Japanese version of Connect & Manage for expanded introduction of renewable energies

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1 Reference material 2 Japanese version of Connect & Manage for expanded introduction of renewable energies February 16, 2018 The Federation of Electric Power Companies of Japan

2 Current approach to grid connection 1 From the perspectives of fairness and transparency, the current approach is first come, first served, offering connections in the order that applications are received across all utilities. If the grid has no available at the time of receiving a new connection request, the grid needs to be reinforced. (Reference) Rules set by the Organization for Organization for Cross-regional Coordination of Transmission Operators, JAPAN (OCCTO) (Guidelines for Services for Electricity Transmission and Distribution) Article 92 Setting aside tentative of transmission system General power transmission and distribution businesses shall, upon receiving a contract application for power generation facilities, etc., treat it as if the said power generation facilities, etc., applied for transmission grid connection, is already interconnected in handling subsequent applications in other grid access duties, and tentatively set aside in the transmission system. ( ) Article 97 Securing the of transmission system General power transmission and distribution business shall, ( ) as of issuing the notice of interconnection approval, secure the of the transmission system that was set aside tentatively in accordance with Article 92. ( ) <After reinforcement> Equipment Reinforcement work required to offer connection due to lack of available application (2) Connection offered without reinforcement work as the application is within available. <Before reinforcement> application (1) Secured for emergency use Available (3) (2) (1) Grid reinforcement Equipment Secured for emergency use Available application (2) application (1) (3) (2) (1) (Source) Compiled based on a reference material used in the second meeting of the Mass Renewable Energy Introduction and Next-Generation Power Network Subcommittee.

3 Available of power networks (transmission lines, etc.) 2 To determine the available of a power network, it is necessary to examine not only power sources currently interconnected but also power sources that are due to be interconnected in the future (booked power sources). It is also necessary to set aside some for emergency use in case of single facility (e.g. single transmission line) fault. <Use of transmission lines, etc.> (*When operation is defined based on single-line ) Set aside for emergency use Equipment (2-line ) Used at the time of accident Each transmission line consists of three wires (phases). The above picture shows two transmission lines. (1-line ) Actual transmission volume (1) Actual transmission volume (2) Actual transmission volume (3) Reserved Solar energy Reserved Wind energy Reserved Thermal energy, etc. (Source) Compiled based on a reference material used in the first meeting of the Mass Renewable Energy Introduction and Next-Generation Power Network Subcommittee. Morning Noon Evening

4 Long-term cross-regional grid policy by OCCTO 3 OCCTO drew up a long-term policy (long-term cross-regional grid policy) that defines the direction for developing and updating cross-regional interconnection systems across the nation from the perspective of cross-regional administration. The policy was released in March Identifying issues concerning mid- to long-term facility formation The growth of electricity demand is slowing down. In order to accept new interconnection needs in the conventional approach to facility formation and grid use, substantial reinforcement is needed to distribution facilities. That would reduce the factor of distribution facilities, applying an upward pressure on wheeling fees. The organization made a departure from the previous concept of making grid reinforcement in response to interconnection, and drew up the concept of distribution facility formation with emphasis on forming efficient facilities on the premise of making the maximum use of existing facilities. (Source) Compiled based on a reference material used in the 20 th meeting of the Cross-Regional Grid Development Committee

5 Considerations for Japanese version of Connect & Manage 4 Connect & Manage Initiative Rationalization of anticipated current N-1 power control (instantaneous power limit at the time of N-1 fault) Non-firm connection (power source connection on condition of limiting output at normal times) restriction Facility formation Not managed in principle Power limit at the time of N-1 fault (standalone fault of a power facility) Considering connectability before connection based on available Reinforcement when the anticipated current exceeds administration Power limit when normal administration is exceeded Providing connection on the premise of output limit for newly-connected power sources regardless of available known in advance Making decisions on reinforcement based primarily on cost-to-benefit assessment Details Rationalizing and enhancing the accuracy of anticipated current Probability assessment of power source operations Output evaluation of naturally variable power sources Expanding administration by using a relay system to instantaneously limit power sources at the time of N-1 fault Connecting, without facility reinforcement, new power generation operators that have agreed to output limit at the time of grid constraint Congestion (Normal times) No (Normal times) No (Normal times) Yes (At the time of fault) Yes Respond by restricting power sources *1 (At the time of fault) Yes Respond by restricting power sources *2 (At the time of fault) Yes *1: Using load-dispatch instruction to restrict power output *2: Using a relay system to instantaneously limit power output (Source) Reference material 1-(1) used in the 26th meeting of the Cross-Regional Grid Development Committee

6 Considerations for Japanese version of Connect & Manage 5 For the future expansion of grid use Adopt rationalization of anticipated current and N-1 power control to expand available, so as to achieve greater expansion of grid use. Considering the fact that some transmission lines have the annual average usage rate of around 20-30%, work toward early introduction of the non-firm connection mechanism, which promotes grid use at times of low electric current, e.g. at night and at off-peak seasons. Application of N-1 power control to expand administration Available Introduction of non-firm connection to make it easier to use available grid Maximum current (anticipated) Anticipated current Annual Rationalization of anticipated current to increase the accuracy of anticipated maximum current (Source) Reference material 3 used in the 30 th meeting of the Cross-Regional Grid Development Committee

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