ENERES Co., Ltd.

ENERES Co., Ltd. has reported results as consortium leader in both the “Renewable Energy Aggregation Demonstration Project” and “Demonstration Project for Further Utilization of Distributed Energy Resources” within METI’s “FY2023 Next-Generation Technology Construction Demonstration Project Utilizing Distributed Energy Resources such as Storage Batteries,” conducted as a three-year plan from FY2021. Knowledge gained from each demonstration will be implemented in our services and provided to customers.

Toward achieving carbon neutrality by 2050, Japan’s renewable energy adoption volume is steadily increasing. However, renewable energy faces challenges in securing stable supply as it is a power source that is easily affected by weather and cannot be controlled. Technologies expected to resolve these challenges are called “renewable energy aggregation” and “distributed energy resource (DER) aggregation.”

“Renewable energy aggregation” is a method of managing renewable energy by grouping, aiming to improve renewable energy generation prediction accuracy. On the other hand, “DER aggregation” is a method of securing balancing capacity necessary for power supply-demand adjustment by controlling distributed energy resources (DER) such as residential storage batteries owned by the demand side. ENERES aims to realize “supply-demand integrated adjustment” that optimizes overall supply-demand balance by linking renewable energy aggregation and DER aggregation, and is the only business operator that formed consortia in both METI’s “Renewable Energy Aggregation Demonstration Project” and “Demonstration Project for Further Utilization of Distributed Energy Resources” starting from FY2021.

In FY2023’s “Renewable Energy Aggregation Demonstration Project,” we primarily conducted verification aimed at reducing imbalance occurrence risk from renewable energy generation prediction errors and maximizing revenue. Having confirmed effective balancing group (BG) formation methods and prediction timing for revenue improvement through demonstrations up to FY2022, in FY2023’s demonstration we confirmed market trading utilization methods and storage battery operation methods to further improve profitability. Additionally, we constructed a snow accumulation model predicting snow impacts on solar power generation and analyzed predictions and smoothing effects using currently rare and highly valuable offshore wind power data.

In the “Demonstration Project for Further Utilization of Distributed Energy Resources,” we introduced 6,927 low and high-voltage resources (up 1,468 from last year), totaling over 20 MW in facility output. We controlled these resources and cleared technical requirements for all balancing market menus. In particular, for demonstrations of primary and secondary② balancing capacity looking ahead to expanded low-voltage resource utilization in FY2026, we successfully achieved stable operational performance through measures such as group management according to resource characteristics.

ENERES will continue developing aggregation technology based on our founding business of supply-demand management know-how, aiming to build new power systems that achieve both making renewable energy the main power source and stable power supply, contributing to realizing a decarbonized society.

[FY2023 Renewable Energy Aggregation Demonstration Project]
■Demonstration Objectives
Through each demonstration, acquire necessary knowledge and technology for renewable energy aggregation and examine operations as an aggregator assuming real business, while aiming to build systems for monetization.

■Main Achievement Points

• Regarding prediction timing, confirmed tendency that predictions closer to actual supply-demand generally reduce imbalance amounts, etc. (continuing demonstration from FY2022)
• Confirmed greater imbalance reduction effect from forming balancing groups (BG) with mixed power source types rather than single power source types (continuing demonstration from FY2022)
• Suggested possibility of obtaining revenue improvement effects by utilizing spot market trading
  (Annual revenue improvement effect of approximately 64 million yen for 225 MW scale BG mixing solar and wind power)
• Confirmed effective storage battery operation methods for imbalance reduction
  (Charging/discharging storage batteries to make the sum of power generation and storage battery discharge follow generation plans by monitoring actual vs. planned generation and controllable storage battery capacity in real-time for power plants/BGs)
• Successfully developed prediction technology considering snow accumulation effects (approximately 6.7% imbalance amount reduction over winter season)
• Confirmed that revenue can be expected from generation shifting by installing appropriately sized storage batteries for both solar and wind power plants if storage battery equipment unit price is below 50,000-80,000 yen/kWh. Also confirmed further revenue improvement by allowing charging from the grid
• Confirmed that offshore wind power is a highly profitable power source in terms of supply-demand management since it is easy to suppress imbalances from both prediction accuracy and smoothing effect perspectives
• Confirmed that insurance products and services for hedging imbalance risks due to renewable energy generation prediction errors can be customized by individually discussing risk conditions

■Future Business Outlook
We will implement the achievements obtained through demonstrations in the renewable energy aggregation services and offsite PPAs that we offer, expanding our decarbonization solutions. Additionally, we will continue technology development and verification with partner companies, aiming to develop new solutions such as offshore wind power supply-demand management, FIP sales support, microgrid support, renewable energy power source supply support, and imbalance insurance.

