Energy Solutions

1 Upgrade Dam Integrated Management (3) Th e system provides integrated security System for Hyuga Region of management at the dam control room by acquir- Kyushu Electric Power Co., Inc. ing industrial television (ITV) video from the dams, information on site access, and security Th e integrated management system for dams in information. the Hyuga region is intended to provide safe and reliable management of dam operation by per- 2 Commencement of Operation at forming integrated remote monitoring and con- Western-side of Trunk Transmission trol from the Hyuga Civil Engineering Depot of Integrated Stability Control System the 10 dams under its supervision (eight on the of Chubu Electric Power Co., Inc. Mimikawa river system and two on the Gokase river system). Th ose on the Mimikawa river sys- As part of an upgrade of the existing grid stabili- tem form an important series of dams that play zation system at Chubu Electric Power Co., Inc., an important role in the system. Hitachi has developed an integrated stability Th e system was upgraded due to the aging of control (ISC) system for grid stabilization on its hardware. Th e main features are as follows. the trunk transmission system that incorporates (1) Collect dam information and use the status a transient stability control (TSC) system and of the dam and other equipment as a basis for a system stabilizing controller (SSC) for fre- remote monitoring from the dam control room quency stabilization. Th e system commenced and integrated remote control of gates. operation in May 2017. (2) Added capability to carry out training inde- Th e system consists of the ISC processing pendently on the Mimikawa and Gokase river equipment (ISC-P), ISC control equipment systems. Th is provides the ability to perform (ISC-C), ISC sensing equipment (ISC-S) as simulation testing of events to improve the fault detection and measurement units, and ISC skills of operations staff . A training evaluation transfer trip equipment (ISC-T). It was devel- function has been added that also contributes oped through a major project in which multiple to raising the skills of operations staff by iden- vendors participated. Hitachi’s responsibilities tifying problems with the actions of training included the TSC and SSC functions, develop- participants. ing the ISC-P units (for system A) that perform control processing at the core of the system.

1 Integrated dam control room 2 ISC-P (system A)

6 Power & Energy Energy Solutions 7 ciency. exibility use of through guration). Backup Automatic Load Dispatching Automatic Load Dispatching Backup Incorporated Company, Power System for The Okinawa Electric The Okinawa System for backup e main and load dispatching sys- e ability to maintain uninterrupted opera- as follows. are e main features It is anticipated that the system will enhance Th Distributed regional monitoring and control system for for system and control monitoring regional Distributed Inc. Co, Electric Power Tohoku 4 3 operations and boost effi operations operation functions and a more advanced advanced operation functions and a more connected to the support network. supplied and commissioned a backup automatic and control of grid and distribution substations. of gridand control and distribution substations. and substations. augmentation and enhancements to automatic and enhancements augmentation gle center of operations that handles everything level of visibility and fl load dispatching system to provide backup dispatching systemload for to provide from generator output control to the monitoring to the generator output control from for switching control of individual power plants of individual power for switching control information in real time to thin client time to thin information in real terminals human machine interfacehuman machine (HMI). involves having a second site, Hitachi has now Hitachi involves having a second site, tems are equipped with management functions tems are the system during disasters or other emergencies. to the backup when switching over systemtion (1) Th (2) Th (4) A grid monitoringhigh a station provides multi-confi (28-screen (5) Lower achieved by operator workloads workloads achieved by a function for providing a function for providing achieved by workloads Incorporated had, since 1983, maintained a sin- since 1983, Incorporated had, 55-inch liquid crystal screens display (LCD) As part of a business continuity plan (BCP) that The Okinawa Electric Power Company, Company, The Okinawa Electric Power - Hitachi Review Vol. 67, No. 3 266–267 67, No. Vol. Review Hitachi ciency e system is equipped and lower operator operator and lower guration and functions are guration changed. guration cantly design that slimmed-down and Control System for Tohoku Tohoku and Control System for Distributed Regional Monitoring Inc. Co., Electric Power e system confi e newly developed trunk ISC system as follows. are e main features as follows. of the system are e main features Th Th Th 3 or other incident. of hardware developed in-house that provides developed in-house that provides of hardware operations that were previously required when previously required that were operations optimal mix of equipment to control based on optimal mix of equipment to control designed for regional integration with the con- designed for regional cacy. A letter of appreciation was also received was also received letter of appreciation A cacy. development and completion. developed ISC-P to and implemented in the service areas, providing operational continuity providing service areas, service area of the Fukushima branch of Tohoku Tohoku branch of service of the Fukushima area state of the grid that simultaneously oscillate and virtualization. received a Technical Development Award from from Development Award Technical a received respond to events triggered by changes in the to events triggered by respond more than one power plant by selecting the selecting the plant by than one power more from Chubu Electric Power to mark system to mark Chubu Electricfrom Power high reliability and long-term maintainability. high reliability and long-term maintainability. integrates TSC and SSC. integrates through the use of high-performance serversthrough systems of adjacent branches for the wide trol backup mutual in the event of a disasterthrough the grid confi the Institute of Electricalthe Institute of Japan Engineers tion of the local grid in the service of the area the energy associated with generator accelera- tion and deceleration. (2) Th (3) Rapid sharing of online grid information (1) Reduction in lifecycle the use costs through (IEEJ) in recognition of its innovation and effi of its innovation in recognition (IEEJ) (3) For the SSC function, operational effi the SSC function, (3) For (1) Signifi was a technique TSC function, the (2) For with maintenance staff was enhanced by automating the switching the switching automating was enhanced by with functions for the monitoring and opera- Hitachi has supplied a control system for the has supplied a control Hitachi Fukushima branch. Fukushima Electric Power Co., Inc. Th Inc. Co., Electric Power Also reduced space and power consumption consumption space and power Also reduced 4 Backup automatic load dispatching system for The Okinawa Electric Power Company, Incorporated

