[Japan] Daigas Group Released its Carbon Neutral Vision to achieve the 2050 Carbon Neutrality Action Plan

On January 25, 2021, Daigas Group (Daigas, Headquarters: Osaka), Osaka Gas’s parent company, released its Carbon Neutral Vision (the Vision), as part of its contribution to the national goal of achieving carbon neutrality by 2050.

In the Vision, Daigas underscores the importance of the reduction of CO2 emissions, since technological innovation to achieve carbon neutrality will require significant time and tremendous social costs. The Vision lays out targets to achieve Daigas’ goals and action targets by 2030 as follows:

·       Increase its renewable energy deployment to reach a total of 5GW[1] (inside and outside Japan) by developing and owning their energy sources, as well as promoting procurement from others

·       Aim to increase Daigas’ renewable energy share to approximately 50% of the company’s domestic energy portfolio

·       Reduce annual CO2 emissions from 33 million tons to 10 million tons

Daigas has already contributed to a wide range of research and development activities on the latest technologies, including methanation and hydrogen production technologies. Based on the Vision, Daigas plans to 1) build a hydrogen energy network; 2) decarbonize the CO2 emissions of its gas business by utilizing methanation technology; and 3) reduce the CO2 emissions of its electric generation business by expanding the use of renewable energy. With its new Vision, Daigas will continue to accelerate research and development activities by promoting alliances with various industry-government-academia partner companies.[2]

[1] As of December 2020, the total amount of renewable energy sources that had already been developed was approximately 0.7 GW, including wind, solar, and biomass, both inside and outside Japan.

[2] https://www.osakagas.co.jp/company/press/pr2021/1291446_46443.html

[Japan] J-Power has Begun Hydrogen Production for a Japan-Australia Hydrogen Energy Supply Chain Pilot Project

J-Power, a Tokyo-based Japanese power producer, announced on February 1, 2021 that it has begun hydrogen production at a coal gasification and hydrogen refining facility located in Latrobe Valley, Victoria, Australia. The hydrogen production is part of its Japan-Australia Hydrogen Energy Supply Chain Pilot Project, which aims to develop and demonstrate technologies for hydrogen production, storage and distribution, and to facilitate the creation of a hydrogen supply chain in Japan.

The project is financially supported by the Victoria state government and the New Energy and Industrial Technology Development Organization (NEDO, Headquarters: Tokyo), a Japanese public R&D funding organization. The CO₂-free Hydrogen Energy Supply-chain Technology Research Association (HySTRA)[1] and the Australian Consortium[2] are also cooperating in the project. HySTRA is also separately carrying out a demonstration project led by NEDO for the establishment of a mass hydrogen marine transportation supply chain derived from unused brown coal (lignite).[3]

Victoria has abundant lignite resources. The coal has a high moisture content and is considered unsuitable for exporting and it is normally exclusively used by power plants adjacent to the mining sites. However, lignite can be converted into a syngas containing hydrogen. J-Power believes that the hydrogen from undeveloped lignite reserves in Australia has the potential to accommodate Japan's electricity demand. The project therefore aims to optimize the utilization of Australia’s lignite. J-Power is responsible for operating the demonstration facility for the coal gasification and hydrogen refining.

The hydrogen generated at the demonstration plant will be shipped from the port of Hastings in Victoria, Australia to the hydrogen discharging terminal on Kobe Airport Island. In the future, J-Power will collaborate and integrate with the CarbonNet project, a CO2 storage project being promoted by the Commonwealth of Australia and the Victoria state government, in order to manage the CO2 generated from the project. The by-product CO2 will be captured and stored underground. Through these projects, J-Power hopes to contribute to the formation of a hydrogen supply chain in Japan, as well as the realization of a decarbonized society. [4] [5]

[1] The CO₂-free Hydrogen Energy Supply-chain Technology Research Association (HySTRA) comprises J-Power; Iwatani (Headquarters: Osaka City, Osaka Prefecture), a trading company supplying gases for industrial and household use; Kawasaki Heavy Industries (KHI, Headquarters: Tokyo) , a heavy machinery manufacturer; Shell Japan (Headquarter: Tokyo); Marubeni (Headquarters: Tokyo), a Japanese major integrated trading and investment business conglomerate; ENEOS (Headquarters: Tokyo), a petroleum company; and Kawasaki Kisen Kaisha (Headquarters: Tokyo), a Japanese transportation company.