■ENERES and Renewable Energy Aggregation
“Renewable energy aggregation” is one of the technologies ENERES has proposed to resolve renewable energy instability. This field, which started with ENERES’s independent demonstration in FY2020: “Virtual Power Plant Construction Demonstration Project,” became a three-year demonstration theme led by METI from FY2021: “Renewable Energy Aggregation Demonstration Project,” and now many companies are working on technology development.
ENERES has continuously participated in METI’s demonstration projects as consortium leader, working to improve renewable energy aggregation technology with partner companies over four years. Based on these demonstration achievements, we began providing renewable energy aggregation services for non-FIT/FIP renewable energy power generators from 2021.

■Reference

• FY2023 Renewable Energy Aggregation Demonstration Project Dedicated Site　
• FY2023 Renewable Energy Aggregation Demonstration Project Results Report
  *Scheduled for publication on Sustainable open Innovation Initiative website

[FY2023 Demonstration Project for Further Utilization of Distributed Energy Resources]
■Demonstration Objectives
Aims to establish DR (Demand Response) control technology for retailers/consumers and maximize benefits while expanding market entry opportunities through advanced aggregation technology and further improved control accuracy as an AC (Aggregation Coordinator), aiming to realize aggregation business including low-voltage resource utilization.

■Main Achievement Points

• Verified revenue securing through market price-linked DR and confirmed possibility of further revenue expansion by combining market price-linked DR with tertiary balancing capacity(1) supply to balancing market
• Achieved preliminary examination requirements for tertiary balancing capacity (1)(2) by controlling various resources including residential storage batteries, industrial storage batteries, EV chargers, and ENE-FARMs. Particularly realized supply of over 2 MW balancing capacity with low-voltage resources for tertiary balancing capacity(2)
• Conducted independent demonstration using MEC environment. Confirmed stable achievement of sufficient operational performance for actual operations with low-voltage resources in primary and secondary(2) balancing capacity requiring strict response performance through group management/control of low-voltage resources (residential storage batteries, EV chargers) matching each resource characteristic
• For primary balancing capacity, proposed and demonstrated representative point measurement method aiming for cost reduction by measuring at representative points only instead of the conventional method of measuring frequency at all resource installation points. Confirmed improved availability, that had previously been a challenge, through development of wide-area mutual redundancy function
• Developed single-function frequency measurement device for primary balancing capacity aiming for equipment cost reduction. Proposed establishing standards and specifications for single-function frequency measurement devices

■Future Business Outlook

We will feed back knowledge gained from demonstration projects to each aggregation service, aiming for revenue expansion through improved accuracy and further cost reduction.

In FY2024, we will proceed with our work based on demonstration results toward realizing grid storage battery charge/discharge optimization and participation in all balancing market products, enhancing the services we provide in real business. In addition, we will advance studies toward expanding the use of low-voltage resources in the balancing market in FY2026, aiming for further expansion of the DER aggregation business including low-voltage resources.

■ENERES and Distributed Energy Aggregation

ENERES has continuously participated since the first demonstration year in METI’s “Virtual Power Plant Construction Demonstration Project (FY2016-2020),” the predecessor to the “Demonstration Project for Further Utilization of Distributed Energy Resources.” The ENERES consortium has particularly focused on aggregation utilizing difficult-to-control low-voltage resources, developing technology together with partner companies.

We will continue to take on challenges unrestricted by conventional concepts, such as developing new operational methods like group control and group management under 5G+MEC environments to bundle large numbers of small resources quickly and cheaply.

■Reference

• FY2023 Demonstration Project for Further Utilization of Distributed Energy Resources Dedicated Site

FY2023 Demonstration Project for Further Utilization of Distributed Energy Resources Results Report
*Scheduled for publication on Sustainable open Innovation Initiative website