Aggregation business framework
Yasuhiro HAYASHI (WASEDA University)
- Dean, Advanced Collaborative Research Organization for Smart Society (ACROSS) - Director, Research Institute of Advanced Network Technology (RIANT) - Professor, Graduate School of Advanced Science and Engineering, Major in Electrical Engineering and Bioscience
June 9, 2017 Agenda
1. Background
2. Communication standard for aggregation
3. Aggregation business
4. Future prospects and efforts
2 Energy saving and renewable energy for low-carbon society
COP21-Paris Agreement Japan committed to reduce CO2 emissions by 26% compared to 2013. Expand into policy Ministry of Economy, Trade and Industry： Energy Innovation Strategy （April 2016）
Cabinet Office： Energy and environment innovation strategy NESTI2050 （April 2016） Plan to arrest global warming （May 2016）
Currently, Japan depends heavily on overseas fossil fuels （High geopolitical risk）
It is important to realize the energy mix centered on energy saving and renewable energy.
3 Electric Power System Reform & Markets 1. Keep stable supply Electric Power 2. Suppress electricity price System Reform 3. Expanding choices of customers and business opportunities ２０１５ ２０１６ ～２０２０
Establishment of the Organization for Cross- regional Coordination 1st of Transmission reform Operators (OCCTO)
2nd Period of Full retail transitional reform competition arrangement for Abolishment retail tariff of retail tariff
3d Legal unbundling of reform transmission / distribution sector Hour-Ahead Market Negawatt Market Real-time Market Spot Market (day ahead) Imbalance Adjustment Capacity Market adjustment Capacity Procurement etc. Markets 4 Big challenge of the electric power system is ongoing
Maintain demand- supply balance Large scale centralized Customer Voltage / Frequency power supply
Demand Supply
Unidirectional
Paradigm shift Smartness of Introduction of demand renewable energy Voltage / Renew Frequency Posi able watt Battery PV Nega Load watt Bidirectional Bidirectional Energy saving
DR・VPP Combine distributed resources, aim for coexistence of different purposes 5 DR for Negawatt and Renewable energy control Suppress Energy Energy resource When demand supplier （Demand＞Generation）
Demand Demand Demand suppression Time request Normal Generation
PV PV Time
Or Suppress Energy resource generation When （Demand＜Generation）
Aggregator Renewable PV PV energy Time suppression Consume the generation request
Demand Demand
Time Energy resource
Energy resource 6 Energy resources aggregation
Demand EV BESS FC Posiwatt
Properly aggregation of FC Negawatt & Posiwatt Demand creation BESS Demand＞Generation
HP BESS EV HP AC Light EV Generation＞Demand Other devices AC Light
Properly aggregation of Other devices Negawatt Demand creation & Suppress generation
PV Suppress generation BESS EV FC Generation 7 Industry creation through energy resource aggregation Transition to the distributed cooperative system that integrates and utilizes distributed energy resources (DER) such as renewable energy, highly efficient energy equipment, storage batteries, etc.
Energy Transmission Res. A and distribution
Time Energy Res. B Energy Res. C company Res. B Time Energy resource Energy Res. C Res. A Time aggregation Time Energy Incentive / price Energy and Markets related service Energy service Price Price
Load equipment Customer Resource aggregator / Retail company Energy storage retail company
Power supply
Along with a major reform of electric power and gas systems, it is expected to create new industries 8 Virtual Power Plant
The aggregator integrates and controls energy resources on customer side using IoT, making it function as if it were a single power station.