through the joint handing over and matching of operational data. (3) A reduction in the amount of hardware by using virtual servers and thin client terminals. (4) A function for switching online and offl ine functions between sites by changing the operation mode. Th e system is expected to further enhance operational reliability and effi ciency. 5 200-MVA Rotary Condenser for Shin Shinano Substation of TEPCO Power RC stator Grid, Incorporated Completion of Stator Winding Replacement 5 Hoisting of RC stator for Shin Shinano Substation of TEPCO Power Grid, Incorporated

The 200-MVA rotary condenser (RC) (a synchronous phase modifi er) at the Shin measures that included working through holi- Shinano Substation of TEPCO Power Grid, days, the shutdown that would typically have Incorporated is used to prevent disturbances lasted for 185 days was reduced to 130 days and such as voltage instability or higher-order har- the replacement work completed on schedule. monic resonance so that the frequency converter (FC) can maintain reliable operation even when 6 Retroﬁ tting of Digital Transmission the short circuit capacity of the grid is low. 26 Line Protection Relay for Ultra- years after fi rst commencing operation in 1991, high-voltage Substation an upgrade of the RC was undertaken to restore its performance after deterioration was observed As transmission line protection relays are in the dielectric strength of the stator winding. important equipment with a core role in the Because the amount of power able to be fed distribution of electric power, any time spent through the FC is limited when the RC is out of out of service during the upgrading of aging service, it was essential to keep the downtime to equipment needs to be kept as short as pos- an absolute minimum. Taking account of safety sible. By adopting a retrofi tting technique*, and practicality considerations, and adopting Hitachi has replaced existing equipment with

