*1: Imbalances: The differences between electricity demanded and amounts supply. If renewable energy generation volumes deviate from planned values and that imbalance grows large, the quality of the electricity supply may deteriorate and blackouts may occur. Furthermore, imbalance fees will be imposed as an adjustment cost.
*2: “FY2021 Subsidy for Demonstration Project for Establishing Next-Generation Technologies Using Distributed Energy Resources such as Storage Batteries (Renewable Energy Aggregation Demonstration Project within the Renewable Energy Generation Aggregation Technology Demonstration Project).”
*3: Commencement of Renewable Energy Aggregation Demonstration Experiment (https://www.toshiba-energy.com/en/info/info2021_1201.htm)
*4: FIT was introduced in Japan in 2012, with the aim of expanding penetration and reducing costs in early stages of introducing renewable energy. FIT guaranteed electric power companies would purchase electricity generated by renewable energy producers at a set price for pre-determined period. Resulting issues included a lack of incentives to increase supply during peak demand periods, when the market price of electricity is high, because revenues were constant regardless of when the electricity was generated. As FIT has achieved the initial targets for the introduction of renewable energy, FIP that will be introduced in fiscal 2022. It will position renewable energy as a competitive power source, a significant step toward making renewable energy a primary power source. Premiums will be added during peak electricity demand periods, and income will be linked to market prices, as an incentive for power generation companies to increase electricity supplied through use of storage batteries and other means. (Source: Agency for Natural Resources and Energy, “FIT overhaul and restructuring of renewable energy policy,” issued 22 Apr 2019).
*5: Yano Research Institute Market Report, “Energy Resource Aggregation Business 2019”
*6: Grand prix winner at “PV in Hokkaido, a 2019 contest for solar power generation forecasting technologies, sponsored by an electric power company.
*7: CVaR: An abbreviation of “conditional value at risk,” also called an “expected shortfall.” A measure of risk used in the financial sector.