Current State of the Renewable Energy in Kyushu Electric Power and Our Future Plan. Kyushu Electric Power Co. Inc. June 8, 2017

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Current State of the Renewable Energy in Kyushu Electric Power and Our Future Plan. Kyushu Electric Power Co. Inc. June 8, 2017

Now in Kyushu Balance of demand and supply on January 1, 2017 (MW) 10,000 8,000 Pumped storage generation Pumped storage energy Demand Renewable energy: 64% (Photovoltaic power: 57%) (MW) 8,000 Demand 6,940 MW 1 6,000 6,000 Thermal Nuclear Thermal 4,000 2,000 Photovoltaic 4,000 2,000 Photovoltaic 3,930MW Renewable energy 4,420MW 0 Hydraulic, geothermal, wind, and biomass Nuclear 0 (Time) Hydraulic, geothermal. etc. 490MW Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 1

Contents 2 1 Current Status of Renewable Energy in Kyushu 2 Current Issues and Responses 3 Verification Tests for the Future 4 Summary Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 2

3 1 Current Status of Renewable Energy in Kyushu Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 3

Location of Kyushu in Asia 4 Major Cities in Asia and Kyushu Vladivostok Nakhodka Beijing Qingdao Nanjing Hangzhou Dalian Incheon Busan Seoul Kyushu Shanghai Japan Nagoya Osaka Tokyo Guangzhou Taipei Hog Kong Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 4

Many Good Places for Renewable Energy in Kyushu 5 Good solar radiation : Photovoltaic Good wind conditions : Wind Many volcanos : Geothermal Many forests, Livestock industry is thriving :Biomass Mountainous : Hydraulic and pumped-storage Comparatively low land price Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 5

Explosive Increase of Photovoltaic Power after FIT 6 (MW) 10,000 1,000 FIT implemented (July 2012) + Contracted 11,000MW 8,000 800 6,000 600 4,700 470 682 6,160 6,970 616 4,000 400 2,000 200 0 0 111 560 740 1,110 2,710 271 2010 11 12 13 14 15 17.01 16 FIT Tariff (10 kw min. Exc, tax) 40 yen 36 yen 32 yen 27 yen* 24 yen (Year) *: 29 yen from April to June 2015 27 yen since July 2015 Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 6

Wind Power Increasing Steadily 7 (MW) 800 FIT implemented (July 2012) + Contracted 620MW 600 400 40 400 410 430 430 460 470 490 200 0 0 2010 11 12 13 14 15 17.01 16 FIT Tariff (20 kw min. Exc. tax) 22 yen 22 yen 22 yen 22 yen 22 yen (Year) Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 7

Connected PV Power Twice as Large as Economic Scale 8 Percentage of national total 11% Kyushu Accounts for 10% of Japan's Economy Approximately twice 10% 9% 19% Area Population Sold Power PV Power Connected Source : Created based on "Preliminary Report of Total Electric Power Demand in 2015" of the Agency for Natural Resources and Energy, Feed-in Tariff information from the official website, and "Illustrated Kyushu Economy 2017" of Kyushu Economic Research Center Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 8

9 2 Current Issues and Responses Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 9

Issues about the Quantity and Quality of Electricity 10 Quantity Quality Main Issue Surplus power Thermal capacity Frequency System voltage Current Response Suppressing thermal power and using pumped storage power Using large-capacity storage batteries Controlling renewable energy output (Remote islands) Reinforcing transmission and transformation equipment Installing storage batteries for renewable energies (Remote islands) Installing additional voltage regulators Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 10

11 Balancing Power Consumption and Power Output [Balanced] [Balance lost] Pedaling force = Load (Supply) (Demand) Pedaling force << Load (Supply) (Demand) Pedaling force = Power output (Supply) Rotation speed down Fall = Outage Wheel rotation speed = Frequency Pedaling force >> Load (Supply) (Demand) Rotation speed Rotation speed up Load = Consumption (Demand) Fall = Outage Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 11

Balancing by Pumped Storage Instead of Thermal Output o Percentage of renewable energy (kw) on May 4, 2016:78% max (PV power:62%) o Percentage of renewable energy (kwh):38% (MW) [Demand-supply balance on May 4, 2016] 12,000 10,000 Result in 2015:17% Best mix in 2030:22 to 24% Surplus power absorbed by pumped storage energy 12 8,000 6,000 4,000 Demand Thermal Photovoltaic Pumped storage generation 2,000 0 Hydraulic, geothermal, wind, and biomass Nuclear (Time) Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 12

(Ref.) Pumped Storage Power Plant as Storage Battery 13 Discharge (70%) Electric energy Electric energy Potential energy of water Upper reservoir (Upper regulating reservoir) Water intake Pumping up (Charge) Charge (100%) Power generation (Discharge) Underground power plant Pump turbine Lower reservoir (Lower regulating reservoir) Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 13

(Ref.) Pumped Storage Power Plants in Kyushu 14 Tenzan : 600 MW (300 MW 2 units) Ohira : 500 MW (250 MW 2 units) Omarugawa : 1,200 MW (300 MW 4 units) Total : 2,300 MW Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 14

