A Study on Smart Communities in the APEC Region

A Study on Smart Communities
in the APEC Region
November 2015

APERC

Asia Pacific Energy Research Centre

Published by
Asia Pacific Energy Research Centre (APERC)
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Email: master@aperc.ieej.or.jp
This research report is available at: http://aperc.ieej.or.jp
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ISBN 978-4-931482-47-0

APERC© Asia Pacific Energy Research Centre, 2015.

A Study on Smart Communities
in the APEC Region

November 2015

APERC
Asia Pacific Energy Research Centre

Published by
Asia Pacific Energy Research Centre (APERC)
Inui Building Kachidoki 11F, 1-13-1 Kachidoki
Chuo-ku, Tokyo 104-0054 Japan
Tel: (813) 5144-8551
Fax: (813) 5144-8555
Email: master@aperc.ieej.or.jp
This research report is available at: http://aperc.ieej.or.jp
Photography credits: APERC.

© Asia Pacific Energy Research Centre, 2015.
ISBN 978-4-931482-47-0

Foreword
Following the Asia-Pacific Economic Cooperation’s mission of promoting economic prosperity in asustainable way, many economies are promoting more efficient energy utilization with advanced
technologies including smart technologies in order to reconcile their growing energy needs withlower carbon emissions. This movement presents an opportunity for upgrade their energy
infrastructure. This research report reviews smart community projects and backgrounds of economy
to identify the expectations and challenges for the related smart technologies in the APEC Region.
This report categorizes respective economies’ smart community projects by responsible entities,
purpose, focused technologies and so on. The knowhow and technologies, acquired through smart
community demonstration projects, should be suited to the regulations and market structures in therespective economies for future continuous penetration and utilisation. The report reviews themarket situation and project summary of selected economies to understand the characteristics of theeconomy and the future penetration potential of element technologies.
This report consists of two main parts. The first part can be read in to acquire an understanding ofoverviews of smart community projects in the Asia-Pacific region, electricity business in selectedeconomies and prospects of dissemination of element technologies related to smart communities.
The second part shows one of the outcomes of demonstration projects for smart grid system
integration.
This report is the work of the Asia Pacific Energy Research Centre. It is an independent study, anddoes not necessarily reflect the view of or policies of the APEC Energy Working Group orindividual member economies. Hopefully, this research report will become a cornerstone of theestablishment of information exchange and international collaborative activities designed toaccelerate smart community development, leveraging APEC’s economic and cooperative strengths.

Takato OJIMI
President
Asia Pacific Energy Research CentreiAcknowledgements
We appreciate those who have made inputs to this study report, A Study on Smart Communities in the APEC
Region, which could not have been accomplished without the contribution of professionals both inside andoutside of APERC.
In particular we would like to acknowledge the work of Dr. Weerawat Chantanakome, Former Chief
Executive Officer, Brunei National Energy Research InstituteThis report was made possible through the initiative and efforts of the following people.

Project Leader
Koji MORITA,

Board Member, Director, Fossil Fuels & Electric Power Industry
Unit, the Institute of Energy Economics, Japan (IEEJ)
APERCAuthors
Junichi OGASAWARA,

Assistant Director, Fossil Fuels & Electric Power Industry Unit,
IEEJ
APERC

Mitsutaka MATSUDA

Former Senior Researcher, Fossil Fuels & Electric Power Industry
Unit, IEEJAPERCYu NAGATOMI

Researcher, Fossil Fuels & Electric Power Industry Unit, IEEJAPERCTakashi OTSUKI

Researcher, APERC

Contributors to Economy Analyses
Dr Weerawat CHANTANAKOME

Former Chief Executive Officer, Brunei National Energy ResearchInstitute

Luis CAMACHO BEAS

Senior Researcher, APERC

Yeong Chuan LIN

Former Senior Researcher, APERC

Juan Roberto LOZANO MAYA

Researcher, APERC

Martin Miguel BROWN-SANTIRSO Researcher, APERC
Muhamad Izham ABD. SHUKOR

Researcher, APERC

Editors
Legatoii

CONTENTS
CONTENTS ............................................................................................................................ iii
Figure list .................................................................................................................................v
Table list ............................................................................................................................... vii
Executive Summary ................................................................................................................ 1
1

Overview of the Current Status of Smart Community Demonstration Projects in the APEC

Region ..................................................................................................................................... 32

1.1

Australia .................................................................................................................... 4

1.2

Brunei ....................................................................................................................... 9

1.3

Canada .................................................................................................................... 10

1.4

Chile ....................................................................................................................... 16

1.5

People's Republic of China ........................................................................................ 19

1.6

Hong Kong, China .................................................................................................... 27

1.7

Indonesia ................................................................................................................. 28

1.8Japan ....................................................................................................................... 32

1.9

Korea ...................................................................................................................... 36

1.10

Malaysia .................................................................................................................. 39

1.11

Mexico .................................................................................................................... 42

1.12

New Zealand ............................................................................................................ 45

1.13

Papua New Guinea ................................................................................................... 49

1.14

Peru ......................................................................................................................... 50

1.15

The Philippines ........................................................................................................ 52

1.16

Russia ...................................................................................................................... 55

1.17

Singapore................................................................................................................. 58

1.18

Chinese Taipei ......................................................................................................... 60

1.19

Thailand .................................................................................................................. 64

1.20

The United States ..................................................................................................... 66

1.21

Viet Nam ................................................................................................................. 77

Electricity Business in the Selected APEC Economies Where Smart Community

Demonstrations are Ongoing .................................................................................................... 81
2.1

Australia .................................................................................................................. 81

2.2

People's Republic of China ........................................................................................ 83

2.3

Japan ....................................................................................................................... 86

2.4

Korea ...................................................................................................................... 88
iii

3

2.5

The United States ..................................................................................................... 89

2.6

Thailand .................................................................................................................. 94

Prospects and Effects of Dissemination of Element Technologies Related to Smart

Communities in the APEC Region............................................................................................ 97
3.1

Outline of Smart Community Projects in the APEC Region ......................................... 97

3.2

Prospects of Dissemination of Element Technologies Related to Smart Communities in

Respective Economies ....................................................................................................... 100
3.3

Barriers to Entry of Element Technologies Related to Smart Communities and Forecasts
103

3.4

Energy/Power-Saving Effect through the Dissemination of Element Technologies Related

to Smart Communities in Each Economy .............................................................................119
4

Smart Grid System Integration ........................................................................................ 120
4.1

Integration of Renewable Energy Generation Systems ............................................... 120

4.2

Grid Integration of EVs ........................................................................................... 131

5

References .................................................................................................................... 138

6

Mission Report(Report on Participation in APEC Workshop on Smart DC Power

Opportunity for Community) ................................................................................................. 139

iv

Figure list
Figure 1-1 Smart Grid Investment Grant Programme .......................................................... 67
Figure 2-1 Customer Switching of Energy Retailers, as a Percentage of Small Customers ..... 83
Figure 2-2 Supply Areas of Large Power Grid Companies .................................................. 85
Figure 2-3 Electricity Business System in Korea (as of the end of July 2013) ....................... 89
Figure 2-4 ISOs/RTOs ..................................................................................................... 91
Figure 2-5 US States where the Electricity Market Has Been Liberalised ............................. 93
Figure 2-6 Switching Rate regarding Major US Electricity Companies ................................ 94
Figure 2-7 Electricity Business Structure in Thailand.......................................................... 95
Figure 3-1 Types of Smart Projects ................................................................................. 101
Figure 3-2 Outage Time per Customer ............................................................................. 105
Figure 3-3 Comparison of Transmission and Distribution Loss Rates ................................. 105
Figure 3-4 Changes in Congestion Charges (Left: PJM Area; Right: NYISO Area) ............. 106
Figure 3-5 Introduction of Demand Response Programmes by Type .................................. 107
Figure 3-6 The Duck Curve Shows Steep Ramping Needs and Overgeneration Risk ........... 108
Figure 3-7 Acceptable Limit of Power by PV Generation and Amount Approved under the FIT
System.................................................................................................................... 111
Figure 3-8 Outline of Chinese Electricity System and Problems in Grid Networks ...............114
Figure 3-9 PEA Smart Grid Road Map .............................................................................117
Figure 4-1 Actual Wind Generation Output in BPA .......................................................... 120
Figure 4-2 Distribution of Demand and Generation Output ............................................... 121
Figure 4-3 Demand and Supply Balance in BPA (22–24 May 2014) .................................. 122
Figure 4-4 Demand and Supply Balance in BPA (27–30 May 2011) .................................. 122
Figure 4-5 Actual Output of Wind Generation and PV (January 2014) ............................... 123
Figure 4-6 Distribution of Demand and Generation Output ............................................... 124
Figure 4-7 Demand and Supply Balance in 50 Hertz Transmission (23–25 December 2014) 124
Figure 4-8 Forecast Errors of Load, Output of Wind Generation and Output of PV Generation............................................................................................................................. 125
Figure 4-9 Distribution of Forecast Errors of Load ........................................................... 126
Figure 4-10 Distribution of Forecast Errors of Output of Wind Generation ......................... 126
Figure 4-11 Forecast Errors of Output of Wind Generation and Output Changes by Unit Time............................................................................................................................. 128
Figure 4-12 Concept Regarding Minimum Capacity Required to Increase Output by 100MW............................................................................................................................. 128
Figure 4-13 Case of Flexible Generation .......................................................................... 130v

Figure 4-14 Case of Inflexible Generation ....................................................................... 130
Figure 4-15 Case of Flexible Generation .......................................................................... 131
Figure 4-16 Concept of Grid Integration of EVs ............................................................... 132
Figure 4-17 Frequency Regulation Signals Issued by PJM ................................................ 133
Figure 4-18 Relationship between PJM and Aggregator .................................................... 134
Figure 4-19 Example of Response during Daytime Hours ................................................. 134
Figure 4-20 Example of Response during Daytime Hours ................................................. 135
Figure 4-21 Example of EV Charging Pattern (San Francisco) .......................................... 136
Figure 4-22 EV Charging Pattern (Los Angeles) .............................................................. 136
Figure 6-1 PEA Smart Grid Road Map ............................................................................ 142

vi

Table list
Table 1-1 Major Smart Community-Related Projects and Policies in the APEC Region .......... 3
Table 1-2 List of Smart City-related Projects in China ........................................................ 26
Table 1-3 Smart Grid Demonstration Programme in the United States ................................. 75
Table 2-1 Outline of the NEM .......................................................................................... 82
Table 3-1 Outline of Smart Community-related Projects in the APEC Region ...................... 97
Table 3-2 Outline of Smart Community-related Projects in the APEC Region .................... 102
Table 3-3 Smart Community-related Projects and Power Business System in the APEC Region............................................................................................................................. 103
Table 3-4 Smart Metre Introduction Plan ..........................................................................112
Table 4-1 Ramp Rates of Respective Power Sources ........................................................ 127
Table 4-2 Types of Frequency Control Reserves in Japan, the United States and European
Economies ............................................................................................................. 129

vii

Executive Summary
In order to promote economic growth with upgrade of infrastructure, APEC economies have expanded
demonstration projects of Smart Community which focused on technical and urban development. Many
economies have been putting efforts to effectively integrate advanced smart technologies; however, the goalsof those projects slightly differ in each economy, because of the various backgrounds of APEC economies.
This report firstly reviews the current smart community across the APEC region discussing the perspective
smart technologies with consideration on the economic status and energy market structure. Secondly, thisreport summarises the major results of demonstration projects, which focus on the integration of variable
renewables with smart technologies.

A variety of projects is ongoing in the APEC region.
More than 130 smart community-related projects are ongoing in the APEC region (Section1). Our survey
shows that China and United States are the leading economies, in terms of the number of demonstration
projects followed by Canada and Australia. The overview of the projects across the region also highlights thateach economy has slightly different objectives and definitions of ‘smart community’, mainly due to economy
specific status of energy system and energy/environmental policy. In general, matured APEC economies, suchas United States and Japan, focus on improving existing energy infrastructure for reliable energy supply,
efficient energy use and variable renewables’ integration as well as developing and promoting advanced newtechnologies, while projects in developing economies include green field developments of low-carbon districts.

Smart technologies and knowhow should be suited to the market system ineach economy for future continuous penetration.
The electricity business regulations and market situation in major APEC economies vary economy byeconomy (Section2). The knowhow and technologies acquired through smart community demonstration
projects should be suited to the regulations and market structures in the respective economies, for futurecontinuous penetration and utilisation. This report categorises respective economies’ smart community projects
by responsible entities, purpose, focused technologies and so on (Section3). The information above--electricity
market situation and project summary—is useful to understand the characteristics of respective economies andthe future penetration potential of element technologies.

Smart Grid System Contributes to Integrating Variable Renewables.
Smart technologies are expected to incorporate the fluctuations of intermittent power output from renewableenergy. Some demonstration projects of these technologies including EV and storage shows that participatingin the frequency regulation service market using EV storage batteries is technologically feasible (Section4).
However, the regulation service market is designed on the premise of using conventional energy sources, suchas fossil fuel thermal power and hydropower (including conventional) generation. Therefore, it is necessary tomodify the market design to enable participation of storage batteries. The smart grid system integration1

depends not only on technological development but on the design of the market structures as well as
regulations.

2

1Overview of the Current Status of Smart
Demonstration Projects in the APEC Region

Community

The following is an overview of smart community-related demonstration projects being planned
or implemented in the APEC region. By identifying the outline of individual projects and challenges
for smart communities in individual regions and economies, this report reviews the status of thedissemination of elemental technologies of smart communities for the future and their benefits,
including energy-conservation and electricity-saving effects.
This chapter outlines the following representative smart community-related projects in the APEC
region.
Table 1-1 Major Smart Community-Related Projects and Policies in the APEC Region
Countr y● Natio nal Ene rgy Policy● Smar t community relate d po lic y, e tc

No.o f Major
Pr oje cts

Australia

10・ Energy White Paper
・ Smart Grid, Smart City Programme

Brunei Darussalam

2・ RKN 2012-2017
・ N/A

Canada11・ Federal Sustainable Development Act, FSDA・ Canadian Smart Grid Standards Roadmap

Chile

4

・ National Energy Strategy 2012-2030
・ N/A

People's Republic of China

16・ 12th Five-Year Plan (2011-2015)
・ New-Type Urbanization Plan (2014-2020)

Hong Kong, China

3・ 12th Five-Year Plan (2011-2015)
・ N/AIndonesia

6・ National Energy Policy （2014）
・ the Metropolitan Priority Area for Investment and Industry

Japan

6

・ Strategic Energy Plan (2014)
・ the Conference on the Next-generation Energy and Social System

Republic of Korea

5・ 2nd National Energy Basic Plan (2014)
・ National Smart Grid Roadmap

Malaysia

4・ Tenth Malaysia Plan (10th MP)
・ N/AMexico4

・ Estrategia Nacional de Energía 2013-2027
・ National Group for Smart Electricity Networks

New Zealand

7・ New Zealand Energy Strategy 2011-2021：NZES・ Smart Grid Forum

Papua New Guinea

1・ Development Strategic Plan 2010-2030, DSP 2010-2030
・ N/A

Peru

5

・ PROPUESTA DE POLITICA ENERGETICA DE ESTADO PERU 2010-2040
・ N/A

The Philippines

5・ Philippine Energy Plan: PEP2012-2030
・ National Renewable Energy Program

Russia5・ Energy strategy of Russia up to 2030
・ N/ASingapore

3・ National Energy Policy Report
・ N/AChinese Taipei

6・ Framework of Sustainable Energy Policy (2008)
・ Master Plan of Smart Grid

Thailand5・ the 11th National Economic and Social Development Plan
・ Thailand Smart Grid Development

The United States

15

・ N/A
・ American Recovery and Reinvestment Act

Viet Nam

7

・ Power Development Master Plan 7
・ N/ABelow, we explain the details of the projects and policies in individual economies.
31.1 Australia(1) Outline of Energy Policy
In 2009, the government of Australia started the Smart Grid, Smart City programme, to which it
allocated AUD100 million in budget funds, in order to demonstrate smart grid technologies at thecommercial level. Under this programme, relevant parties made investments totalling AUD490
million. This programme was implemented in the 2010–2013 period, and the benefits brought byrelevant technologies were analysed. Subsequently, the programme was extended and implemented
in the 2013–2014 period. An analysis of the programme’s benefits revealed that the introduction ofsmart metres through cooperation between a consortium led by Ausgrid and relevant companies withthe participation of 30,000 households could reduce energy consumption expenditure by as much as
AUD28 billion over the next 20 years.1(2) Major Smart Community Projects
A) The Smart Grid, Smart City ProgrammeTime period: 2010–2014

Total budget: Approximately AUD100 million

Project partners: Ausgrid (one of the three New South Wales electricity distribution
entities), IBM Australia, GE Energy Australia, Grid Net, CSIRO, TransGrid, Energy
Australia, Landis+Gyr, Sydney Water, Hunter Water, the University of Newcastle, theUniversity of Sydney, Lake Macquarie City Council and the City of Newcastle.

Objective and results: The project evaluates a data communication network, an IT system,
monitoring and control technologies on the grid side, the demand-side trend, distributed
power sources and storage batteries within the grid, and electric vehicles for the purpose ofcomprehensively examining smart grids.

Technologies: Battery, automation of power distribution, distributed power supply, IT,reactive power control equipment, smart metre, EVReferences:

https://ich.smartgridsmartcity.com.au/Main/Final-Report/ARUP_SGSC-Executive-Repo
rt-National-Cost-Benefit-A.aspx

B) The Future Grid Research ProgrammeTime period: 2013–2015

Total budget: Approximately AUD13 million

Project partners: The University of Sydney, CSIRO, the University of Newcastle, theUniversity of Queensland, and the University of New South Wales

1

https://ich.smartgridsmartcity.com.au/Main/Final-Report/ARUP_SGSC-Executive-Report-National-Cost-Benefit-A4

Objective and results: The project evaluates system stability, grid plans, optimisation ofelectricity and gas usage, economic benefits and costs of network building, and politicaltechniques and regulations intended to promote a shift to low carbon usage for the purpose of
studying the development and optimisation of grids from the technological, economic andpolitical viewpoints.

Technologies: Battery, EMS, PV, etc.



References:

http://www.futuregrid.org.au/

C) King Island Renewable Energy Integration ProjectTime period: 2010–2014

Total budget: Approximately AUD18 million

Project partners: Hydro Tasmania

Objective and results: The project is expanding the use of renewable energy in order toreduce dependence on diesel fuels and is cutting greenhouse gas emissions for the purpose of
integrating renewable energy sources on King Island. The project aims to develop aworld-leading power system on King Island. KIREIP will result in the use of renewableenergy for over 65% of the island's energy needs, and will reduce CO2 emissions by morethan 95%. The unique part of this system is the integration of technologies. Although therenewable generation sources are mature (wind, solar, bio diesel), the enabling and storage
technologies are new and emerging, and the method by which these technologies are being
used and integrated is world leading.

Technologies: Power station upgrade, biodiesel trial, energy storage, wind energy, diesel–
UPS flywheel system, smart grid

References:

http://www.kingislandrenewableenergy.com.au/

http://www.smartgridimpact.com/index_download.html#map

D) Alice Solar CityTime period: 2008–2013

Total budget: Approximately AUD42 million

Project partners: Power and Water Corporation, Northern Territory Government (NTG),
Arid Lands, Environment Centre (ALEC), Northern Territory Chamber of Commerce andIndustry (NTCCI), and Tangentyere Council

Objective and results: The project analyses the effects of pricing that reflects costs
associated with the introduction of technologies related to PV power generation, energy
5efficiency and smart metres.
Technologies: PV, smart metre, solar thermal water heaterReferences:

http://www.alicesolarcity.com.au/research-and-reports

http://www.smartgridimpact.com/index_download.html#map

E) Townsville Queensland Solar CityTime period: 2009–2013 (Ongoing)

Total budget: Approximately AUD15 million (including AUD5 million from the
Queensland Government through the Department of Mines and Energy)Project partners: Australian GovernmentObjective and results: The Townsville Queensland Solar City project is part of theAustralian Government’s leading-edge Solar Cities programme. The project conducts trials
for a range of initiatives that aim to reduce wasteful energy usage, increase solar energy
usage and cut greenhouse gas emissions by more than 50,000 tonnes. One of the trials is theinstallation of 2,500 electricity smart metres for homes and businesses.

Technologies: Smart metre, PVReferences:F)

http://www.smartgridimpact.com/index_download.html#map



http://www.townsvillesolarcity.com.au/

Synergy Advanced Metering Proof
Time period: 2009

Total budget: Approximately AUD4.5 million

Project partners:

Objective and results: The Thornlie and Canning Vale Advanced Metering Proof ofConcept study involved an investigation and behavioural trial of advanced metring solutions
as a means of helping customers manage their electricity consumption habits. The study aims
to revolutionise the way households consume energy and monitor their energy use. The study
included multiple channels of communicating with customers including through an in-homedisplay, an interactive website, email and SMS to encourage behavioural change.

Technologies: Smart metre

References:

http://www.smartgridimpact.com/index_download.html#map



http://www.parliament.wa.gov.au/parliament/pquest.nsf/3b051e205914713c4825718e00
186cc2/5254ce49ba21f25fc8257674002955a3?OpenDocument
6G) Country Energy Intelligent NetworkTime period: From 2008 (Ongoing)

Total budget: N/A

Project partners: around 10,000 customers in regional New South Wales

Objective and results: The Intelligent Utility Network is a digital, open standards-based
network of sensors, metring, communications, computer processors, and analytics whichconnects an entire utility company – from power plant to plug. These connected systems
provide a utility with near real-time data and information to better manage the grid
infrastructure, enabling fewer and shorter power outages, improved customer service, and theability to source and deliver power more efficiently, including renewable energy. Country
Energy is demonstrating day-to-day intelligent network applications for around 10,000
customers in regional New South Wales.

Technologies: Smart metre, EMS



References:

http://www.smartgridimpact.com/index_download.html#map



http://www.computerworld.com.au/article/212861/country_energy_set_deploy_australia_first_intelligent_utility_network/H) Blacktown Solar CityTime period: 2007–2013

Total budget: AUD37 million

Project partners: Blacktown local governmentObjective and results: The Blacktown Solar City project focused on giving residents andbusinesses in the Blacktown local government area the education and tools they need to use
energy more wisely and reduce energy consumption and associated emissions. By employing
solar power, smart metres, energy efficiency and new approaches to electricity pricing andfinancing, this project provided cost effective energy solutions and reduced greenhouse gas
emissions. It also provided valuable information that has the potential to help shape futureenergy markets and policy across different levels of government.

Technologies: PV, smart metre

References:

http://www.smartgridimpact.com/index_download.html#map



http://www.endeavourenergy.com.au/wps/wcm/connect/EE/NSW/NSW+Homepage/co
mmunityNav/Supporting+the+community/Blacktown+Solar+City7

I)

Adelaide Solar CityTime period: 2007–2013

Total budget: AUD3.9 million over three years

Project partners: Australian Government, customers in the cities of Salisbury, Tea Tree
Gully, Playford and AdelaideObjective and results: The programme combines solar power, smart metring, energy
efficiency and cost reflective pricing to conduct a trial of a range of innovative energy
solutions. It is being executed in the cities of Salisbury, Tea Tree Gully, Playford andAdelaide as part of the Australian Government's AUD94 million Solar Cities programme.

Technologies: PV, smart metre

References:

http://www.smartgridimpact.com/index_download.html#map



http://www.metropolis.net.au/metropolis/About-Metropolis/projects/ASC.html

Victoria Smart Meter Roll-out

J)Time period: 2009–2013

Total budget: N/A

Project partners: N/A

Objective and results: In Victoria, the main objectives of the deployment of smart metres
are to improve the information management and to give clients the tools necessary to reduce
their electricity consumption.

Technologies: Smart metre

References:

http://www.smartgridimpact.com/index_download.html#map

https://www.ewov.com.au/publications-and-media/news-hot-topics/hot-topic-archive/end-of-the-smart-meter-rollout

Under smart community-related projects in Australia, the central government plays the leadingrole in implementing various programmes. A broad range of initiatives, mainly technologicallyhigh-level initiatives using smart metres and ICT, are being implemented from the viewpoint ofurban development, development on islands and enhancement of grids. In particular, the projects inAustralia are promoting initiatives intended to improve energy efficiency, with a view to reducing
energy expenditure.

(3) References

https://ich.smartgridsmartcity.com.au/Ausgrid (2014), “Smart Grid, Smart City: Shaping Australia’s Energy Future”
81.2 Brunei(1) Outline of Energy Policy
Brunei enjoys a stable economy and a high level of income due to the production of abundantamounts of oil and natural gas. It also owns and manages huge amounts of overseas assets. On theother hand, in order to move its economy away from excessive dependence on energy resources,
the economy has aimed to achieve economic diversification under successive five-year national
development plans.
In January 2008, the government of Brunei launched a long-term national vision called“Wawasan Brunei 352.” In order to realise this vision, in April 2012, the government of Brunei
launched the 10th National Development Plan (RKN 2012–2017), which covered the five years
from 2012. Based on this plan, the government allocated BND6.5 billion in budget funds to 682
projects. The 10th National Development Plan centres on (a) education, (b) quality of life, (c)improvement of the business environment, (d) development of the private sector, (e) good
governance and (f) sustainable infrastructure.
Aside from the oil and natural gas industries, there are no large-scale industries or companies in
Brunei, so recipients of the benefits of smart communities are limited to the non-industrial sector,
mainly ordinary households. Therefore, smart community-related policies focus on studies on how
to use renewable energy in that sector.

