy usage in response to the situation. On September 18, the operation of Tomato-Atsuma Coal-Fired Power Plant Unit 1 resumed, which stabilized the electricity supply and demand. 

METI established a third-party committee under the Organization for Cross-regional Coordination of Transmission Operators, Japan (OCCTO)[1] to identify the cause of the large-scale power outage and develop preventative measures for the future. An interim report is expected to be published by the end of October 2018. Meanwhile, the Ministerial Council on Emergency Inspection of Critical Infrastructure has decided to inspect the critical infrastructures across Japan, including electricity facilities, in November 2018 and will then develop measures to improve critical infrastructure resiliency. In order to accomplish these goals, METI has established a Working Group on Electricity Resilience to discuss challenges and possible measures to enhance the resiliency of Japan’s electricity infrastructure, and to establish a disaster-resilient electricity supply system.

[1] OCCTO is an organization that aims to promote the development of electricity transmission and distribution networks in Japan, which are necessary for cross-regional electricity use and the enhancement of the nationwide function of adjusting the supply-demand balance of electricity.

[Japan] The Ministry of Economy, Trade and Industry Launched a Study Group on the Ideal Approaches to New Electricity Platforms that Take Advantage of Next-Generation Technologies

On October 9, 2018, the Ministry of Economy, Trade and Industry (METI) announced that it would establish a Study Group on the Ideal Approaches to New Electricity Platforms that Take Advantage of Next-Generation Technologies. The working group will discuss the potential for next generation technologies to improve Japan’s electricity grid.

Japan’s electricity grid is facing challenges such as reduced earnings due to sluggish demand, the need to implement measures to modernize aging facilities, the need to improve the resiliency of electricity systems to prepare for large-scale disasters, and efforts to utilize renewable energy as a major power source. In order to deal with these challenges, METI aims to enhance the existing electricity grid in the “3E” areas (energy security, economic efficiency, and environment), while utilizing the existing system to its full potential.

In order to address 3E, the new electricity grid is expected to have 1) multiple inexpensive electricity supply sources, operated by new business models such as ERAB[1] and peer-to-peer (P2P) to advance economic efficiency; 2) IoT systems and data processing to improve energy security through the supply and demand management; and 3) new distributed resources such as EV and storage batteries that can achieve low carbonization and are more environmentally friendly than existing grid.

These investments require significant time and resources. Therefore, METI’s study group will discuss the risks and challenges with experts to identify necessary actions for the successful transition of the electricity grid.

[1] ERAB refers to a business framework in which businesses utilize virtual power plants and the demand response program in order to provide a variety of services, including electricity adjustments, maintaining supply-demand balances, electricity-rate cuts, avoidance of output controls and other measures to their electricity customers.

[Japan] Kansai Electric Power Initiated a Demonstration Test of a Low Power Wide Area Wireless Child Safety Service in Omachi City, Nagano Prefecture

On October 1, 2018, Kansai Electric Power announced a partnership with K-Opticom, Omachi City of Nagano Prefecture, and the Omachi City Board of Education to launch a demonstration test of a child safety service, which will use a Low Power Wide Area (LPWA) wireless network to monitor the location of children in Omachi city, Nagano prefecture. To reduce the costs of the service, the system is built on LPWA wireless technology with long-range (LoRa) communication technology, which enables long-range communication using low electricity consumption. The system will be installed at base stations serving other services to further reduce the costs.

The service will notify guardians when children enter or exit from the designated geographic area, in order to ensure the safety of children during their school commute. In order to protect the children’s privacy, the service will identify their location based on fixed areas, rather than his or her exact location. The test will evaluate the user experiences, particularly guardians’ experiences using the service by smartphone, and will identify technical issues.[1]

Kansai Electric Power hopes to strengthen its relationship with local communities through this new initiative.

[1] http://www.kepco.co.jp/corporate/pr/2018/1001_1j.html

[Japan] Shikoku Electric Power and SBI Insurance Will Start to Offer a Free Cancer Insurance Plan for New Customers, Joining the Residential Electricity Plan

On September 28, 2018, Shikoku Electric Power announced a partnership with SBI Insurance to offer the Shikoku Electric Power Cancer Insurance Plan. The plan will launch on October 22, 2018, and it will be offered through Denki Ins-Web[1], a website operated by SBI Insurance that assists customers with comparing the pricing of different electricity plans. The plan will be free for Shikoku Electric Power’s newly registered residential electricity customers in the Tokyo metropolitan area. Customers that join the insurance plan who are diagnosed with cancer will receive 50,000 JPY (approximately 450 USD). The insurance service is provided by SBI Insurance, and Shikoku Electric Power will cover the insurance premium.