Order of Measures against Surplus Power Output 15 Output suppression order 1 Suppress thermal power output and use pumped storage power 2 Supply to areas outside Kyushu 3 Suppress biomass power 4 Control PV and wind power output 5 Wheel power outside Kyushu according to a broadarea organization 6 Suppress of hydraulic and geothermal output Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 15

(Ref.) Output Already Controlled on Remote islands Example of Tanegashima, Kagoshima Pref. (January 3, 2017) (kw) 20,000 15,000 10,000 Output control 980 kw Demand Renewable energy 8,120 kw Minimum combustion power output 16 5,000 0 Combustion power Photovoltaic power output Wind power output 0 2 4 6 8 10 12 14 16 18 20 22 24 (Time) Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 16

Great Discrepancy between Predicted and Actual PV Output 17 (MW) 4,000 400 3,500 350 Down 1,700MW (MW) 4,000 400 3,500 350 Up 2,200MW 3,000 300 2,500 250 Prediction 予測 3,000 300 2,500 250 2,000 200 2,000 200 Result 1,500 150 1,500 150 Prediction 予測 1,000 100 500 Result 1,000 100 500 0 0 6 8 10 12 14 16 18 20 (Time) Forecast; Slightly cloudy Rain in some areas 6 8 10 12 14 16 18 20 (Time) Forecast: Cloudy and rain Fair in some areas Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 17

Great Fluctuation of PV Output 18 (MW) 5,000 500 Up/down 1,500MW (MW) 5,000 500 Quickly down 1,900MW 4,000 400 4,000 400 3,000 300 3,000 300 Result 2,000 200 1,000 100 Result Prediction 2,000 200 1,000 100 Prediction 1.5 hours 0 0 00 6 8 10 12 14 16 18 20 (Time) 6 8 10 12 14 16 18 20 (Time) Clear, occasionally cloudy Sudden unpredictable worsening of weather Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 18

Line Voltage Increase after Volume Renewable Energies 100/200V 100/200V 19 Substation 6,600V Voltage regulator Ordinary power PV power Deviation PV power 107V 95V Proper voltage range (101±6V) After PV power connection After measures Before PV connection Distance from substation Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 19

Thermal Capacity Shortage after Volume Renewable Energies 20 Renewable energy electricity flow Renewable energy Reinforcement necessary Power plant Substation Customer Ordinary electricity flow Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 20

Wide Power System Reinforcement Needed in Kyushu 21 Regions under System limitation Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 21

Unstable Frequency after Volume Renewable Energies Iki Island, Nagasaki Pref. (kw) 1,500 Wind power output 22 1,000 500 4Wind power output up quickly 1Wind power output down quickly 0 (Hz) 0:19 0:20 Frequency 0:21 0:22 60.3 5Frequency up 60.0 3Frequency up 2Frequency down (Internal combustion engine output up) 59.7 0:19 0:20 0:21 0:22 (Time) Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 22

23 3 Verification Tests for the Future Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 23

Verification Tests for the Future 24 Main Issue Effort Quantity Surplus power Improvement of PV power output prediction accuracy Verification test on large-capacity storage battery Verification test for PV power output control ( VPP verification test) Quality Thermal capacity Frequency Storage battery verification test on remote islands - ( EV reuse storage battery verification test) System voltage Verification test to maintain proper line voltage *( ) : Cooperation to other business operators for their verification tests Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 24

Verification Tests for the Future 25 Main Issue Effort Quantity Surplus power Improvement of PV power output prediction accuracy Verification test on large-capacity storage battery Verification test for PV power output control ( VPP verification test) Quality Thermal capacity Frequency Storage battery verification test on remote islands - ( EV reuse storage battery verification test) System voltage Verification test to maintain proper line voltage *( ) : Cooperation to other business operators for their verification tests Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 25

Improvement of PV Output Prediction Accuracy [Current] 1Meteorological data and images 2Solar radiation prediction (Each prefecture) 3Output prediction (Each prefecture) 26 Generated amount Past result [Accuracy improvement] 1Meteorological data and images 2Solar radiation prediction (Each point) Solar radiation 3Output prediction (Each point) + Past solar radiation (the same month) + Past (most recent) meteorological change Solar radiation Generated amount Past result Corrected Recent result Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 26

Verification Tests for the Future 27 Main Issue Effort Quantity Surplus power Improvement of PV power output prediction accuracy Verification test on large-capacity storage battery Verification test for PV power output control ( VPP verification test) Quality Thermal capacity Frequency Storage battery verification test on remote islands - ( EV reuse storage battery verification test) System voltage Verification test to maintain proper line voltage *( ) : Cooperation to other business operators for their verification tests Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 27

Effects of Storage Battery 28 Renewable Energy Output Large Storage Battery Charge Small Discharge 1 Absorbing surplus power 2 Suppressing frequency fluctuation Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 28

