Demand Response (DR) of distributed energy resources(VPP) utilizing AI / IoT

NEC Corporation


"The balancing market" will trade the balancing capacity that is required to provide a supply and demand balance capability and will also maintain the electric power system frequency. It is scheduled to be launched by the year 2021.
This balancing market will adopt a very important role in promoting renewable energy, which is an unstable power generation source at present, to become the main electricity power source of the future society.

NEC aims to contribute to the use of renewable energy as a main power source and NEC will provide the balancing capacity by making distributed energy resources (VPP) on the customer side compatible with demand response (DR) utilizing AI/IoT.
Specifically, power storage systems installed in NEC's multiple business sites will be remotely controlled using the proven service, "NEC Energy Resource Aggregation Cloud Service (RA Cloud Service)". Within a few minutes after the DR directive is issued, we aim to respond to VPP and provide adjustment power to the supply and demand adjustment market.


Achievement target
In FY2025, introduce a controllable power storage system with a total of 10 MW or more, realize VPP, and bid for a supply and demand adjustment market of 5 MW or more.

Issues to be overcome
Increasing the ratio of renewable energy introduced within the NEC Group through photovoltaic power generation, and lowering the cost of power storage systems installed for internal energy management (including products within the group).

Specific actions
(1) In fiscal 2020, a new 240 kW power storage system will be installed at the Abiko Plant, and the storage system planned to be introduced by partner companies, will be connected to the RA cloud service along with the power storage system already installed at the Tamagawa Plant.
Also participate in the VPP construction demonstration project of the Ministry of Economy, Trade and Industry as a Resource Aggregator and respond to DR.
(2) In fiscal 2021, we aim to expand the introduction of in-house power storage systems and expand the connection of power storage systems of other companies. Targeting the supply-demand adjustment market, which is also scheduled to start trading, we will respond to DR and implement bids for tertiary adjustment power.
(3) From FY2022, we aim to expand the power storage system that can be controlled both inside and outside the company, improve the quality of coordination power, and increase the annual provision of coordination power.
(4) From FY2024, realize the provision of frequency adjustment power (ancillary service) targeting primary adjustment power and secondary adjustment power with VPP.

Quantitative effects
Energy cost reduction: tens of millions of yen / year, Co2 reduction: 14t-CO2

Supplementary information

NEC Energy Resource Aggregation Cloud Service Site

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