Control centralized power supply, adjust demand-supply balance Customer side energy resource Utility company Request demand-
supply control Parent aggregator Resource aggregator
1. Replacement of thermal power plant as adjustment power → CO2 reduction → Energy cost reduction → Improve energy self-sufficiency rate Resource aggregator
2. Expansion of introduction of renewable energy → CO2 reduction → Improve energy self-sufficiency rate 9 Agenda
1. Background
2. Communication standard for aggregation
3. Aggregation business
4. Future prospects and efforts
10 Time and quantity negotiation Control Operate faithfully according to Control right instantaneous control instructions
Instantaneous control Utility Operation target
Time and quantity Battery Request Res Energ Time negotiation Time Evergy Res Time and quantity Time and quantity request Generator request Time Energy Res Acceptance / Acceptance / availability Utility availability Air-con Aggregation of Operation target operation targets closely related to life
In order to use the resources linked with social activities, the negotiation type communication system should be needed. OpenADR is the communication standard suitable for time and quantity negotiation. 11 ERAB investigative commission and ERAB forum
Energy resource aggregation bussiness
ERAB investigative ERAB forum commission
Industry-academia Environmental International Vision collaboration arrangement communication sharing standard Negawatt Measuring guideline method Neutral Aggregator opinion Transmission requirements consolidation of Control Cyber information quantity Security evaluation 12 Communication standard for aggregation
With the negotiation type communication standard and progress of energy aggregation technology, the aggregation business works fine.
Transmission and distribution Retail company company Server-to-server OpenADR Server-to-server cooperation cooperation Aggregator Aggregator
Utilizing OpenADR
GW GW BEMS HEMS
BACnet ECHONET Lite e.t.c. VPP Spec.
13 Automated Demand Response project (METI) Waseda University EMS R&D Center Bi-directional standard communication
Tokyo Elec Negawatt Order Negawatt signal Negawatt signal management server management server Kansai Elec Negawatt Order
Chubu Elec Negawatt Order ADR Signal ADR Signal
ADR Signal Aggregator 22 Aggregators Aggregator Aggregator
ADR Signal ADR Signal TEPCO BSP program
Companies test site
Smart Cities Negawatt guild line Incentive DR Chubu Area Kansai Aria Kanto Aria Base-line projects Over 2000 customers DR project: Estimation of reduction potential
Estimated one hour ahead DR potential of private power generator and air conditioner. Area: Nationwide Sector: Industry (excluding railroad) and business sector
Result: Stable prospect throughout year Summer = 13,893 MW Fall = 11,590 MW Winter = 14,597 MW
16,000 14,59714,597 13,89313,893 14,000 ） 11,590 12,000 11,590 Air conditioner MW 10,000 7,176 8,454 （ (Business) (MW) 5,297 8,000 Air conditioner (Industry) 6,000 1,391
ポテンシャル量 1,571 1,320 594 Private generator
Potential 610 607 4,000 (Business)
2,000 4,733 4,112 4,215 Private generator (Industry) 0 Estimation result of Summer夏 13-17時 秋 9-11,13Fall -19時 冬 9Winter-11,17-19 時 negative watt potential. 13-17 9-11, 13-19 9-11, 17-19 15 PV suppression project (NEDO) Waseda University EMS R&D Center Bi-directional standard communication
Tokyo Elec Renewable energy order Renewable energy management server Kansai Elec Renewable energy order
Hokuriku Elec Renewable energy order
Large scale PV Aggregator PV Control PV Control signal signal PV Control signal Mid-size PV PV Control Unit PV Control Unit HEMS
Roof top PV
Waseda University Hokuriku Area Kansai Area Kanto Area EMS R&D Center Smart Houses Automated control under PV suppression (NEDO) If HEMS increases customer’s consumption, loss of power generation opportunity can be reduced PV Control PV Control event Unit PV Control Event sharing Generated amount HEMS
ECHONET Lite ECHONET Lite Consumption Smart meter / distribution panel Load
Even during PV control, if self consumption is increased, PV generation is permitted.
