VPP/EV Aggregation Project in Japan
Yasuhiro SAKUMADeputy Director,
Advanced Energy Systems and Structure DivisionAgency for Natural Resources and EnergyMinistry of Economy, Trade and Industry,
Japan
Tokyo, 8 October 2019
0
2000
4000
6000
8000
10000
12000
55606570 1975 1980 1985 1990 1995 2000 2005 2010 2015 2017
新エネ等
石油等
LNG
水力
石炭
原子力
(TWh)
(FY)
3.1%
8.7%
39.8%
32.3%
7.9%
8.1%
1952
100
294
485
738
940
1056
1150Renewables (excl. hydro)
Oil
LNG
Hydro
Coal
Nuclear
Source: Energy White Paper 2019 in Japan 1
Power generation and Power supply composition
1,200
1,000
800
600
400
200
Based on “Outline of electric power development (METI)” and “Outline of power supply plan (METI)”
Based on “Comprehensive energy statistics (METI)”
Japan’s Responsibility for Energy Transition
2
Mission/ Background
Measures;
3”Es” + Safety
Energy trilemma Energy security Environment (Sustainability) Economic affordability (Cost)
Energy Efficiency Renewable energy Nuclear energy CCS + Fossil fuels Hydrogen
Renewable electricity introduction
3
(FY)
(GW)
9.5%10.4% 10.0%
10.9%
12.5%
14.3% 14.6%
16.0%
0%
5%
10%
15%
20%
25%
30%
0
10
20
30
40
50
60
70
80
90
100
2010 2011 2012 2013 2014 2015 2016 2017 ・・・ ・・・ 2030
Solar PV
Wind
Middle and small hydropower
Geothermal
Biomass
Renewable ratio (right axis)
2030Targets
22-24%
4
Expanding auction scheme for Solar PV, Wind and Biomass generation
Constructing better business environment for Offshore Wind
Reforming FIT scheme suitable for the characteristic of each power source
Enhancing conventional flexibility sources (Interconnection, Thermal Power, Pumped Storage…)
Exploring new flexibility sources (Demand Response, Electric Vehicle, Virtual Power Plant …)
Grid reinforcement based on cost-benefit considerations Maximum use of existing grid (“Connect and Manage”)
Highercost
Flexibilityneeds
Grid constraints
Future direction toward renewables as a main power source
Challenges Key measures
5
Procurement of DR by TSOsTSOs procured 961MW of DR as reserves of Generator
I’ (reserve power for severe peak period) for FY2018. DR accounts for 70% of contracted capacity, and its
contract price was 30% cheaper than that of power plants.
Source: EGC
Contracted capacity(10MW)
Average contract Price(¥/kW)
Power plants 36.1 5,210
Demand response 96.1 3,661
Total 132.2 4,085
DR accounts for 70% of contracted capacity.
Price of DR is 30% cheaper than that of power plant.
Procurement results
6
Dispatch of demand response TSOs dispatched roughly 500MW of DR for 8 times in
5 straight days in Tokyo area in Jan 2018. About 270MW of DR was dispatched twice in Kansai
area in July 2018, and about 340MW was dispatched 4 times in Tokyo area in August 2018
Source: Energy Pool Japan
DR dispatch in Tokyo area in Jan 2018
Wind farm
Thermal Power
Utility-scale solar PV
Shops
Stationary battery system
EV and EVPS Heat pump
Hydropower
Aggregators provide grid operators with energy services
Factories
7
IoT technologies help aggregators to integrate and control electricity to heat pumps, batteries, EV, ENE-FARMs, and to control demand response and renewable energy in distribution area.
Advanced DR - Virtual Power Plant (VPP)
NuclearPower
Electricity System
MicroCHP
VPP
Image of VPP
8
VPP flattening demand load VPP can reduce use during peak generation (kWh)
(which is costly) and reduce the need for investment in peak operating capacity (kW) by reshaping the demand load flat.
