Toshiba Energy Systems & Solutions Corporation (Toshiba ESS’) and Next Kraftwerke Toshiba Corporation (TNK) today launched the ‘Renewable Energy Aggregation Service’ as a support service for renewable energy power producers. Toshiba Group aims to achieve sales of approximately 21 billion yen by the whole VPP business in FY 2025.

In Japan, the introduction of renewable energy has been progressing under the feed-in tariff (FIT) system, but in anticipation of renewable energy becoming the main source of power, the system has been shifted to feed-in premium (FIP, certain premiums will be added to the reference market price). Under FIP, renewable energy power producers are required to improve the accuracy of power generation forecasts for their own generation facilities, etc., as they are obliged to achieve the same amount of electricity as planned based on accurate power generation forecasts ^*1. In addition, profitability is required to be improved through optimal market transactions and bilateral transactions. In order to meet these needs, Toshiba Group has been developing related technologies and accumulating knowledge through a demonstration project publicly solicited by the Ministry of Economy, Trade and Industry in FY2021.

Toshiba Group offers three main types of services in its "Renewable Energy Aggregation Service. The first one is a wholesale service, in which Toshiba ESS establishes a renewable energy balancing group (BG) ^{* 2}, purchases power generated by renewable energy power producers and sells it on the wholesale market or through bilateral transactions. At the same time, ESS acts as an agent for power generators by bundling renewable energy resources and performing balancing and trading operations of these resources. By contracting with Toshiba ESS, renewable energy generators can establish a pseudo FIT scheme without having to undertake balancing responsibilities and market risks. Over the long term, Toshiba ESS purchases the electricity at a price equivalent to the FIT, combined with the premium price paid by the government, thus contributing to the stabilization of the customer's business earnings (Figure 2).

In addition, Toshiba ESS launches two new services, a service in which Toshiba Group is an agent for aggregators, and SaaS for the functions necessary for renewable energy aggregators to perform their operations. Toshiba ESS will act as agent for wholesale transaction and BG operations, while TNK will provide SaaS. The targeted voltage levels of renewable energy power producers for these services include domestic low-voltage, high-voltage, and special high-voltage, ^*3 power plants.

Shigehiro Kawahara, Vice President of the Energy Aggregation Div. at Toshiba ESS, said,“Toshiba ESS is honored to start a new service and aims to facilitate the transition to a carbon-neutral society by providing high-value-added services that combine the expertise cultivated as an energy equipment manufacturer with digital technology, and gained through its renewable energy aggregation business. Through our renewable energy aggregation business, we will contribute to stable and efficient power system utilizing renewable energy.”

* 1: A system in which power generation companies and retail electricity providers coordinate their generation plans and actual generation results, and demand plans and actual demand results on a 30-minute basis to ensure that they match.
* 2: A group of operators who calculate the imbalance between planned and actual results.
* 3: When utilizing the FIP, domestic high-voltage and special high-voltage power plants with an output of 50 kW or more are eligible.
* 4: Not actual figures but an image (FIT price 10 yen, reference price 6.6 yen, premium before adjustment 3.4 yen, premium after adjustment)