Toshiba and Next Kraftwerke Sign Memorandum of Understanding on Business Alliance for Virtual Power Plant (VPP) Service

Toshiba Energy Systems & Solutions Corporation (hereinafter: Toshiba ESS) announced that we have signed an agreement on the commencement of a study for VPP technology and sales tie-up with the German Virtual Power Plant(VPP) operator Next Kraftwerke GmbH (hereinafter: Next Kraftwerke). Utilizing our knowledge, technology and sales channels, both companies will jointly develop competitive VPP services by the end of March 2020.

VPP contributes to the optimization of the supply-demand balance in the power network by controlling multiple distributed energy resources effectively as single power plants, such as solar power generation, storage batteries and hydrogen facilities. Furthermore, in accordance with the spread of this variable renewable energy, the expectations toward VPP are on the rise in the market.

While Japan currently promotes renewable energy under the Feed-In Tariff (FIT) policy, the policy is to be updated so that renewable energy is to be the main power source, which requires a balancing solution for the stabilization of the grid system and market trading.

Next Kraftwerke has technology to control many types and amounts of renewable energy simultaneously. They have formed balancing groups^* and have a wealth of experience in power trading in Europe. With expectations of a future update of the policy, the needs of the balancing technology will be increased in Japan. Both companies will provide services backed by their combined strengths such as supply-demand predictions, optimized group control of the demands, generators, storage batteries and technology for market trading.

Prior to this tie-up, Toshiba ESS and Next Kraftwerke contracted to implement a Proof of Concept (PoC) for controlling biomass generators, and the evaluated result will be reflected in this new tie-up.
Toshiba ESS will investigate developing services that leverage the strengths of both companies and will expand the business through global networks.

*Balancing groups account for all the power produced and/or consumed by a collection of assets within the group. Accounting for the group’s net production or consumption serves as an instrument for providing a particular operating region the precise amount of power it needs. The group manages this balancing act between power feed-in and off-take.

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