(2) Major Smart Community Projects
A) Demonstration Project for Solar Photovoltaic Power Generation
Time period: 2008–2013 (Completion and start of operation of the facilities are scheduled
for 2010; a demonstration test will be conducted for three years thereafter.)Total budget: JPY1.5 billion (borne fully by Mitsubishi Corporation)Project partners: Mitsubishi Corporation, the government of Brunei

Objective and results: Mitsubishi Corporation conducted a demonstration test andoperational evaluation, including comparison of multiple solar cell modules under theweather conditions of Brunei, for three years from 2010 in cooperation with the Energy
Department under the Prime Minister’s Office of Brunei and the Department of Electrical
Services. Data and knowhow concerning the operation and maintenance of power generation
facilities and human resource development acquired through this demonstration test will be
used for future dissemination and practical use of PV power generation.

Technologies: PVReferences:
http://www.mitsubishicorp.com/jp/ja/ir/ar/2013/operations/energy/project.html

2

http://www.bedb.com.bn/why_wawasan2035.html

9

B)

UBD | IBM Centre Demonstration ProjectTime period: N/A

Total budget: N/A

Project partners: UBD (Universiti Brunei Darussalam), IBM

Objective and results: Six projects – Consumer and Grid Friendly Homes, Crop Modeling,
Economic Dispatch, Green Community Project, Solar PV Performance Modeling, ShortTerm Wind Energy Forecast – are now being implemented.

Technologies: PV, wind, biomass, EMS, pico smart grid system (PSGS), etc.



References:
http://202.93.211.141/current-projects.html

Smart community projects in Brunei focus on the use of renewable energy. Recently, Brunei
government officials have been actively participating in international seminars related to smart
communities. Through such activities, Brunei is expected to study the introduction of smart
communities as part of urban infrastructure development with reference to successful cases of suchactivities in neighbouring Asian economies by taking advantage of its strong domestic finances. It
is expected to promote smart communities for the convenience of residents using AEMS, HEMS,
EV, etc.

(3) References

http://www.asahi.com/eco/TKY200808130424.html

1.3 Canada(1) Outline of Energy Policy
The energy policy of the federal government of Canada is based on three basic principles: (1)being market-oriented, (2) attaching importance to the judicial powers and the role of provincial
governments and (3) intervening in the market process as necessary. In particular, the federal
government’s energy policy has placed emphasis on sustainable development in recent years. On theother hand, specific measures are determined by provincial governments and municipalities. In
addition, as Canada has vast areas of land, one notable feature of the economy is the strong need forstorage of electricity and heat in regions remote from metropolitan areas and so there is high interestin micro-grids. The Smart Grids Standards Advisory Committee (SGSAC), which is co-chaired by
the Standards Council of Canada and the Canadian Electricity Association Federal Energy
Regulatory Commission, is responsible for giving strategic advice, providing information andissuing instructions for the implementation of the Canadian Smart Grid Standards Roadmap3 .
3

http://www.scc.ca/en/about-scc/publications/roadmaps/canadian-smart-grid-standards-roadmap

10Among provincial governments, Ontario Province is highly interested in the dissemination ofrenewable energy, and thus is concurrently promoting the introduction of smart metres and theestablishment of smart grids.

(2) Major Smart Community Projects
A) Ontario's Smart Metering InitiativeTime period: 2004–2011

Total budget: CAD1 billion

Project partners: DOE, OEB (Ontario Energy Board), IESO (Independent Electricity
System Operator), Canadian Niagara Power, ENWIN Utilities, London Hydro SAPObjective and results: The project was intended to introduce smart metres into all
households and small and medium-size enterprises in Ontario Province. It aimed to introduce
4.5 million smart metres by the end of 2011, as well as the introduction of electricity pricing
by time zone. It also aimed to renew an aged power transmission and distribution networkand to build a smart grid to introduce renewable energy and reduce energy consumption.

Technologies: Smart metre, AMI, MDM, etc.



References:

http://www.energy.gov.on.ca/en/archive/annual-report-results-based-plan-2010-2011/

http://www.ieso.ca/Pages/Ontario's-Power-System/Smart-Grid/Ontario's-Smart-Meter
ing-Network.aspx



ISGAN (2013), Smart Grid Project Catalogue Part 1

B) Drake Landing Solar Community (DLSC)Time period: From 2007

Total budget: USD5.50 million

Project partners: CANMET Energy SAIC Canada, United Communities, Sterling Homes
Ltd, ATCO Gas, Town of Okotoks, Climate Change Division, Atlantic Region, Environment
Canada, IFTech International, Enermodal Engineering Ltd, Bodycote Materials Testing
Canada Inc, EnerWorks Inc, Nu, Sunbow Consulting Ltd, Hurst Construction Management
Inc, Howell-Mayhew Engineering IncObjective and results: DLSC is heated by a district system designed to store abundant solar
energy underground during the summer period and distribute the energy to each home forspace heating needs during winter period.
Establishing the largest subdivision of R-2000 single-family homes in Canada, eachbeing 30% more efficient than conventional housing

Fulfilling 90% of each home’s space heating requirements from solar energy thus
11

reducing dependency on fossil fuels
References

http://www.dlsc.ca/about.htm

C) Smart Metering ProgrammeTime period: 2011–2014

Total budget: CAD930 million

Project partners: BC Hydro, the government of British Columbia Province, Corix Utilities,
Capgemini, SAP, Bit Stew Systems, Clevest Solutions

Objective and results: The project aimed to introduce 1.8 million smart metres to replaceolder ones by the end of 2012. After the introduction of metres, the project intended todevelop applications for general households. The renewal of ageing power generation,transmission and distribution systems and the use of metre information were also underconsideration.

Technologies: Smart metre, development of applications



References:

http://www.bchydro.com/energy-in-bc/projects/smart_metering_infrastructure_program.
html



http://www.smartgridimpact.com/index_download.html#map

D) Hydrogen Assisted Renewable Power

Time period: 2009–2010

Total budget: N/A

Project partners: BC Hydro, General Electric (GE) and Powertech, Sustainable
Development Technology Canada (SDTC)

Objective and results: The programme aimed to produce hydrogen and store energy byusing hydropower and to reduce the fuel consumption of diesel power generators by utilising
a micro-grid system using fuel cells. It will reduce Bella Coola’s annual diesel consumption
by 200,000 litres -- lowering greenhouse gas emissions by 600 tonnes annually --, andprovide storage for run-of-river power, so the electricity can be used when the community
needs it most.

Technologies: Micro grid system, hydrogen, FC, storage

References:

https://www.bchydro.com/news/press_centre/news_releases/2009/bella_coola_ghg_redu
ction.html

12E) Installation of Next-generation MetersTime period: 2011–2017

Total budget: USD100 million

Project partners: Hydro Quebec, the government of Quebec Province, Landis-Gyr, SAP

Objective and results: The project aims to introduce 3.9 million smart metres by the end of
2017. In line with the introduction of AMI, Hydro Quebec will build a data management
system. The project will promote the replacement of ageing electricity metres and thedissemination of smart metres.

Technologies: AMI

References:F)

http://www.hydroquebec.com/residential/customer-services/next-generation-meters/

Hydro One Smart Meter Rollout
Time period: 2006–2010

Total budget: $112 million4

Project partners: Hydro One

Objective and results: After successfully completing the pilot project and incorporating
lessons learned, Hydro One staff began the work of safely and efficiently deploying AMI
infrastructure across the province. The project's total target is to install 1.3 million metres,
and currently over 1.2 million metres are installed. Hydro One and its project partners are notjust planning for the smart network of the future, they are developing it today through aseries of smart grid initiatives. These initiatives are employing numerous smart network andsmart home technologies enabled by an integrated combination of standards-based meshradio and state-of-the-art WiMax wireless technology, including: distribution station andsecurity monitoring; mobile work dispatch and accomplishment reporting; automated vehicle
location safety monitoring; emergency management vehicle communications; time-of-use
rate pilot project in combination with real-time energy monitors; automated two-way
communicating home thermostats; and in-home two-way real-time energy monitors.

Technologies: AMI infrastructure, communication and transport infrastructure development



References:

http://www.smartgridimpact.com/index_download.html#map



ISGAN, Smart Grid Project Catalogue Part 1, by project main application, 2013

Note that the references report the budget of the project in ‘$’, but do not specify whether it is USD,
CAD or other currency.

413G) EPCOR

Time period: 2009–2011

Total budget: N/A

Project partners: N/A

Objective and results: Three DA (Distribution Automation) circuits were installed in 2009.
Work on four new DA circuits started in 2010, to be completed in 2011. An additional six
DA circuits are planned for installation in 2011 as EPCOR continues to work to improvereliability on behalf of customers. EPCOR has a total of 284 circuits but many of them may
not be suitable for DA, such as underground circuits that are not subject to lightning strikes
or falling trees. DA is designed to minimise outages and lead to quicker identification of
faulted areas and faster repairs. In the event of a failure in the grid, DA can identify andisolate the failure, restoring power to most customers within one minute. This permits crews
to work at locations where there may be actual damages, such as downed wires or a blowntransformer that suffered a lightning strike.

Technologies: DA circuits

References:

http://www.smartgridimpact.com/index_download.html#map



http://corp.epcor.com/about/Documents/EPCOR-Corporate-Responsibility-Report-2009.pdfH) Toronto Hydro Smart Meter Rollout
Time period: 2005–2012

Total budget: CAD900 million (EUR697 million)Project partners: N/A

Objective and results: Toronto Hydro used eMeter’s Energy IP to enable them toaccomplish a full-scale rollout of Advanced Meter Infrastructure (AMI) and smart metres toenable TOU pricing, with simultaneous upgrading of existing related infrastructure withlimited customer complaints or inquiries. Toronto Hydro deployed Energy IP in 2008 toserve as an Operational Data Store (ODS) to handle the data from the AMI system, provide avirtualised interface to the centralised MDM/R, and to perform customer presentment data
management and demand response programme management. The value of the benefits of thesmart metre rollout was calculated by Constellation Consulting at about CAD1.25 billion(EUR1.16 billion) assuming the successful introduction of Time of Use (ToU) rates and fullconsumer engagement. The estimated implementation costs for the smart metring rollout isapproximately CAD900 million (EUR697 million).

Technologies: eMeter, AMI
14



References:

http://www.smartgridimpact.com/index_download.html#map



http://www.ey.com/Publication/vwLUAssets/Utilities_Unbundled_8_May_2010/$FILE/
Utilities_unbundled_8_May_2010.pdf

I)

GridSmartCity (Burlington, Ontario)Time period: From 2009 (Ongoing)

Total budget: N/A

Project partners: N/A

Objective and results: GridSmartCity™ by Burlington Hydro integrates electricity
production, delivery and consumption to produce a more efficient, reliable and responsive
system with a lower environmental footprint. The Smart Grid uses sensors and monitors andcombines them with advanced communications and computer analytics to improve the ability
to incorporate renewable power generation from the sun and wind and new technologies suchas electric vehicles. It also uses smart metres, time differentiated prices and in-home energy
management devices to help consumers to better understand their electricity use and enable
them to control usage to manage electricity cost.

Technologies: EV, PV, smart metre, wind power generation

References:J)

http://www.smartgridimpact.com/index_download.html#map

https://www.burlingtonhydro.com/your-community/projects.html

PowerShift AtlanticTime period: N/A

Total budget: $32 million5

Project partners: New Brunswick Power

Objective and results: The impact of the virtual power plant (VPP) solution is assessed bycomparing the differences in generation utilisation and the associated production costs by
evaluating the system with, and without, the VPP. This will be used to determine: peak
reduction, additional RES hosting power in the grid/maximum power load and estimatedreduction of CO2.

Technologies: Aggregation (demand response, VPP), smart network management,
integration of DER, integration of large-scale RES

References: ISGAN, Smart Grid Project Catalogue Part 1, by project main application, 2013

Note that the reference reports the budget in ‘$’, but does not specify whether it is USD, CAD orother currency.

515K) Zone de Réseau InteratifTime period: N/A

Total budget: $25.6 million6

Project partners: Hydro-Québec Distribution, Mitsubishi Motors



Objective and results: The agreement between Hydro-Québec and Mitsubishi calls fortesting of up to 30 all-electric iMiEV type vehicles. The goal of the project is to better
understand charging and driving behaviours, as well as charging infrastructure needs at 120
V/15A, 240V/15–30A, and direct current charging (50kW).

Technologies: Electric vehicles and Vehicle2Grid applications, smart metre

References: ISGAN, Smart Grid Project Catalogue Part 1, by project main application, 2013

Smart community-related projects in Canada are mainly led by provincial governments, aiming
to promote the introduction of smart metres accompanying the modification of ageing facilities andto make use of metre information. Canada has vast areas of land, so it is difficult to develop
economy-wide infrastructure. As a result, one notable feature of the Canadian projects is theutilisation of micro-grids as autonomous energy systems in remote regions in particular.

(3) References

http://cleantech.nikkeibp.co.jp/report/smartcity2012/

http://www.iea-isgan.org/

1.4 Chile(1) Outline of Energy Policy
The Energy Ministry announced a new energy policy called “National Energy Strategy 2012–
2030” in February 2012. The six pillars of the strategy are: improvement of energy efficiency,
promotion of introduction of non-conventional renewable energy sources, roles of traditional
renewable energy sources, strengthening of domestic transmission systems, enhancement ofcompetitiveness and diverse and sustainable development. Relevant items under the new energy
policy are as follows, which include “Facilitating Connection for Small Generators and Intelligent
Networks” related to smart communities.
Enhancement of transmission systems7


Speeding-up of procedures for granting electricity concessions

Creation of utility corridors – regulatory reform

See footnote5.
http://kallman.com/shows/iftenergy_2012/pdfs/Energy-for-the-Future-Chile's-National-Energy-Strategy-2012-2030English.pdf
6
7

16



Deregulation related to transmission systems and transformer substations



Facilitating connection for small generators and intelligent networks

Promotion of competition

Creation of independent electricity system operation centres that will replace theexisting economic load dispatch centres

Ensuring secure and economical distribution of electricity

Promotion of renewable energy power generation by households – net metring

International transmission systems

Participation in a project implemented by Colombia to connect transmission systems with

those of central and South American economies (Peru, Bolivia and Ecuador)(2) Major Smart Community Projects
A) Santiago District Smart City Development
Time period: 2012–2020

Total budget: USD40 million

Project partners: The government of Chile

Objective and results: 1) Co-design of technology solutions to improve local and municipal
services; 2) Co-creation of a roadmap for scaling up the adoption of technology solutions to
support local and municipal services; 3) Co-creation competition (i.e., open challenge) withlocal stakeholders (e.g., universities, enterprises, civil society, local and municipal
government) to develop technology solutions for local and municipal services, and 4)
Co-creation of a strategic plan for the development of a local technology-innovation lab for
local and municipal services with the ecosystemTechnologies: Adoption of LED lighting, HEMS, traffic control system, smart metre

References: http://cityminded.org/santiago-chile-ingredients-smart-city-10307

B) Huatacondo District Micro Grid Development
Time period: N/A

Total budget: CLP300 million

Project partners: Centro De Energia (an organisation within the University of Chile)Objective and results: The project introduces renewable energy into micro grids.


Benefits:

PV: 22.68kW + 1kW



Wind: 3kW



Storage battery: 30kVA
17

Renewable energy accounts for 75% of the energy provided in the project area.



Diesel fuel consumption is reduced by 50%.

Technologies: PV, wind, lead-acid storage battery

References: http://www.centroenergia.cl/ce-fcfm/?page_id=1004

C) Introduction of PV Power Generation into Educational Facilities in the El Romeral
RegionTime period: 2012

Total budget: N/A

Project partners: Centro De Energia (an organisation within the University of Chile)Objective and results: The project aimed to introduce PV power generation into educational
facilities in regions unconnected to grids.
Benefits:

Introduction of 14 PV modules (3.2kW)Lead-acid battery (640Ah)

Backup diesel (3.2kW)

Technologies: PV, lead-acid storage battery

References: http://www.centroenergia.cl/ce-fcfm/?page_id=1922

D) "Smart City Gran Concepcion" Activity
Time period: 2014

Total budget: N/A

Project partners: World Bank (ICT Unit),The government of Chile (MTT)

Objective and results: The project aims to develop and operate a workshop package with aview to smart city development.
To achieve two goals: (A) to improve local and municipal service delivery byintroducing open innovation and ICT tools; and (B) to lay the framework for thedevelopment of a local and sustainable innovation ecosystem in Gran Concepcion.

Technologies: Workshops and discussions incorporating the design thinking technique

References:
http://blogs.worldbank.org/ic4d/smart-city-gran-concepcion-activity-launched-chile

In 2014, a study council on the introduction of technologies necessary for promoting smart cities
and services in future was established under the leadership of the government of Chile, Chilean
telecommunications companies and international banks. Currently, a project intended to disseminate
18

renewable energy is ongoing. In the future, demonstration and full-fledged dissemination ofcomprehensive, advanced smart communities, including renewable energy usage, may be promoted.

(3) References

Gobierno de Chile, “National Energy Strategy 2012–2030”

1.5 People's Republic of China(1) Outline of Energy Policy
The Xi government of the People’s Republic of China has set forth a “new-type urbanisation”
policy and has announced that it will develop infrastructure, including energy, IT communications
and traffic systems, and will concurrently reform social systems, including the social security systemand the family registration system, in order to promote green and smart new-type urbanisation. In
March 2014, the government of China announced the New-Type Urbanisation Plan (2014–2020),
advocating the goal of raising the proportion of residents in urban areas to 60% (the current
proportion is approximately 53.7%) by having around 100 million people with rural family
registration settle permanently in urban areas by 2020.
Land, urban and real estate development is also an important element of smart community
development in China, and names like “low-carbon cities,” “green cities,” “green communities” and“smart cities” are widely used. Almost at the same time as the start of implementation in 2010 of the
12th Five-Year Plan (2011–2015), five provinces and eight cities across the economy were selected
for implementation of low-carbon model city projects under the leadership of the National
Development and Reform Commission of China. In March 2012, the Ministry of Science andTechnology announced the 12th five-year plan for smart grid development, presenting goals andspecific measures regarding important elements of the smart grid such as grid paralleling and storage
technologies related to renewable energy, long-distance power transmission technology, technology
related to automation of power distribution and micro-grids, and smart metres and application
technologies. Subsequently, under the leadership of the National Development and Reform
Commission and central government ministries and agencies, such as the Ministry of Housing and
Urban-Rural Construction, the scope of demonstration was expanded through such programmes as
low-carbon model cities, low-carbon model communities and smart model cities, and the standard
for evaluating low-carbon model cities and smart cities is being established.
Encouraged by the central government’s policy, regional governments formulated urban
development plans including low-carbon city and eco-city plans one after another, resulting in thecreation of too many such plans. While the central government is preventing uncontrolled
development of low-carbon cities and smart cities by regional governments, the New-type
Urbanisation Plan (2014–2020), announced in 2013, set forth the policy of promoting such cities.
19

Therefore, in the future, the construction of low-carbon cities and smart cities is expected to proceedfurther in China. The low-carbon model community programme being implemented by the National
Development and Reform Commission aims to build some model communities by the end of 2020
by selecting 1,000 places nationwide as low-carbon models.
As there are a very large number of smart community-related demonstration projects in China,
major projects in terms of the total budget are described below.

(2) Major Smart Community Projects
A) Caofeidian International Eco-cityTime period: Short term (2008–2010), medium term (2011–2020), long term (2020 andbeyond)Total budget: Total investment budget of approximately CNY5 trillion

Project partners: SWECO of Sweden (urban development plan), Caofeidian International
Eco-city Investment Co Ltd, Caofeidian Jiaxiang Real Estate, Beijing Golden Tech, Nomura
Research Institute, Nikken Sekkei, Daiwa House Industry, Sharp



Objective and results: The project aims to build a Japan-China cooperation community inthe project area and to encourage Japanese companies to set up operations there. Currently,
Japanese companies such as Nomura Research Institute (development strategy), Nikken
Sekkei (planning), Daiwa House Industry (real estate development) and Sharp (HEMS) areparticipating in the eco-city development project. The project aims to achieve an energy
saving rate of 65% for newly-built houses and 50% for public buildings; build city-wide
networks of pedestrian and cycling roads; meet more than 60% of the annual hot water
demand with solar thermal water heaters; and achieve a 100% utilisation rate of renewableenergy including wind and PV power generation, solar thermal and geothermal heat.

Technologies: HEMS, water treatment and usage, traffic control system, wind power
generation, PV

References:

http://en.tswstc.gov.cn/



http://www3.ntu.edu.sg/TCTforum/ppt/DrLinPeng.pdf

B) Sino-Singapore Guangzhou Knowledge CityTime period: until 2030



Total budget: Approximately CNY18 billion

Project partners: Sino-Singapore Guangzhou Knowledge City Investment and Development
Co Ltd (joint venture of the government of Guangzhou City and SingBridge International
20

Singapore), Sino-Singapore Guangzhou Knowledge City Investment and Development Co
Ltd, SingBridge International Singapore, Ascendas of Singapore, Hitachi Ltd (energy
management, renewable energy, IT platform, provision of solutions in such fields as
next-generation transportation), ABB of Switzerland, Siemens of Germany and Philips of theNetherlands

Objective and results: Sino-Singapore Guangzhou Knowledge City is a city being
co-developed by the governments of China and Singapore. It aims to create a centre ofadvanced manufacturing and services industries by introducing and using ITC technologies
and attracting personnel in the high-technology field and make it an environment-friendly
city by introducing renewable energy and green buildings.

Technologies: ICT, EV, environment-friendly town design, geothermal, bio gas, PV,micro-hydropower, CHP, public transport system, green buildings

References: http://www.ssgkc.com/

C) Yujiapu Financial DistrictTime period: 2010–2020

Total budget: N/A

Project partners: The city government of Tianjin, Tianjin Innovative Financial Investment
Company, SOM of the United States, Nikken Sekkei, Honeywell of the United States, etc.

Objective and results: This project, which is the first low-carbon model city project in the
Asia-Pacific Economic Cooperation (APEC) region, aims to create a low-carbon central
business district (CBD). Its goal is reducing CO2 emissions by 30% by 2030 compared with2010. Deployment of an energy efficiency steward by Yujiapu Innovative Service Center Co
Ltd saves a monthly average of 50,000kWh, and results in a monthly average of 50 tons lesscarbon, and a monthly energy cost of over CNY40,000, with an average energy-saving rateof 23.4%. Planned deployment of a regional-grade energy efficiency steward at Yujiapu will
help reduce the energy consumption of relevant architectural structures by more than 20%.

Technologies: EV, green buildings, recycling, renewable energy, transport systems, IGCC

References:

http://www.tifi.com.cn/



http://apecenergy.tier.org.tw/database/db/ewg47/3/1_Yujiapu_Financial_District_Low_
Carbon_Town_Index_System.pdf

D) Shanghai Pudong New Area
Time period: Until 2015 (during the 12th Five-Year Plan)

Total budget: Investments totalling CNY30 billion are planned (90% of which will be
21

private capital)Project partners: The Economic and Information Commission of the Pudong New Area
Economic, Pudong Station of Shanghai branch of China Telecom, Shanghai Pudong
Development Bank, Xuntu Digital, Shanghai E&P International, etc.

Objective and results: The project aims to check and monitor energy consumption at 366
major public buildings by using the Internet of Things (IoT) and industrial IoT. It will build asmart public transport system that provides real-time traffic information to residents. Smart
medicine will promote a shift to electronic medical data (2.38 million cases have alreadybeen shifted to electronic data) and expand the introduction of electronic services, including
automated reception, automated accounting and automated report printing, at hospitals. An
e-government system will be introduced in order to reduce the time spent on administrative
procedures.

Technologies: Smart transportation, vehicle-to-vehicle communication network cloudcomputing

References: http://www.spc.jst.go.jp/news/120205/topic_1_05.html

E) Smart Community Demonstration Test in Gongqingcheng City, Jiangsu ProvinceTime period: Fiscal 2011–2013 (preliminary survey period was until the end of November
2011)



Total budget: Preliminary survey: approximately CNY30 million; demonstration project:approximately CNY3 billion (The budgets for the preliminary survey and the project itself
may vary depending on the budget status.)Project partners: Toshiba Corporation, Toshiba Solutions Corporation, Toshiba (China) Co
Ltd, Smart Communications Inc, Itochu Corporation, Itochu (China) Holding Co Ltd, NTT
DoCoMo

Objective and results: The project aimed to establish an advanced smart community model
for small and medium-size cities.

F)

Technologies: PV, charging infrastructure system, storage battery
Jinzhou City Smart Community ProjectTime period: 2012–2015

Total budget: N/A

Project partners: Toshiba Corporation

Objective and results: The project aims to promote a model city for use of new energy
sources, energy conservation and environmental preservation.

Technologies: BEMS
22



References: http://www.kankyo-business.jp/news/002746.php

G) Yangzhou Smart Grid Demonstration
Time period: 2010–2012

Total budget: USD2 billion

Project partners: GEObjective and results: The project aims to disseminate technologies across China as in othereconomies by presenting a model case of city development to the economy.

Technologies: Next-generation smart grid and railway, and provision of financial services
using IT

References:
http://www.elp.com/articles/2010/04/ge-opens-yangzhou-smart-grid-demonstration-center-in-china.html

H) Sanxiang Intelligent Substation
Time period: N/A

Total budget: N/A

Project partners: CSG (China South Powergrid)

Objective and results: Wide-area information monitoring and control; a multi HVDC
coordinating and control system developed by CSG has also been put into operation.

