Start of Project to Verify Open Platform Aggregation Business~ Start of FY2020 Demonstration Project for the Construction of a Virtual Power Plant
that Utilizes Demand-Side Energy Resources (VPP Aggregation Project) ~June 8, 2020
Tokyo Electric Power Company Holdings, Inc.
NEC Corporation
Goal connect Co., Ltd.
SEKISUI CHEMICAL CO., LTD.
TEPCO Power Grid, Inc.
TEPCO Energy Partner, Inc.
TAKAOKA TOKO CO., LTD.
Toshiba Energy Systems & Solutions Corporation
Japan Weather Association
Mitsubishi Motors Corporation
Hitachi Systems Power Services, Ltd.
Thirty companies including Tokyo Electric Power Company Holdings, Inc., NECCorporation, Goal connect Co., Ltd., SEKISUI CHEMICAL CO., LTD., TEPCO Power
Grid, Inc., TEPCO Energy Partner, Inc., TAKAOKA TOKO CO., LTD., Toshiba Energy
Systems & Solutions Corporation, Japan Weather Association, Mitsubishi Motors
Corporation, and Hitachi Systems Power Services, Ltd.*1 have applied as a consortium
for a grant to cover the costs of its “FY2020 Demonstration Project for the Constructionof a Virtual Power Plant that Utilizes Demand-Side Energy Resources (VPP
Aggregation Project),” for which a public offering was made by the Ministry ofEconomy, Trade and Industry through its Sustainable Open Innovation Initiative. The
demonstration phase of this experiment, which aims to construct a virtual power plant*2(hereinafter referred to as, “VPP”) through which resource aggregation can becommercialized, commenced today.
In recent years, problems that impact the stable operation of power grids, such as
output fluctuations and surplus power generated by renewable energy sources(hereinafter referred to as, “RESs”), such as solar power, have continued to manifest.
Adjustments at power stations and the other facilities are required to stabilize power
grids, but owning and maintaining power generation equipment necessary to do so iscostly. Amidst these conditions it is becoming necessary to develop a new mechanismthat can balance the continual introduction of RESs with power grid stability at lowcost.
Through this demonstration project, these thirty companies aim to balance thecontinual expansion and introduction of RESs into the future with power grid stability,
and construct a VPP that connects energy resources dispersed throughout society(multifarious power equipment, such as storage batteries, electric vehicles (hereinafterreferred to as, “EV/PHEV”), water heaters, solar power generation and the otherequipment) and can be used to adjust power supply on a megawatt scale. Furthermore,
the project also aims to establish a business model for Vehicle to Grid (V2G) systems
that can adjust power demand/supply through bidirectionality with EV/PHEV storage
batteries.
In FY2016, we developed an Aggregation Coordinator*3 (hereinafter referred to as,“AC”) system and secured resources. In FY2017, we improved and tested this AC
system to fit the needs of power distribution and transmission companies, and created abusiness model for the commercialization of resource aggregation. Then in FY2018, weagain improved and tested the AC system in anticipation of the future supply anddemand adjustment market, and deliberated how to stabilize distribution networks.
In FY2019, 10 companies joined the project and we were able to continue to develop
and expand resources while improving and testing the AC system to fit the needs of thesupply/demand adjustment market.
In FY2020, we shall further improve and test this AC system in order to further
improve resource control accuracy and accelerated our deliberation of supply/demand
adjustment market system issues and business models. We shall also engage ininitiatives that aim for the early start of our resource aggregation business and ourentrance into the supply/demand adjustment market from FY2021.
Through the construction of a VPP, this consortium of thirty companies aims toestablish an innovative energy management system and commercialize resource
aggregation in order to solve global energy/environmental issues.

Attachment: Virtual Power Plant Construction Demonstration Project Overview*1: Consortium members (thirty companies)

Aggregation Coordinators (three companies) (◎: Core company)◎ Tokyo Electric Power Company Holdings, Inc. (Headquarters: Chiyoda-ku, Tokyo;President: Tomoaki Kobayakawa)- NEC Corporation (Headquarters: Minato-ku, Tokyo; President and CEO: TakashiNiino)- Goal connect Co.,Ltd. (Headquarters: Minato-ku, Tokyo; President : Akira Oshita)
Joint demonstration project (eight companies)- SEKISUI CHEMICAL CO., LTD. (Headquarters: Osaka City, Osaka; President andRepresentative Director: Keita Kato)- TEPCO Power Grid, Inc. (Headquarters: Chiyoda-ku, Tokyo; President: YoshinoriKaneko)- TEPCO Energy Partner, Inc. (Headquarters: Chuo-ku, Tokyo; President: NobuhideAkimoto)- TAKAOKA TOKO CO., LTD. (Headquarters: Koto-ku, Tokyo; President: ToshiroTakebe)- Toshiba Energy Systems & Solutions Corporation (Headquarters: Kawasaki City,Kanagawa Prefecture; President and CEO: Mamoru Hatazawa)- Japan Weather Association (Headquarters: Toshima-ku, Tokyo; Chairman: KenHaruta)- Mitsubishi Motors Corporation (Headquarters: Minato-ku, Tokyo; Representative
Executive Officer, CEO: Takao Kato)- Hitachi Systems Power Services, Ltd. (Headquarters: Minato-ku, Tokyo;
President/CEO: Akira Sakai)
Resource aggregators (19 companies)- Global Engineering Co., Ltd.
- ONE Energy Corporation- Osaki Electric Co., Ltd.
- FAMILYNET JAPAN Corporation- KYOCERA Corporation

- EFFICIENT Inc.
- MUL Utility Innovation Co., Ltd.
- Shizuoka Gas Co., Ltd.
- ELIIY Power Co., Ltd.
- Energy Optimizer Inc.
- KANDENKO Co., Ltd- Nippon Koei Co., Ltd.
- SANIX Inc.
- Toyo Engineering Corporation- Yachiyo Engineering Co., Ltd.
- Takenaka Corporation- Tokyo Gas Co., Ltd.
- ENE -VISION Co., Ltd.
- Advantec Co., Ltd.

27 companies, with the exception of Toshiba Energy Systems & Solutions
Corporation, Energy Optimizer Inc., and Advantec Co., Ltd., were selected andapproved for subsidies. The aforementioned remaining three companies should beselected and approved for subsidies this month.
*2: Virtual Power Plant (VPP):
A virtual power plant that uses information and communications technology for theintegrated control of dispersed energy resources and functions like a single power
generation facility.
*3: Aggregation Coordinator (AC):An aggregation coordinator aggregates multiple power loads controlled by resource
aggregators, which control resources upon entering into VPP service agreements withdemand households, and directly engages in power transactions with generaltransmission and distribution operators and retail electric companies.