Outline of Electricity Deregulation 1 Emergence of PPS (Power Producers & Suppliers) by Electricity Deregulation DeregulaHon started in March 2000 from extra high voltage sector Deregulated in April 2004 will be deregulated in 2016 Liberalized Regulated Extra-high Voltage ( 20,000V) Large-scale factory, Department store, Office building etc. Contract:about 10,000 Electricity Consumption: 26% Market Size about 30 billion US$ High Voltage(6,000V) Small and medium-sized factory, Supermarket, Small and medium-sized building Contract:about 750,000 Electricity Consumption:36% Market Size about 50 billion US$ Low Voltage(100 ~ 200V) Lighting contract : Household etc. Low voltage : Small factory, Convenience store etc Contract:about 80 million Electricity Consumption:38% Market Size about 70 billion US$ Overall Market:150 billion US$ Source: Research 2011 of Market Strategy in Electricity, Gas and Energy Service by Fuji- Keizai Group
Trend in number of PPS プロの仕事は 信頼の 2 絆 Continued Upward trend in the Number of PPS after Electricity Deregulation Approx. 60 PPSs are under operation as of August, 2014 number of PPS registered 390 companies (as of Dec. 4, 2014) under operation 57 companies (as of August, 2014) Nikkei News 2013/7/28 FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2014 Source:Ennet compiles based on Repot in Electricity Industry on July 6, 2010 by Agency for Natural Resources and Energy 2013 ENNET Corporation. All rights reserved
Smart Service of Ennet and Its Examples プロの仕事は 信頼の 3 絆 Supply side Win Diverse service IT Demand Side Win Optimization of demand supply balance Efficient use of facilities Risk modification of peak time Optimization IT Smart meter Visualization Conservation Service options Electricity consumption information Example of Smart Service 1 EnneVision : DR service for condominium building 2 EnneSmart : DR service for non-residential building 3 Smart Saving Power : DR Service Utilizing CGS 4 Negawatt Aggregation Service 5 Smart Community 6 Green Electricity Supply etc. 2013 ENNET Corporation. All rights reserved
EnneVision* : DR service for condominium building 4 Service realized by the cooperation of supply and demand side Supply side + Demand side = EnneVision Electricity Data Server Infomation Energy Consumption data Visualization real time energy information motivating energy conservation by ranking system Time of Use Price Plan Price plan which enables cost reduction by shifting energy consumption from day time. Peak Time Rebate Plan Substation facility Smart meter Condominium resident Ennevision*): jointly- developed service with NTT FACILITIES Plan which offer incentive to customers who cooperated to energy conservation during specific time.
Electric retail services after full liberalization 5 Access environment to demand data from residential customer 1A route;via Electric Utilities delay of supply and demand information is expected (issue remains whether the delay is consistent with balancing rule) 2B route;via in-house communication devices such as HEMS real-time data remotely shutdown or ampere control is not available A route data Electric Utilities Transmission/Distribution Div. A route billing remote control (supply curtailment shut down) Smart Meter B route data B route supply-demand adjustment(electrical equipment control) additional service Service Platform applying to both of A route and B route to comply with network usage rules (balancing) and to provide timely, value-added services (DR CO₂Reduction etc.) is needed. <role-sharing between A route and B route > A route balancing, remote control(supply curtailment, shut down etc.), billing B route supply-demand adjustment(electrical equipment control etc.), additional service, (billing)
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Major Issues toward full liberalization 7 Power procurement Large-Scaled/Surplus power +Distributed, Renewable Energy Transmission /Distribution Retail Market improvement of supply and demand forecast Various Tariff Design Service Development Solution Development IT system architecture Sales channel development Demand Patterns Consumption Patterns Other Services Service Platform Partners
Effect of Peak Time Rebate Service (kw) 8 Objective time Previous day : July 5 (Wed.) 13:00 ~ 15:00 The day : July 6 (Thu.) (kw) 30 About 35% reduction Atmospherics temperature Amount of solar radiation 31.0 ~ 31.2 29.7 ~ 31.5 17.13 MJ/ m2 19.03 MJ/ m2 Participant 20 Result on July 6 (Thu.) In 2011 10 22.0 14.4 Non Participant 0 7 Jul. 月 5 日 Jul. 7 月 6 日 6 5 Objective time Atmospherics temperature Amount of solar radiation Previous day : July 14 (Thu.) 16:00 ~ 19:00 29.5 ~ 31.0 30.6 ~ 31.7 25.27 MJ/ m2 27.04 MJ/ m2 Results on July 15 (Fri.) in 2011 The day : July 15 (Fri.) Non Participant Participant (kw) 70 60 50 40 30 20 10 0 68.5 About 30% reduction 48.1 Jul. 7 月 14 14 日 7 Jul. 月 15 15 日 The customers who were requested to cooperate and accepted the demand response service attained a peak-cut by more than 30%.