Technologies: Grid management system

References:

http://www.smartgridimpact.com/index_download.html#map

Yanshan Yu et al., The Smart Grids in China—A Review, Energies 2012, 5, 1321–
1338; doi:10.3390/en5051321

I)

Smart Grid in Shanghai World ExpoTime period: 2010

Total budget: N/A

Project partners: Government of China

Objective and results: Shanghai World Expo was the first official presentation of the “lowcarbon” concept Expo. There was a large-scale implementation of solar energy, new energy
vehicles, smart grid, and an LED lighting demonstration. The Smart Grid Demonstration
Project was located in the World Expo Park. A 110kV intelligent substation in B1 of theState Grid Pavilion supplied electric power for the whole Park. With a low-carbon and green
concept, this substation used a ground source heat pump, heat collection, ice storage and23other new technologies* to achieve energy recycling. The entire demonstration zone included
nine model projects and four demo projects.
Technologies: Heat pump, heat collection, ice storage

References:J)

http://www.smartgridimpact.com/index_download.html#map

https://www.sgiclearinghouse.org/Asia?q=node/2547&lb=1

Power Information Collection System
Time period: 1990s

Total budget: N/A

Project partners: N/A

Objective and results: Pilot construction of power information collection system
encompassing loading management and metre reading technologies**Technologies: Smart metre

References: http://www.smartgridimpact.com/index_download.html#map

K) Distributed Power Supply Pilot ProjectTime period: N/A

Total budget: N/A

Project partners: N/A

Objective and results: 863 programmes of distributed power supply in FushanTechnologies: Distributed power system

References: http://www.smartgridimpact.com/index_download.html#map

L)

Sino-Singapore Tianjin Eco-cityTime period: 2011–2020 (Ongoing)

Total budget: N/A

Project partners: Residents in Tianjin

Objective and results: The Smart City Project in Sino-Singapore Tianjin Eco-city wasstarted in April 2010 and will be a 30km2 eco-city accommodating 350,000 residents alongwith business parks. The city will be divided into seven distinct sectors – Lifescape,
Eco-Valley, Solarscape, Urbanscape, Windscape, Earthscape and Eco-Corridors.

Technologies: PV, wind power generation system

References:

http://www.smartgridimpact.com/index_download.html#map



http://www.tianjineco-city.com/en/24M) Smart Meter Upgrade ProjectTime period: 2010–2015 (Ongoing)

Total budget: N/A

Project partners: State Grid Corporation of China (SGCC)

Objective and results: Thirty-six million smart metres have been installed as of 2011. State
Grid Corporation of China (SGCC) plans to install over 300 million smart metres by the endof 2015.

Technologies: Smart metre

References: http://www.smartgridimpact.com/index_download.html#map

N) The Longgang Renewable Energy Application
Time period: N/A (Ongoing)

Total budget: N/A

Project partners: N/A

Objective and results: The Longgang renewable energy application base was built toexperiment on developing renewable power and connecting it to the grid.

Technologies: N/A

References: http://www.smartgridimpact.com/index_download.html#map

O) Intelligent Network DistributionTime period: N/A (Ongoing)

Total budget: N/A

Project partners: N/A

Objective and results: Automatic distribution management system with technical features ofremote management, remote signal and remote control

Technologies: Automatic distribution management system

References: http://www.smartgridimpact.com/index_download.html#map

P)

Macau AMI Pilot ProjectTime period: 2012–2013

Total budget: N/A

Project partners: N/A

Objective and results: AMI Pilot Project in Macau

Technologies: AMI

References: http://www.smartgridimpact.com/index_download.html#map
25

Smart city projects are listed below.
Table 1-2 List of Smart City-related Projects in China
Beijing

Dongcheng District, Chaoyang District, Beijing City, the future of technology,
Beijing Lize financial business district, Beijing Economic and Technological

Tianjin

Jinnan District, Tianjin Eco City, Wuqing, Hexi District

Shanghai

Shanghai Pudong New Area

Hebei

Nan'an District of Chongqing Municipality, Chongqing Two Rivers Area,
Yongchuan District, Jiangbei District
Shijiazhuang City, Langfang, Handan City, Qinhuangdao City, Qian'an City,
Qinhuangdao Beidaihe District, Tangshan Caofeidian District, Tangshan City

ShanxiTaiyuan, Changzhi, Ping Lu District, Shuozhou, Yangquan, Datong City,
Jincheng, Shuozhou Huairen

Chongqing

Inner Mongolia Autonomous Region Wuhai, Hulunbeir Erdos, Baotou Shiguai District
Heilongjiang Province
Jilin

Zhaodong, Zhaoyuan County, Daqing, Jiamusi City Huanan County, Qiqihar,
Mudanjiang City, Anda
Liaoyuan City, Panshi City, Siping City, Yushu, Changchun High-tech
Industrial Development Zone, Fusong Baishan City, Jilin Chuanying search

Shandong Province

Shenyang Hunnan New District, Dalian City of eco-technology innovation,
Yingkou City, Zhuanghe, Dalian general Bay Area
Dezhou, Weihai, Dongying City, Shouguang City, Xintai City, Changyi, fat city,
Jinan West Park, Yantai City, Qufu City, Jining City, Laoshan District,

Jiangsu Province

Wuxi, Changzhou, Zhenjiang, Taizhou City, Nanjing Hexi New City (Jianye),Suzhou Industrial Park, south of Yancheng District, Kunshan Huaqiao

Anhui Province

Wuhu, Huainan, Tongling City, Yuhui District Bengbu, Fuyang City,
Huangshan City, Huaibei City, Hefei High-tech Industrial Development Zone,

Liaoning Province

Zhejiang Province
FujianWenzhou, Jinhua City, Zhuji City, Hangzhou City, Zhenhai, District ofHangzhou City, Hangzhou Xiaoshan District, Ningbo City (including Haishu)
Nanping City, Cangshan District, Pingtan comprehensive experimental
zone,
Putian City, Quanzhou Taiwanese Investment Zone

Jiangxi Province

Pingxiang City, Nanchang Honggutan,
Gongqingcheng, Shangrao city Wuyuan

Xinyu

City,

camphorCity,

Henan Province

Zhengzhou City, Hebi City, Luohe City, Jiyuan City, Xinzheng City, New
Luoyang, Xuchang City, Wugang, Lingbao

Hunan Province

Wuhan, Wuhan riverbank area, Huanggang, Xianning City, Yichang City,
Xiangyang
Zhuzhou City, Shaoshan, Zhuzhou Yunlong demonstration area, Parker Town,
Liuyang City, Changsha Great River pilot area, Yueyang City, Yueyang Tower

Guangdong Province

Zhuhai City, Panyu District, Guangzhou City, Luogang District, Guangzhou,
Shenzhen, Ping Shan District, Foshan City Shunde District, Foshan City

Hubei Province

Guangxi Zhuang Autonomous Region Nanning, Liuzhou (including Yufeng District), Guilin, Guigang
HainanWanning City

Guizhou Province

Kunming Wuhua, Honghe Hani and Yi Autonomous Prefecture, Mengzi City,
Honghe Hani and Yi Autonomous Prefecture Mile City
Tongren City, Liupanshui City, Wudang District of Guiyang City, Guiyang,
Zunyi City (including Renhuai, Meitan County), Bijie City, Kaili City,

Gansu Province

Lanzhou, Jinchang City, Silver City, Longnan City, Dunhuang City

Yunnan Province

Sichuan Province
Tibet Autonomous Region

Ya'an City, Wenjiang District, Chengdu Pi County, Mianyang, Suining, Chong
City
Lhasa, Nyingchi

Shaanxi Province

Xianyang City, Yangling Agricultural Hi-tech Industries Demonstration Zone,
Baoji, Weinan, Yan'an City

Ningxia Hui Autonomous Region

Wuzhong City, Yinchuan, Shizuishan (Dawukou area included), Yinchuan
Yongning County

Xinjiang Uygur Autonomous Region

Korla City, Kuitun City, Urumqi, Karamay, Yining

Source: Compiled from the National Smart City Pilot Project List, prepared by the Ministry of
Housing and Urban-Rural Construction of China.

26

(3) References

National New-Type Urbanization Plan (2014–2020)



Ministry of Housing and Urban-Rural Construction of China (2013), “National Smart City
Pilot Project List”

1.6 Hong Kong, China(1) Outline of Energy Policy
In the Five-Year Plan (12th plan, 2011–2015), which is the pillar of the national economic plan,
China is advocating the scientific formulation of urban plans centering on the development oftransport, communication and electricity infrastructure, etc. as an urbanisation policy. Smart
community plans in China are part of the urbanisation strategy. Based on the above, the Hong Kong
Special Administrative Region is striving to realise smart communities by implementing thefollowing measures.
Adoption of the New Digital 21 Strategy (smart Hong Kong, smart living)

Development of green buildings (ordinance concerning energy efficiency of buildings)

Promotion of green transport (trial green transport fund, etc.)



Setting of the target for carbon intensity reduction

In addition, Hong Kong, China is actively implementing the following projects by taking
advantage of having the second highest dissemination rate of smart phones and its strength inelectronic infrastructure, including an advanced and extensive settlement system using non-contact
type smart cards, in order to establish its position as an international high-tech city in Asia.

(2) Major Smart Community Projects
A) Global Expansion of an Urban Smart Transport System
Time period: N/A

Total budget: N/A

Project partners: Mitsubishi Corporation

Objective and results: The project aims to develop a model for collaboration between EV,
EV bus and charting systems that can be applied to other regions.

Technologies: EV, EV bus, charging system

References: https://www.mitsubishi.com/mpac/j/monthly/ichioshiback/monthly05.html

B) Smart City Plan in Hong Kong, China
Time period: 2014–2015

Total budget: *USD77.9 million (the infrastructure portion of the total budget of the27

government of Hong Kong, China in fiscal 2014)


Project partners: The government of Hong Kong, China

Objective and results: The project aims to enhance the competitiveness of the City of Hong
Kong

Technologies: Development of communication infrastructure

References: http://www.budget.gov.hk/2014/eng/highlights.html

C) Hong Kong AMI Pilot ProjectTime period: From 2012

Total budget: N/A

Project partners: N/A

Objective and results: This is a 4,500-metre pilot project. The project will link
cellular-enabled metres and data collection and management software with grid routers andconnected grid management systems.

Technologies: Smart metre

References: http://www.smartgridimpact.com/index_download.html#map

Regarding the implementation of smart community projects, in 2013, the central government ofChina announced 90 locations designated as trial cities for such projects, in which more than USD10
billion will be invested over the next three years. Hong Kong, China, which is one of those cities, ismaking progress in the field of urban development using the smart community project through theenhancement and improvement of urban infrastructure including communication infrastructure – anarea of strength for Hong Kong, China – while making use of technologies and capital provided byforeign companies, such as Siemens, Schneider Electric and Hitachi Ltd.

(3) References

12th Five-Year Plan (2011–2015)

1.7 Indonesia(1) Outline of Energy Policy
As for Indonesia’s energy policy, the “Presidential Regulation on National Energy Policy” wasestablished in January 2006. The policy emphasised reducing dependence on oil and shifting to gas
and coal. Meanwhile, a new draft national energy policy approved by the parliament in January 2014
aims to continuously increase renewable energy and reduce dependence on oil. With regard to theimplementation of a long-term national development plan for 2005 to 2025, the government also
formulated the “Masterplan for Acceleration and Expansion of Indonesia’s Economic Development”
28

(MP3EI)8. The Metropolitan Priority Area for Investment and Industry (MPA) Master Plan, which ispart of the MP3EI, was drafted as an action plan related to Jakarta in order to resolve various
problems in the Jakarta metropolitan area, including serious traffic congestion and air pollution, andan increase in greenhouse gas emissions resulting from growth in energy demand. There are projects
related to smart communities and urban development in particular that are being implemented basedon this plan.

(2) Major Smart Community Projects
A) Development of a Kitakyushu City-type Low-carbon, Eco-city Model in Surabaya City,
IndonesiaTime period: 2012–2013

Total budget: JPY80 million

Project partners: NTT Data, Nippon Steel & Sumikin Engineering, Fuji Electric,
Kitakyushu City, Surabaya City

Objective and results: The project aims to turn cities and industrial zones into low-carbon
ones with high added value. With a view to creating business opportunities for Japanesecompanies, the project proposes the introduction of systems that create high added value,
low-carbon systems and eco-city systems (cogeneration, recycling, etc.) into urban areas andindustrial zones in Surabaya, which has had a close relationship with Kitakyushu City formany years.

Technologies: Cogeneration, recycling technology, smart metre, EMS



References:

http://www.meti.go.jp/meti_lib/report/2012fy/E002999.pdf

B) Project on Low-Carbon City Planning in Surabaya
Time period: Fiscal 2012–2016



Total budget: Approximately JPY13 billion to JPY14 billion

Project partners: Institute for Global Environmental Strategies, Kitakyushu City
(Kitakyushu Asian Center for Low Carbon Society), NTT Data Institute of Management
Consulting Inc, ALMEC Corporation, Hitachi Zosen Corporation, AMITA Corporation,
Matsuo Sekkei, Nishihara Corporation

Objective and results: The project is examining the possibility of reducing greenhouse gas(GHG) emissions in major energy consumption sectors in Surabaya City in order to explore
the possibility of forming a specific large-scale JCM project in the city. In the field of energy,8

http://www.indonesia-investments.com/projects/government-development-plans/masterplan-for-acceleration-and-exp
ansion-of-indonesias-economic-development-mp3ei/item306

29the project aims to save energy used in buildings and to provide heat and electricity toindustrial zones, and in the field of transportation, it aims to improve the operation of public
transport systems, tax service, etc. and promote a shift to highly efficient vehicles.
Technologies: CHP, LED, BEMS, etc.



References:

http://www.env.go.jp/earth/coop/lowcarbon-asia/project/data/FY2013_FS05/FY2013_F
S05_EN_V1.pdf

C) Building of Smart Communities on Indonesian IslandsTime period: 2011–2012

Total budget: N/A

Project partners: Meidensha Corporation

Objective and results: The project proposes a micro-grid system to the national electricity
company (PLN) in order to introduce renewable energy into remote islands. Meidensha
Corporation also proposes a joint operation with the national electricity company.

Technologies: PV, EMS, battery

References:

http://www.meti.go.jp/meti_lib/report/2011fy/E002968.pdf

D) Development of a Smart and Eco-industrial Zone Model in the Suryacipta Industrial
ZoneTime period: Fiscal 2012–2016



Total budget: Approximately JPY3.5 billion

Project partners: NEDO, Ministry of Energy and Mineral Resources (MEMR), Sumitomo
Corporation, Fuji Electric, Mitsubishi Electric, NTT Communications

Objective and results: The project aims to save energy and provide high-quality electricity
by making use of Japanese electric power infrastructure technology. It will verify both thetechnological and business validity of this business model and will continuously expand thebusiness after confirming its usefulness.

Technologies: Automated power distribution system, uninterruptible power supply, voltage
stabiliser, etc.



References:Japanese

http://www.nedo.go.jp/news/press/AA5_100213.html
companies

have

been

involved

from

the

commercialisation

stage;

smart

community-related projects are being implemented mainly based on capacity building support
provided by the ADB.
30

E) Green Cities: A Sustainable Urban Future in Indonesia
Time period: Undecided

Total budget: USD1 million

Project partners: Regional governments, urban development companies, etc.

Objective and results: The project aims to build a green city design system in Indonesia(including not only development of infrastructure but also provision of services). It also aims
for comprehensive management of cities based on systematic urban design.

Technologies: N/A

References: http://www.adb.org/projects/46380-005/mainF)

Renewable Energy Development
Time period: 2005–2011

Total budget: USD1 million

Project partners: The government of Indonesia, local governments and local residentsObjective and results: The project aims to develop new energy sources on Indonesianislands. It also aims to secure and provide power by building small and medium-sizehydropower generation facilities and geothermal power generation facilities. It will operate
and manage three small hydropower generation facilities and conduct commercial operationof two geothermal power generation facilities, and develop and operate three hydropower
generation facilities.

Technologies: Small hydro

References: http://www.adb.org/projects/34100-013/main

In addition to the abovementioned smart community projects, there are a large number of urban
development plans. In Indonesia, there are low-carbon city models including waste treatment, andsmart community and smart city development plans implemented from various viewpoints, including
urban development intended to invite industries and the development of islands. There are also
diverse initiatives utilising the knowledge acquired through preceding projects in cooperation withJapanese companies and local governments and human resource development in Indonesia.

(3) References

NEDO, “Basic Survey toward Realizing Smart Community Urban Plans in Cities in the
Neighborhood of the Indonesian Capital,” 2013



Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development31

1.8 Japan(1) Outline of Energy Policy
Regarding smart communities in Japan, the Strategic Energy Plan9, which was decided by the
Cabinet in 2014, stipulates the following: “A smart community is a community of a certain scale inwhich various consumers participate and one which has created a new social system. The newsocial system, while utilising a distributed energy system, including renewable energy andcogeneration, comprehensively manages energy supply and demand of the distributed energy
system through an energy management system using IT, storage battery and other technologies so
as to optimise use of energy and incorporates life support services, including the provision of carefor elderly people.” In light of this, it can be said that the objective of smart communities in Japan
is to change lifestyles10 by further disseminating renewable energy and making active use of ICT(information and communication technologies).
As smart community demonstration projects are cited in the Strategic Energy Plan that was
decided by the Cabinet in 2014, they are being implemented mainly by the Agency for Natural
Resources under the Ministry of Economy, Trade and Industry. Currently, large-scaledemonstration projects are under way in four locations in Japan (Yokohama City, Toyota City,
Keihanna-gakken City and Kitakyushu City) (referred to hereafter as the Four Major
Demonstration Projects). In addition, the government has designated environmental future cities(11 locations) and environmental model cities (23 locations) and is promoting the development ofenvironment-friendly cities in the broad sense of the term, including smart communities. (Theenvironmental future city project is characterised as one of the 21 National Strategic Projects under
the New Growth Strategy in 2010.) In Japan, smart community development is expected to proceed
as part of urban development.

(2) Major Smart Community Projects
A) The Yokohama Smart City Project (YSCP)Time period: 2010–2014

Total budget: JPY74 billion

Project partners: City of Yokohama, Advanced Energy System for Sustainability, Urban
Renaissance Agency, Marubeni Corporation, Yokohama Smart Community, Accenture, NTT
DoCoMo, NTT Facilities, Orix, Orix Auto Corporation, Sharp, JX Nippon Oil & Energy,
Sumitomo Electric, Sekisui House, Sony Energy Devices, Daikyo Astage, Taisei, Tokyo Gas,
Tokyo Electric Power, Toshiba, Nissan, JGC Corporation, J-SYS, NEC, Nomura Real Estate

910

http://www.enecho.meti.go.jp/en/category/others/basic_plan/pdf/4th_strategic_energy_plan.pdf
Compiled with reference to the website of Japan Smart City Portal.

32

Development, Panasonic, Hitachi, Misawa, Mitsui Fudosan, Mitsui Fudosan Residential,
Mitsubishi Estate, MeidenshaObjective and results: The project aims to develop smart city models based on cooperation
between citizens, private companies and cities and to disseminate successful models
nationwide and abroad.

Technologies: PV power generation, storage battery, CEMS, HEMS, BEMS, FEMS, EV,charging infrastructure, storage battery SCADA*4,000 detached houses and condominiums, four business buildings, three commercial
buildings, eight condominium buildings, one large factory, 25 demand response(DR)-capable EVs (including six charging- and discharging-capable EVs; two charging
stations installed with PV storage batteries)

References: http://jscp.nepc.or.jp/yokohama/B) The Toyota City Low-carbon Society Verification Project (Smart Melit)Time period: 2011–2014

Total budget: JPY22,720 million

Project partners: Toyota City, Aichi Prefecture, Nagoya University, Aisin, Eneres, KDDI,
Circle K, Sharp, Shinmei Industry, Sumitomo Electric, Secom, Systems Engineering
Consultants, Chubu Electric Power, Denso, Toshiba, Toho Gas, Toyota, Toyota Industries
Corporation, Toyota Smile Life, Toyota Tsusho, TTRI, Toyota Home, DI, Toyota Auto Body,
Central Nippon Expressway, Meitetsu, HP, Hitachi, Fujitsu, Mitsubishi Corporation, Yazaki,
Yamato Transport, Yamaha, BMW Group, BMW JapanObjective and results: With attention focused on the household sector (households andtransportation), the project identifies medium-term technological challenges while keeping in
mind what the situation of households will be like 10 years later in a society where grid
parity has been achieved due to the dissemination of PV power generation. The project aims
to build a low-carbon society in which the overall optimum can be measured on acommunity-by-community basis without blindly raising social costs.

Technologies: PV, biomass, heat energy, CEMS, HEMS, EV/PHV/FC buses, ITSReferences: http://jscp.nepc.or.jp/toyota/

C) The Keihanna Eco City Next-generation Energy and Social Systems Demonstration
ProjectTime period: 2010–2014

Total budget: JPY13,572.8 million

Project partners: Kyoto Prefecture, Kizugawa City, Tanabe City, Seika, Kansai Science33

City, Kansai Economic Federation, Kyoto Center for Climate Actions, Urban RenaissanceAgency, Enegate, i-Energy WG, Osaka Gas, Omron, Kansai Electric Power, KeihannaInteraction Plaza, Sharp, Doshisha Yamate Sustainable Urban City Council, Unisis,
Mitsubishi Motors, Mitsubishi Heavy Industries, Mitsubishi Corporation, Mitsubishi Electric,
Fuji Electric, Furukawa Electric, Furukawa Battery, EnesisObjective and results: The project is implementing demand response through collaboration
between CEMS, HEMS, BEMS and the EV charging management centre and isdemonstrating the energy saving and CO2 reduction effects. Regarding the EV charging
management system, the project demonstrates the peak shift effect by guiding users tospecific charging stations and charging times based on the location of EVs and the amount ofelectricity remaining in the storage battery. Regarding V2X, the project demonstrates theusage of EV storage batteries for adjusting power supply and demand within factories. These
achievements will be commercialised as a “Keihanna eco-city model” and be used for therecovery of cities in the Tohoku region, and will be disseminated to other economies.

Technologies: CEMS, HEMS, electricity DR, BEMS, EV management system, V2X

References: http://jscp.nepc.or.jp/keihanna/index.shtml

D) The Kitakyushu Smart Community ProjectTime period: 2010–2014

Total budget: JPY16,334 million

Project partners: Azbil, Aeon, Aeon Delight, Iwatani, Uchida Yoko, Orix, Human MediaCreation Center/Kyushu, Kyuhen, Saibu Gas, JX Nippon Oil & Energy, Johnson Controls,
Sharp, Nippon Steel & Sumitomo Metal, Nippon Steel & Sumikin Engineering, NS Solutions,Sekisui, Softbank Telecom, Daiwa House, Denso, TOTO, Toppan Printing, Toyota Motor,
Toyota Industries, Toyota Tsusho, Toyoda Gosei, Nippon Steel & Sumikin Texeng, IBM
Japan, Japan Telecom Information Service, Higashida Clinic, Fuji Electric, Furukawa
Electric, Furukawa Battery, FamilyMart, Hokosha, Honda, Mitsubishi Heavy Industries,
Yaskawa, Yaskawa Information Systems

Objective and results: The project aims to indicate what local energy management should
be like and build a desirable social structure in a low-carbon society by reforming lifestyles,
business styles and the style of town building.

Technologies: PV, wind, thermal energy, CEMS, BEMS, HEMS, EV, lifestyle, data centre,
network

References: http://jscp.nepc.or.jp/kitakyushu/index.shtml

34E) Kashiwa-No-Ha Smart CityTime period: 2005–2030



Total budget: The total budget is undecided as the project is ongoing.

Project partners: Hitachi, Mitsui Fudosan, University of Tokyo, Hewlett-Packard Japan,
e-solutions, Itochu, Kokusai Kogyo Group, SAP AG, NTT Communications, LG CNG, JX
Nippon Oil & Energy, Shimizu Corporation, Sharp, Tsuneishi Holdings, Nikkei Sekkei, NTT,
Future Design Center, Mitsui Fudosan, Mitsui Home, Azbil



Objective and results: The project aims to realise a safe, secure and sustainable smart cityby implementing three initiatives – an environmental-symbiotic city, a city of health andlongevity, and a city of new industry creation – through collaboration between public
institutions, such as universities and research institutions, private companies such as Mitsui
Fudosan and Hitachi, and the government, including administrative agencies.

Technologies: AEMS, BEMS, EV, PV, storage battery

References: http://www.kashiwanoha-smartcity.com/

F)

Fujisawa Sustainable Smart Town
Time period: From 2008

Total budget: The total budget is undecided as the project is ongoing.

Project partners: Panasonic (representative company), Ain Pharmaciez, Accenture, Gakken
Cocofump Holdings, Social Welfare Corporation Camellia of the Koyama Healthcare Group,
Culture Convenience Club, Sunautas Corporation, Alsok, Dentsu, Tokyo Gas, Nihon Sekkei,
PanaHome NTT East, Sumitomo Mitsui Trust Bank, Mitsui & Company, Mitsui Fudosan,
Mitsui Fudosan Residential, Yamato TransportObjective and results: With the concept of “Bringing energy to life,” the project set theoverall goal of reducing CO2 emissions by 70% (compared with 1990), usage of water forliving needs by 30% (compared with facilities and equipment used in small communities in2006), increasing the renewable energy utilisation rate to more than 30% and securing threedays of lifeline services in emergencies.

