Big Data innovation in Japan’s energy industry

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Deputy Chairman of Smart House and Building Committee,Japan Smart Community Alliance, Japan

Fellow, ECHONET ConsortiumKeio UniversityMasaki Umejima

To be an ice breaker • What is big data innovation?

– Google has gathered a lot of personal data by providing with many free services, e.g. G mail and Google Doc

– Why google can do that? 

• Big data innovation has 6 components:1. Sensing 2. Collecting 3. Analyzing4. “Platform” to ease application service development5. Application development

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6. Modeling

Evidence Based Approach

ASEAN EBA Leaderwith Resilience, Innovation and Sustainability

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Smart House

Micro HydraulicPlant

Quick Charging Station

LRT

Power PlantWind Power

Smart Building

Electric Bus

Large Energy Storage

Utilize NaturalWind Flow

EV

Community EnergyManagement

System (CEMS)

ITS

Quick ChargingStation

Quick ChargingStation

Television

Heat Pump Water HeaterAir Conditioner

Dryer/Washer Dish Washer

Home Area Network

Home Gateway

Electric Car

PV

LED Light

Smart Meter

Smart HouseSmart House

Discharge

-4-

New Information Network

“Internet of Things”

New Energy System“Smarter Grids”

New Eco-Friendly City

New Transportation System

EV as a part ofEnergy Infrastructure

EV as a part ofEnergy Infrastructure

80% charge in 30 minutes

Charge

V2H, V2G

Redesigning the management of community systems and creating a new lifestyle

GPS

Charging Station

ITS

E-BusEV

Control Center

ITS(Telematics)

ITS(Telematics)

Mega Solar

Smart Community showcases in Japan

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G to G collaboration to implement Community Cloud 

• Bandung city, Indonesia and JSCA, the industry and government liaison to export Japanese  infrastructure to overseas, have signed LOI to drive research and business development

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http://regional.kompas.com/read/2014/12/05/17184381/Sepakat.Jepang.Akan.Bantu.Bandung.Jadi.Smart.City.

Support and Cooperation

Electric Utility Members

Home Electronics Industry Gas Utility

IT CompanyHeavy Electric Industry

DeveloperTotal 350 companies and associations

Japan Smart Community Alliance [JSCA]

gBoard

Meeting

International Strategy

International Standardization

Roadmap

Smart House and Building Committee

6JSCA, government–industry liaison, has addressed DSM

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What happened in Japan’s electric industry? 

• Japan lost electric supply due to a big earthquake in Mar 2011. That was 30% nation wide supply.– 30% power supply was generated by nuclear. After Fukushima, it has become zero.

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8.1

24.7

29.4

7.6

29.2

1.1

Water

Coal

LNG

Gasoline

Nuclear

Returnable

What are Japan’s options?

1. Restart nuclear power plant2. Increase coal and gasoline turbine3. Increase returnable energy4. Develop demand side management system5. Open electric utility market to a new entry

• Now, Japanese electric market is under regional monopoly.  In many countries, this market is state owned.  

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Business requirements of PPS demand supply balancing rules

transmission network of electric power company

Supply side x m

Demand side x n

Generated power Electricity Demand

Ｍ Ｍ

DB

Powermeter

Consignment Supply

Power plant forregulation Ｍ

Time

Demand

Time

Generated power

JEPX(Japan Electric Power Exchange)

Demand supply balancing rules

Powermeter

Consignment Supply

・ Due to Japanʼs regulation, the volume between demand and supply must be balanced within ±3% every 30 minutes in each region of electric power companies.・ optimal scheduling of power plant operation based on demand forecast.・ real time control based on monitoring data of power plant and customers.

Reference: Electricity Business environment

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JAPAN’S CURRENT ELECTRICITY MARKET STRUCTURE

Source: The Federation of Electric Power Companies of Japan Source: Electric Power System Council of Japan

MAP OF JAPAN’S ELECTRIC UTILITIES BY SERVICE AREA

PEAK DEMAND IN EACH SERVICE TERRITORY AND INTER-UTILITY TRANSMISSION CAPACITY, FY2013

Hokkaido5.4GW

Tohoku14.0GW

Tokyo50.9GW

Chubu26.2GW

Hokuriku5.3GW

Kansai28.2GW

Shikoku5.5GW

Chugoku11.1GW

Kyushu16.3GW

0.6GW

FC

50Hz60Hz

0.6GW

2.2GW2.4GW

1GW

1GW

0.3GW0.3GW1.3GW

1.6GW

2.5GW

1.6GW

3.8GW

2.7GW

1.2GW

1.4GW

1.2GW

1.4GW0.3GW2.7GW

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JAPAN 10 REGIONAL UTILITIES’ GENERATION MIX (TWh)