8 Power & Energy Energy Solutions 9 M&A Financing Financial Asset holding Asset institutions ding of degraded components in ding of degraded components and Research Research development Operational maintenance Retail Retail Growth sectors Growth expansion Energy and Facility ServiceEnergy for Companies technology Data analyzing Data 7 A technique for the partial upgra aging equipment, including units. like digital relay components core aging equipment, duction equipment in factories, retail expansion, expansion, retail duction equipment in factories, equipment. series units. relay of digital research and development, and acquisitions) are and acquisitions) are and development, research use of housings and cables from existing and cablesuse of housings existing from national standards. munication systems, through the adoption of a the adoption of through munication systems, failure to invest in the utilities that support to invest failure the top priority for investment by companies, the top priority companies, by for investment these sectors only leads to their progressive transmission systemtransmission with inter- that complies (1) High reliability retained by using the latest the latest using by reliability(1) High retained including com- in total cost, (2) A reduction (3) Shorter installation times through customer While growth pro- sectors (such as upgrading * equipment production production Upgrades to to Upgrades IoT Generation Air conditioning OT IT Hitachi Review Vol. 67, No. 3 268–269 67, No. Vol. Review Hitachi cations. Hitachi Operating technology Engineering Procurement Construction Function delivery service with OBF model service delivery Function Substation Upgrade planning People Goods Capital Data analysis Data Planning Operational maintenance Optimization support Optimization Humans IoT platform IoT Utilities and heat (power supplies, etc.) as follows. are features e main Th OT: operational technology IT: information technology IT: information technology operational OT: Digital transmission line protection relay for ultra-high- for relay line protection transmission Digital substation voltage Energy and facilities service based on OBF service model on OBF service based service and facilities Energy 6 7 multi-function digital transmission line protec- digital transmission multi-function tion relays that feature the latest specifi tion relays that feature aging. In the case of substation and other elec- 8 Support Service for Optimal Electric trical equipment, it has been estimated that the Power Generation and Electricity amount of aging equipment that has been in Trading by Local Utilities Operators service for 25 years or more in Japan is in the range of one trillion yen*. In Germany, the proportion of electric power In response to this problem for society, from renewable energy resources is rising sig- Hitachi off ers an on-bill-fi nancing (OBF) ser- nifi cantly. At the same time, utilities have an vice model in which it acts as a one-stop shop obligation to coordinate energy supply and on the customer’s behalf covering the entire demand balancing through electric wholesale lifecycle from planning of optimization work markets, in which the utilities can trade power (including upgrades) to engineering, procure- up to 30 minutes before physical delivery. A ment, construction, asset ownership, and opera- feature of these electricity markets is the large tional maintenance. fl uctuations in trading prices that follow the Th e main features are as follows. fl uctuating supply of renewable energy. (1) No need for planning of up-front investment, Hitachi has launched Hitachi Energy and with long term service agreements (LTSAs) fea- Trading Optimization (HETO), a service for sible for running costs. these volatile electricity markets that supports (2) Use of an Internet of Th ings (IoT) platform the optimization of generation and electricity to provide optimal operation and maintenance trading. Th e service utilizes Hitachi’s digital of facilities. technologies to make good use of power gen- (3) Use of an energy management system erating fl exibility, which creates tradable excess (EMS) for optimal energy use. electric power, to make possible power trading By providing these functions, Hitachi intends deals at premium prices. Th e service provides to support the growth of its corporate customers both optimization of power plant operation and by allowing them to operate with fewer assets trading at the same time. and by providing more effi cient energy and Demonstration of the service is progress- facilities operation. ing with Entega AG, a city-owned company

* As of December 2017 (based on research by Hitachi) (Stadtwerke) that supplies infrastructure services in Darmstadt in the state of Hessen.

Service flow of HETO Customer benefits of HETO Market Wholesale power markets information Increase overall revenue • Day-ahead market (DAHA/IQA) • Intraday market (CT) ... • Increase revenue from market trading Scope of HETO functions Recommendations for Customer Trading execution Trading recommendations day-ahead and intraday market (DAHA, IQA, CT) trading Trading Transaction results division Transaction results Futures market (calendar day) HETO support (planned) On Operational planning execution Trading result based on • Increase revenue through Operations operation plan Cloud optimal plant operation Operational results division Improve operational efficiency Asset information and during times of highly profitable operational results market trading in equipment operation Assets Increased profits from VPPs that include wind and photovoltaic (planned) Increased profits by optimizing CHP/district Industrial Gas turbine Wind power Photovoltaic cost of electricity purchases for heating electricity demand industrial demand