Shikoku Electric Power’s service area covers Japan’s Shikoku region, which consists of four prefectures in the southern part of Japan, namely Ehime, Kagawa, Kōchi, and Tokushima. Since Japan has fully liberalized its electricity retail market, Shikoku Electric Power has been seeking to expand its business in the Tokyo metropolitan area by offering competitive services in new markets. SBI Insurance is focusing on providing products and services that meet diverse market needs in order to strengthen their sales channels other than direct sales. Shikoku Electric Power and SBI Insurance are working together to provide new services that combine their strengths in electricity retail service and insurance products to improve their service offerings.[2]

[1] https://denki.insweb.co.jp/

[2] http://www.yonden.co.jp/press/re1809/data/pr016.pdf

[Japan] TEPCO Innovation & Investments US Invested in Hawaii Renewable Energy Company Adon Group

On September 20, 2018, TEPCO Innovation & Investments US, Tokyo Electric Power Company’s wholly owned subsidiary in the U.S., announced that it has invested two million USD in Adon Group, a Hawaiian renewable energy company. Adon Group, which consists of Adon Construction, Adon Renewables, and Green Vision, specializes in the development, construction, operation, maintenance, and asset management of solar facilities, mainly for commercial and industrial (C&I) customers in Hawaii. Through its investment in Adon Group, TEPCO Innovation & Investments US aims to join the Hawaii C&I solar energy market and develop new business models, including microgrid and resource aggregation businesses.

Hawaii has set a goal to generate 100% of its electricity from renewable energy by 2045. The implementation of solar photovoltaic (PV) systems has been increasing in Hawaii due to their affordable price and support from federal and state government subsidies. However, as the solar generation capacity increases, it is facing issues such as supply-demand balancing and system-voltage control. Hawaii has been focusing on PV systems equipped with battery storage to address these challenges. Adon Group plans to expand its businesses by offering PV systems equipped with battery storage.

[Japan] CD Direct Energy Collaborated with Aruhi Marketing to Expand Services under “Aruhi New Living Pack”

On September 14, 2018, CD Energy Direct, a joint investment company of Chubu Electric Power and Osaka Gas, announced a collaboration with Aruhi Marketing, a subsidiary of Aruhi, Japan’s largest financial institution specializing in mortgage loans, as part of the “Aruhi New Living Pack”, a preferential service for homebuyers using an Aruhi mortgage when buying a new home.

To help customers reduce the time and cumbersome administrative process for all essential services on starting a new life in a new area, Aruhi Marketing will take care of all moving-related application procedures, covering services such as electricity and gas supply, water, internet connection, and moving services, on behalf of customers. The package also offers various discounts and benefits. In the Tokyo metropolitan area, the electricity and gas offered as part of the service will be provided by CD Energy Direct. Meanwhile, Chubu Electric Power will continue to expand its services in other regions.

[Japan] J-Power and Okayama University of Science Filed a Patent Application for Autonomous Camera-Equipped Drone for Monitoring Energy Infrastructure Facilities

On September 10, 2018, J-Power announced that it had jointly filed a patent application with the Okayama University of Science for an autonomous camera technology to monitor and inspect energy infrastructure facilities, using drones. A camera-equipped drone automatically plans a flight route and approaches transmission facilities, such as steel transmission towers and transmission lines, and takes photographs of the targeted objects. The technology combines flight control, avoidance control, and high-speed image processing, aiming to significantly improve the safety and the quality of inspection work, as well as reducing the risk of field workers at high elevations. In addition, the drone’s operational status, such as its location, altitude, and flight state, can be monitored through the wireless network. In cases when the drone detects a failure or problems at the facilities, it also records images along with the location. The technology is expected to be fully commercialized in FY 2019.

[Japan] Hokkaido Electric Power Company Restarted the Tomato-Atsuma Power Plant Unit 1 after Iburi Earthquake

Due to the Hokkaido Eastern Iburi earthquake that occurred on September 6, 2018, the Hokkaido Electric Power Company suffered damage at several of its power plants as well as its transmission and distribution infrastructure, causing a massive blackout in the region. On September 19, 2018, a regional power operator announced that it had restarted the Tomato-Atsuma thermal power plant Unit 1 after a trial operation was successfully performed to gradually increase the output. Prior to the restart of the power plant, the Hokkaido Electric Power Company had set power saving time from 8:30 am to 8:30 pm on weekdays by encouraging energy users to reduce their energy consumption as much as possible, targeting a 10% reduction in electricity demand. After restoring the Tomato-Atsuma power plant Unit 1, the company canceled the power saving time period and resumed its plans for energy saving for the winter season at normal levels. The company is working to bring two more Tomato-Atsuma power plant units back online soon.[1] 

Meanwhile, the earthquake caused significant damage to the transmission and distribution facilities that the utility owns and operates. As of September 16, 2018, the Hokkaido Electric Power Company has temporarily restored the No. 71 transmission tower on the Iwachishi line (66kv), and it has been working on repairs on the No. 107 transmission tower, which was destroyed by a landslide. The Hokkaido Electric Power Company expects to restore the No. 107 tower as well as the No. 52 transmission tower on the Karikachi line (275kW) by the middle of November. It also has considered changing to an alternative route for the transmission line, in order to avoid potential long-term landslide risks. There was also significant damage to distribution networks, with a total of 327 supporting facilities, 295 electric wires, and 428 transformers damaged. As of September 16, 2018, the blackout continued to affect 59 homes in Atsuma Town and Abira Town.[2]

[1] http://www.hepco.co.jp/pdf/18091901.pdf

[2] http://www.hepco.co.jp/pdf/18091601.pdf

[Japan] Chubu Electric Power’s “KatEne” Started a New Service for Customers with Smart Meters to Calculate the Electricity Usage of Individual Household Appliances

On September 2, 2018, Chubu Electric Power’s online service “KatEne” started a new function that calculates and visualizes the electricity usage of each household appliance in a home. Customers can check the electricity usage share of home appliances like air conditioners and electric water heaters without needing to install any additional measuring instruments.

