Shizen Connect Inc.(Shizen Connect), a VPP*1 platform developer, announces that its Equipment Control DR Support Service, which supports the low-voltage VPP operations of electricity retailers, has been selected by Tohoku Electric Power Co., Inc.(Tohoku Electric Power) for its “Equipment Control eco Challenge” (applications start from September 26, 2024).
In order to achieve carbon neutrality by 2050, it is considered important to build a stable power system by making the best use of distributed resources such as renewable energy sources and storage batteries. In this context, low-voltage VPPs that control energy resources such as residential storage batteries in an aggregated manner are expected to play an important role in stabilizing the power system, as they will be allowed to participate in the balancing market from fiscal 2026.
This service utilizes the energy management system “Shizen Connect” developed and operated by Shizen Connect, and works in conjunction with the remote control system of residential storage battery manufacturers to remotely control residential storage batteries via the cloud. It is intended to be used as a measure to alleviate supply and demand constraints, to reduce electricity procurement costs and capacity payments of electricity retailers, and to be used in various electricity markets in the future (Figure 1). Following the launch of commercial services in May 2023, it has already been adopted by major electricity retailers *2 *3.
The selection of this service by Tohoku Electric Power is the result of the joint demonstration with eight major retail electricity retailers announced in December 2023*4. In the future, Shizen Connect aims to provide this service commercially to many electricity retailers, including many of the companies that participated in the demonstration.
For the control targets of this service, Shizen Connect is currently connected to the cloud with five residential storage battery manufacturers, and the total domestic market share of manufacturers that can be controlled is approximately 57%*5. In the future, Shizen Connect will also expand its collaboration with manufacturers of electric vehicles (EVs) and heat pump water heaters (EcoCute)*6.
Shizen Connect will also successively begin offering commercial control functions, such as balancing market and capacity market control, and reverse demand response control*7 to create demand and avoid curtailment*8 of renewable energy.
Shizen Connect will continue to work with a wide range of partners to contribute to the realization of a decarbonized society.