DAHA: day-ahead hourly auction IQA: intraday quarter-hour auction CT: intraday continuous trading CHP: combined heat and power VPP: virtual power plant 8 Support service for optimal electric power generation and electricity trading

10 Power & Energy Energy Solutions 11 in *2 show that ese Discharge Discharge during peak demand demand during peak during peak Reduction in Reduction charging (“shift”) charging indicates the mean actual involved e basic operation Discharging Charging October 2016 to January 2016 to 2017 (mean) October the graph on the line in e solid red Figure 9.1 Figure 6AM 9AM 12AM 3PM 6PM 9PM 0AM a further VPP program, was a e second demonstrated that trial ese two programs Increased charging Increased 3AM A smart community demonstration project Th Th ows to the grid. Th grid. ows to the (charging shifted to this time) to shifted (charging [Charging] [Discharging] operation. development of the DR program described described development program of the DR during times of peak demand such as the early Th evening. conventionally. In contrast, the bars in the graph the In contrast, conventionally. performed while charging and discharging were except during charging took place overnight, supply and demand by aggregating large batter- supply aggregating and demand by above, in which the VPP to balance operated the in which above, a vehicle-to-grid (V2G) capability installed in a large amount of photovol- at night or when right of power consumption when the EVs are charged are consumption when the EVs power using power conditioning systemsusing power with (PCSs) ies with the capability power reverse to provide to perform during charging homes with EVs times when excess supply is available, such as supplytimes when excess available, is and to discharge is being generated, taic power the adjustment capacity DR and by provided that indicate charging or discharging show how Th was running. VPP program the 6 demand hours (from peak system’s the power during discharging occurred whereas to 9 PM), those peak hours. fl Charging (manually activated) Charging VPPs can for grid be utilizedVPPs as a resource Greater Manchester in the UK involved working in the UK involved working Manchester Greater 0AM 4 3 2 1 0

September 2016 (mean) September −10 −20 −30 −40 −50

Charge (kW) Charge Discharge (kW) Discharge

*2 Hitachi Review Vol. 67, No. 3 270–271 67, No. Vol. Review Hitachi ). , planning, planning, , *1 Figure 9.1 Figure January 2015 (80 EVs) (right) and discharging charging manage to ) and use of VPPs that involved fast- rst was a DR program Virtual Power Plants Virtual Power Off-peak On-peak Priority peak Off-peak Off-peak On-peak Priority peak Off-peak Profile of EV charging without charging management without charging of EV charging Profile e fi e 0 0

DR program (left DR program Hitachi has engaged in the trial operation Th

Profile of EV charging after charging management introduced management charging after of EV charging Profile 50 40 30 20 10

50 40 30 20 10

9 Charging percentage (%) percentage Charging renewable adoption of energygrowing e (%) percentage Charging demonstrated that using DR in a e program 9.1 of VPPs for use in gridcombine operation that VPPs of distributed energy as part pro- sources of two energy in such a way that they can be sources and utilized the same way controlled in much sources such as electric vehicles (EVs), batter- such as electric vehiclessources (EVs), sources such as photovoltaic or wind power or wind power such as photovoltaic sources and control so as to combine these distributed so as and control plant. power as a conventional a power systema power (see left of grams in Hawaii in the USA. grids. Hitachi is working on virtual plant Hitachi is working power grids. each EV can cutting peak demand in succeed in each EV emergency load shedding during grid overloads acting direct load control (DLC) of key house- (DLC) control load acting direct load adjust- and the preparing of schedules for ies, or heat pumps to perform demand response to perform or heat pumps response demand ies, is posing a variety of challenges for electricity technology (ICT) for aggregation ments based on supply and demand planning. ments based on supply planning. and demand hold loads such as EVs and water heating for hold loads such as EVs (DR), using information and communication using information (DR), (VPP) that utilize solutions distributed energy way that takes account of the usage settings for way that takes account of the usage Th Th No. UC1 UC2 UC3 UC4 UC5 UC6 UC7 Counter- Existing Existing Distribution Transmission Spot market Electricity retailer Electricity retailer party aggregator aggregator Network Operator System Operator Demand reduction Demand Spot market in Load shifting by Demand reduction Absorption of Tariff-based peak Title when spare grid balancing by HP demand balancing demand by HP control excess power shift or cut capacity is low control capacity increase