[2] The Australian consortium consists of J-Power, Iwatani (Headquarters: Osaka City, Osaka Prefecture), a trading company supplying gases for industrial and household use; Kawasaki Heavy Industries (KHI, Headquarters: Tokyo), a heavy machinery manufacturer; Marubeni (Headquarters: Tokyo), a Japanese major integrated trading and investment business conglomerate; Sumitomo (Headquarters: Tokyo), a Japanese major integrated trading and investment business conglomerate; and AGL Energy (Headquarters: Sydney, Australia), an Australian utility.

[3] http://www.hystra.or.jp/about/

[4] https://www.jpower.co.jp/news_release/2021/02/news210201.html

[5] https://www.jpower.co.jp/english/news_release/pdf/news210201e.pdf

[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

[Japan] Tohoku Electric Power Began Adopting Non-Firm Grid Connection Method to Adapt to Increase the Use of Renewable Energy

On January 13, 2021, Tohoku Electric Power (Tohoku, Headquarters: Sendai City, Miyagi Prefecture) announced it has adopted a non-firm grid connection method to give operators more flexibility to control the power output generated from renewable energy generation, in order to better deal with increased sources of renewable energy. The grid connection is a method of connecting and accessing new energy sources by utilizing the free available capacity of power transmission and transformation equipment, including transmission lines. The non-firm method also allows operators to curtail their output, along with their capacity status, even in normal times.[1] The Japanese government has directed all of its transmission and distribution operators to begin to adopt the non-firm method from January 13, 2021. As part of the government’s directive, Tohoku decided to adopt the method for its bulk-power systems with 500kV and 270kV, in order to optimize the management of the power generated by renewable resources.

The Subcommittee on the Introduction of Renewable Energy and Next-Generation Power Network[2], developed by the Agency for Natural Resources and Energy (ANRE) under Japan’s Ministry of Economy, Trade and Industry (METI), and the Wide-Area System Maintenance Committee[3] of the Organization for Cross-Regional Coordination of Transmission Operators, Japan (OCCTO, Headquarters: Tokyo), have studied the non-firm grid connections and have promoted the adoption of this method. Based on their findings, Tohoku has therefore decided to utilize the non-firm grid connection method. Tohoku will make an announcement once the method has been adapted to Tohoku’s systems.[4]

[1] https://nw.tohoku-epco.co.jp/news/normal/__icsFiles/afieldfile/2021/01/13/21011302.pdf

[2] https://www.meti.go.jp/shingikai/enecho/denryoku_gas/saisei_kano/index.html

[3] https://www.occto.or.jp/iinkai/kouikikeitouseibi/

[4] https://nw.tohoku-epco.co.jp/news/normal/1218240_2394.html

[Japan] Chugoku Electric Power Invested in Live Smart KK

Chugoku Electric Power (‎EnerGia, Headquarters: Hiroshima City, Hiroshima Pref.) announced on January 14, 2021 that it has invested in Live Smart KK (Live Smart, Headquarters: Tokyo), a venture company established in 2016 that provides smart home devices and service platforms based on Artificial Intelligence (AI) and Internet of Things (IoT) to support customers’ convenient and comfortable living. The investment amount has not been disclosed. This is the fifth time that EnerGia has invested in a start-up company.

A smart remote controller developed by Live Smart can control a wide variety of home appliances and equipment. Through EnerGia’s IoT platform, the controller can provide users with various AI-powered energy management services, such as setting individualized preferences for air conditioners.

Smartphones and smart speakers have become essential devices for many people, and the smart home market is expected to grow in the future. EnerGia sees this growth as an opportunity for Live Smart’s service platform, which can improve user’s lives and energy efficiency, to grow significantly in the future. Therefore, the company decided to invest in Live Smart and will consider future collaborations.[1]

[1] https://www.energia.co.jp/press/2021/12917.html

[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

[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

[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

[Japan] Kansai Electric Power and e5 Lab Agreed to Form a Partnership for the Joint Development and Promotion of Urban Water Mobility Project in the Kansai Bay Area

On October 30, 2020, Kansai Electric Power (KEPCO, Headquarters: Osaka Prefecture) and e5 Lab (Headquarters: Tokyo)[1], a Japanese electrically powered vessel developer, announced that they had agreed to form a partnership for the joint development and promotion of Urban Water Mobility Project, which would utilize electrically powered vessels to provide improved transportation options in the Kansai Bay area.

KEPCO and e5 Lab will develop and promote the electrification and automation of vessels to help resolve transportation challenges such as labor shortages and the need to achieve zero emission goals.

e5 Lab will contribute to the development of next generation electrically powered vessels that achieve both sustainability and comfort, and that can be used for multiple purposes, such as transportation and entertainment. KEPCO will be responsible for developing a two-way wireless charging and discharging system for electrically powered vessels. If successful, the partnership will be the first in Japan to install such systems on a vessel.