Technologies: AEMS, GEMS, EV, PV, storage battery

References: http://fujisawasst.com/

Japan is demonstrating and evaluating advanced technologies and services related to DR mainly
under the abovementioned Four Major Demonstration Projects. There are expectations that basedon the results of these projects, the public and private sectors will cooperate in actively advancing
into emerging economies mainly in East Asia (India, Southeast Asian economies, China, etc.)
through the promotion of feasibility studies and foreign demonstration projects and that35

Japanese-developed smart community systems will be disseminated abroad in the future througheconomic diplomacy by government leaders, the provision of appropriate platforms andenhancement of governmental support tools.

(3) References

The website of “Future City” Initiative: http://future-city.jp/Strategic Energy Plan (2014)

1.9 Korea(1) Outline of Energy Policy
In Korea, it is widely recognised that smart grids play a role in creating new industries. The
economy aims to increase its share of the global smart grid market to 30% and plans to export
technologies that have undergone domestic demonstration tests to other economies. Since thegovernment announced a comprehensive package of measures to promote smart grids, Korea has
set forth the policy and roadmap for promoting smart grids and communities, including information
technologies, as a national strategy. In 2010, it announced the National Smart Grid Roadmap,
which describes the business outlook in three stages for the period up to 2030. In November 2011,a law was put into force governing the promotion of building and usage of smart grids (Smart Grid
Law). This law stipulates that the government should formulate and implement a plan for
promoting the smart grid business every five years. The government announced the first basic planfor smart grids on 18 July 2012. The plan covers general matters necessary for promoting thebuilding and use of smart grids, including: medium- and long-term policy goals and policy
direction, development, demonstration, dissemination, management and use of technologies,
standardisation, bills for industrial promotion, investment, training of professional personnel,
advance into foreign markets, international cooperation, protection of information, securing ofsafety and institutional improvements.
The details of the roadmap in the period up to 2030 are as described below. In the roadmap, it isestimated that technological development assistance worth a total of 27,050 billion won will benecessary in the period up to 2030.
First stage (2010–2012)
Conduct demonstration tests regarding wide-area, remote surveillance of power grids, electricvehicles, introduction of micro-grids, diversification of pricing, and sales of renewable energy.

Second stage (2013–2020)
Expand various systems to urban areas, incorporate distributed power sources such as micro-grids
into grids, promote electricity sales transactions, disseminate electric vehicles nationwide,36

enhance electricity pricing and new market entries, and proceed with electricity management atbuildings and factories.
Third stage (2021–2030)

Expand the abovementioned businesses nationwide, increase the use of technologies, and integratetechnologies in each field, including the building of integrated smart grids and zero-energy
buildings.

(2) Major Smart Community Projects
A) The construction of a Smart Grid Test-bed in Jeju IslandTime period: 2009–2013

Total budget: JPY18.7 billion

Project partners: KEPCO, SKEnergy, SKTelecom, GSCaltex, KT, LG, Hyundai Heavy
Industries, POSCON, KPX

Objective and results: The project provides an ideal environment for testing distributed
power sources and micro-grid technology. By 2030, sustainable power generation using
renewable energy will start. A total of 168 companies are participating in this project and6,000 households are also involved. The project will optimise energy usage by using
renewable energy and energy storage technology. It is being implemented to demonstratetechnologies and systems, including IT technologies, smart grids, introduction of renewableenergy, and usage of next-generation transport systems and smart houses, for a variety of
purposes.

Technologies: EV, charging infrastructure, EMS, smart metre, smart grid-related
technologies, PV, wind, transportation infrastructure

References:

http://www.smartgrid.or.kr/10eng3-1.php

B) U-City ProjectTime period: 2004–2020

Total budget: USD30 billion

Project partners: POSCO E&C, Cisco System, 3M, United TechnologiesObjective and results: The project is implementing urban development, including smart
buildings, cogeneration and energy management systems; creates next-generation transportsystems, including the use of car sharing; and promotes health and welfare. As part of urban
development, the project is enhancing the attractiveness of cities through town building
featuring improvement of relevant transport systems and promotion of health and welfare.

Technologies: Smart metre, energy management system, CHP, etc.
37

References:
http://www.gsma.com/connectedliving/wp-content/uploads/2012/08/cl_busan_08_121.p

dfC) Smart Seoul 2015
Time period: 2011–2015

Total budget: KRW850 billion

Project partners: Seoul City

Objective and results: The project aims not only to introduce smart technologies anddevelop information restructure, including Wi-Fi spots, but also to strengthen relationships
between citizens and communities. The project promotes the dissemination of smart devices
and smart metres and analyses the benefits (ICT infrastructure, integration of frameworks ofurban plans and smart consumers are three pillars of the project).

Technologies: Smart metre, security camera, etc.



References:

https://itunews.itu.int/En/4148-Smart-Seoul.note.aspx



http://www.itu.int/dms_pub/itu-t/oth/23/01/T23010000190001PDFE.pdf



http://www.eshiraz.ir/shares/emun/emun-adm/FAZ-2-3/Seoul%20Egov_civil%20serv
ices_part3.pdf



http://pc.nikkeibp.co.jp/article/column/20110811/1034726/

D) Daegu-Gyeongbuk High-tech Medical Cluster
Time period: 2011–2030



Total budget: KRW4,600 billion

Project partners: Samsung Electronics, LG Electronics

Objective and results: The project is implementing demonstration tests of the medical
tourism business and smart care service. It aims to turn the region into a world-class research
centre by concentrating medical complexes there. As part of the vision of making the region
a hub of a world-class advanced medical industry, the project will build an advanced medical
complex. With a view to turning the region into a world-class research centre, the project willconduct research and development related to next-generation medical technologies intended
to incorporate IT in particular.

Technologies: ICT, smart care technology



References:

http://www.city.gamagori.lg.jp/uploaded/attachment/19411.pdf



http://english.mw.go.kr/front_eng/jc/sjc0108mn.jsp?PAR_MENU_ID=1003&MENU
38

_ID=1003100401


http://techon.nikkeibp.co.jp/article/NEWS/20111114/201579/?rt=nocntE) 10 Power IT Project (Seoul)Time period: 2005–2012

Total budget: N/A

Project partners: N/A

Objective and results: Korea embarked on a strategic technology development programmein 2005 and selected 10 projects, which have since been systematically implemented. The
implementation of these projects was connected with the Smart Grid Initiative. The Power IT
Programme is expected to develop the electric power and electrical industries.

Technologies: Communication infrastructure development



References:

http://www.smartgridimpact.com/index_download.html#map



http://www.smartgrid.or.kr/Ebook/10POWER_IT_PROJECTS.PDF

A notable feature of demonstration projects in Korea is the building of smart grids and networks
taking advantage of information technologies, as exemplified by the project on the Cheju Island.
Korea plans to use smart grids to create technologically sophisticated industrial cities by applying
knowledge acquired through these projects to urban development projects.

(3) References

Nikkei BP, http://cleantech.nikkeibp.co.jp/report/smartcity2012/



KSGI (Korea Smart Grid Institute), “Korea’s Smart Grid Roadmap”

1.10 Malaysia(1) Outline of Energy Policy
Based on the National Energy Policy, which was announced in 1979, Malaysia set the following
three policies regarding the supply and use of energy and the environment.


Securing a safe and efficient energy supply by developing domestically-owned renewable
and non-renewable energy resources.



Reducing wasteful energy consumption and unproductive energy usage by promoting
efficient use of energy.

Minimising adverse effects on the environment.

By establishing various laws and regulations as well as the economy’s strategies based on the39

above policies, Malaysia is implementing energy policy measures. In addition, Malaysia has set a
medium-term economic development plan called the Malaysia Plan and is implementing policies
concerning renewable energy and energy conservation. The current 10th Malaysia Plan (2011–2015)
calls for (i) strengthening incentives for investment in renewable energy and (ii) increasing therenewable energy power generation capacity to 985MW by 2015. Smart community projects in
Malaysia are being implemented in connection with this plan.
TNB, a state-run electric power company, has announced a long-term strategy as outlined below.


TNB’s 25-year Electricity Technology Roadmap (TRM), with the purpose of modernising
the electricity supply industry in Malaysia

TRM focuses on four main goals:


Reliable and efficient delivery systemIntelligent power-delivery systems

Value-added electricity products and services

Enhanced environmental management

The details of major smart community-related projects are described below.

(2) Major Smart Community Projects
A) Smart City Development in Kuala Lumpur and Kuantan
Time period: Fiscal 2014–2016



Total budget: JPY6.2 billion

Project partners: PanasonicObjective and results: The project aims to improve the residential comfort of houses andresidential areas by using cutting-edge technologies and to make use of up-to-date IT
technologies that make it possible to choose convenient electricity that suits
environmentally-oriented life styles.

Technologies: Smart condominiums



References:

http://www.nikkei.com/article/DGXNZO70435540W4A420C1FFE000/

B) Iskandar Development Plan (joint project with the government of Singapore)Time period: Fiscal 2006–2025

Total budget: MYR100 billion

Project partners: The government of Malaysia, the government of Singapore, Mitsui & Co

Objective and results: The project will create an attractive city through land development,
40

sales and leasing as well as infrastructure development in the Medini area.
Technologies: EV bus, system of energy management of a group of buildings, surveillancesystem linked to security cameras, light-emitting diode (LED) lighting

References:

https://www.mitsui.com/jp/ja/release/2013/1200422_4689.html

C) Smart Grid Test Systems
Time period: 2010–2015

Total budget: N/A

Project partners: Tenaga National Berhad, Sarawak Energy Berhad, Sabah Electricity
Senderian BerhadObjective and results: Smart Grid Test Systems as demonstration projects. Three sites havebeen identified for Smart Grid Test Systems: Bayan Lepas (an industrial area), Bukit Bintang(a commercial centre) and Medini (a green field area). These three areas have been chosen for
the SCADA-DA test bed.

Technologies: PHEV, CHP, ICT, AMI, storage, charging stations LED, automation

References:

http://www.ewh.ieee.org/soc/pes/malaysia/images/KeyNote%20PECON2010/Mohd%20
Yusof%20Rakob%20-%20Planning%20for%20TNB%20Smart%20Grid.pdf

D) Smart Grid Pilot ProjectTime period: From 2014

Total budget: MYR2 million (USD590,000)

Project partners: Tenaga National BerhadObjective and results: A global smart grid communications company that is developing
end-to-end solutions for the utility’s first integrated smart metre and smart grid project, and isinstalling 1,000 smart metres in Putrajaya and Malacca. The initiative for the smart grid
scheme is intended to meet the rising energy consumption and demand in Malaysia which is
projected to increase by 5% per year over the next five years, and is likely to double in thenext 20 years.

Technologies: Smart metre

References:

http://www.tnb.com.my/tnb/application/uploads/newsclips/3c21d3d4d4089509c735591
10c8b6a97.pdf



http://themalaysianreserve.com/main/news/corporate-malaysia/5584-aia-annualised-new-premium-broke-rm1b-in-201341

http://www.tnb.com.my/tnb/application/uploads/newsclips/cbb13b89d615714e051d5db
08f430ae7.pdf"

Under the national energy policy, Malaysia is considering diversification of power sources,
including the use of renewable energy, and promotion of energy conservation to deal with anincrease in domestic energy consumption due to further economic development and prevent global
warming. Accordingly, under the Malaysia Plan, the economy is planning smart city development
as part of a large-scale urban development project in order to promote the dissemination ofrenewable energy and energy conservation. Thus, Malaysia is using advanced technologies related
to smart communities and smart grids as techniques to build new towns, so the dissemination ofsuch technologies will become important in the field of urban development.

(3) References

Nikkei BP, http://cleantech.nikkeibp.co.jp/report/smartcity2012/

http://onlineapps.epu.gov.my/rmke10/img/pdf/en/chapt6.pdf

Mohd Yusof Rakob, “Planning for Smart Grid in TNB System,” PECon2010

1.11 Mexico(1) Outline of Energy Policy
In Mexico, a strategy called the Estrategia Nacional de Energía 2013–2027, which was announced
in February 2013, forms the basis of the current energy policy. This strategy rests on the principle ofachieving energy security, economic efficiency, environment-friendliness and sustainability. In
relation to smart communities, the development of smart grids is regarded as important and forwhich CFE is responsible. Smart grids are expected to improve the efficiency and reliability of theelectric power sector and the stability of the power transmission and distribution sector through the
installation of data collection devices on electric power networks and the usage of the collected data.
Smart grids are also expected to contribute to decision making and prediction of future demand. In
addition, in Mexico, the dissemination of smart grids is expected to promote renewable energy,
mitigate environmental impact and reduce transmission power losses.
Meanwhile, the “2do Informe de Labores 2013–2014” cites the following points with regard to thePrograma Nacional de Infraestructura. ‘Strategy 2.7 Develop distribution quality electricity, thus
reducing losses in the supply and increasing service coverage. One of the most important challenges
for the electricity sector is to increase the efficiency, availability, reliability and security of systems
distribution of electricity, which involves, among others, network deployment of the smart grid. ’Moreover, as a smart grid-related organisation, the National Group for Smart Electricity Networks(REI in Spanish) was established at the federal government level, including the sector’s head
42

(SENER), the regulator (CRE) and the state-own utility (CFE). The aim is to promote the orderly
integration of renewable energy. The REI Group has internal guidelines for its operations and by
September 2014 was drawing up its annual work plan.

(2) Major Smart Community Projects
A) Guadalajara Ciudad Creativa DigitalTime period: From 2012

Total budget: N/A

Project partners: Guadalajara city, IBM

Objective and results: The Guadalajara project is serving as a test bed to develop bestpractices and a pool of talent that can be used in cities throughout Mexico. To speed up thatprocess, the project is embracing revolutionary, and often complementary, technologies suchas the Internet of Things (IoT), smart grid, e-health and augmented reality, to name a few. Allof the above will help provide the people of Guadalajara with clean water, nutritious food,and affordable energy, housing and transportation, etc.

Technologies: IT, communication infrastructure development, traffic control system,
e-Health

References:
Smart City, Smart Future: Guadalajara, Mexico, IEEE Smart Cities:
http://smartcities.ieee.org/articles-publications/smart-city-smart-future-guadalajara-mexico.ht
ml
Ciudad Creative Digital:
http://www.carloratti.it/FTP/CCD/files/CCD_brochure.pdf#page=1&zoom=auto,-199,595

B) Macrobus Bus Rapid Transit (BRT) in GuadalajaraTime period: 2012–2017

Total budget: USD749.25 million-Project partners: Center for Sustainable Transport Mexico (CTS-Mexico)Objective and results: Improved efficiency, mode switching, integration with feeder lines
for efficient transport trips of customers by combining fine-density feeder lines withhigh-capacity trunk routes, load increase or change in occupancy, reduction of the existing
fleet of buses through public transit re-organisation. This is an integral part of the BRT
project.

Technologies: BRT



References:
Macrobus Bus Rapid Transit in Guadalajara
43http://esci-ksp.org/project/macrobus-bus-rapid-transit-in-guadalajara-mexico/C) SCADA System Based on OSI’s MonarchTime period: N/A

Total budget: N/A

Project partners: Open Systems International, Inc (OSI), Automatización y Tecnología
Mexicana SA de CV (Atemex), División de Distribución Noroeste of CFE (Northwest
Division)

Objective and results: Supply their next-generation SCADA system based on OSI's
Monarch (Multi-platform Open Network ARCHitecture) platform, intended for the
distribution centre in the city of Culiacan, in the Mexican state of Sinaloa.

Technologies: GUI, dynamic tabular display subsystem, advanced alarm management
system, real-time and historical trending, communications front-end processor, historicalinformation system and data archiving, inter-control centre communications protocol,
calculation & scripting subsystem

References:
Mexico’s National Electricity Commission (CFE) Chooses OSI Technology for Mexico’s
Northwest Region Distribution Network:
http://www.osii.com/news-and-events/media-coverage.asp?display=detail&id=181

D) Mexico City's First AMI Smart Grid ProjectTime period: From 2011

Total budget: USD250 million

Project partners: Elster, CFE, The Secretaria de Energia (SENER), Mexico's Federal
Energy Ministry

Objective and results: The Comision Federal de Electricidad (CFE) has already deployedautomated metre infrastructure (AMI) systems in 14 of Mexico's 16 service areas. The
Secretaria de Energia (SENER), Mexico's Federal Energy Ministry, and the CFE are
implementing a smart grid pilot project in different areas of Mexico City. SENER and CFE
will use the EnergyAxis pilot project as a benchmark for evaluating the advantages of Elster's
Smart Grid Technologies for potential future deployments. By demonstrating AMI features
such as remote metre reading in hard-to-reach areas, energy usage monitoring, remoteconnect/disconnect, load management and AMI-DA (distribution automation) convergencein voltage monitoring, the Elster project will expand CFE's Smart Grid initiatives evenfurther. CFE will use the project to showcase AMI benefits including system improvements,
increased productivity, reduced outages, more accurate readings, improved operational44

efficiencies related to fewer truck rolls and service calls, and a reduction in non-technicallosses.
Technologies: AMI

References:
Comision Federal de Electricidad (CFE) Selects Elster for Mexico City’s First AMI Smart
Grid Project
http://www.intelligentutility.com/article/11/04/comision-federal-de-electricidad-cfe-selects-elster-mexico-citys-first-ami-smart-grid-project
http://www.smartgridimpact.com/index_download.html#map(3) References

Secretaria de Energia, “Estrategia Nacional de Energía 2013–2027”

SEP (Secretaria de Educacion Publica), “2do informe de labores 2013–2014”1.12 New Zealand(1) Outline of Energy Policy
The government of New Zealand announced a new energy strategy (New Zealand Energy
Strategy 2011–2021: NZES) titled “Developing our energy potential” in August 2011. As major
policy targets, this strategy cites the following points.
The government’s goal is for New Zealand to make the most of its abundant energy potential, forthe benefit of all New Zealanders. This will be achieved through the environmentally-responsible
development and efficient use of the economy’s diverse energy resources, so that:

The economy grows, powered by secure, competitively-priced energy and increasing energy
exports.



The environment is recognised for its importance to the New Zealand way of life.

The government has set the goal of providing 90% of all electricity through renewable energy by2025. As a specific measure, the government is striving to enhance heat insulation of houses andincrease the use of clean heat through a programme called “Warm Up New Zealand” (Heat Smart
Programme) to improve energy efficiency in particular. Regarding the smart grid, the Ministry ofBusiness, Innovation and Employment, with the support of the Electricity Networks Association,
established the Smart Grid Forum in 2014. This forum, which brings together industry, government
and academia, including regulatory authorities, policymaking officials and consumers, is advocating
the vision of using smart grid technology in order to contribute to the improvement of productivity in
New Zealand and the interests of consumers.

45

(2) Major Smart Community Projects
A) Demand Response Management
Time period: 2013 (First phase)Total budget: N/A

Project partners: Vector, Counties Power, Vodafone NZ, Nelson Marlborough District
Health Board, Simply Energy, Trustpower, Refining New Zealand, Callaghan Innovation

Objective and results: The objectives of the market programme were to:confirm operation of DRMS including:

successful offering of DR up to at least 100MW

coordination of providers with DRMS and between load types

understanding of interaction with other demand side regimes such as interruptible load

determine the natural price points for different DR providers



help determine the next steps of embedding DR in the NZ context

Technologies: Demand response, etc.



References:

https://www.transpower.co.nz/projects/demand-response-project/demand-response-prog
ramme-2013

B) The Blue Skin Community Energy ProjectTime period: N/A

Total budget: N/A

Project partners: Akina Foundation, Lottery Grants Board, United Way New Zealand,
COGS, Bendigo Valley Foundation, and many others

Objective and results: Blueskin Power aspires to have achieved the following by 2020.
Families and individuals in Blueskin Communities will:Be free of fuel poverty, with warm, comfortable, energy efficient homes.



Own the means to generate sufficient local renewable energy to meet the communities’
needs.

Be linked to each other, and within each community, by a comprehensive
walking-cycling network.

Provide ‘open-door’ education to promote and teach others of the achievements.

Technologies: Wind power, solar PV, etc.



References:

http://www.blueskinpower.co.nz/

46C) The Powerco Smart House Pilot ProgrammeTime period: 2014 (at least two years)

Total budget: N/A

Project partners: PowerCo

Objective and results: Three houses have been designed to capture future potential
household scenarios based on the dynamic market and technological landscape. These houses
are fully interactive with PowerCo’s information networks, and test three market hypotheses
about how consumers will behave going forward.

Technologies: Remotely controlled infra-red heating, remote controlled radiator/storage,
remotely controlled heat pump, gas fire heating, gas central heating/water, insulation &down-lights, alternate PV set-up, solar controller, bathroom heat/fans, baseline testing,
fridge/freezer/laundry, energy storage, cooking options



References:

http://www.ieadsm.org/Files/Tasks/Task%2024%20-%20Closing%20the%20Loop%20%20Behaviour%20Change%20in%20DSM,%20From%20Theory%20to%20Policies%2
0and%20Practice/Publications/Subtask%202_PowerCo_NZ_case%20study_small.pdf

D) The Warm Up New Zealand ProgrammeTime period: 2009–2014

Total budget: NZD100 million

Project partners: Energy Efficiency and Conservation Authority (EECA)

Objective and results: Budget 2013 allocated NZD100 million of operating funding overthree years to the Warm Up New Zealand: Healthy Homes programme, targeting low-income
households for home insulation, particularly households occupied by children and/or theelderly. Warmer, drier homes provide real benefits to New Zealanders. As well as energy
efficiency gains, insulating homes reduces health risks caused by cold, damp housing such as
respiratory illnesses and serious diseases like rheumatic fever.

Technologies: House insulation

References:

http://www.eeca.govt.nz/eeca-programmes-and-funding/programmes/homes/insulationprogrammeE) Contact Energy SmartConnectTime period: 2012–2015

Total budget: N/A

Project partners: N/A
47



Objective and results: Contact Energy’s smart metres are designed to allow households tobenefit from the introduction of smart appliances and from pricing plans which enable
customers to choose to use electricity when it is most cost effective. They have the capability
to support in-home displays and will be able to communicate with smart appliances in the
future with the use of a simple plug-in module. By 2015, up to 350,000 Contact Energy
customers will have the SmartConnect service.

Technologies: Smart metre

References:F)

http://www.smartgridimpact.com/index_download.html#map



http://www.contactenergy.co.nz/aboutus/findoutabout/smartconnect-faq

Unison Smart Grid ProjectTime period: Announced in 2012 (Planned)Total budget: N/A

Project partners: Unison, Silever Spring Networks

Objective and results: Unison’s smart grid roll-out is expected to deliver improved
reliability and service for consumers, provide enhanced management of power grid assets,
and enable greater overall energy efficiency.

Technologies: Smart metre

References:

http://www.smartgridimpact.com/index_download.html#map



http://www.silverspringnet.com/article/silver-spring-networks-selected-by-unison-for-ne
w-zealand-smart-grid-deployment/#.VTCxOdLtlBc

G) Mercury Energy Smart Meter Deployment
Time period: From 2008

Total budget: N/A

Project partners: Mercury Energy, more than 300,000 Mercury Energy customers

Objective and results: More than 300,000 Mercury Energy customers will receive ahigh-tech smart metre, through a metring services provider. The new metres record usage in
30-minute periods, meaning that information for bills will always be accurate and up to date
and this information could also be used to help customers manage their power consumption.

Technologies: Smart metre, AMI

References:

http://www.smartgridimpact.com/index_download.html#map

https://www.sgiclearinghouse.org/Oceania?q=node/2598&lb=1
48

(3) References

Ministry of Energy and Resources, “New Zealand Energy Strategy 2011–2021”



EECA: http://www.eeca.govt.nz/

Ministry of Business, Innovation and Employment: http://www.med.govt.nz/



New Zealand Smart Grid Forum:
http://www.med.govt.nz/sectors-industries/energy/electricity/new-zealand-smart-grid-forum

1.13 Papua New Guinea(1) Outline of Energy Policy
The Department of National Planning and Monitoring formulated the “Medium Term
Development Plan 2011–2015, MTDP 2011–2015” and the “Development Strategic Plan 2010–2030,
DSP 2010–2030” in 2010. As a major goal, the MTDP 2011–2015 aims to ensure that all households
have secure and reasonable access to energy and that electricity is generated and transmitted in
sufficient volume to meet future energy demand. As challenges related to implementation, theMTDP 2011–2015 cites the following points.
A shortage of investments necessary for maintaining and managing existing facilities



The need for private companies to make investments in order to secure necessary installedcapacities



Improvement of inefficient operation of power generation facilities

Meanwhile, DSP2010–2030 places emphasis on the development of energy resources and theimprovement of power grids in particular and cites an estimate that capital investment that will meetdemand, which is expected to increase five-fold by 2030, will become necessary. As a means tomeet the demand, DSP2010–2030 advocates “an electricity super-corridor” programme.
The electricity super-corridor will be a power network extending across various economic areas.
This programme aims to create a network that gives towns, cities and regions access to electricity.
The economy also anticipates future exports of electricity, including exports of electricity toAustralia and Indonesia using the hydropower potential of the Purari River.

