Support for the Virtual Power Plant (VPP) demonstration project.
- AFFORDABLE AND
CLEAN ENERGY - CLIMATE ACTION
Issue
The increasing necessity of promoting local production and consumption of renewable energy.
The Feed-in Tariff (FIT) system for renewable energy has successfully driven the expansion of renewable energy adoption. However, since power companies purchase, control, and supply electricity to individual consumers in a centralized manner, it can be seen as an extension of the traditional large-scale, centralized power supply system.
As the adoption of highly variable power sources, such as solar and wind energy, continues to expand, it is becoming increasingly difficult for power companies to centrally manage supply-demand balance and frequency adjustments. To address this, it is necessary to establish a true decentralized energy system by managing power supply and demand locally and promoting local production and consumption of energy.
Approach
Support for the Virtual Power Plant (VPP) demonstration project.
Against this backdrop, initiatives are underway to build Virtual Power Plant (VPP) systems, which aggregate and manage energy resources such as solar power, wind power, and battery storage. These systems aim to achieve an output equivalent to that of a large-scale power plant, enabling supply-demand balancing and grid frequency regulation within local regions.
At e-solutions, we supported the Ministry of Economy, Trade, and Industry’s (METI) VPP demonstration project by facilitating the implementation of a demonstration utilizing customer-side battery storage within a certain power company’s service area.