OSAKA -- Energy from solar panels and wind turbines in disparate locations will be brought together and distributed as needed or stored for future use in a pilot project planned by Kansai Electric Power.
For the so-called virtual power plant program, the Osaka-based utility will team up with nearly a dozen partners, including Hitachi, trading house Mitsubishi Corp. and a U.S. energy company.
A big problem with photovoltaics, wind and other renewable energy sources is that output is affected by weather, and low production results in a supply shortage. And output exceeding demand increases the chances of stressing the grid, possibly leading to an outage. For this reason, some utilities in the Kyushu and Shikoku regions have restricted purchases of renewable energy. Conventional power plants must be kept as a backup to address this situation.
The VPP system will control power stations, energy storage facilities and electrical equipment at such commercial users as factories and offices. Excess electricity will be stored in batteries. If a power shortage is expected, energy will be discharged from batteries and steps will be taken to reduce demand, such as turning up air conditioner thermostats at offices.
Wider use of the system will enable supply and demand adjustments, making it easier to adopt renewable energy. Use of batteries will also reduce electricity bills.
Energy from Kansai Electric solar and wind power stations in such places as Hyogo Prefecture's Awaji Island and the Osaka Prefecture city of Sakai will be supplied to commercial users in the region. Hitachi will provide cooling and heating equipment and develop a system for regulating demand and supply, while batteries will come from Mitsubishi. The project will have an output equivalent to more than 50,000kw -- on a par with a small conventional power plant.
The pilot is set to launch soon, and Kansai Electric aims to commercialize the system in 2020.
VPPs have the backing of the government, which wants renewables to account for at least 20% of Japan's power generation in 2030. The Ministry of Economy, Trade and Industry is to tap a designated fiscal 2016 budget to provide up to 3 billion yen ($28.7 million) or so in subsidies for VPP development. The pilot will be the first major project spearheaded by a leading Japanese corporation.
(Nikkei)