(2) Major Smart Community Projects
A) Construction of an e-Learning system in Papua New Guinea
Time period: N/A

Total budget: N/A

Project partners: The government of Papua New Guinea, ZTE corporation

Objective and results:
49





Provide a nationwide telecommunication network using WiMax technology

Build 89 schools all over the economy

Provide remote education systems and courseware

Technologies: Communication infrastructure development, e-learning(3) References
Medium Term Development Plan 2011–2015, MTDP 2011–2015

1.14 Peru(1) Outline of Energy Policy
In November 2010, the Ministry of Energy and Mines announced an economy’s basic energy
policy called “Propuesta de Politica Energetica de Estado Peru 2010–2040.” Reference materials
attached to the policy announcement cited nine points as Peru’s energy policy goals. Under the goalof maximising energy efficiency in terms of both production and consumption, expectations for
smart technologies were expressed. Specifically, “achieving automated supply-demand management
through a system using smart technologies, thereby contributing to the improvement of energy
system efficiency” and “improving energy efficiency through the use of autonomous, distributed
energy” were cited as policy guidelines.

(2) Major Smart Community Projects
A) Smart City Feasibility Survey
Time period: Fiscal 2014 (June to December)Total budget: N/A

Project partners: Nikken Sekkei Research Institute, Hitachi Consulting (USA)Objective and results: The projects will build a low-carbon model town.

Technologies: PV, wind power generation, EMS, use of ICT in the security sector

References:
http://www.nikken-ri.com/news/2014/plfjb40000002hrc-att/press.pdf#search='%E3%83%9A%
E3%83%AB%E3%83%BC+%E3%82%B5%E3%83%B3%E3%83%9C%E3%83%AB%E3%8
3%8F+%E3%82%B9%E3%83%9E%E3%83%BC%E3%83%88'B) Sustainable Urban TransportTime period: 2015–2025

Total budget: USD6.5 billion

Project partners: The government of Peru, Protransporte, Cofide, Transitemos, Iniclativa
Aire Limpio, giz, KFW, British Embassy Lima, World Resources Institute, LEDS, BID, CAF
50



Objective and results: 1) Integrated public mass transportation system in the Lima
Metropolitan Area and Callao, 2) Development of non-motorised transport, 3) Institutional
development to improve urban transport management (autonomous authority), 4)
Modernisation of the public transport vehicle fleet (scrapping system), 5) Control andmitigation of GHG emissions by the vehicle fleet (fuel economy standard and labellingsystem), 6) National Programme: Support to local governments in terms of sustainable urban
transportTechnologies: Traffic management systemC) The Economics of Low Carbon, Climate Resilient Cities
Time period: 2009–2030



Total budget: N/A

Project partners: The government of Peru, British Embassy Lima, University of Leeds,
Centre for Low Carbon Futures, IDB, INTE-PUCT, ESRC Economic & Social ResearchCouncil, Centre for Climate Change Economics and PolicyObjective and results: This study aims to provide an evidence base for Lima-Callao, and touse this to examine whether there is an economic case that can be used to secure investments
in energy and water efficiency and in low-carbon, climate resilient development in the city.
The more specific aim is to provide prioritised lists of the most cost- andcarbon/water-effective measures that could realistically be adopted across the energy,
housing, commercial, transport, industry, waste and water sectors within the city.

Technologies: Solar photovoltaics, bus rapid transit, solar hot waterReferences:

http://www.climatesmartcities.org/sites/default/files/ELCC%20Lima%20Report%20Ful
l%20English.pdf

D) Arequipa RegionTime period: N/A

Total budget: N/A

Project partners: Arequipa Region (25 large customers, 200 customers)Objective and results: SEAL in Arequipa, where the nature of the terrain makes metre
reading complicated and costly, is running a pilot project at 25 large customers that employs
both terrestrial and satellite data transmission. The pilot project will be expanded to morethan 200 customers. SEAL expects to recoup its project investment in under a year.

Technologies: Smart metre

References: http://www.smartgridimpact.com/index_download.html#map
51E) Electro Sur Medio Smart Meter ProjectTime period: N/A

Total budget: N/A

Project partners: Electro Sur Medio, large clients in Pisco and IcaObjective and results: Electro Sur Medio launched a 75-point pilot project using cellphones
as modems in Pisco and Ica for monitoring losses at substations and monitoring large clients.

Technologies: Smart metre

References:

http://www.smartgridimpact.com/index_download.html#map



http://www.metering.com/smart-metering-taking-off-in-latin-america/(3) References

Propuesta de Politica Energetica de Estado Peru 2010–2040,
http://www.minem.gob.pe/descripcion.php?idSector=6&idTitular=2300

1.15 The Philippines(1) Outline of Energy Policy
The Philippine Department of Energy announced the latest energy plan, called “Philippine Energy
Plan: PEP2012–2030,” in December 2012. In particular, this plan calls for programmes in the power
generation sector, including competition in retail sales, open access, mutual collaboration between
grids, spot market, renewable energy market, promotion of local electrification and adaptation tosmart grid technology. In addition, from the perspective of promoting renewable energy, theNational Renewable Energy Programme, which was launched in July 2011, set renewable energy
goals for the period up to 2030. In particular, the programme set the milestone goals of completing
demonstration tests of smart grids and concentrated solar thermal power generation by 2015 andachieving grid parity by 2020. Also, expectations for the use of biofuels and electric vehicles as analternative fuel policy in the transportation sector are high. In particular, in an electric vehicle
programme, a demonstration project related to the introduction of e-trike is being implemented withthe support of the ADB (the details are to be described later).

(2) Major Smart Community Projects
A) Clark Green CityTime period: 2014–2019 (First phase)Total budget: PHP3.8 billion

Project partners: Bases Conversion and Development Authority (BCDA), (Centios, Cisco)52



Objective and results: Building a ‘Green City’ at the 36,000 hectare portion of the Clark
Special Economic Zone in Pampanga will cost approximately PHP200 billion. The green
metropolis will be a mix of industrial, institutional and commercial areas, which will apply
green technologies* by adapting a Green Building System. Renewable energy fromsustainable sources will be used by all facilities and buildings in Clark Green City, which ishalf the size of Metro Manila

*Technologies: Water supply system, including a water treatment plant, renewable energies



References:

http://www.greencityclark.com/

B) Davao City Public Safety and Security Command Center (PSSCC)
Time period: N/A

Total budget: Approximately PHP120 million

Project partners: Davao City, IBM, etc.

Objective and results: Davao City is the largest city in the Philippines in terms of land area
and is considered the business capital of the Southern Philippines. Today, with enhanced
public safety operations using advanced and smarter technologies, it is well positioned to
become a premier socio-economic and tourism hub in the Asia-Pacific region. The Public
Safety and Security Command Center (PSSCC) will integrate city operations into a single
system and use advanced technologies to enhance public safety operations in the city.

Technologies: GPS, GIS data utilisation, CCTV

References:

http://www.davaocity.gov.ph/psscc/Home/home.aspx

https://www-03.ibm.com/press/us/en/pressrelease/38152.wss

http://newsbytes.ph/2013/06/09/davao-city-formally-unveils-p120-m-ibm-smarter-city-p
roject/C) Orga Smart Grid System TrialTime period: From 2012

Total budget: N/A

Project partners: Meralco, Orga Systems

Objective and results: In the Orga Smart Grid System Trial project, 40,000 customers will
be connected. Meralco provides dynamic smart metring innovations. A tiered prepaid
electricity scheme based on a centralised real-time billing solution will be offered.

Technologies: Smart metre

References:53

http://www.smartgridimpact.com/index_download.html#map



http://www.orga-systems.com/media-center/press-releases/details/article/meralco-and-or
ga-systems-bring-smart-grid-roll-out-to-philippines/

As described above, in addition to projects in which Japanese companies have been involved fromthe commercialisation stage, smart community-related projects are being implemented mainly basedon capacity building support provided by the ADB.
D) Mitigation of Climate Change through Increased Energy Efficiency and the Use of Clean
EnergyTime period: 2011–2014

Total budget: USD1.1 million

Project partners: Industries, foreign investors, etc.

Objective and results: The project will improve the efficiency of air conditioners andrefrigerators. It aims to encourage households to reduce energy expenses by learning about
reasonable and energy efficient choices.

Technologies: N/A

References:

http://www.adb.org/projects/43207-012/mainE) Market Transformation through Introduction of Energy-Efficient Electric Vehicles
ProjectTime period: Until 2018

Total budget: USD504 million

Project partners: Philippine companies involved in parts of electric vehicles, thegovernmentObjective and results: The project aims to reduce CO2 emissions through the use ofalternatives to fossil fuels in the transportation sector by triggering market reform, such as
the use of electric three-wheelers. It will deploy 100,000 e-trikes nationwide to replace thesame number of traditional gasoline-powered three-wheelers, reducing the transportation
sector’s annual petroleum consumption by 2.8% (equivalent to 89.2 million litres) and CO2
footprint by 79%.

Technologies: Electric three-wheeler

References:

http://www.adb.org/projects/43207-013/mainhttps://www.doe.gov.ph/programs-projects-alternative-fuels/299-the-e-trike-project54

As a national energy policy, the Philippines is promoting the dissemination of renewable energy
and developing grid connections as infrastructure. The economy is also working to develop
alternative fuels in the transportation sector, and there are high expectations for the expansion of
the domestic power grid and dissemination of EVs. Programmes using information technology andenergy conservation technology are being implemented as specific smart community-related
projects in order to develop green and safe cities. Another major feature is that a large-scaledemonstration project for E-trike, or electric three-wheelers, is being implemented.

(3) References

DOE, Philippine Energy Plan (PEP) (2012–2030)

DOE, Renewable Energy Plans and Program (2011–2030)

1.16 Russia(1) Outline of Energy Policy
Russia is a major producer of fossil fuels: it has the world’s second largest reserves of natural gas
and coal and the seventh largest oil reserves. Russia has until now implemented its energy policy
backed by sufficient domestic reserves of fossil fuels. However, under the Energy Strategy for
Russia for the Period up to 203011, which was formulated in 2009, Russia aims to shift from thetraditional resource-dependent model to a technological innovation model. Moreover, the strategy
calls for efficient management of national projects based on technological innovation in order for theenergy sector to support economic development. As a major policy goal, the strategy aims to achievesustainable economic development, improve people’s living standards and raise Russia’s economic
status by making maximum and efficient use of energy resources and the potential of the energy
sector.
The following are the details of major smart community projects being implemented in Russia.

(2) Major Smart Community Projects
A) Skolkovo District Smart City Development
Time period: 2014–2015

Total budget: USD300 million

Project partners: Panasonic, Ernst&Young, Cisco and Russian Academy of ScienceObjective and results: The project aims to create future cities by using knowledge
concerning communication technology, bio-engineering, nuclear engineering and theaerospace industry.

11

http://www.energystrategy.ru/projects/docs/ES-2030_(Eng).pdf

55



Technologies: Communication infrastructure development, electronic monitoring

References:

http://news.panasonic.net/archives/2012/0829_13036.html

B) Belgorod District Smart City Development
Time period: From 2009

Total budget: N/A

Project partners: San Diego Gas & Electric Company, the city of San Diego,
Belgorodenergo, (the Belgorod region energy company) and the Belgorod Regional
Administration, Northern Arctic Federal University

Objective and results: The project aims to reduce CO2 emissions through efficient use ofelectricity.

Technologies: Smart metre, electronic monitoring, model houses for demonstration of
HEMS, traffic control system

References: http://www.undp-eeb.ru/index.php?option=com_content&view=article&id=35%3A2012-0
1-20-20-05-39&catid=4&Itemid=37&lang=en

C) Tomsk District Smart City Development
Time period: N/A

Total budget: N/A

Project partners: Tomsk Polytechnic University

Objective and results: Urban development using high technology, healthcare andeducation

Technologies: Well-balanced usage of hydropower generation, gas combined power
generation and nuclear power generation (curbing CO2 emissions), communication
infrastructure development, smart metre

References: http://res-eff.tpu.ru/en/D) Novokuzneck’s Smart Meter ProjectTime period: 2010

Total budget: N/A

Project partners: The city of Novokuzneck, IskraemecoObjective and results: In the southern part of Russia, the city of Novokuzneck has beenusing Iskraemeco electronic metres since 2010. Around 8,000 smart metres are installed in
multi-apartment buildings across the town. Along with smart metres, the buildings are using
56

Iskraemeco MDM software, SEP2W.


Technologies: Smart metre

References: http://www.smartgridimpact.com/index_download.html#map

E) PermEnergo Pilot ProjectTime period: 2011

Total budget: N/A

Project partners: Interregional Distributive Grid Company of Urals and Volga (IDGC
URAL), customer in Perm regionObjective and results: The PermEnergo pilot project falls under a federal programmecalled “Count. Save. Pay.”, a key part of Russia’s plan for infrastructure modernisation, andhas attracted the personal interest of former President Medvedev. PermEnergo is part of asmart grid initiative by Interregional Distributive Grid Company of Urals and Volga (IDGC
URAL), the business that manages distribution companies for the Perm, Sverdlovsk,
Chelyabinsk, and Kurgan regions of Russia. Over two million households are serviced by
IDGC URAL companies. The company intends to replace and install approximately 50,000
intelligent metres in the Perm region and integrate them into a unified ACS. The company
expects that the new technology will save its customers up to 20% of their electricity usage
while lowering its operating costs and improving the overall efficiency of the grid.

Technologies: Smart metre

References:

http://www.smartgridimpact.com/index_download.html#map



http://www.smartmeters.com/echelon-in-russion-pilot/

Most of the smart community-related projects in Russia are implemented as infrastructuredevelopment projects, such as urban development and installation of smart metres. One notablefeature about these projects is that Russia is conducting a study on plans for creating more advanced
future cities than the ones envisioned in other economies, not only by using advanced technologies
in the fields of EMS and communication, but also by combining technologies in various fields,
including bio-engineering, nuclear engineering, aviation, healthcare and education. At the moment,
Russia is facing difficulty engaging in joint projects with other economies because of economic
sanctions imposed by other economies due to the Ukraine issue. Therefore, in the short term, Russia
may consider the feasibility of implementing smart community projects alone.

(3) References

Energy Strategy (2009) Energeticheskaia strategiia Rossii na period do 2030 godu (Energy
57strategy of Russia up to 2030)

1.17 Singapore(1) Outline of Energy Policy
In 2007, Singapore announced the National Energy Policy Report. In particular, the “Energy for
Growth Section” of the report set forth the following four points as basic policy objectives andstipulated that various measures will be implemented in line with these policy objectives: (i)economic competitiveness, (ii) energy security, (iii) environmental sustainability and (iv) industrial
development. Singapore is actively introducing and using renewable energy sources, mainly PV
power generation, by taking advantage of its geographical feature, that is, the long hours of sunlightparticular to tropical regions. Moreover, building of smart communities in Singapore is an extensionof the introduction and use of PV power generation and other renewable energy sources, and it
centres on urban development projects making effective use of renewable energy, as shown by major
smart community-related projects described below.

(2) Major Smart Community Projects
A) IES (Intelligent Energy System) Pilot ProjectTime period: 2010–2013

Total budget: Approximately SGD30 million

Project partners: Energy Market Authority (EMA), Accenture, ST Electronics, Nanyang
Technological University

Objective and results: The project aims to improve management of demand through smart
grids and promote energy efficiency improvement, the introduction of distributed-type
renewable energy and electric vehicles, etc. For consumers, the project presumably brings
such merits as an improvement of the quality of services and products and the capability toactively manage energy consumption, pricing and CO2 emissions. Specifically, the projectwill implement demonstration tests concerning three fields: smart metres, demand responsemanagement systems and management of power provided by multiple power sources. The
project, to be implemented mainly at Nanyang Technological University (NTU), will also
include multiple sites such as the neighboring CleanTech Park at Jalan Bahar and selected
residential, commercial and industrial buildings, encompassing about 4,500 smart metres.

Technologies: Smart metre, DMS, PV, EV, AMR, AMI, etc.



References:

http://app.nccs.gov.sg/%28X%281%29S%28h2hsgj45etuvjf45dyec4hit%29%29/news_
details.aspx?nid=91&AspxAutoDetectCookieSupport=1



http://www.smartgridimpact.com/index_download.html#map
58B) Pulau Ubin ProjectTime period: 2013–2014

Total budget: N/A

Project partners: Energy Market Authority (EMA), Agency for Science, Nissan Motor,
Keppel EnergyObjective and results: The project aims to verify the effectiveness of the introduction of
micro-grids in Singapore by demonstrating the possibility of supplying electricity throughmicro-grid infrastructure on Ubin Island.

Technologies: PV, DMS, OMS, battery, SCADA, etc.



References:

http://www.ema.gov.sg/Pulau_Ubin_Micro-grid_Test_Bed.aspx

C) Punggol Eco-Town- The Sustainable Waterfront Town
Time period: 2011–2015, from 2015 onwards



Total budget: N/A

Project partners: HDB Building Research Institute, Housing & Development Board,
Singapore, Panasonic, the Energy Market Authority (EMA), the Economic Development
Board (EDB)

Objective and results: The project aims to develop and demonstrate total energy solutions
that combine energy creation, storage and management at public condominiums.

Technologies: PV, battery, EMS, IHD (in home displays), etc.



References:

http://news.panasonic.com/press/news/official.data/data.dir/jn110801-1/jn110801-1.htm
l

As Singapore does not have domestic resources, it actively seeks foreign investments in order toboost its industries. The Economic Development Board plays the central role in the provision ofpreferential corporate tax treatment and protection of intellectual property in order to encouragecompanies to set up businesses in Singapore. The abovementioned smart community-related
projects are part of these efforts. Regarding individual projects, Singapore is considering improving
efficiency and stability through optimum management of all systems, and information technology
systems in particular.

(3) References

Ministry of Trade and Industry (2007), “National Energy Policy Report - Energy for Growth”
59

1.18 Chinese Taipei(1) Outline of Energy Policy
Chinese Taipei’s policy concerning smart communities is based on the Sustainable Energy Policy
Framework, which was formulated in 2008, and is implemented as part of the building of anenergy-saving, low-carbon society advocated under the framework. In addition, at a national energy
conference held in 2009, Chinese Taipei adopted a plan concerning the promotion of smart grids andinfrastructure and six action plans.
As a result of rapid urbanisation, the location of the main economic bloc is shifting from theeconomy to cities, and individual cities make decisions concerning planning and implementation ofsmart community programmes. There are the following two main trends: (i) energy conservation andCO2 emission reduction; and (ii) enhancement of welfare services. Technologies related to (i)include smart grids (next-generation power transmission networks), the smart EV system and smart
recycling system. Technologies related to (ii) meet citizens’ various needs, including residential
safety, and healthcare comfort and convenience, and they include the following.
Residential safety: Disaster management and alarm systems and smart house security andreporting systems
Healthcare: Remote medicine network, healthcare monitoring system and medical emergencycall system for remote regions
Comfort and convenience: Collaborative education platform, electronic settlement system,

smart transportation, cloud service, Internet of Things (IOT)
In September 2012, Chinese Taipei announced the Smart Grid Master Plan, which included
investments totalling four billion dollars in six implementation areas by 203012. Described below aremajor smart community-related projects being implemented in Chinese Taipei.

(2) Major Smart Community Projects
A) Global Dissemination of an Urban Smart Transport System
Time period: N/A

Total budget: N/A

Project partners: Mitsubishi Corporation

Objective and results: EV, EV bus, development of a model network of charging systems
that can be applied to various citiesTechnologies: EV, EV bus, charging system12

http://2013twfr.weebly.com/uploads/1/8/5/2/18521992/__4-4_smart_home_energy_management_system_with_renew
able_and_storage_energy_-_ht_yang.pdf

60

References: http://www.meti.go.jp/press/2012/11/20121105001/20121105001http://www.mitsubishi-motors.com/publish/pressrelease_jp/corporate/2011/news/detail4476.html

B)

Building of Smart Cities in Taichung, Kinmen County, and Bade City, Taoyuan County

Time period: N/A

Total budget: N/A

Project partners: Taichung, Kinmen County, and Bade City, Taoyuan CountyObjective and results: Urban development using information technology
Taichung: “U-Speed Taichung”Administrative efficiency will drastically improve following the consolidation of
the county and city.



Broadband network: The WiMax coverage rate will expand to 80%.

Implementing an i-Park test in the Taichung City Precision Machinery Innovation
Technology Park, construction of a databasePromoting application of smart energy conservation(Taoyuan)E-Taoyuan (2009): e-government

M-Taoyuan (2010): Mobile broadband network (30 WiMax base stations, 121
Wi-Fi facilities), relevant applications



I-Taoyuan (2011): Smart and green buildings, etc.

Technologies: Broadband, Wi-Fi, cloud services



References:

http://www.nikkei.com/article/DGXNASFK2600Z_W3A620C1000000/?df=2



http://www.nikkei.com/article/DGXNASFK2600Z_W3A620C1000000/?df=2



http://www.intelligentcommunity.org/index.php?src=news&refno=1137&category=Co
mmunity&prid=1137

C) Residential Time-of-Use Power Pricing on Smart GridTime period: 2010–2011

Total budget: TWD30 billion

Project partners: Taiwan Power Company

Objective and results: A strategy for implementing a feasible system for residential
time-of-use power pricing. Three major targets will be achieved in this study as follows:
1. To compile the experiences of foreign enterprises in implementing power price strategies
by deploying smart grids, including in the United States, France, Italy, Sweden, Singapore,
61

Korea, and Japan, and to analyse the similarities and differences among them forreference;
2. To comprehend the opinions of residential users on the current time-of-use metre power
price system by questionnaire survey, interview and other available research approaches,
and to design the residential time-of-use power price strategy and scheme for the AMI of
the smart grid based on the outcomes of the survey;
3. To conduct a benefit assessment of the impact of the residential time-of-use power pricesystem on Taipower Company and society as a whole.
Technologies: AMI

References:
http://www.taipower.com.tw/UpFile/DownloadFile/%E6%99%BA%E6%85%A7%E9%9B%
BB%E7%B6%B2(Smart%20Grid)%E4%B8%8B%E4%BD%8F%E5%AE%85%E6%99%8
2%E9%96%93%E9%9B%BB%E5%83%B9%E7%A0%94%E8%A8%82%E7%AD%96%E
7%95%A5%E4%B9%8B%E7%A0%94%E7%A9%B6.pdf

D) New Taipei City Smart City ProjectTime period: N/A

Total budget: N/A

Project partners: New Taipei City

Objective and results: Development of public LAN in public spaces, Taipei Far Eastern
Telecom Park (Tpark), Xizhi economic and trade zone, Golden Corridor of Industry, smart
green community, central China smart green community, municipal e-counters, etc. NTPC’s
government has succeeded in attracting nearly USD10 billion of investment in eightdevelopments focused on such growth areas as ICT, digital media, biotech, green energy andlogistics.

Technologies: Broadband, Wi-Fi, cloud services, EV, renewables

References:

http://www.intelligentcommunity.org/index.php?src=news&refno=1139&category=C
ommunity&prid=1139

E)

http://www.japandesk.com.tw/pdffile/205p3-4.pdf

Demo Site of Smart Grid and AMI in Penghu

Time period: 2013–2015

Total budget: TWD240 million

Project partners BOE, MOEAObjective and results: The first demo site for promoting AMI, micro grids, advanced power
62

distribution, smart home and building energy management, and electric vehicle energy
supply management. Although the economy’s first site, it is at a world level and willdefinitely reach a certain size. Penghu is being promoted as a benchmark world-classlow-carbon island. In 2015, the target of reducing carbon emissions by 50% compared to2005 will be reached, by when renewable energy will supply more than 50% of the totalenergy demand. The growth rate of electricity consumption will be decreased by 7%, and per
capita carbon emissions will be reduced to 2.1 tons per year. The demo site shows theinvestment pattern on large-scale wind turbine under prefectural stake.
Technologies: AMI, micro grid, advanced power distribution, smart home and building
energy management, and electric vehicle energy supply management

References:

http://www.moea.gov.tw/Mns/populace/news/News.aspx?kind=1&menu_id=40&news_
id=3437

http://www.ee.ncu.edu.tw/~linfj/PDF/Development%20of%20Smart%20Grid%20in%2
0Taiwan%202012.pdf

F)

ITRI Pilot ProjectTime period: From 2010

Total budget: N/A

Project partners: N/A

Objective and results: ITRI is implementing AMI demonstrations for the domestic industry
and regulation development. Government funding for the AMI pilot project was secured, andthe involvement of 300–500 customers is planned. The pilot includes a basic functional test
that may contribute to AMI regulation and standards in Chinese Taipei. The communicationarchitecture and system interfaces will also be evaluated.

Technologies: AMI

References: http://www.smartgridimpact.com/index_download.html#map

From the above, it appears that many industries are involved in smart community plans in
Chinese Taipei and that Chinese Taipei is promoting domestic industries while cooperating withforeign companies through these plans. In addition, in terms of enhancement of welfare services,
Chinese Taipei is not only dealing with energy environmental problems but also considering
increasing value added to services.

(3) References“Sustainable Energy Policy Framework,” 200863

1.19 Thailand(1) Outline of Energy Policy
In Thailand, on 14 February 2013, the Energy Policy and Planning Office (EPPO) of the Ministryof Energy of the central government announced the “Thailand Smart Grid Development 13 ”
programme, which sets out the process of development. In this process, a strategy and roadmap will
be formulated in the short term, R&D on relevant technologies will be implemented in the medium
term, and a smart grid will be expanded nationwide in the long term. A state-owned regional power
distribution company called PEA formally announced the PEA smart grid policy on 10 March 2011,
which calls for investments totalling 400 billion baht (approximately USD13 billion) over the next
15 years in a project to introduce a smart grid nationwide. In the first phase of the smart griddevelopment under the PEA’s 11th National Economic and Social Development Plan, projects worth
13,465 million baht are under consideration. The PEA will implement the smart grid development
projects (phase 1) in Chiang Mai Province, Nakhon Ratchasima Province, Phuket Island and Pattaya
City in Chonburi Province between 2013 and 2017. The budget of the projects is estimated at 4,860
million baht.