The service is offered for free to customers who installed smart meters in their house. This service collects information such as electricity usage data obtained from smart meters, the current installation situation of household appliances, the outdoor temperature, and the local sunrise and sunset times. Using its own in-house methodologies, Chubu calculates the electricity usage rate of each household appliance and the approximate electricity charge, enabling customers to understand their energy consumption and energy savings.

The “KatEne” service, launched in 2015, is a household customer online service aiming at promoting energy consumption through visible energy-saving information. By the end of March 2019, Chubu also plans to implement add-on functions for customers that have installed solar panels, which will calculate those customers’ precise energy consumption and billing information, and will reflect the energy generation amount from their installed solar systems.

[Japan] NEDO Initiated a Database System Project to Improve the Operation of Wind Power Generation Facilities

The New Energy and Industrial Technology Development Organization (NEDO) announced on August 23, 2018, that it has initiated a project to develop a database system to improve the operation of wind power generation facilities and reduce their operations and maintenance (O&M) costs.

Wind power generation’s installation and O&M costs in Japan are higher than in other countries. Furthermore, wind turbines in Japan are required to operate under severe weather conditions like typhoons and lightning strikes. In order to increase the installation of wind generation units and enhance their long-term operational stability in harsh environments, it is imperative to increase the reliability of wind turbines as well as reduce additional O&M costs, such as through technological developments to advance generation efficiency and optimize maintenance. The project aims to realize a wind turbine operation rate of 97% or more, and also seeks to reduce the downtime of the wind turbines and their O&M costs.

In this project, NEDO will develop a database system that collects and stores windmill operation data, including operational failure and accident information. The system will also provide failure prediction by utilizing artificial intelligence (AI), analysis of past cases and information on early recovery from malfunctions and accidents.

[Japan] Kansai Electric Power Reported Current Status of Power Outages due to Damages from Typhoon Jebi and Quick Restoration Measures

Kansai Electric Power announced the current status of widespread power outages due to damage from the powerful Typhoon Jebi, which hit western Japan. As of September 6, 2018, nearly 2,184,000 customers had experienced power failures in the Kansai region of Japan, and 311,000 homes still remained without power. The most devastating blackout area was Osaka Prefecture, with a total of 1.026 million households affected, followed by Hyogo (App. 418,000) and Wakayama (App. 327,000)[1] prefectures.

As a result of the significant damage that the typhoon inflicted on Kansai Electric Power’s transmission and distribution infrastructure, the company will face a prolonged restoration effort. In order to support the efforts to restore power, the company announced on September 5, 2018, that it had requested 40 high-voltage generator cars and approximately 240 utility workers from neighboring power electric companies such as Chugoku Electric Power, Shikoku Electric Power, and Kyushu Electric Power, based on their cooperative assistance agreements regarding emergency disasters. High-voltage generator cars will be connected to distribution equipment to temporarily transmit electricity. However, the installation locations have not yet been determined.[2]

[1] http://www.kepco.co.jp/souhaiden/pr/2018/pdf/0904_32j_00.pdf

[2] http://www.kepco.co.jp/souhaiden/pr/2018/0905_1j.html

[Japan] Osaka Gas and Growing Energy Labs Agreed to Conduct a Joint VPP and Storage Batteries Demonstration Project

On August 7, 2018, Osaka Gas entered into an agreement with a San Francisco-based software start-up company, Growing Energy Labs (Geli), to launch a joint demonstration project to optimize the operation of storage batteries using a virtual power plant (VPP) software platform. The project will be implemented at “NEXT21”, an Osaka Gas experimental housing unit, and at Imazu Ground, another testing site, addressing the needs of residential customers and commercial users respectively. In order to evaluate new Internet of Energy* services using accumulator batteries, the project will adopt Geli’s VPP software platform and energy storage control technology, which is already in use in the U.S. and Australia.

Given the extensive deployment of renewable energy resources in Japan, particularly solar power, it is expected that the need for VPP platforms will increase in the future to address grid instability. In order to acquire key knowledge about VPP and storage battery control technologies, Osaka Gas invested in Geli in March this year, and has been preparing for this demonstration project. As part of the project, the co-optimization between PV self-consumption and the frequency response control will be tested at the NEXT21 site. The Imazu Ground site will be used to evaluate the co-optimization between the demand charge management and the frequency response control, based on the expected customer needs for commercial and industrial use.

* “Internet of Energy” refers to the implementation of Internet of Things (IoT) technologies into distributed energy systems to optimize the efficiency of energy infrastructure and demand-side management.