News Release

FY2022 Renewable energy aggregation demonstration project has been adopted

~Aiming to Further Improve Forecast Accuracy to Accelerate Renewable Energy Aggregation Business~

  • Renewable Energy
  • VPP
  • Order received / delivery

June 13, 2022

Next Kraftwerke Toshiba Corporation
Toshiba Energy Systems & Solutions Corporation

KAWASAKI, JAPAN- Toshiba Energy Systems and Solutions (hereinafter “Toshiba ESS”) and Next Kraftwerke Toshiba Corporation (hereinafter “TNK”) are proud to announce that their application, in which Toshiba ESS* is the consortium leader, for the renewable energy aggregation demonstration project has been accepted 2 years in a row.

The project aims at building a stable and efficient electric system with distributed energy resources (hereinafter “DER”) by demonstrating technologies to predict renewable energy generation to be able to balance supply and demand. Also, the project demonstrates the technologies needed for DER control by combining intermittent renewable energy generation such as solar and wind power systems with distributed energy resources such as battery storage. In addition, a consortium*1 established to promote the business cases is consisting of 14 companies from the sector of renewable energy aggregators and 9 companies of demonstrating collaborators including Toshiba ESS.

The transition from the FIT*2 system to the FIP*3 system began this April in Japan, corresponding to the desired shift to renewable energy as the main power source.
Under FIP, power producers will be required to match their planned generation with electricity demand based on accurate generation forecast*4. Furthermore, they will need to respond to market risks by optimizing electricity trading to match the volatile electricity market prices.

In this project, the consortium will evaluate power generation forecasting technology, battery control technology, and market trading strategy technology, to improve profitability, and to avoid imbalance*5 penalties– two important factors for the success of renewable energy aggregators.

In last year's demonstration, various results such as reducing the imbalance of power generation by bundling power generation resources were on the one hand obtained. On the other hand, were issues discovered in terms of forecasting technology for wind and PV power generation at the time of snow accumulation.

To address the issues, the consortium will perform evaluation with high frequency power generation forecast using multiple weather models, and high frequency update of storage battery operation plans. The evaluation will be performed with more than 200 power generation resources, such as solar and wind power.

In addition, Toshiba ESS will examine insurance products that take into account the new imbalance system that began this fiscal year, and examine technical and business issues for renewable energy aggregators based on the knowledge of the German company, Next Kraftwerke, Europe's largest VPP company.

Hideki Shingai, CEO of TNK and the Marketing Executive of renewable energy business unit at Toshiba ESS, commented on this project, “We are proud of this project being accepted. In order to achieve carbon neutral electricity generation, it is essential to make renewable energy self-sustaining, and the FIP regulation is the first step in doing so. We would like to create an environment where aggregators can play a role as a hub for supplying renewable energy inexpensively and in a stable way by networking renewable energy, grid systems, retail, and consumers.

* Correction
Consortium leader is not TNK, but Toshiba ESS (corrected on June 22,2023)

 *1 Consortium Members

Consortium leader
Toshiba Energy Systems & Solutions Corporation

Renewable Aggregators 14 companies
・Urban Energy Corporation
・ENEOS Corporation
・The Kansai Electric Power Co., Inc.
・Kyushu Electric Power Co., Inc.
・Cosmo Eco Power Co., Ltd.
・Japan Renewable Energy Corporation
・The Chugoku Electric Power Co., Inc.
・TEPCO Energy Partner, Inc.
・Nippon Koei Co., Ltd.
・NEC Corporation
・Hokkaido Electric Power Co., Inc.
・Eurus Green Energy Corporation
・Toshiba Energy Systems & Solutions Corporation

Demonstrating collaborators 9 companies
・Idemitsu Kosan Co., Ltd.
・Energia Solution & Service Co.
・Kanden Energy Solution Co., Inc.
・Japan Weather Association
・First Solar Japan G.K.
・Mitsui Sumitomo Insurance Co., Ltd.
・Next Kraftwerke Toshiba Corporation

*2 FIT:Feed In Tariff
*3 FIP:Feed In Premium
*4: The service for a mechanism that allows a power generation company or electricity retailer to make adjustments in slices of 30 minutes to match (1) the power generation plan and power generation result, and (2) the demand plan and demand actual result.
*5: The difference between the amount of power demand (used) and the amount of supply when independent power generation company fails to achieve the same amount of planned and actual results at the same time.

Anticipated business model of Renewable Aggregation

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