0

10

20

30

40

50

60

70

80

90

Jan

2009

Jul 2

009

Jan

2010

Jul 2

010

Jan

2011

Jul 2

011

Jan

2012

Jul 2

012

Jan

2013

Jul 2

013

Jan

2014

Jul 2

014

Thermal Nuclear Hydro Renewables

March 2011

0

5

10

15

20

25

30

35

40

Jan

2007

Jul 2

007

Jan

2008

Jul 2

008

Jan

2009

Jul 2

009

Jan

2010

Jul 2

010

Jan

2011

Jul 2

011

Jan

2012

Jul 2

012

Jan

2013

Jul 2

013

Jan

2014

Jul 2

014

LNG Nuclear Coal Oil

March 2011

Note: Excludes purchased electricitySource: Federation of Electric Power Companies of Japan, Bloomberg New Energy Finance

JAPAN REGIONAL UTILITIES GENERATION MIX, TWh

JAPAN POWER UTILITIES THERMAL AND NUCLEAR GENERATION BY FUEL, TWh

Electric Consumption Ratio (2:PM)

出所：資源エネルギー庁2011年5月13日、6月4日公開資料

HE Cooking Machine＋

Electric Consumption in Japanese house

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Air conditionerRefrigerator

Two methods enables saving energy: SSM and DSM Supply Side Management VS Demand Side Management

Deliver efficiency on energy usage to Demand Side Connect multiple and different devices by IP network Integrate it as one system・・HEMS, BEMS, CEMS、e.t.c Develop a new business model・・Aggregator, PPS, e.t.c.

Utility

Home Appliance

Demand Side

Power meter

ＨＥＭＳ

BＥＭＳ

Supply Side

Demand for Energy Management System

Demand

Control of Demand - Energy Conservation, Demand ResponseSimultaneous optimization on both demand and supply sides minimizing cost and maximizing social

benefit.Switch from “Megawatts” to “Combining Negawatts with Megawatts” by introducing “Demand Response

(DR)”.

Conventional Planning Alternative Methods

Reserve margin

Reserve margin

Saving from DR

SupplyDemand Supply

DownSizingDownSizing

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New business model: Aggregator who integrates smart houses

Commercial-scale Utility Customers

BEMS Vendor

BEMS is in business so that every user has big demand

Commercial-scaleUtility Customers

Small and Medium-sizedEnterprises

Low Voltage Consumers

〔Number of Meters〕

〔about 50,000〕

〔about 770,000〕

〔about 71,800,000〕

ContractCapacity

500ｋＷ

50ｋＷ

Peak DemandAbout 180 GW

About 1/3

About 1/3

About 1/3

○ In the layers such as “Small and Medium-sized Enterprise” and “Low Voltage Consumer”, every demand and consumption is small

○ Thus, aggregation is important to make scalable till the appropriate size for commercialization

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MEMS Aggregator

Aggregator Constructor

Deploy MEMS

Energy Management Service

Selling

Purchase

Payment

Reform

Utility

ECHONET CONSORTIUM

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Layer1-4

OSILayer

Layer5-7

ECHONET Lite interface as open standard

ECHONET Lite CommunicationProcessing Block

Application

Lower Communication Block（IEEE802.15.4 etc.）Transmission Medium

IP AddressMAC Address or

• Specifies OSI Layer 5 - 7

• Communication Address is “MAC Address” or “IP Address”.

ECHONET Lite

• IP based, Media Free, and IEC Standard– ECHONET Lite is IP based interface and interoperable to any standardized medias.

• Open Standard– ECHONET-Lite, owned by ECHONET Consortium, has become open interface since on Dec 21, 2011.

Utility

Smart Meter

PV

Battery

EV

Electric appliances

Users

Fuel Cell

ECHONET-Lite is recommended as the standard interface for connecting appliances and smart meter.Communication protocol between HEMS and devices should be based on IP.

“ECHONET Lite” [IEC Standard] enables the internet of thingsECHONET-Lite, IEC standard interface, has become open standard since Dec 2011. ECHNET Lite has provided 100 devices with network access, included home appliances, power meter, EV, and PV.

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Yokohama CityToshiba, Panasonic, Nissan,

Tokyo Electric, etc.

CEMS, HEMS, BEMS, PV（27MW）4,000 Smart Houses, 2,000 EVsUse of heat and unused energy

Toyota CityToyota Motor, Sharp, Chubu Electric, etc.

CEMS, Demand response260 Smart House3,100 EVs/PHEVs deployment. V2H, V2G Use of heat and unused energy as well as

electricity

Kitakyushu-CityFuji Electric, IBM, NTT,

Nippon Steel, etc.

CEMS, HEMS, BEMS and main grid system.Real-time management in 70 companies and

200 Smart Houses

Kyoto Keihanna DistrictMitsubishi Group, Omron, Kansai Electric, etc.

CEMS, Battery Management Smart House: Visualizing energy consumption

and controlling home electronics energy usage.

-19-Smart Community “Pilot Projects” in Japan

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For your information

• Download free Bloomberg white paper to know ongoing Japanese electric market reform– http://about.bnef.com/white‐papers/japans‐approach‐to‐demand‐side‐management/

• Contact me, masaki27@sfc.keio.ac.jp

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