(2) Major Smart Community Projects
A) Amata Science CityTime period: 2012–2017

Total budget: N/A

Project partners: The Japan Research Institute, Toshiba, NTT Data, Itochu, SMBC

Objective and results: The Japanese partners will cooperate with Amata, the largest
developer of industrial zones in Thailand, in making investments and formulating a masterplan. In particular, they will help to introduce BEMS and provide anti-flood and othersystems because of the proximity of a river.

Technologies: BEMS, anti-flood and other systems



References:

http://www.amata.com/site/inside.php?m=locations&p=6&sub=69

B) Low-Carbon Town Development Project in Koh SamuiTime period: 2012–2027

Total budget: N/A

Project partners: HitachiObjective and results: A regional energy plan for islands will be formulated andimplemented. One of the objectives is to change lifestyles through regional energy13

http://www.cigre-thailand.org/tncf/events/smartgrid_15feb2013/smart_grid_policy_progress.pdf

64management.
Technologies: EV, HEV, fuel cell vehicle, EV charging station

References:

http://aperc.ieej.or.jp/publications/reports/lcmt/Policy_Review_for_Koh_Samui_Thailand.pdfC) Smart Grid in Pattaya City, Chonburi
Time period: 2013–2015

Total budget: THB1.485 billion

Project partners: PEA

Objective and results: This is a regional-level demonstration project that is part of the
PEA’s smart grid demonstration programme. Smart metres will be installed in all areas
within the relevant region and smart grid facilities will be installed at three transformer
substations.

Technologies: Smart metre, battery, PV, automation, ITC, EV, power supply, EVReferences:
http://thailand.ahk.de/fileadmin/ahk_thailand/Projects/Smart_Grid/Presentation/Smart_Grid_
Drivers_22_Sept.pdf

D) Nakhon Nayok Province Smart City ProjectTime period: 2014–2015

Total budget: USD21.1 million

Project partners: Nakhon Nayok Province, True Corp



Objective and results: The project aims to improve public services by developing wide-areacommunication networks and to enhance the competitiveness of provinces by making
regional cities more competitive.

Technologies: Communication infrastructure development



References:
http://www.futuregov.in/articles/2013/mar/14/thailands-smart-city-steps-network-progress/

E) Smart ThaiTime period: From 2011

Total budget: N/A

Project partners: The government of ThailandObjective and results: Operated by Wade Thai, Smart Thai is a 30-month European
Union-funded project. It aims to improve the sustainable economic and social development65

of Thailand through the efficient delivery of sustainable, economic and secure electricity
using Smart/Intelligent Grid systems (SIGS) based on EU models and technologies. The
specific objective of the Project is also to transform the generation, transmission anddistribution network of Thailand by enhancing the capacity of Thai private and public sector
organisations to introduce and promote SIGS, thereby contributing to the national
development goals of Thailand related to the environment, climate change and energy
security.
Technologies: Smart/Intelligent Grid Systems (SIGS)

References: http://www.smartgridimpact.com/index_download.html#map

In Thailand, in addition to a development plan formulated by the central government, PEA, aregional electric power company, formulated a specific roadmap for smart grids and is
implementing a project. Presumably, the PEA is considering implementing more advanced
infrastructure development in regions within Thailand by accumulating experiences through suchactivities as introducing smart technologies at the power distribution level, in addition to inviting
industries and implementing development projects on islands.

(3) References

Ministry of Energy (2013), “Thailand Smart Grid Development”

PEA (2013), “The 11th National Economic and Social Development Plan (2012–2016)”

1.20 The United States(1) Outline of Energy Policy
President Obama is advocating the use of renewable energy and energy conservation, which are
expected to contribute to the fight against climate change, technological innovations in US industries,
job creation and growth. Specific measures for this purpose include infrastructure investments that
contribute to smart grid development by combining the improvement of power transmission
networks and information and communication technology, the promotion of advanced vehicles andreduction of public transport systems’ dependence on oil. The Obama administration citedpromoting the use of renewable energy electricity, curbing electricity demand and modernising
power transmission infrastructure as its policy for the electricity sector that takes into account thefight against climate change.
In particular, the Obama administration places emphasis on power transmission networks because
the infrastructure project for building the networks creates jobs and because smart grids that realise
real-time, interactive control through information and communication technology contribute to66

energy conservation. Policy measures related to smart grids and communities include several
relevant programmes that were launched under the Energy Independence and Security Act (EISA)
and are now being implemented under the American Recovery and Reinvestment Act (ARRA). The
two major projects are the Smart Grid Investment Grants (SGIG) 14 and the Smart Grid
Demonstration Project (SGDP)15, which are being implemented by the DOE. In addition, a variety ofother projects related to power transmission and distribution networks are being implemented under
the grant programme, including the Renewable and Distributed Systems Integration (RDSI)
Programme16 and Smart Grid Workforce Training and Development17.
These are five-year programmes that are operated by the Office of Electricity Delivery and Energy
Reliability within the DOE. While the SGIG focuses on improving the performance of powertransmission networks by disseminating existing smart grid technologies and equipment, the SGDP
focuses on developing new smart grid technologies and energy storage technologies, with a view toevaluating future practicality18.

Figure 1-1 Smart Grid Investment Grant Programme
14

There are 99 SGIG projects with a total budget of about USD8 billion. The federal share is about USD3.4 billion.
The program consists of 32 projects in two areas: Smart Grid Regional Demonstrations (16 projects) and Energy
Storage Demonstrations (16 projects). The total budget for the 32 projects is about USD1.6 billion; the federal shareis about USD600 million.
16
Including the cost share of recipients, the combined budget of the nine projects exceeds USD100 million. The
projects from ATK, Chevron, and MonPower did not receive any funds provided through the American Recovery andReinvestment Act.
17
USD100 million was designated for workforce training.
18
https://www.smartgrid.gov/recovery_act/project_information
15

67

Source: Smart Grid Investment Grant Programme
Described below are representative demonstration projects related to smart communities andsmart grids.

(2) Major Smart Community Projects
A) SmartSacramento Project (Sacramento Municipal Utility District (SMUD))Time period: From 2011

Total budget: approximately USD308 million

Project partners: California State University Sacramento, State of California’s Departmentof General Services, County of Sacramento, Los Rios Community College District, Elk
Grove Unified School District, the Sacramento City Unified School DistrictObjective and results: The objectives are reducing metre-related costs and power
distribution loss costs, improving service reliability, reducing greenhouse gas emissions,standardising pollution emission amounts and reducing fuel usage by trucks.

Technologies: Smart metre, EV, automation of power distribution, smart network
management, aggregation (demand response, VPP), smart customer and smart home, electricvehicles and Vehicle2Grid applications, advanced metring infrastructure (AMI) anddistribution automation systems



References

https://www.smartgrid.gov/sites/default/files/pdfs/project_desc/SMUD%20Project%20
Description%2008-08-2013%20with%20PEP%20addendum%20and%20revise....pdf



ISGAN (2013), Smart Grid Project Catalogue Part 1

B) Smart Grid ProjectTime period: 2009–2015

Total budget: approximately USD640 million

Project partners: CenterPoint Energy Houston Electric (CEHE), LLC



Objective and results: (i) Automating metre reading, (ii) reducing use of trucks, (iii)enabling residential and commercial customers to effectively manage and control theirelectricity usage and (iv) improving distribution system efficiency and reliabilityTechnologies: AMI, customer system, power distribution system

References:

https://www.smartgrid.gov/sites/default/files/pdfs/project_desc/CenterPoint%20Houston%20Project%20Description_20131209.pdf

C) Research Development and Demonstration of Peak Load Reduction on Distribution
68Feeders Using Distributed Energy Resources for the City of Fort Collins
Time period: 2008–2013

Total budget: approximately USD12 million

Project partners: Fort Collins Utilities, Colorado State University, Advanced Energy
Brendle Group, Eaton Corporation, InteGrid Laboratory, New Belgium Brewing Spirae, Inc,
Woodward Governor Company, Larimer County Eaton



Objective and results: The project aims to reduce the peak load by 20–30% and demonstrate
the maximum export and import volume in a state of deliberate isolation and the benefit ofconcentrating distributed energy resources (DER) of participating regions.

Technologies: PV, micro-turbine, dual fuel CHP system, wind turbine simulator, plug-in
hybrid vehicle, fuel cell

References:

https://www.smartgrid.gov/sites/default/files/pdfs/project_desc/NTO2876_RDSI%20Fa
ct%20Sheet%20FortCollins_3.0.pdf

D) Beacon Power 20MW Flywheel Frequency Regulation Plant
Time period: 2010–2015

Total budget: approximately USD52 million

Project partners: Hazle Spindle LLC, Beacon Power LLC, PJM Interconnection, PPLElectric Utilities, George J Hayden IncObjective and results: The project aims to demonstrate flywheel technology. It also
explores commercial feasibility and quantifies the scale of smart grid energy storage
technology.

Technologies: Flywheel



References:

https://www.smartgrid.gov/sites/default/files/pdfs/project_desc/OE0000200_Fact%2520
Sheet_Beacon%2520Power%2520Jul2013_3.0%5B1%5D_0.pdf

E) Smart Grid Demonstration Site in Los Alamos County
Time period: 2009–2013

Total budget: Approximately JPY4.8 billion (approximately JPY3.0 billion at the Los
Alamos site and approximately JPY1.8 billion at the Albuquerque site)Project partners: New Energy and Industrial Technology Development Organization,
Toshiba Corporation, Kyocera Corporation, Accenture, Itochu Corporation, Itochu
Techno-Solutions Corporation, NTT Facilities, Cyber Defense Institute, Sharp, NGK
Insulators, NEC, Hitachi69

Objective and results: The project will demonstrate superior technologies cultivated inJapan (large storage batteries for grids, energy management systems, etc.) in order to expand
the introduction of new energy and promote energy conservation, will promote participationin activities to standardise smart grids, the conceptualisation of which is progressing rapidlyin economies around the world, and will disseminate Japanese smart grid-related
technologies abroad.

Technologies: PV, control of large storage batteries for power grids, demand response

References: http://jpn.nec.com/press/201209/20120918_01.html

F)

Smart Grid Project in Boulder, Colorado State (“SmartGridCity,” or SGC)Time period: From 2008

Total budget: N/A

Project partners: Accenture, citizens of Boulder City

Objective and results: The project aims to build a smart grid on a citywide scale for the firsttime in the world.

Technologies: Smart metre, infrastructure related to plug-in hybrid electric vehicles (PHEV)

References:
http://www.accenture.com/SiteCollectionDocuments/jp-ja/PDF/industry/Utilities/Accenture_S
martgrid_Energyforum_128.pdfG) gridSMART (SM) Demonstration ProjectTime period: N/A

Total budget: approximately USD149 million

Project partners: AEP Ohio

Objective and results: The demonstration area includes 150 square miles including
approximately 110,000 metres and seventy distribution circuits. AEP Ohio will implement
Smart Grid technology over fifty-eight 13-kV circuits” from ten distribution stations andtwelve 34.5-kV circuits from six distribution stations. Included in this project is a
redistribution management system, integrated volt-VAR control, distribution automation,
advanced metre infrastructure, home area networks, community energy storage,
sodium-sulphur battery storage, and renewable generation sources.

Technologies: Smart network management, smart customer and smart home, integration of
DER, smart metring, aggregation (demand response, VPP), electric vehicles andVehicle2Grid applications, advanced metring infrastructure (AMI) and distribution
automation systems



References:70



ISGAN (2013), Smart Grid Project Catalogue Part 1

H) Pacific Northwest Division Smart Grid Demonstration ProjectTime period: N/A

Total budget: approximately USD178 million

Project partners: Battelle Memorial Institute

Objective and results: More than 20 types of responsive smart grid assets will be tested
across six regional and utility operational objectives at 15 unique distribution sites operated
by 12 utilities across five states and three climatic regions. A base of smart grid technology
serving more than 60,000 customers will be installed, validated and operated. The
demonstration will develop a single integrated Smart Grid incentive-signalling approach andwill test and validate its ability to continuously coordinate the responses of Smart Grid assets
to meet a wide range of operational objectives. It will also use distributed control to mitigate
wind integration problems. Micro-grid islanding will also be evaluated for its potential toenhance reliability for customers and relieve energy demand.

Technologies: Smart network management, integration of DER, integration of large-scale
RES, advanced metring infrastructure (AMI) and distribution automation systems



References:

I)

ISGAN (2013), Smart Grid Project Catalogue Part 1

Smart Grid ProjectTime period: N/A

Total budget: approximately USD330 million

Project partners: Southern Company Services, Inc

Objective and results: This project involves integrated upgrades of the distribution,transmission, and grid management systems. Major efforts include automation of major partsof the distribution system, automation of selected transmission systems, and new equipment
for many substations.

Technologies: Smart network management, distribution and substation automation

References:

J)

ISGAN (2013), Smart Grid Project Catalogue Part 1

Smart Grid Deployment
Time period: N/A

Total budget: approximately USD551 million

Project partners: Duke Energy Carolinas, LLC
71



Objective and results: The project involves large-scale deployments of AMI anddistribution automation in Ohio and Indiana, a pilot deployment of AMI and distribution
automation in Kentucky, and deployment of distribution automation in North and South
Carolina. The project includes pilot programmes for electricity pricing including time-of-use
rates, peak-time rebates, and critical-peak pricing. Customers in these pilot programmes use
home area networks, web portals, and direct load control devices to reduce their electricity
consumption and peak demand. Distribution automation equipment will be installed on 1,926
out of 4,741 circuits.

Technologies: Smart metring, smart customer and smart home, aggregation (demand
response, VPP), smart network management, advanced metring infrastructure (AMI) anddistribution automation systems



References:

ISGAN (2013), Smart Grid Project Catalogue Part 1

K) Smart Grid ProjectTime period: N/A

Total budget: approximately USD227 million

Project partners: EPBObjective and results: The project is implementing two-way communications and metring
expected to: (1) enable customers to view their energy consumption at their conveniencethrough systems such as web portals, (2) provide time-based rate programmes to customers,(3) provide information and tools to improve outage management, and (4) reduce operating
and maintenance costsTechnologies: Smart metring, smart customer and smart home, aggregation (demand
response, VPP), smart network management

References:

ISGAN (2013), Smart Grid Project Catalogue Part 1

L) Energy Smart FloridaTime period: N/A

Total budget: approximately USD579 million

Project partners: Florida Power & Light Company (FPL)

Objective and results: This project is deploying advanced metring infrastructure (AMI),
distribution automation, new electricity pricing programmes, and advanced monitoring
equipment for the transmission system. AMI supports two-way communication between FPL
and its three million consumers receiving smart metres, providing detailed information about72

electricity usage and the ability to implement new electricity pricing programmes. New
distribution automation devices expand the functionality of FPL’s distribution system toincrease reliability, reduce energy losses, and reduce operating and maintenance costs.
Technologies: Smart metring, smart customer and smart home, aggregation (demand
response, VPP), smart network management

References:

ISGAN (2013), Smart Grid Project Catalogue Part 1M) Enhanced Demand and Distribution Management Regional Demonstration
Time period: N/A

Total budget: approximately USD68 million

Project partners: National Rural Electric Cooperative Association

Objective and results: This project is demonstrating smart grid technologies with 27
cooperatives in 11 states across multiple utilities, geographies, climates, and applications
including low density areas, low consumer income areas, and service areas prone to natural
disasters. NRECA will conduct studies on advanced volt/volt-ampere reactive control for
total demand.

Technologies: Smart metring, smart network management, aggregation (demand response,
VPP), smart customer and smart home

References:

ISGAN (2013), Smart Grid Project Catalogue Part 1

N) Positive Energy Smart Grid Integration ProgrammeTime period: N/A

Total budget: USD293 million

Project partners: Oklahoma Gas and Electric (OG&E)



Objective and results: The programme aims at reducing peak loads, overall electricity use,
and operating and maintenance costs while increasing the efficiency, reliability, and power
quality of the distribution system. The programme implements secure wirelesscommunications to: (1) allow smart metre customers to view their electricity consumption
data through a personalised web site, and (2) allow OG&E to manage, measure, and verify
targeted demand reductions during peak periods. The new systems capture metre information
for billing and implement new customer pricing programmes and service offerings. The
project deploys a more dynamic distribution management system, automated switching, andintegrated voltage and reactive power control (IVVC) that reduces line losses, reduces
operating costs, and improves service reliability.
73

Technologies: Smart metring, smart network management, aggregation (demand response,
VPP), smart customer and smart home, advanced metring infrastructure (AMI) anddistribution automation systems



References:

ISGAN (2013), Smart Grid Project Catalogue Part 1

O) SmartGrid ProgrammeTime period: N/A

Total budget: USD16.2 million

Project partners: Talquin Electric Cooperative

Objective and results: The project is implementing two-way communications to: (1) enable
customers to view their energy consumption at their convenience through customer systems
and web portals, (2) provide time-based rate programmes to customers, (3) provide
information and tools to improve outage management, and (4) reduce operating andmaintenance costs. The project is also installing automated distribution grid equipment
expected to: (1) enhance the reliability and quality of electric delivery, and (2) reduce
operating and maintenance costs.

Technologies: Smart metring, smart network management, aggregation (demand response,
VPP), smart customer and smart home, advanced metring infrastructure (AMI) anddistribution automation systems



References:

ISGAN (2013), Smart Grid Project Catalogue Part 1

Projects being implemented under the Smart Grid Demonstration Programme are listed below.

74

Table 1-3 Smart Grid Demonstration Programme in the United States
Title

StatesAward Amount Total Project Value($)($)

AEP Ohio (gridSMARTSM Demonstration Project)

Ohio

75,161,246

148,821,823

Amber Kinetics, Inc. (Flywheel Energy Storage
Demonstration)

California

3,694,660

7,457,591

Aquion Energy (Sodium-Ion Battery for Grid-level
Applications)

Pennsylvania

5,179,000

10,359,827

Battelle Memorial Institute (Pacific Northwest Division
Smart Grid Demonstration Project)

Washington

88,821,251

177,642,503

Beacon Power (20 MW Flywheel Frequency Regulation
Plant)

Massachusetts

24,063,97852,415,000

CCET (Technology Solutions for Wind Integration)

Texas

13,516,546

27,075,457

City of Painesville, Ohio (Vanadium Redox Battery
Demonstration Program)Ohio

4,243,570

9,462,623

Consolidated Edison Company of New York, Inc. (SecureInteroperable Open Smart Grid Demonstration Project)

New York

45,388,291

92,388,217

Detroit Edison (Advanced Implementation of Energy
Storage Technologies)

Michigan

4,995,271

10,877,258

Duke Energy Business Services (Notrees Wind Storage
Demonstration Project)

North Carolina

21,806,226

43,612,464

East Penn Manufacturing Co. (Grid-Scale Energy Storage
Demonstration Using UltraBattery Technology)

Pennsylvania

2,543,523

5,087,269

Kansas City Power and Light (Green Impact Zone
SmartGrid Demonstration)

Missouri

23,940,112

49,830,280

Ktech Corp (Flow Battery Solution for Smart Grid
Renewable Energy Applications)

New Mexico

4,764,284

9,528,568

Long Island Power Authority (Long Island Smart Energy
Corridor)

New York

12,496,047

25,293,801

Los Angeles Department of Water and Power (Smart Grid
Regional Demonstration)

California

60,280,000

120,560,000

33,932,146

67,864,292

National Rural Electric Cooperative Association (Enhanced
Demand and Distribution Management Regional
Virginia
Demonstration)
New York Power Authority (Evaluation of Instrumentation
and Dynamic Thermal Ratings for Overhead Lines)

New York

720,000

1,440,000

New York State Electric and Gas (Advanced Compressed
Air Energy Storage)

New York

1,394,453

2,942,26575

NSTAR Electric and Gas Corporation (Automated Meter
Reading-Based Dynamic Pricing)

Massachusetts

2,362,000

4,877,989

NSTAR Electric and Gas Corporation (Urban Grid
Monitoring and Renewables Integration)

Massachusetts

5,267,592

10,591,934

Oncor Electric Delivery Company (Dynamic Line Rating)Texas

3,471,681

7,136,552

Pacific Gas and Electric Company (Advanced Underground
California
Compressed Air Energy Storage)

25,000,000

355,938,300

Pecan Street Project Inc (Energy Internet Demonstration)

Texas

10,403,570

24,657,078

Premium Power (Distributed Energy Storage System)

Massachusetts

6,062,552

12,514,660

Primus Power Corporation (Wind Firming EnergyFarm)

California

14,000,000

46,700,000

Public Service Company of New Mexico (PV Plus Battery
for Simultaneous Voltage Smoothing and Peak Shifting)

New Mexico

2,305,931

6,113,433

Seeo Inc (Solid State Batteries for Grid-Scale Energy
Storage)

California

6,196,060

12,392,122

Southern California Edison Company (Irvine Smart Grid
Demonstration)

California

39,621,208

79,242,416

Southern California Edison Company (Tehachapi Wind
Energy Storage Project)

California

24,978,264

49,956,528

SustainX Inc. (Isothermal Compressed Air Energy Storage) New Hampshire

5,396,023

13,046,588

The Boeing Company (Boeing Smart Grid Solution)

Missouri

8,561,396

17,172,844

Waukesha Electric Systems Inc (Fault Current Limiting
Superconducting Transformer)

Wisconsin

10,239,411

20,478,822

Source: Compiled from the Smart Grid Demonstration Program (SGDP).
https://www.smartgrid.gov/recovery_act/overview/smart_grid_demonstration_program(3) References

DOE, “Smart Grid Investment Grant Program”
https://www.smartgrid.gov/recovery_act/overview/smart_grid_investment_grant_program

DOE, “Smart Grid Demonstration Program”
https://www.smartgrid.gov/recovery_act/overview/smart_grid_demonstration_program

ISGAN (2013), Smart Grid Project Catalogue Parts 1 and 276

1.21 Viet Nam(1) Outline of Energy Policy
Viet Nam announced the goal of increasing the proportion of electricity generated throughrenewable energy from 3.5% in 2010 to 4.5% in 2020 by giving priority to the use of renewableenergy sources for power generation based on the Power Development Master Plan 7 (PDP7), which
was formulated in July 2011. In addition, under the 8th Five-Year Plan for Socio-Economic
Development (2006–2010), which was formulated in 2006, Viet Nam set the national goal of
becoming a middle-income economy by 2010 and becoming an industrialised economy by 2020,
recognising the importance of promoting science and technology for achieving the goal. Accordingly,
Viet Nam is considering expanding the use of renewable energy and promoting high-tech industries
and building smart communities as part of the science and technology policy. Viet Nam also aims toachieve a stable power supply within service areas by using smart grid technology. The details ofmajor smart community-related projects being implemented in Viet Nam are as follows.

(2) Major Smart Community Projects
A) New Town and High-tech Park Smart Community Development
Time period: 2012–2016



Total budget: USD1.5 billion

Project partners: Toshiba, Toshiba Solutions, Nippon Koei, Azusa Sekkei, ESPAD
Environmental Space Planning & Architectural Design, SMBC

Objective and results: Japanese companies present a comprehensive proposal covering theformulation of plans for building a smart community within the park, system construction,and management and recovery of funds, and implement the plans together with developers.
Through this, they implement a system model integrating processes concerning smart
community development from formulation of plans to recovery of funds, and disseminate themodel widely in and outside Japan.

Technologies: Construction of systems for smart community developmentB) Binh Duong New City Development
Time period: 2012–2020

Total budget: USD1.2 billion

Project partners: Becamex Tokyu (65% owned by Tokyu Corporation and 35% owned by
Becamex)

Objective and results: The project aims to export a town building package by taking
advantage of the knowhow acquired through the Tama Den-en City. It will build a city thatuses a smart grid and raise the value of real estate. A cost-benefit analysis of energy
77conservation will be conducted through a feasibility study.
Technologies: Smart metre, energy conservation equipment, EMS, power failure-proof
storage batteries, etc.



References:

http://www.becamex-tokyu.com/



http://www.tokyu.co.jp/ir/upload_file/library_06_02/9005_2010060914253103_P06_.pdf

http://www.meti.go.jp/meti_lib/report/2014fy/E003878.pdf

C) Ha Noi Software Technology ParkTime period: Scheduled to be completed in 2016

Total budget: N/A

Project partners: Hanel Limited Company, Sai Dong Urban Investment and Development
JSC, Toshiba (feasibility study)Objective and results: This urban development project aims to create a cluster ofsoftware-related companies in order to achieve industrial and economic development for Ha
Noi City.


Reducing the environmental impact of common infrastructure, including water andelectricity infrastructureImproving energy efficiency of buildings and reducing costsCreating smart houses: comfort, safety and convenienceToshiba is conducting a feasibility study on optimising city management and increasing
the value of real estate.

Technologies: EMS, PV, battery, smart metre, etc.



References:

http://www.meti.go.jp/meti_lib/report/2012fy/E003006.pdf

In addition to the abovementioned projects in which Japanese companies have been involved fromthe commercialisation stage, there are smart community-related projects implemented mainly basedon capacity building support provided by the ADB.
D) Green Cities: A Sustainable Urban Future in Southeast Asia
Time period: 2013–2015

Total budget: USD870,000Project partners: Regional governments, urban development companies, etc.

Objective and results: The project provides technical assistance related to green city action78

plans in Viet Nam (at the moment, assistance is provided to two cities). It also aims to build
the capacity of stakeholders and regional governments involved in green city development.
Technologies: N/A

References:

http://www.adb.org.projects/46474-001/mainE) Ha Noi and Ho Chi Minh City Power Grid Development Sector ProjectTime period: 2012–2015

Total budget: USD744,000Project partners: Regional governments, local companies, etc.