Demand-supply Balancing by Using Storage Batteries 29 [Storage batteries at Buzen Power Plant] Subsidized by the Ministry of Economy, Trade and Industry Bank No. 2 (started operation on March 3, 2016) PCS storage package Bank No. 1 (started operation on February 10, 2016) 140 m NAS battery subunit (800 kw 63 units) 6kV Reception and transformation equipment 66/6kV interconnection transformer (30,000kVA 2 units) 100 m NAS battery container: 252 total Output:200 kw/unit Total:50,400 kw Capacity:50,000 kw(300,000 kwh) World's largest class Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 29

Verification Tests for the Future 30 Main Issue Effort Quantity Surplus power Improvement of PV power output prediction accuracy Verification test on large-capacity storage battery Verification test for PV power output control ( VPP verification test) Quality Thermal capacity Frequency Storage battery verification test on remote islands - ( EV reuse storage battery verification test) System voltage Verification test to maintain proper line voltage *( ) : Cooperation to other business operators for their verification tests Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 30

Meticulous PV Power Output Control [Remote operation] Control by percentage of rated output 31 [Kyushu Electric] [PV power plant] Leased line PCS Auto control Extra-high voltage High & low voltages Internet PCS Auto control Output control schedule Get schedule Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 31

Verification Tests for the Future 32 Main Issue Effort Quantity Surplus power Improvement of PV power output prediction accuracy Verification test on large-capacity storage battery Verification test for PV power output control ( VPP verification test) Quality Thermal capacity Frequency Storage battery verification test on remote islands - ( EV reuse storage battery verification test) System voltage Verification test to maintain proper line voltage *( ) : Cooperation to other business operators for their verification tests Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 32

(Ref.) Cooperation for VPP Verification Test [Kyushu Electric] Output control schedule 1Output control schedule Internet [Aggregator] 33 Get schedule Iki Island, Nagasaki Pref. Present 3Output reduction 2Charge control [Photovoltaic power plant] Subsidized by the Ministry of Economy, Trade and Industry Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 33

Verification Tests for the Future 34 Main Issue Effort Quantity Surplus power Improvement of PV power output prediction accuracy Verification test on large-capacity storage battery Verification test for PV power output control ( VPP verification test) Quality Thermal capacity Frequency Storage battery verification test on remote islands - ( EV reuse storage battery verification test) System voltage Verification test to maintain proper line voltage *( ) : Cooperation to other business operators for their verification tests Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 34

Stabilize Frequency by Using Storage Batteries on Islands [Verification facilities (Storage batteries)] Iki (4 MW) Tsushima (3.5 MW) 35 60.2 60.1 Lithium-ion batteries Amamioshima (2 MW) [Result of test on the Iki Island, Nagasaki Pref.] Storage battery control Tanegashima (3 MW) * Subsidized by the Ministry of Economy, Trade and Industry and the Ministry of Environment (Hz) 60 59.9 0.08Hz 59.8 16:30 16:37 16:45 16:52 0.22Hz (Time) Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 35

Verification Tests for the Future 36 Main Issue Effort Quantity Surplus power Improvement of PV power output prediction accuracy Verification test on large-capacity storage battery Verification test for PV power output control ( VPP verification test) Quality Thermal capacity Frequency Storage battery verification test on remote islands - ( EV reuse storage battery verification test) System voltage Verification test to maintain proper line voltage *( ) : Cooperation to other business operators for their verification tests Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 36

(Ref.) Cooperation for EV Reuse Storage Battery Test 37 Koshikijima, Kagoshima Pref. (Satsumasendai City) EV reuse storage battery(24 kwh 36 units) [Combustion power plant] 2 Easing the output fluctuation of renewable energy by using battery 1 Transmitting renewable energy output Output Output [PV power plant] [Wind power plant] * Subsidized by the Ministry of Economy, Trade and Industry Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 37

Verification Tests for the Future 38 Main Issue Effort Quantity Surplus power Improvement of PV power output prediction accuracy Verification test on large-capacity storage battery Verification test for PV power output control ( VPP verification test) Quality Thermal capacity Frequency Storage battery verification test on remote islands - ( EV reuse storage battery verification test) System voltage Verification test to maintain proper line voltage *( ) : Cooperation to other business operators for their verification tests Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 38

Maintenance of Proper Voltage in Local Grids [Substation] 6,600V PV1 PV2 PV3 PV4 39 (V) 113 109 105 101 97 93 [Verification facilities] PV power Storage battery Simulation facilities, etc. 1 2 3 [Example of test result] 1 2 Proper voltage range (101±6V) Satsumasendai City Approximately 280kW 118kW (130kWh) Simulated power distribution line, etc. Voltage regulator Distance from substation Optimum arrangement Before measures After measures Voltage regulator Photovoltaic power Simulation facilities Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 39 3

40 4 Summary Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 40

Summary 41 o Because of regional characteristics, renewable energy is expected to be introduced and expanded more in Kyushu. o As the pioneer of high penetration of renewable energies, Kyushu Electric will proactively work on issues for stable power supply. Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 41

42 Thank you for your attention Kyushu Electric Power Co., Inc. Copyright(C) 2017 Kyushu Electric Power CO., Inc. All Rights Reserved. 42