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) nd Period of 2 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)