Objective and results: The project provides technical assistance related to power generationand transmission in Viet Nam (assistance is provided to two cities). It also aims to develop
power generation and transmission systems.

Technologies: N/A

References:F)

http://www.adb.org/projects/46391-002/main

Transmission Efficiency Project (TEP)Time period: 2014 (approval) to 2019

Total budget: approximately USD731 million

Project partners: National Power Transmission Company (NPT)

Objective and results: The development objective of the Transmission Efficiency Projectfor Viet Nam is to improve the capacity, efficiency, and reliability of electricity transmission
services in selected parts of the electricity transmission network in the territory of theborrower. The project is comprised of three components. The first component, enhancing
transmission infrastructure, will finance transmission lines and substations at voltage levelsof 220kV and 500kV. The second component, developing a smart grid network, will support
modernisation of monitoring, control, and protection equipment in 500kV and 220kV
substations to improve the reliability of the interconnected power system as a whole and ofsome bulk-supply points in the distribution network. The third component, capacity building,will contribute to the gradual development of the national power transmission company(NPT) to become an independent transmission company with revenues from the applicationof performance-based regulations in the transmission sector and support efficient reform of
the overall power sector.

Technologies: N/A

References:79

http://www.worldbank.org/projects/P131558?lang=en

G) Distribution Efficiency ProjectTime period: 2012 (approval) to 2018

Total budget: USD800 million

Project partners: Vietnam Electricity (EVN), Ministry of Industry & Trade (MOIT)

Objective and results: The development objectives of the Distribution Efficiency Project are
to improve the performance of Viet Nam's power corporations (PCs) in providing quality andreliable electricity services, and to reduce greenhouse gas emissions through demand side
response and efficiency gains. There are three components to the project. The firstcomponent is system expansion and reinforcement. The second component is introduction ofsmart grid technologies in distribution. The third component is technical assistance andcapacity building. Technical assistance to and capacity building of the Electricity Regulatory
Authority of Vietnam (ERAV) will also be provided.

Technologies: N/A

References:

http://www.worldbank.org/projects/P125996/distribution-efficiency-project?lang=en

In addition to these smart community projects, there are a large number of urban development
plans. Under these projects, more specific studies will be conducted on the introduction oftechnologies related to smart communities and smart grids. Viet Nam, which has been maintaining
economic development, is promoting smart community-related projects in order to develop new
cities as residential areas and to develop regions and cities integrated with industries.

(3) ReferencesPower Development Master Plan 7 (2011)80

2 Electricity Business in the Selected APEC Economies Where Smart
Community Demonstrations are Ongoing
The knowhow and technologies, acquired through smart community demonstration projects,
should be suited to the energy situation in the respective economies for future continuous penetration
and utilisation. Therefore, this chapter outlines the business regulations and market situation in the
major APEC economies for the consideration of future smart community projects outlook.

2.1

Australia(1) Regulatory Framework
As Australia has a federal system, there are federal- and state-level regulations. The federal
government is responsible for regulating interstate matters, including the wholesale electricity
market, the transmission sector, electricity distribution pricing and the retail sector excluding
pricing. Meanwhile, state governments are responsible mainly for regulating retail pricing. The
Australian Energy Regulator (AER), which is under the Australian Competition and Consumer
Commission (ACCC), equivalent to a federal fair trade commission, functions as an energy-related
regulatory agency. The AER is responsible for the national electricity market (NEM), economic
regulations concerning the power transmission and distribution sector within the NEM, andregulation of the retail sector excluding pricing.
The Australian Energy Market Commission (AMEC) is responsible for formulating andreviewing rules concerning the NEM and the natural gas market as an independent agency, and it
also presents policy recommendations to the Standing Council of Energy and Resources (SCER),
which is comprised of energy ministers of the federal and regional governments.

(2) Wholesale Market (incl. ancillary services)
The electricity supply system can be broadly divided into the eastern region, which is comprised
mainly of the NEM, the state of Western Australia, and the Northern Territory. The NEM plays aparticularly important role as a wholesale electricity market. Currently, six eastern regions –Queensland, New South Wales, Victoria, South Australia, Tasmania and the Australian Capital
Territory (ACT) – are participating in the NEM and are engaging in the electricity business. The
Australian Energy Market Operator (AEMO) operates and manages the NEM. The states
participating in the NEM appoint executives of AEMO as its major shareholders. In addition to
calculating spot prices and making price adjustments between market participants, AEMO is also
responsible for maintaining the supply-demand balance and disclosing various indexes to themarket. Among participants in the NEM are power generators, network service providers, users andtraders. There are day-ahead markets for energy and ancillary services.
81

Table 2-1 Outline of the NEM

Source: AER (2013), State of the Energy Market 2013

(3) Retail Market
As of April 2013, in all states of Australia except for the states of Western Australia and Tasmania,
the retail market, including for household users, was fully liberalised. In the states of Western
Australia and Tasmania as well, the scope of liberalisation has gradually been expanded. Users withannual electricity usage of 50,000kWh or more have been covered by liberalisation in the state ofWestern Australia since January 2005 and in the state of Tasmania since July 2011. The AER has
pointed out that in the state of Victoria, where liberalisation started earlier than anywhere else within
the NEM area, moves to re-integrate power generators and retailers to promote market concentrationand mitigate the risk of retail electricity price volatility are becoming prominent. More specifically,
while there are around 20 companies which have a retail supply license in each state, threecompanies – AGL Energy, Origin Energy, Energy Australia – hold a combined share of 76% in the
NEM area. As for the reintegration of power generation and retail sales, these three companies
together own a majority (58%) of the power generation plants that have started operating since 2007.
Similar moves are spreading among other companies. The customer switching rate of suppliers is thehighest in the state of Victoria, which has been promoting liberalisation ahead of other regions; in82

2012, the switching rate there reached 30%.

Figure 2-1 Customer Switching of Energy Retailers, as a Percentage of Small Customers
Source: AER (2013), State of the Energy Market 2013
http://www.aer.gov.au/publications/state-of-the-energy-market-reports

2.2

People's Republic of China(1) Regulatory Framework
In China, as a result of the electricity system reform at the end of 2002, the National Energy
Administration under the National Development and Reform Commission and the State PowerManagement Commission became the main regulatory organisations in the electricity sector. The
National Development and Reform Commission formulates policies concerning the energy sector ingeneral. Regarding the electricity sector, the Power Industry Department is responsible for suchwork as approving electricity pricing (wholesale and retail pricing) and the construction oflarge-scale power generation plants and power transmission and transformer facilities. The State
Power Management Commission was responsible for directly supervising power companies,
complementing the functions of the National Development and Reform Commission, which controls
wholesale electricity transactions and issues electricity business licenses. However, the State PowerManagement Commission was integrated into the National Energy Administration as a result of theorganisational reform in June 2013, and thus the authorities over the licensing of distribution of andchanges in electricity supply service areas, the issuance of electricity supply licenses and theissuance of electricity business licenses were transferred to regional offices of the National Energy
Administration.
As for the outline of the current regulation of the electricity business in China, the authority overthe issuance of local licenses belongs to regional offices of the National Energy Administration. The
83

National Energy Administration conducts examinations and presents proposals with regard to powertransmission fees and costs, and the National Development and Reform Commission grants final
approval for electricity prices, power transmission fees and the construction of power generation
plants, while the State Council approves oil and gas prices. The National Development and Reform
Commission and the National Energy Administration jointly conduct examinations regarding various
prices.

(2) Wholesale Market (incl. ancillary services)
In China, some initiatives to liberalise the electricity market have been implemented on a trial
basis. However, primarily, two power transmission and distribution companies (State Grid
Corporation of China and China Southern Power Grid19) purchase electricity from five major power
generators (China Huaneng Group, China Datang Corporation, China Huadian Corporation, China
Guodian Corporation and China Power Investment Corporation), and then electricity is supplied tousers exclusively through regional power grid companies, and provincial power transmission andcity and county level power distribution companies under the control of the major power companies.
Provincial power companies are responsible for power supply in individual service areas and theyissue power supply instructions to most power generation plants. Power interchange between
provincial power companies is managed by regional power grid companies and China Southern
Power Grid. State Grid Corporation of China manages power interchange between regional power
grid companies. Under this structure, power generation and power transmission/distribution are
separated. However, power transmission and distribution companies are also responsible for retailsales, so this is similar to a vertically integrated system, with only power generation separated.

19

These two companies are state-owned and are subject to supervision by the State-owned Assets Supervision and
Administration Commission, an organisation within the State Council. The service area of State Grid Corporation ofChina is divided into five grids companies: North China Grid, Northeast China Grid, East China Grid, Central China
Grid and Northwest China Grid.

84

Figure 2-2 Supply Areas of Large Power Grid Companies
Source: State Grid Corporation of China
As a result of the electricity system reform in 2002, the State Power Management Commission,
which was the organisation responsible for supervising the electricity sector at that time, prepared a“Guiding opinion concerning the construction of regional electricity markets,” “Basic rules on theoperation of electricity markets,” “Rules on electricity market management” and “Standard oftechnical support system functions for the electricity market,” and it developed markets andconducted trials of direct transactions between power generators and users and wholesale bidding in
the northeastern region, the eastern region and the southern region. The trials are ongoing in all theseregions. Regarding ancillary services, power generators are required to meet the specifications
necessary for providing the services. Final ancillary services are provided after the examination of
the characteristics and status of power generation plants based on instructions from grid operators
under a vertical integration structure.20(3) Retail Market
Retail electricity sales are undertaken exclusively by county level power distributors, so
liberalisation regarding the selection of retail companies has not proceeded in China. Wholesale and20

China Electric Power Research Institute (2012), Study on Ancillary Services and Grid Connection Standardisation
for Integrating Renewable Energy into Chinese Smart Grid85

retail electricity prices are determined at the provincial level in accordance with pricing systems
regulated by the central government, so both supply and pricing are regulated. In December 2004,
the central government introduced a coal-electricity price link system, under which electricity prices
may be revised in accordance with changes in coal prices, but the central government has thediscretion regarding whether or not the system may be applied. Electricity price revision has been
conducted seven times by 2011 based on the coal-electricity price link system or for reasons such as
resolving losses incurred by power companies. As coal prices sometimes showed significant
movements after 2008, it became difficult to keep the balance between coal and electricity prices andbetween the management of coal companies and that of power companies. Therefore, regarding
prices, the State Council showed signs of flexibility such as leaving pricing to the discretion ofcompanies. For example, regarding coal for power generation, the State Council abolished the twin
pricing system comprised of priority contract prices and market prices and announced a policy underwhich coal companies and power generators determine prices based on voluntary consultations.
There is a tendency that electricity prices for non-industrial and agricultural users are high ineconomically developed regions while they are kept low in other regions. As for future reform of
retail electricity pricing, a progressive increase system was introduced in July 2012 for prices ofelectricity for living needs nationwide on a trial basis except for the Tibet and Xinjiang Uyghur
Autonomous Regions.

2.3

Japan

(1) Regulatory Framework
In Japan, general electric utilities with a vertically integrated structure which have a regionalmonopoly are responsible for supplying power to meet general needs in the supply areas for which
they have obtained a license. When supplying power, power companies need to obtain approval from
the Minister of Economy, Trade and Industry with regard to electricity prices and supply terms.
Since 1995, the Electricity Business Act has been gradually revised with regard to the regulationof the electricity business. In 1995, the principle of competition was introduced into the power
generation sector and pricing regulations were revised. As a result of the revision in 1999, the retailsector was partially liberalised and new entry using power companies’ networks was permitted. As aresult of the revision in 2003, behaviour regulations were introduced, the Japan Electric Power
Exchange (JEPX) was established, basic rules concerning grid operation were formulated, and theElectric Power System Council of Japan (ESCJ), a neutral organisation for dispute settlement, wasestablished.
In response to the debate on the revision of the energy system that was prompted by the Great East
Japan Earthquake and the nuclear accident at Fukushima Daiichi Nuclear Power Station in 2011, a86

study is being conducted on new measures to be taken in the electricity business. There is a roadmap
that envisions the establishment of a wide-area grid operation organisation and a shift to a new
regulatory organisation by 2015, full liberalisation of retail sales, the creation of a new mechanism toensure supply capacity and an hour-ahead market by 2016, and the abolition of retail price regulationand legal separation of the power transmission and distribution sectors by 2018–2020.

(2) Wholesale Market (incl. ancillary services)
In response to the decision to establish a private, voluntary wholesale electricity exchange, madeat a meeting of the Electricity Industry Committee in 2003, the JEPX was established in Novemberof the same year. In order to secure trading volume, the Electricity Industry Committee considered
whether or not to impose obligations on existing power companies with regard to bidding on theexchange. Although the committee decided not to obligate power companies to input power sources,
the companies voluntarily expressed their views on initial input. In April 2005, a market thatmediates day-ahead spot electricity trading and forward transactions was opened. In the hour-aheadmarket, transactions are conducted through a system under which one price is set for one auction ineach trading time zone, while in the forward market, forward contract transactions are conducted ona bilateral basis. Ancillary services are provided by general electric utilities, with the costs recovered
widely from users in the form of retail supply fees and consigned supply fees.
In the debate on the electricity system reform, the opinion was expressed that in order to enhance
the transparency of ancillary service costs, measures should be taken to create an ancillary market inwhich power sources used for ancillary services are procured and to enable the grid operation sector
to provide the services using power sources procured through the market.

(3) Retail Market
In March 2000, liberalisation regarding the selection of suppliers started with respect to special
high-voltage power users (with contracted electricity usage of 2,000kW or more). Subsequently,
the scope of liberalisation was expanded to users with contracted electricity usage of 50kW (as of2014). As a result, the liberalised sector accounts for approximately 63% of the overall electricity
demand. In the liberalised sector, the number of new entrants has been increasing. As of June 2014,
Power Producers and Suppliers (PPS) held a combined share of 5.65%.
Under the policy for future electricity system reform, the details of frameworks for relevant
systems are being designed with a view to starting full liberalisation regarding small-scaleconsumers, including households, in 2016 and abolishing regulated pricing around 2018–2020.

87

2.4 Korea(1) Regulatory Framework
At the same time as the establishment of the Korean Power Exchange (KPX) in April 2001, theKorean Electricity Commission (KEC) was established as an independent regulatory organisation inorder to facilitate a smooth shift to a competitive market and ensure that the market functions
properly. The KEC consists of the chair and eight commissioners. Under the KEC are theCompetition and Regulation Division, the Competition Planning Division, the Market Management
Division, the Grid Operation Division and the Consumer Protection Division. The main missions of
the KEC are (i) enforcing the standard for the operation of the electricity market and licensing of
power companies (issuance of business licenses), (ii) promoting fair competition, (iii) protecting
consumers’ interests, (iv) monitoring the electricity market and (v) overseeing affairs related to therealignment of the electricity business. Meanwhile, the Ministry of Trade, Industry and Energy(MOTIE) is responsible for the energy policy for the whole of Korea, and it formulates power source
development plans, forecasts demand and regulates pricing in the electricity sector.

(2) Wholesale Market (incl. ancillary services)
As a result of the electricity market reform, KEPCO’s power generation division was divided andthe KPX was established at the same time. The wholesale market is a mandatory market based on a
cost base pool operated by the KPX, and basically, all power generators participate in it. Meanwhile,
KEPCO’s power transmission division is responsible for operating power grids in Korea. Based on
the power generation volume for each hour estimated by the KPX on the previous day, KEPCO
selects power generators with low power generation cost from among pre-registered generators andissues operation orders to the selected generators. However, participation by IPPs which concluded
electricity trading contacts with KEPCO before the establishment of the KPX and renewable energy
power generators is discretionary. While some renewable energy power generators are participatingin the KPX, the government provides compensation to make up for the difference between their
supply costs and the average transaction price on the KPX. In 2011, the trading volume on the KPXamounted to 462.4 billion kWh, accounting for 97.9% of the overall domestic power supply volume.
The KPX plays the main role in providing ancillary services, with expenses paid according to thecharacteristics of power generation plants participating in bidding.

88

Figure 2-3 Electricity Business System in Korea (as of the end of July 2013)
Source: Adapted from reference materials prepared by Korea Electric Power
Corporation and “Electricity Business in Foreign Countries,” publishedby Japan Electric Power Information Center Inc(3) Retail Market
As for the retail sector, although a single buyer system under which KEPCO is basically theexclusive buyer is in place, large-scale consumers and Community Energy Systems (CES) may
purchase electricity directly from the KPX. Small-scale consumers such as households purchaseelectricity from KEPCO.
In the power generation sector, electricity rates reflect market prices through the wholesale market.
On the other hand, KEPCO’s retail prices are subject to approval, which means that price revisions
require approval from MOTIE. Between 2002 and 2013, electricity rates were revised eleven times.
As KEPCO is chronically reporting losses, Korea is considering introducing a fuel cost adjustment
system to resolve the problem of the rising electricity purchase cost (fuel price rise), which is themain cause of KEPCO’s losses.

2.5

The United States(1) Regulatory Framework
In the electricity business in the United States, the federal government has regulatory authority
over interstate transactions, while state governments have jurisdiction over other matters in principle.
As for power supply, the Federal Energy Regulatory Commission (FERC) regulates interstatetransactions, and state public utility commissions regulate intra-state transactions. The North89

American Electric Reliability Corporation (NERC), an organisation appointed by the FERC,
formulates standards for grid reliability. The major matters over which the FERC has authority are as
follows.
Regulation of power transmission based on supply cost and interstate wholesale electricity
transactions



Review of certain mergers and acquisitions and corporate transactions by private electricity
companies



Review of electricity transmission projects under limited circumstances

Licensing and inspection of private, municipal and state hydroelectric projects

Protection of the reliability of the high voltage intestate transmission system throughmandatory reliability standards managed by the NERC

Although public utility commissions’ roles and regulatory scope vary from state to state, theirgeneral roles are as follows.


Licensing of private electricity companies’ business activities, including pricing andaccountingRegulation concerning construction and safety of power generation, transmission anddistribution facilities except for nuclear power plants

Licensing of construction of power generation facilities

In order to promote further competition in the wholesale electricity market, the FERC issued
Orders 888 and 889 in 1996, obligating electricity companies to separate the functions of the powertransmission and generation divisions and to open transmission lines to third-party users. At thesame time, the FERC also obligated electricity companies to establish information networks so as
to ensure non-discriminatory use of transmission lines. The FERC Order 888 recommended theestablishment of Independent System Operators (ISOs) to ensure the efficiency of grid operationand neutrality, and several ISOs were established. The ISOs include ones that were established as
successors to existing tight power pools, such as ISO New England (ISONE), New York ISO(NYISO) and PJM-ISO. In December 1999, the FERC issued Order 2000, requiring electricity
companies to establish wide-area grid operation organisations called Regional Transmission
Organisations (RTOs) in order to complement the deficiencies of ISOs. In the United States, sevenISOs/RTOs have been established to date. Of them, ISO-NE, PJM, MISO and SPP have been
approved as RTOs by the FERC.

(2) Wholesale Market (incl. ancillary services)
The Energy Policy Act of 1992 defined an Exempt Wholesale Generator (EWG), which is an90

Independent Power Producer, as a new category of power producer exempt from application of theregulations under the Public Utility Holding Company Act. As a result, EWGs engaging in power
generation for the purpose of wholesale sales are permitted to own and operate power generation
facilities and sell electricity without restriction within the limits of business arrangements andgeographic area of activity, resulting in virtual liberalisation of the wholesale electricity market
across the United States.
The current wholesale electricity market in the United States is divided into two types, dependingon the region. One is a bilateral transaction-based market in which electricity transactions arenegotiated directly between suppliers and power supply plans are formulated through non-organised
individual transmission line owners. This type of market is the mainstay in the Southeast, Southwest,
mountainous regions in the West, and the Northwest. The other is an organised transaction market
which is operated by an ISO which operates and controls all transmission facilities in a specificbroad area and a broad grid operator such as an RTO. This type of market is the mainstay in the
Northeast, the mid-Atlantic region, Midwest, Texas and California. In most states in these regions,retail competition has been introduced. Around two-thirds of all electricity supplied in the UnitedStates is consumed in the regions covered by the ISOs/RTOs.

Figure 2-4 ISOs/RTOs
Source: http://www.eia.gov/electricity/policies/restructuring/restructure_elect.html
91

In most of the US regions where ISOs/RTOs have been established, the electricity market
consists of the capacity market, the day-ahead market, the real time market and the ancillary service
market. Retailers are required to secure supply capacity equivalent to the demand size plus reservesin advance. The capacity market is a place where supply capacity is traded to adjust capacity
surpluses and shortages. The supply capacity thus secured is required to participate in the
day-ahead market.

(3) Retail Market
The liberalisation of the retail market is implemented on a state-by-state basis, and electricity
supplied to final consumers is either purchased from the wholesale market (Independent Power
Producers and organised wholesale electricity market), generated by electricity companies
themselves, or obtained through a mix of these two in all states, regardless of liberalisation. In
regulated states where the retail market has not been liberalised, electricity companies are subject tothe traditional rate of return regulation enforced by state regulatory authorities. Retail users cannot
select alternative suppliers. Most of these electricity companies have a vertical integration structure
under which they own power generation, transmission and distribution facilities.
The liberalisation of the retail electricity market and the introduction of competition have been
implemented on a state-by-state basis, and at first, laws and regulations concerning liberalisation
were enacted in 24 states and Washington D.C. at the peak time. However, due to the impact of theelectricity crisis in the early 2000s, liberalisation plans have been reviewed. More specifically,following an electricity crisis in the state of California in 2000–2001, this state suspended retailcompetition in September 2001, while the states of Arkansas and New Mexico abolishedliberalisation laws that had been enacted, and the states of Oklahoma and West Virginia postponed
the implementation of liberalisation indefinitely. As of October 2013, full liberalisation of retailsales was in place in 13 of the 50 US states and in Washington D.C. In six other states – Oregon,
Nevada, Montana, Virginia, Michigan and California – partial liberalisation limited to large-scaleconsumers is in place. In the state of California, liberalisation of retail sales for users other thanhouseholds was resumed in 2010, but the ceiling on the liberalisation quota has been set at the level
before the suspension of liberalisation. In 2008, the state of Michigan revised the liberalisation law
and implemented an irregular liberalisation limiting the liberalisation quota to 10% of electricity
companies’ electricity sales volume in the previous year.

92

Figure 2-5 US States where the Electricity Market Has Been Liberalised
Source: http://www.eia.gov/electricity/policies/restructuring/restructure_elect.html
Switching of suppliers from major electricity companies in states where the market has beenliberalised has made significant progress, particularly in the household user market. In many
liberalised states, until the mid-2000s, price caps or price freezes were in place for users who did notswitch suppliers. However, following the lifting of the freeze and a shift to market prices, there wasan increase in the number of retail suppliers entering the household user market, and this ispresumably one of the factors behind the rise in the switching rate. The supplier switching rates
regarding major electricity companies are as shown below.

93

100%
87.1%

91.9%

80%

60%
41.7%
40%

31.3%

26.4%
18.1%

20%

0%

1.4%

0.6%
Nov
2005

Dec
2012

Illinois,
Commonwealth
Edison Company

5.9%

Feb Jan 2013 Jan 2006 Jan 2013 Dec
2006
2005
Maryland,
Baltimore Gas
and Electric

3.2%
Dec Jan 2006 Jan 20132012

Massachusetts, NY, Consolidated
NSTAR
Edison Company

Pensylvania,
PECO

Figure 2-6 Switching Rate regarding Major US Electricity Companies
Source: Compiled from the Japan Electric Power Information Center, “Electricity Business inForeign Countries Vol. 1 (I)”

2.6

Thailand(1) Regulatory Framework
In Thailand, the Electricity Generating Authority of Thailand (EGAT), the Metropolitan
Electricity Authority (MEA) and the Provincial Electricity Authority (PEA) mainly undertake theelectricity business: the EGAT is responsible for power generation and transmission, the MEA is
responsible for power distribution in urban areas (Bangkok, Nonthaburi and Samut Prakarn), and the
PEA is responsible for power distribution in rural areas. In addition, Very Small Power Producers(VSPPs), which include renewable energy power generators and CHP energy power generators withcapacity of 10MW or less, have been allowed to sell electricity to the MEA and PEA since 2006.
While deregulation concerning new entry into the power generation sector has been proceeding in
Thailand, the EGAT has a monopoly over power transmission and the MEA and PEA have amonopoly over power distribution. The Energy Regulatory Commission (ERC) regulates andsupervises these businesses. The ERC is an organisation established on the basis of the Energy
Industry Act (EIA), enacted in 2007, in order to supervise and monitor the energy industry in general.
Regarding the electricity business, the ERC has jurisdiction over the management of a power source
development fund and the issuance of business licenses and electricity price regulation, among other94matters. Other relevant administrative organisations include the DOE, which oversees the energy
sector, enforces regulation of energy resource prices and ensures fair transactions in the energy
business; the EPPO, which is responsible for energy policy and planning; and the DEDE, which is
responsible for ensuring efficiency of power transmission and distribution.