Source: METI
Flattening duration curves
3.8GWll
7.5%of
Peak demand
電力供給設備量(イメージ)
×
0 8,760hHour
GW
Top 88 hours
50GW
Reduction of peak generating time (kWh value)
Reduce investment in peak capacity (kW value)
||1% of annual hours
0 8,760hHour
GW
Top 88 hours
Peak generation
Middle generation
Base-load generation
50GW
Base-load generation
Middle generation
VPP can help solar PV to generate electricity by shifting demand to necessary times, similarly pumped hydro storage
9
VPP helping PV generation
Demand
[GW]
Solar PV(6.8GW)
8
0
2
4
6
10
12
Nuclear, Hydro, Geothermal, Wind
0:00 12:00 18:00 24:006:00
Curtailment(1.9GW)
Thermal
PSHPSH
Source: Kyushu Electric Power
Supply and demand balance in Kyushu(3rd May 2019)
Major Aggregators in Trial VPPs ProjectAggregation Coordinators
Resource Aggregators
10
11
Values produced by VPP aggregators Aggregators create new electricity services, leading
to smart energy systems.<Services to TSOs>1. To provide reserves and balancing power 2. To maintain the quality of electricity
<Services to retail electric utilities>1. To provide supply capacity2. To avoid imbalance
<Services to renewable energy companies>1. To avoid output suppression; DR is under consideration to
avoid output suppression of PV
< Services to electricity consumers>1. To reduce electricity price, such as by peak shaving2. To maximize profits through reverse power flow using post
FIT PV
Product specification in balancing market
12
Primary reserve
(GF)
Secondaryreserve1(LFC)
Secondaryreserve2
(EDC-H)
Tertiary reserve1(EDC-L)
Tertiary reserve2
Ref.Severe peak
reserve
Ref.Capacity
Mechanism
Open of Markets
2024 at latest By 2024 By 2024 2022 2021 2017-
2023 2024
Responsetime
Within 10 Sec.
Within 5Min.
Within 5 Min.
Within 15 Min.
Within45 Min. 3 hours 3 hours
Durationtime
5 Min.or more
30 Min. or more
30 Min. or more 3 hours 3 hours 3 hours 3 hours
Minimum Capacity 5MW 5MW 5MW 5MW 1MW 1MW 1MW
Market specification decides who can enter the balancing markets.
Requirements in balancing market,as of September 2019
Solar PV in a post FIT-world Closure of FIT for household PV starts in Nov. 2019. Residential PV will be purchased at 24 JPY/kWh, equal
to household prices for electricity. Self-consumption is a key driver for use of renewables.
(出典)費用負担調整機関への交付金申請情報、設備認定公表データをもとに作成。一部推定値を含む
【Price of solar PV (below 10kW)】【Number of residential solar PV, post FIT】
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Efficient self-consumption of PV with energy storage technologies
What can we do with surplus solar energy inhouseholds? It will be used to charge storage battery,EVs and PHVs, and heat pumps.
東京電力 HPより
• Charging batteries in the daytime, discharging when PV is not working
Storage battery
• EVs and PHVs are charged by surplus solar energy
• V2H(Vehicle to Home)paves the way to more flexible use
EVs and PHVs
• Surplus solar energy is used to store thermal energy, and heat is used at night
Heat pump
14
Peak cutSolar PV pro-sumers
6 am 6 pm 11 pmmidnight midday
kW Working time
Grid Stabilization
9 am 6 pm11 am 16 pm
Resilience back-up power at grid power outage
kW
Source: PJM
Home 3~ 8 kW Building 10 ~ 100 kW Grid 100kW~ aggregation
Charge/discharge to/from the grid
V2H V2B Smart Charging, V2G
V2X provides electricity to houses, buildings and grids. No major sites that can transfer electricity back to the grid exist in Japan
V2X
Source: Nissan 15
V2G
16
アグリゲーターコンソーシアム2
(Source) METI VPP2018
Blue: dispatch orderRed: actual power
5 min.
EVdischargingEVcharging
Demonstration result of Ancirary service by V2G
V2G demonstration test results that EVs can provide anciraty services.
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システムプライス 九州エリアプライス
17
Recent transaction prices in Kyushu area Renewables are installing rapidly in Kyushu, traded
by 0.01JPY/kWh in Feb 2019.
Source: JEPX
11:00~15:000.01JPY/kWh
[円/kWh]
System price Kyushu area price
System price and area price in Kyushu, as of 24 Feb. 2019
18
Pilot project: Dynamic pricing for EV charging
The pilot program is intended to shift the peak electricity usage times by providing EV owners with “dynamic pricing”, peak and off-peak electricity rates that are coupled with wholesale electricity market price.
Charging station
Time
Price(Yen/kWh)
DisconnectPeak electricity usage times
Off-peak electricity usage
times
Charging station
Connect to charge EVs
EV is charged at low price
Avoid grid congestion
Figure. Overview of the Pilot project
⑩Community battery storage
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VPP creates the energy interactive society
①V2G; EV contributes
system stability
⑨CHP for district heating
⑦PV and biogas for CHP and electricity reserve
⑧P2G for Wind energy and PV for hydro storage
⑤PV and EV for electricity
interchange
⑪Storage Batter for balancing
④V2B: Work place charging
③FCV to home ⑥EV・FCV、Bus
FC
②P2H for PV and heat pump
FCFC
FC
Energy use is optimized by interchange of energy among electricity, heat, hydrogen and EV/FCV.
Renewables are expected to be mainstream energy.