Sojitz Corp : Energy Pool, Schneider Electric, Sojitz, TEPCO Launch Industrial Demand Response Demonstration Project for the first time in Japan after Being Chosen for Government-led Next-Generation Energy & Social System Project
Energy Pool, Schneider Electric, Sojitz, TEPCO Launch
Industrial Demand Response Demonstration Project for the
first time in Japan after Being Chosen for Government-led
Next-Generation Energy & Social System Project
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November 22, 2013
Energy Pool Developpement SAS
Schneider Electric, Inc.
Sojitz Corporation
Energy Pool Developpement SAS (Headquarters: Le Bourget du Lac, France; CEO and Founder: Olivier Baud. "Energy Pool"), Schneider Electric, Inc. (Headquarters: Minato-ku, Tokyo; President: Serge Goldenberg. "Schneider Electric"), Sojitz Corporation (Headquarters: Chiyoda-ku, Tokyo; President: Yoji Sato. "Sojitz") launch a demonstration project of successful European industrial Demand Response in TEPCO area ("The project"). Sojitz works as managing company, Schneider Electric and TEPCO as project partner and Energy Pool works as consignee of Schneider Electric on the project. The project was selected in third round of open recruitment of the Next Generation Energy and Social System Demonstration Project for FY2013 regarding demand response being conducted by the New Energy Promotion Council (NEPC).
Characteristic of Industrial Demand Response
The demonstration project of Demand Response for industry ("iDR") is the first challenge in Japan. iDR has the following characteristic compared to the Demand Response for Building and Residential tested in the past a few years.
iDR helps a grid balancing of EPCO, such as during peak electricity demand (summer and/or winter), but also in terms of reserve capacity in the event of a unexpected outage of generation units, as well as balancing capacity for supply volatility caused renewable energy etc, by providing with aggregated large potential to save electricity demand of industrial electricity End-user. In addition to that, iDR also helps the reduction of electricity cost of End-user by providing with remuneration for the reduced electricity demand (nega-watt).
Content of the project
The project term is scheduled until the end of March 2015. The project will design iDR model and install system adapted to Japanese electric system and industrial characteristic by using European iDR model as a reference. The project will verify the commercial feasibility of iDR through actual Demand Response (demand reduction). We will deploy a demand response portfolio of 50 MW, equivalent to the residential consumption more than 200 000 inhabitants. Upon the result of the project, the project will make recommendation for regulatory change and operational procedures in terms of the Electricity System Reform.
Roles of each company
The project leverages the expertise and experience of each of the four companies.
Their respective roles are as follows:
Energy Pool
as the largest DR aggregator in Europe, will contribute its experience with iDR, including industrial process engineering for demand response, Network Operations Center (NOC) setup in Tokyo and operations throughout the project.
Schneider Electric
will be relied upon for its expertise and technology in industrial processes supervision and automation. The project NOC will be set up at Schneider Electric's Tokyo HQ.
Sojitz
the managing company, will liaise with participating companies, authorities and organizations. Sojitz will bring to the project its network of business relationship with industrial End-users and its know-how regarding business development in Japan.
Sojitz Corporation is a diversified group organized around 10 business segments:
- distribution of chemicals products (25.4% of sales): organic, basic and specialty chemicals, plastic products, resins, etc;
- mining operations (22.2%): coal mining, alumina refining, sale of steel products and ferrous and non-ferrous metals, etc;
- distribution of large consumer products (17.6%): clothing and accessories, textile products, home and decorative articles, etc;
- automobile assembly and sales (11.6%);
- production and sale of food products and ingredients (7.8%);
- sale of industrial machinery and equipment and development of health facilities (6.9%);
- development and operation of energy and telecommunications infrastructure (3.6%);
- industrial infrastructure operation, property management and urban development (2%);
- aircraft and ship sales (1.7%). The group also develops activities in the operation of airport and rail infrastructure;
- other (1.2%): provision of financial services, logistics services, consulting, etc.
Sojitz Corp : Energy Pool, Schneider Electric, Sojitz, TEPCO Launch Industrial Demand Response Demonstration Project for the first time in Japan after Being Chosen for Government-led Next-Generation Energy & Social System Project