Project aims to realize energy services business, including autonomous operation during power grid failureTokyo, September 25th --- New Energy and Industrial Technology Development Organization (NEDO) and Hitachi, Ltd. will expand the Smart Community Demonstration Project being carried out jointly with ELES, d.o.o., Slovenia's state-owned electricity transmission system operator, and will start demonstration of a cloud-based Advanced Energy Management System (AEMS) for the first time from October 2018.
In advance of this, NEDO, Slovenia's Ministry of Economic Development and Technology, Ministry of Infrastructure, and ELES d.o.o. agreed to joint implementation of the expanded project scope and signed the revised version of Memorandum of Cooperation (MOC), Minutes of Meeting (MOM) and Memorandum of Understanding (MOU), respectively, on September 24. At the same occasion, Hitachi, Ltd., which is NEDO's entrusted party, and ELES, d.o.o. signed the revised version of Implementation Document (ID).
Under the expanded project scope, NEDO and Hitachi aim to establish an energy service business for large consumers and electricity retailers by implementing and demonstrating a cloud-based Advanced Energy Management System (AEMS) which is linked with Battery Energy Storage System (BESS) installed on the consumer side, for example, in factories, buildings and homes, and which prevents power outages through autonomous operation during grid failure, ensures the quality of factory electricity through voltage dips mitigation measures, and provides frequency control to electricity transmission system operator.
Figure 1 Action Overview
[Explanation of Figure 1]
In this demonstration, a cloud-based Advanced Energy Management System (AEMS) implemented at a date center will link Battery Energy Storage System (BESS) installed on the consumer side within the demonstration area, energy management systems (xEMS) installed to factories, buildings, homes, and a distribution management system (DMS) installed at an electricity distribution company, to provide services including (i) islanding (autonomous operation during grid failure), (2) voltage dips mitigation measures, and (3) ancillary services (frequency control to electricity transmission system operator) to multiple customers.
AEMS Advanced Energy Management System Energy management system for large consumers and electricity retailers
xEMS x Energy Management System General term for factory energy management systems (FEMS), building energy management systems (BEMS) and home energy management systems (HEMS).
DMS Distribution Management System : A management system for distribution systems. Under demonstration as part of this project since November 2016.
1 Overview
Slovenia is a country in Central Europe which declared independence from Yugoslavia in 1991. Since joining the EU in 2004, Slovenia has enjoyed improving standards of living and a high rate of growth in the manufacturing industry. As a result, electricity demand is increasing. Under these circumstances, Slovenia adopted the targets of achieving a 25% share of renewable energy sources in gross final energy consumption and a 20% improvement in energy efficiency by 2020, and it ratified the Paris Agreement, a new framework for an internationally coordinated effort to tackle climate change which entered into effect on November 4, 2016. However, the facilities of electricity distribution companies are aging, and an increase in investment expenditure to replace facilities is expected.
In view of this situation, Slovenia is likely to need more sophisticated and cost-effective distribution grid management technologies to solve issues anticipated in connection with the increase in renewable energy sources and electricity demand, such as voltage fluctuation, power outage, overload and ensuring reserve and balancing power
Meanwhile, consumers and electricity retailers need more sophisticated and cost-effective energy management technologies. Especially the power outage occurred due to the severe ice storm in 2014, and other outages affected by extreme weather in recent years raised the importance of measures to protect critical facilities such as hospitals against huge power outages. Damage from voltage dips (a momentary decrease in voltage caused by snowfall, lightning strike or other natural disaster) also have a serious impact on large consumers that need high quality electricity such as factories, and voltage dips mitigation measures are, therefore, required. Moreover, in the future, number of consumers that have BESS are expected to increase and consumers will also be expected by electricity transmission system operators to contribute to grid stability.
Under these circumstances, on November 25, 2016, New Energy and Industrial Technology Development Organization (NEDO), Solvenia's Ministry of Development and Technology and Ministry of Infrastructure as well ELES. d.o.o., Slovenia's state-owned electricity transmission operator agreed to carry out a smart community demonstration project. Hitachi Ltd., NEDO's entrusted party, and ELES, d.o.o have been selected to undertake a joint project under such agreement. Hitachi and ELES have been implementing the distribution management system (DMS) for electricity distribution companies, which is scheduled to run until December 2019.
NEDO, Slovenia's Ministry of Economic Development and Technology, Ministry of Infrastructure, and ELES, d.o.o., have now agreed to expand the scope of the demonstration project for large consumers and electricity retailers and to start a demonstration project for a cloud-based Advanced Energy Management System (AEMS), and the parties signed the revised version of Memorandum of Cooperation (MOC), Minutes of Meeting (MOM) and Memorandum of Understanding (MOU) respectively on September 24. At the