Impact of Demand Side Management 9 electricity demand [10MW] 6100 6000 5900 5800 5700 5600 5500 5400 5300 5200 5100 5000 4900 4800 4700 4600 4500 4400 4300 4200 4100 4000 Occasion of electricity demand per unit time 3% 2010:28h (0.3%) (2009/2011:0h) impact of peak cut 5% 2010:78h 10% (0.9%) (2009/2011:0h) 2010:216h (2.5%) (2009 :3h(0.03%) ) (2011 :0h) If construction of 6000MW thermal power plant is avoided cost reduction of more than 500 million US $ per year 2011 FY2010 年 2010 FY2011 年 2009 FY2012 年 0 100 200 300 400 500 accumulated 1me [hours] From: Based on actual number form TEPCO electricity forecast )(construction cost 1000US$/kW+running cost 100US$/kW) 15years
Key points for Demand Response service 10 Create the reliable price index for power supply at the power trading market (Appropriate assessment for marginal cost is required) from FERC website Clarify the supply-demand adjustment cost and CO2 emission transparent at the grid network operation (Realizing various of service menu) Establish the interactive power supply system through standardized Smart meters (Rapid installation of smart meter is required)
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Proving test for DR at households(with Rakuten) 12 Evaluating the potential effect of Demand Response in the households field (timing, incentives, negawatt, etc) Better-than-expected performance has been comfirmed Image of proving test: 4 Take a survey for users Shops registered for Smart-point (more than800) 3 Go out for visiting 1 Send DR signal Points Provider 2Notify the message that ( ) additional monetary points will be gotten when costmers visit a shop registered Energy saving 1 Send DR message to consumers : 1,000,000 people(smart-phone users) 2 Consumers go out for visiting a shop of registered 800 shops 3 Users get monetary points (40-150 JPY) from the shops, at a time during DR time 4 Analyzing the consumers behavior through the follow-up survey from 2,000 consumers
Effect of Time of Use Price Plan (kw) 13 Customers, chose TOU Customers, NOT choose TOU kw 0,85 0,75 Nighttime Morning Daytim e Evening kw 0,85 0,75 Nighttime Morning Daytim e Evening 2010 2010 0,65 0,65 0,55 2011 0,55 2011 0,45 0,45 0,35 20% 0,35 11% 0,25 00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 0,25 00:00 01:00 02:00 03:00 04:00 05:00 06:00 07:00 08:00 09:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 Reduction rate in subscriber s peak time zone is about 20%. Subscribers have attained about 2 times more reduction at the peak time-zone than non-subscribers.
Key points for Demand Response service development 14 Demand analysis behavioral studies Data analysis Assessment for potential capacity Lifestyle Implemented appliances or equipment Consumers consciousness(education, promotion) Incentive (Volume, Types, etc.) Time to react(period of time, number of times, time length, etc.) Service menu (Type, understandability) Structure of service (Timing, Tools, etc.) Extra Value (Green Power, etc.) etc.
EnneSmart : DR service for non-residential building 15 Ennet started first non-residential demand response service on July 2012 in Japan. Visualization Portal Site Demand response Service Electricity price Yen/kWh CPP: Critical Peak Pricing TOU:Time of Use PTR:Peak Time Rebate Incentives = @yen/kwh kwh hours Participant company AOKI(retail) Oji Paper(manufacture) Tokyo Gas(gas) Towa Industry(service) NTT West(communication) Ferris University(education) Mitsukoshi Isetan(retail) Nissan Automobile Technical College (education) Nippon Comsys(engineering),etc.
Auto DR Service of EnneSmart 16 Auto-DR service Features Option service for DR service for non-residential buildings Automatically conserving the energy usage by using BEMS Minimizing the impact of the internal environment of the building DR DR signal from Ennet automatic control Procedures Preparation of DR plan based on facility information of each building DR signals will be sent from monitoring center of Ennet BEMS will automatically control the facility following the DR plan Ennet will provide incentive to building owners according to the conserved energy baseline incentive base on conserved energy Image of procedure Monitoring center customer building automatic control Lighting,AC DR request control signal BEMS DR information sent by e-mail
Impact of Demand Side Management 17 electricity demand [10MW] 6100 6000 5900 5800 5700 5600 5500 5400 5300 5200 5100 5000 4900 4800 4700 4600 4500 4400 4300 4200 4100 4000 Occasion of electricity demand per unit time 3% 2010:28h (0.3%) (2009/2011:0h) impact of peak cut 5% 2010:78h 10% (0.9%) (2009/2011:0h) 2010:216h (2.5%) (2009 :3h(0.03%) ) (2011 :0h) If construction of 6000MW thermal power plant is avoided cost reduction of more than 500 million US $ per year 2011 FY2010 年 2010 FY2011 年 2009 FY2012 年 0 100 200 300 400 500 accumulated 1me [hours] ( )(construction cost 1000US$/kW+running cost 100US$/kW) 15years From: Based on actual number form TEPCO electricity forecast
Foresight of electricity service in Japan 18 appropriate role-sharing between supply side and demand side Price competition Service competition Providing the merit of electricity system deregulation toward more customers...