Balancing Balancing Transmission Spot market Electricity Electricity service market service market Distribution system operator (emulation) retailer retailer network operator (emulation) (emulation) (emulation) Electricity Existing Existing Instruction retailer aggregator aggregator (emulation) to reduce Negawatts Negawatts Tariff (ToU) Transac- demand Negawatts Posiwatt tion absorption Negawatts model Electricity aggregator Electricity aggregator Electricity aggregator Electricity aggregator Electricity aggregator Electricity aggregator Electricity aggregator Sub-aggregator Sub-aggregator Sub-aggregator Sub-aggregator Sub-aggregator Sub-aggregator Sub-aggregator

HGW HGW HGW HGW HGW HGW HGW HGW HGW HGW HGW HGW HGW HGW

HP HP HP HP HP HP HP HP HP HP HP HP HP HP

UC: use case HP: heat pump HGW: home gateway ToU: time of use * Market transactions UC4 to UC7 are virtual transactions made by an emulator 9.2 Service use cases

with project partners to use a VPP made up of by adopting IT. Th is included using electric stored energy sources located at customer prem- power and temperature as well as data from door, ises to conduct service trials of VPPs for provid- motion-detection, and other special-purpose ing services in a liberalized electricity market. sensors to determine the situation in the home; One of these trials was a VPP program that the use of automated voice telephony to perform aggregated the load adjustment capabilities of checks; and functions for chatting with care 550 heat pumps installed in customer homes managers and collating care records. and traded the combined load adjustment capa- Th ese two programs demonstrated the viabil- bility on the electricity trading market or with ity of providing services using VPPs to electric- electricity industry participants such as electricity utilities in a liberalized electricity market. ity retailers and grid operators. By incorporating Th e electricity business is undergoing a staged functions to protect users and maintain con- liberalization as it approaches the third stage venience by automatically cutting out the DR of Japan’s electricity market reforms due to be program if there is a divergence of more than introduced around 2020. Developments in 2017 2°C from the temperature set by the user or if included the launch of a negawatt market, grid the user operates the system manually, the trial operators beginning to take bids for adjustment found that more than 83% of users were able capacity, and encouragement for the introduction to use electric power without having to think of VPPs that included the Ministry of Economy, about DR. Seven diff erent use cases are avail- Trade and Industry off ering funding for demon- able for utilizing the adjustment capabilities (see stration projects involving VPP implementation. Figure 9.2). Th e trial achieved the initial target With the competition unleashed by liberaliza- for the amount of negawatts made available tion having also led to rising demand for cus- and confi rmed that DR satisfi es the regulations tomer acquisition solutions, Hitachi intends to when trading with aggregators. draw on operational know-how and the results A second trial involved a telecare service in of trials in overseas countries where electricity the form of a data utilization program in which market liberalization is more advanced to take data acquired from the VPP business was uti- on the needs and challenges of the electricity lized for the purposes of diff erentiation, cus- business with VPP and data utilization solu- tomer acquisition, and revenue improvement. tions that are likely to be used by grid operators, Th e trial demonstrated that improvements in retailers, and aggregators.

the effi ciency of telecare service operations *1 Combining a group of distributed energy sources. and the benefi ts of data utilization services for *2 A demonstration project funded by the Ministry of Economy, Trade and Industry and the New Energy and Industrial enhancing business viability could be achieved Technology Development Organization (NEDO)