Electrically powered vessels offer several unique benefits, including reduced emissions, noise, and vibrations compared with traditional vessels. They also offer larger space, since the vessel does not need an engine room. In addition, KEPCO’s battery will provide efficient charging and will require less frequent maintenance. The batteries installed in the vessels can also be used to supply electricity in an emergency.

KEPCO and e5 Lab aim to contribute to the sustainable development of Japanese shipping industry through offering electrically powered vessels to governments and businesses in the future.[2][3]

 

*The video clip on KEPCO’s electrically powered vessels for Urban Water Mobility Project can be accessed from the following URL.

https://www.youtube.com/embed/SIkRpsqyBMA?enablejsapi=1&feature=oembed&wmode=opaque&vq=hd720

[1] https://e5ship.com/

[2] https://www.kepco.co.jp/corporate/pr/2020/1030_3j.html

[3] https://www.kepco.co.jp/corporate/pr/2020/pdf/1030_3j_01.pdf

[Japan] Kansai Electric Power Transmission & Distribution Launched a Pilot Project for a Parcel Delivery Locker Service in Kyoto, Japan

On October 19, 2020, Kansai Electric Power Transmission & Distribution (Headquarters: Osaka Prefecture) announced that it would launch a pilot project for a parcel delivery locker service in Seika Town, Kyoto. The pilot project was launched in partnership with Kansai Electric Power (KEPCO, Headquarters: Osaka Prefecture); Nihon Network Support (Headquarters: Osaka Prefecture), a KEPCO subsidiary that produces power generation equipment; Kyoto Prefecture; Seika Town; and Toyota Industries (Headquarters: Aichi Prefecture) as well as some major Japanese logistics companies.

The growth of e-commerce in Japan in recent years has led to an increase in parcel delivery volumes, and labor shortages in the logistics sector. The COVID-19 outbreak further accelerated these issues and increased the demand for contactless parcel delivery. KEPCO Transmission & Distribution partnered with other companies to address these challenges through a contactless parcel delivery locker service.  

KEPCO Transmission & Distribution installed parcel delivery lockers alongside its electric poles in residential areas in Seika town. Community members who missed a delivery at home can request for their parcels to be stored at the lockers to pick them up later. KEPCO Transmission & Distribution aims to use this system to lessen the burden on logistic operators by reducing the need for re-delivery and hopes that the service will contribute to sustainability though improving operational efficiency.

The parcel delivery locker services are managed and operated by KEPCO Transmission & Distribution. The lockers were provided and maintained by Toyota Industries. Nihon Network Support assisted in developing the equipment to install the lockers. The delivery services will be operated by Yamato Transport (Headquarters: Tokyo), Japan Post Service (Headquarters: Tokyo), and Seino Transportation (Headquarters: Gifu Prefecture[1]).

The pilot project is being conducted as part of the Ministry of Land, Infrastructure, Transport and Tourism’s “Smart Keihanna Project”, an initiative to promote smart city projects in the “Keihanna” region on the border between Kyoto, Osaka, and Nara Prefectures. The pilot project started on October 19, 2020 and will run until January 31, 2021.[2] [3]

[1] https://www.seino.co.jp/seino/company/overall-condition/

[2] https://www.kepco.co.jp/corporate/pr/2020/pdf/1019_1j_01.pdf

[3] https://www.kepco.co.jp/corporate/pr/2020/1019_1j.html

[Japan] Vena Energy breaks ground on 162-MW PV facility in northern Japan

On December 16, 2020, Vena Energy, a Singapore-based independent power producer (IPP), announced that it has broken ground on the Amateras Shiroishi Solar Project, a 162-MW solar photovoltaic (PV) facility in Japan's Miyagi prefecture.[1] The project will be one of the largest renewable energy projects in the region. According to the press release, Vena Energy acquired Amateras Solar GK, the developer of the Amateras Shiroishi Solar Project, from X-ELIO, a Spain-based global solar developer. The deal expanded Vena Energy’s construction portfolio to 17 projects totaling 604 MW across Japan. During the peak of its construction, the project is expected to create over 200 jobs. When if begins operations, the project if expected to produce up to 175,000 MWh of clean renewable energy per year which will power roughly 35,000 Japanese households. The project will also reduce up to 104,000 tonnes of greenhouse gas emissions and save up to 165 million litres of water every year compared to thermal energy generators.

[1] https://www.venaenergy.com/all_news/vena-energy-expands-renewable-energy-construction-portfolio-in-japan-with-landmark-162mw-solar-project-in-miyagi-prefecture/