17 Agenda
1. Background
2. Communication standard for aggregation
3. Aggregation business
4. Future prospects and efforts
18 Business of energy resource aggregator
Retail company T&D company Generation company Power supply procurement Adjustment Capacity PV suppression avoidance Imbalance avoidance Procurement Power quality maintenance
Electricity（kW, kWh)
Provide collected Aggregate the resources as service Price resources on the customer Electricity （kW, kWh) Electricity （kW, kWh) side
- Price - Price - Service - Service Energy Industry resource Home aggregator
19 Types and Promotion of Negawatt Trading
Type１－１ Type１－２ Type２
Retailers reduce demand of customers of other Grid operator reduce companies to achieve the same amount at the same demand as adjustment time power
Generation Generation Generation
Supply contract Supply Negawatt Supply contract adjustment fee contract Retail Grid Retail X Aggre Retail A Retail Aggregator operator Negawatt gator contract Contract for Retail contract Supply Retail Retail contract adjustment Aggre Negawatt contract contract Negawatt gator contract contract capability Negawatt Customer Customer contract Customer
Realized Negawatt Market Adjustment Capacity It is required to provide various and attractive services under a free Begin full-scale from April this year competitive environment 20 Public offering result of adjustment capability
The transmission and distribution companies (10 companies) got the adjustment power by public offering in accordance with the guidelines of the Ministry of Economy, Trade and Industry.
The bidding using demand response (DR) was 122,000 kW for the total offering amount of 1327,000 kW for the five transmission and distribution companies. 958,000 kW (about 3,593 million yen) was awarded for four of them.
Aggregators that accumulated knowledge by DR demonstration projects made a total of ten successful bids(216,600 kW).
21 Types of adjustment capability
22 Result of public offering of adjustment capability Capacity: kW, JP Yen/kW
23 Agenda
1. Background
2. Communication standard for aggregation
3. Aggregation business
4. Future prospects and efforts
24 Movement toward expansion of ERAB opportunities Expanding transactions Conventional From in the negawatt trading market
now on Bid price (Yen/kWh)
Conventional negawatt trade Bid amount (kWh)
Retail company Retail company (Retail contract) (No retail contract)
Aggregator Power supply Consideration Negawatt Energy 送配電事業者T&D company saving Customers Expansion of bidding for public offering of adjustment power
Bid price Bid amount （Yen/kW)
Highest bid price kW 25 Expansion of negawatt resources (Market)
Aggregate negawatt resources up to the minimum trading unit and earn profit by market contribution.
⇒ Inexpensive aggregation of small amount of resources using IoT and communication standard.
Buying bid Selling bid (Generated)
Minimum trading unit of JEPX Selling bid (Negawatt)
■One day ahead market → Minimum＝1000kW (30min - 500kWh)
■One hour ahead market → Minimum ＝100kW (30min - 50kWh) Bid price (Yen/kWh)
Minimum suppression of demand per one Expan customer sion ＝ 1000W (30min - 500Wh) Bid amount (kWh)
26 Investigation and implementation items of FY 2017 at ERAB
Transmission and Building DRAS distribution company DRAS Plan to build DRAS experimentally at general transmission and distribution operators. OpenADR VPP experimental project - Acquisition of control technology equivalent to power supply I-b - Verify the effectiveness of device-specific implementation guidelines for OpenADR Parent aggregator Cyber security WG Consider the way of cyber security measures when the aggregator connects to the transmission and distribution business operator Control quantity evaluation WG Resource aggregator Resource aggregator Resource aggregator Consider measuring method and baseline setting method when controlling equivalent to power supply I - b ECHONET Lite WG Consider VPP compatible specifications of lighting, HEMS controller, etc.
27 FY2017 VPP experimental project
R&D of DR automation Aligned with the national energy policy server DRAS R&D contributing to DR automation Negawatt Utility control WASEDA University Utility Renewable EMS R&D Center Utility control Neutral / Load Standardization control fair Renewable Utilize research result control
Social implementation of VPP experimental project DR automation server
OpenADR T&D DRAS Resource aggregator Retail Parent aggregator Rapid control Verify the implementation guidelines Building DRAS that can withstand actual operation Measuring method and baseline Scalability improvement through automation Operation for power supply I’ and I-b Demand creation DR control Resource aggregator 28