Figure 2-7 Electricity Business Structure in Thailand
Source: Direk Lavansiri (2014), “ERC’s Role to Enhance Power Supply Security,” 12 February
2014(2) Wholesale Market (incl. ancillary services)
As for the wholesale electricity market, following the Asian currency crisis in 1997, a full
liberalisation plan modelled on the UK liberalisation, including the creation of an electricity poolmarket and the division and privatisation of the EGAT, was considered, but the plan did not goahead because of opposition from ordinary citizens. Later, an electricity pool plan was abandoned
under the Thaksin government, thus bold market reforms have not been carried out. Therefore, as forthe electricity business structure, power generators, including the EGAT, sell electricity to the EGAT,
which in turn supplies electricity to the MEA and PEA at wholesale prices regulated by the EPPO21.
Wholesale prices applied by power generators to the EGAT, which is the single buyer, aredetermined through auctions under a pricing system based on the type of power generation, thepower trading volume, the contract period and other contract terms. The cost of ancillary services iscalculated by the EGAT, which is the single buyer and grid operator, in accordance with the pricing
regulations, and is paid to power generators as part of the cost of power generation.
21

In addition, SPPs may sell electricity directly to general customers.

95

(3) Retail Market
The MEA and PEA account for most of the retail sales, with a small volume of electricity solddirectly by the EGAT. Retail electricity prices are regulated by the ERC, and price revisions are
subject to approval from the National Energy Policy Council (NEPC). The MEA and PEA use thesame retail pricing system except for some pricing menus. Although they use the same pricing
system, there is a difference in supply cost between urban and rural areas due to differences indemand density and the number of poor households exempted from having to pay electricity fees.
Therefore, subsidies paid to the MEA and PEA based on national policy are used to makeadjustments.

96

3Prospects and Effects of Dissemination of Element Technologies
Related to Smart Communities in the APEC Region
As compiled in Chapter 1, smart community-related projects vary by economy in the APEC

region, and the definition of the term also differs when including those projects being carried out inthe form of a smart grid project or smart city project. This chapter categorises respective economies’
smart community projects and compiles their stances and purposes. In addition, the positioning ofsmart community projects and the technologies expected to be introduced in each economy are
examined in light of the status of the energy market in major economies.

3.1 Outline of Smart Community Projects in the APEC Region
There are many economies in the APEC region and their ethnic composition, governance systemand economic situation vary significantly. The sizes, responsible entities and purposes of smart
community-related projects reflect the characteristics of respective economies. Specifically, in the
United States and Canada, each state or province takes the initiative in carrying out projects by
utilising subsidies of the federal government, whereas in Korea and Japan, the central government
leads pioneering demonstration projects in designated areas. In China and Indonesia, the central
government plays a major role in some projects for utilising ICT and other smart technologies fromthe viewpoint of urban development involving local governments.
This section roughly categorises actual smart community-related projects according to whether the
economy adopts a federal system and the objectives of each project. The results are as shown in thefollowing table.
Table 3-1 Outline of Smart Community-related Projects in the APEC Region
Country

Others

EMS, IT

Japan, Republic ofKorea, Chinese
Taipei, Singapore

Many technologicallyadvanced demonstration
project(including smart
care)Central government
takes initiative todevelop city
infrastructure

EV, Transportation,
Water, Recycle,
Renewable energy

China, Indonesia,
Malaysia, Thailand,
Russia,Vietnam ,etc

Technologies focus on thecity infrastructure

Energy network
infrastructure

Development of
infrastructure based on
the national energy
master plan

Renewable energy,
Transportation, IT
infrastructure,
Telecommunication

Chile, Mexico,
Peru,
Philippines

Development of
infrastructure (includingElectrification)

Local
government

Upgrade ofexisting
infrastructure

Central government
makes vision and local
governments promote
their businessconsidering eachsituation

AMI, Battery,
Renewable energy,
etcU.S., Australia,
Canada, China

Modernization oftransmission line,
Development of islands

Internationalorganization

GeneralInfrastructure,
Capacity building

International organization
support capacity building
and development of
infrastructure

Transpiration,
Renewable energy,
Energy efficient
appliancesIndonesia,
Philippines,
Vietnam, China,etc

Development of renewable
in island, capacity buildingof smart technologies.

CentralGovernment

PurposeOutlineIndustrial
competitiveness

Enhance Industrial
competitiveness throughdemonstration projectCity
infrastructure

Technology

97For descriptive purposes, the table shows the categorisation mainly based on whether each projectis led by the central government or a local government. Furthermore, projects led by the central
government are divided into three groups depending on their purposes. Together with projects led bya local government and those supported by an international organisation, all projects were classified
into five categories in total.22 The following characteristics can be pointed out for each category.

(1) Projects Led by the Central Government(for enhancing industrial competitiveness, etc.)
Economically matured regions where the central government plays a major role in governanceinclude Japan, Korea, Chinese Taipei and Singapore. Demonstration projects being carried out inthese regions characteristically utilise highly advanced IT. Specifically, four projects in Japan and
one project in Cheju, Korea, aim to develop and introduce advanced technologies under the initiativeof the central government, by attempting to create a comprehensive energy management system incertain specified areas, promote utilisation of electric vehicles and renewable energy, and develop ademand response system. Furthermore, Korea is also considering the introduction of smart
technologies in medical fields and has been working to raise its industry and technology levels
through information technology. These economies are carrying out smart community-related
projects with the aim of improving domestic technological capacity and enhancing industrial
competitiveness.

(2) Projects Led by the Central Government(for developing city infrastructure, etc.)
Regions with high economic growth potential where the central government has great authority
include China, Indonesia, Malaysia, Thailand and Viet Nam. They have been promoting smart
community or smart city-related projects. In these regions, efforts have been made to develop
infrastructure and integrate industries in expectation of further economic growth. In such context,
projects in these regions are more focused on the development of smart cities. The central
government characteristically plays a major role in drawing up a framework for advanced urban
development, and the utilisation of IT and the introduction of smart technologies have beenpromoted for enhancing the efficiency of society as a whole, by methods such as seeking more
efficient use of energy and the creation of an efficient transportation system for mitigatingcongestion and an environmentally-friendly resource circulating system in targeted areas.

22

Projects supported by the administration or domestic or foreign public financial institutions were assumed for
categorisation, but the survey revealed that there are also projects mainly led by private companies or NPOs aiming toincrease the use of renewable energy and energy conservation on a local level.

98

(3) Projects Led by the Central Government(for developing energy network infrastructure, etc.)
In economies other than those mentioned above, due to their economic situation and insufficient
infrastructure, the urgent issue is the development of infrastructure for delivering energy nationwideprior to promoting efficient use of energy through advanced technologies. Economies of SouthAmerica, such as Mexico, Chile and Peru, and also the Philippines face the need to promote rural
electrification and develop energy networks for improving people’s living. Therefore, in theseregions, smart grid projects for developing energy networks and micro-grid projects free fromlarge-scale systems have been promoted. They commonly seek means to effectively develop
inadequate social capital and infrastructure by utilising more efficient technologies.

(4) Projects Led by a Local Government(for various purposes such as for upgrading existing infrastructure)
Economically matured regions where a federal system is adopted and where local governments
such as state governments and provincial governments have great authority include the United States,
Canada, Australia and China. As a geographical feature, these economies have vast land areas andstate governments and provincial governments are vested with great authority. This also applies totheir promotion of smart community-related projects. For example, in the United States, respective
states carry out independent demonstration projects by utilising the subsidy programme establishedunder the American Recovery and Reinvestment Act (ARRA) enacted by the federal government.
Also in Australia and Canada, states and provinces are carrying out distinctive projects, and play acentral role and promote diverse smart community projects depending on the circumstances ofrespective areas, ranging from progressive initiatives utilising various types of technologies tomodernisation of transmission lines and development of islands.

(5) Projects Led by an International Organisation
In addition to the abovementioned projects led by the central government or a local government,
there are projects supported by international financial institutions such as the World Bank and ADB
aiming to contribute to energy conservation and reduction of CO2 emissions. Examples include thetransmission line enhancement project in Viet Nam supported by the World Bank and the electric
three-wheeler project in the Philippines supported by the ADB. Projects supported by international
financial institutions are not limited to those for hardware development but include technical andinstitutional ones for personnel training and awareness-raising activities with the aim of promoting
the development of IT, renewable energy, advanced transportation systems, etc., as seen in many
projects for capacity building supported by the ADB.
As explained above, projects called smart community projects, smart grid projects or smart city99

projects have different purposes depending on the circumstances of each economy and region, andthe technologies expected to be introduced differ accordingly. Therefore, a longer-term issue is toproperly ascertain what technologies will be disseminated in projects under way or underconsideration, in light of the state of affairs in respective economies, and what should be done tofacilitate the dissemination of other technologies, and to seek solutions for the challenges thus
ascertained.

3.2 Prospects of Dissemination of Element Technologies Related to
Smart Communities in Respective Economies
As indicated in Section 3.1, purposes and expectations of smart communities and smart cities varyby economy and technologies collectively referred to as smart technologies have been developed andutilised in various manners accordingly. This section compiles the definitions and concepts of terms
such as smart grid and smart community. Then, categories of smart projects shown in Table 3-1 will
be reexamined in terms of purposes and related technologies.

(1) Types of Smart Projects
In smart community-related projects, the smart grid concept is often proposed in western
economies. There is no clear universal definition of smart grid, but according to the US Act23 anddefinition by the EU24, smart grid is the concept of modernising the electric grid. More specifically,smart grid aims to achieve total optimisation by way of power system control and utilisation ofcommunication technology in order to expand the targeted scope to include projects to increase theconstruction of small-scale distributed power facilities, such as photovoltaic power facilities, wind
power facilities, and combined heat and power facilities, through the modernisation of powersystems, as well as projects to improve power system stability through the diffusion of power storage
units, IT-based home appliances and electric vehicles.
In contrast, the concept of a smart city or smart community aims to make people’s lives moreconvenient and flexible through the utilisation of infrastructure consisting of smart grids, not limited
to electric power systems25. This includes matters relating to the expansion of social services that
contribute to the improvement of living standards, such as streamlining of the transportation sector,
23

The purport of the Act and the characteristics of smart grids are described as follows: It is the policy of the UnitedStates to support the modernisation of the economy’s electricity transmission and distribution system to maintain areliable and secure electricity infrastructure that can meet future demand growth and to achieve each of the following,
which together characterize a Smart Grid (Energy Independence and Security Act of 2007, Title XIII--Smart Grid,
Sec. 1301. Statement of Policy on Modernisation of Electricity Grid).
24
Smart Grid is an electricity network that can cost-efficiently integrate the behaviour and actions of all users
connected to it – generators, consumers and those that do both – in order to ensure an economically efficient,sustainable power system with low losses and high levels of quality and security of supply and safety (Source:
ERGEG, “ERGEG position paper on Smart Grids – An important dimension for cost-efficient investments, June2010).
25
https://www.smart-japan.org/english/index.html

100enhancement of medical and nursing care services and disaster prevention measures. Streamlining of
the transportation sector and disaster prevention measures require improvement of energy efficiency
and business continuity planning (BCP), and are closely related to the energy sector in particular.
Initiatives with these purposes include projects to develop smart cities in China and other economies
that are positioned as a part of urban development projects, and smart community projects in Japan,
Korea and northern European economies that are positioned as part of their efforts for developing
new industries.
Additionally, there is the concept of micro grid, which may be understood as a narrowly defined
smart grid. Based on the abovementioned classification, micro-grid projects have two aspects, that is,they aim to develop infrastructure through the electrification of areas without electricity and also aim
to improve living standards by enabling people to use electricity.
Types of smart projects are depicted as follows.

Figure 3-1 Types of Smart Projects(2) Types of Smart Projects and Element Technologies in the APEC Region
In projects with titles including the term “smart city” that are carried out for urban development in
the APEC region, the focus is mainly placed on technologies for building an area-wide
transportation system or recycling system to introduce EMS or EVs, etc. In the case of transmission
101

line development projects, smart grid technologies for reducing losses or increasing power systemstability are prioritised to promote distribution automation and development of batteries. In the caseof smart community projects for improving services on a regional level or micro-grid projects on
islands or in areas with isolated power systems, much importance is placed on technologies fordeveloping communication infrastructure, integrating EMS for each household or region, or utilising
renewable energy. The following table shows types of smart projects newly categorised based on
Table 3-1 in terms of purposes and related technologies (the WEF also categorises smart gridprojects by their archetype26).
Table 3-2 Outline of Smart Community-related Projects in the APEC Region

Type

OutlineAdvanced smart
community

Demonstration of advanced
smart community service with
ICT

Technology

Country

Infrastructure

EMS, ICTJapan, Republic ofKorea, Chinese
Taipei, Singapore

Well developed

Smart grid

Update of transmission
network

AMI, Battery,
Renewable energy,
etcU.S., Australia,
Canada, China

Old and aging

Smart city

Development of city andindustry at green field

EV, Transportation,
Water, Recycle,
Renewable energy

China, Indonesia,
Malaysia, Thailand,
Russia,Vietnam ,etc

Not fully developedof terminal
network

Smartcommunity andMicro grid, etc

Development of network
infrastructure in undevelopedarea and remote area frombackbone network

Renewable energy,
Transportation, IT
infrastructure,
Telecommunication

Chile, Mexico, Peru,
Philippines

Undeveloped
backbone networkand ruralelectrification

In short, smart projects may be categorised based not only on their respective titles but also on
technologies to be introduced depending on the level of infrastructure development and the degree ofmaturity of each economy and region. In tandem with the advancement of IT and other technologies,
infrastructure in each economy and region is expected to mature in stages through micro-gridprojects and smart city projects. Furthermore, a smart city project in which a package oftechnologies necessary for providing advanced services is introduced in an area without sufficientelectricity infrastructure may bring about rapid development and modernisation of infrastructure. For
26

The World Economic Forum categorizes them into seven key smart grid archetypes. They provide logicalgroupings for implementation architectures. They are intended to crystallise the differences in drivers; it is recognized
that, within one geography, multiple priorities will be at play and, in this instance, multiple archetypes will apply.
1. Aging Infrastructure (e.g. New York)
2. Island Networks (e.g. Singapore)
3. Concentrated Intermittent Renewables (e.g. US Midwest)
4. Developing Economy (e.g. Mumbai, Rio de Janeiro)
5. Hi-tech Manufacturing (e.g. Silicon Valley)
6. Distributed Generation and Storage (e.g. Flanders, Belgium)
7. Enhanced Resilience (e.g. New Orleans, North-east China)(WEF (2009), Accelerating Smart Grid Investments))102

sustainable development of smart community-related projects, non-structural efforts must be made in
addition to those for advancing technologies or other structural efforts. It has been pointed out that inorder to ensure the expected effects of smart technologies, market design and appropriate rules need
to be discussed rather than only focusing on the outcome of various demonstrations and research on
element technologies in the United States and other economies. This means that regardless of how
advanced technologies, such as EVs and HEMS, are developed, they are unlikely to be used withoutmarkets and rules necessary for introducing a demand response system and for utilising batteries.
Considering the dissemination of advanced technologies to be the result of various demonstration
projects in the APEC region, it is necessary to consider how to ensure their sustainable use and try tooffer political incentives to further promote demonstration projects and make required market
reforms.

3.3 Barriers to Entry of Element Technologies Related to Smart
Communities and Forecasts
Each economy and region has a unique business system and regulatory system for its energy
market and electricity market, and so it is necessary to properly ascertain the current status of eachmarket and regulatory system before considering policies for promoting the introduction of smart
technologies.
For example, in the United States, where electricity markets are liberalised in some states, there
are diverse markets, such as the energy market, capacity market and ancillary services market, withthe potential for further expansion of new services through competition among business operators. In
such circumstances, batteries and EVs may not only function as energy storage units ortransportation equipment; new uses of such smart technologies may be devised, focusing on thefrequency adjustment function of batteries or on the energy storage function of EVs, thus fulfilling
the potential of smart technologies. As various demonstration projects have revealed the problems ofcommercialising individual technologies, it is also necessary to consider proper markets and toincorporate solutions for such problems.
This section examines forecasts of electricity markets, regulations, smart community projects andrelated technologies in the United States, Japan, China and Thailand.
Table 3-3 Smart Community-related Projects and Power Business System in the APEC Region
EconomyUnited States
Japan

Structure
Unbundled(in some States)
VerticallyMarketLiberalised(in some
States)Liberalised
103

Technology
AMI, battery,renewable energy
EMS, ICTType
Smart grid
Advanced smart

ChinaThailandintegrated(in high(to be unbundled)

voltage)

Unbundled(State owned)
Unbundled(State owned)

community
EV, transportation,

Regulatedwater, recycling,

Smart city

EMS, renewables
RegulatedEV, battery, EMS

Smart grid, Smartcity(1) The United StatesA) Domestic power situation and ongoing smart community-related projects27
Most of the ongoing smart technology-related demonstration projects in the United States arebeing carried out under the American Recovery and Reinvestment Act (ARRA) enacted in 2009.
Subsidies under the ARRA are provided for smart grid projects based on the Energy Independence
and Security Act of 2007, which was enacted in 2007 and specifies new medium-term guidelines forthe economy’s energy policy as a whole. This Act calls for support for modernisation of theeconomy’s electricity transmission and distribution system is to be supported in order to maintain areliable and secure electricity infrastructure, and projects focusing on infrastructure development
have been promoted. It has been pointed out that the electricity transmission and distribution system
is less efficient in the United States than in European economies, and that the outage time is longer
and the transmission and distribution loss rate is higher than in Japan, Germany and France.
In light of this situation, President Obama announced as follows in October 2009: “The largest
single energy grid modernisation investment in US history, funding a broad range of technologies
that will spur the economy’s transition to a smarter, stronger, more efficient and reliable electric
system. The end result will promote energy-saving choices for consumers, increase efficiency, andfoster the growth of renewable energy sources like wind and solar”28. The combined effect of theinvestments announced that support for smart grid projects under the ARRA will enhance thereliability and stability of the power system and reduce economic losses by avoiding power outages
that cost USD150 billion a year. The investment is also important for promoting the introduction ofrenewable energy in remote rural areas, achieving clean economic growth, and investing ininfrastructure for the 21st century.29 Thus, the major purpose of ongoing smart projects in the
United States is to update the transmission and distribution infrastructure. In short, the United Statesprioritises smart projects for infrastructure development, and the introduction of smart grid-related
27
28

https://www.smartgrid.gov/future_grid

https://www.whitehouse.gov/the-press-office/president-obama-announces-34-billion-investment-spur-transition-smart-energy-grid
29
http://energy.gov/articles/president-obama-announces-34-billion-investment-spur-transition-smart-energy-grid

104technologies is expected to be promoted according to the categorisation in the preceding section.
120

Annual outage time per customer

Min/yr

100
80
60
40
20
0
2000
France

2001

2002

2003

2004

Germany

UK

US

2005

2006

Japan

2007
Korea

Figure 3-2 Outage Time per Customer
Source: Created based on ANRE (2011), “Energy White Paper 2010”
12.0%
10.0%
8.0%
6.0%
4.0%

OECD
Germany
Spain
United States

2.0%
0.0%
2000

2002

2004

FranceJapan
United Kingdom

2006

2008

2010

2012

Figure 3-3 Comparison of Transmission and Distribution Loss Rates
Source: Created based on DOE/EIA, “International Energy Statistics”
In the medium and long term, renewable energy is expected to spread and responses to such trends
are also necessary, such as mitigation of system congestion by each RTO. The following figures
show changes in congestion charges in the PJM and NYISO areas. In the PJM area, congestion
charges started to decrease in the mid-2000s, but system congestion may increase in the future due tounevenly located power facilities. In the NYISO area, congestion charges were higher in 2013 thanin 2012 and this increase is attributed to higher costs for dispatches for mitigating congestion. DR
technologies and other smart technologies may be one way of mitigating system congestion.

105

$2,500

Congestion Charges

Million$2,000$1,500$1,000
$500
$0

2000

2002

2004

2006

2008

2010

2012

2014

Figure 3-4 Changes in Congestion Charges (Left: PJM Area; Right: NYISO Area)
Source: Created based on yearly editions of Monitoring Analytics, LLC, State of the Market Reportfor PJM; Potomac Economics, 2013 State of the Market Report for the New York
Isomarkets
Note: Data for 2014 in the left figure are for January to September 2014.
B) Electricity market and smart technologies
In the United States, power generation and power distribution and transmission are separated insome states and the business system centred on RTOs and ISOs has been established across states.
As the introduction of renewable energy is expected to expand in respective areas, system operators
face an urgent need to stabilise their system. System operators, such as PJM, NYISO, MISO,ERCOT and CAISO, are encouraging utilisation of advanced technologies while operating various
electricity markets. The following are an example relating to demand response as a good way ofutilising markets, and an example relating to batteries in the future.
An example relating to demand response
In the United States, the FERC is vested with the authority to assess demand response under the

Energy Policy Act of 2005 and the Energy Independence and Security Act of 2007, and the FERC
issued Order 719 (promulgated in October 2008) with regard to wholesale electricity markets, which
requires RTOs and ISOs to receive bids for ancillary services from demand response resources aswell as from power generation and other resources. Furthermore, Order 745 (promulgated in March
2011) provides for the payment of cost by demand response resources participating in the day-ahead
and real-time wholesale energy market.30 Meanwhile, state governments have endeavoured to build
demand response-related infrastructure while receiving subsidies from the Department of Energy,
and have promoted demand response programmes based on their authority to approve power rates.
In California, for example, the Loading Order was introduced in 2003 and power companies
planning to develop new power sources are required to develop their supply capacity by making
efforts to decrease electricity consumption, reduce demand during peak periods through demand
30

However, at present only PJM actually applies this Order in its business.

106

response and meet new generation needs first with renewable and distributed generation resources
and then with clean fossil-fuelled generation.
Under such circumstances, further utilisation of demand response technologies has been discussed
in the United States, and incentive-based demand response programmes, in which programmesponsors request load reduction or reject load under agreements concluded with consumers, havebeen widely adopted. One of the areas where demand response programmes have been actively
promoted by RTOs and ISOs is the PJM area, but such programmes are also widely adopted in andaround Florida, where wholesale electricity markets are not developed. Therefore, the developmentof wholesale electricity markets is not always effective for promoting demand response programmes.

Commercial/Industry

Peak Time Rebate
Critical Peak Pricing with…
CPP
RPP
Time-of -Use
Other
Regulation
Non-spinning Reserves
Spinning Reserves
Demand Bidding & BuyBack
Emergency Demand …
Direct Load Control
Interruptible Load0

Household
Wholesale

Time-Based

OthersIncentiveBased

5,000

10,000MW

15,00020,00025,000Figure 3-5 Introduction of Demand Response Programmes by Type
Source: FERC, “2012 Assessment of Demand Response and Advanced Metering Staff Report”(December 2012)
As the figure shows, most of the introduced demand response programmes are incentive-based.
This may be because demand response providers can surely expect reduced power demand by
aggregating consumers and offering services to guarantee power demand reduction to RTOs andISOs.
In the United States, the development of markets and institutional design for enabling
dissemination has served to expand the introduction of demand response programmes. In the future,
time-based demand response programmes, which face uncertainty, will also be adopted throughsystemic revision and the dissemination of EMS technology that enables direct load control andother smart technologies that can remove such uncertainty.
An example relating to batteries
107

California announced its policy to increase the percentage of renewable energy in the state’s
electricity mix to 33% by 2020, reduce greenhouse gas emissions to the 1990 levels by 2020,
increase distributed power generation, and reach 1.5 million zero emission vehicles (ZEVs) in use by
2025. Measures to achieve such goals have been discussed. In particular, there is concern about thestability of the power system due to ageing and closure of existing thermal power plants and the
diffusion of photovoltaic power generation. The following figure created by the CAISO shows
power demand curves up to 2020. Measures are required for responding to demand drops during thedaytime and significant demand increases in the evening.

Figure 3-6 The Duck Curve Shows Steep Ramping Needs and Overgeneration Risk
Source: CAISO, “Fast Facts”
CPUC, “Energy Storage” http://www.cpuc.ca.gov/PUC/energy/electric/storage.htm
As a countermeasure, California quantitatively clarified the required capacity of energy storage
facilities and has worked to facilitate investment in power distribution infrastructure, thereby
strengthening energy networks. Specifically, California Assembly Bill 2514 (enacted in 2010)
requires electricity retailers to achieve the goals by the end of 2020. This bill applies to various typesof energy storage facilities, including mechanical, thermodynamic and chemical storage facilities,
and diverse technologies such as those for EVs, flywheel batteries and heat storage tanks are
expected to be developed and adopted.
Electricity market and smart technologies
AMI and smart metres are likely to spread as part of the infrastructure through demonstration

projects under the SGIG and the SGDP based on the ARRA. Therefore, efforts for reinforcing the108contribution of AMI and EV-related technologies in the electricity market will facilitate the diffusionof new equipment and devices. For that purpose, the significance and potential of each technology
need to be clarified by RTOs or under Federal Orders issued by the FERC in accordance withcircumstances in respective regions, as in the case of demand response programmes and batteries.
Short-term measures have been taken for the utilisation of new technologies in the market, but RTOs
now consider longer-term adequacy in addition to short-term demand and supply of electricity. Suchtrends suggest that the potential of demand response in both wholesale markets and retail markets, aswell as the potential of the capacity market, are considered and that their institutional positioning isbeing clarified, and this may expand the dissemination of smart technologies and lead to equipment
development in the long term.
It is required that Federal Orders define fundamental indicators and technologies and promoteharmonisation as necessary to help economy-wide diffusion of technologies that have been
independently established by respective RTOs.
C) Future developments
In ongoing power grid modernisation projects under the ARRA and other policy packages, thestructural priority may shift from the enhancement of efficiency of large-scale power systems to the
optimisation of operation of subordinate power systems. More specifically, smart grid technologies
are expected to be increasingly used in higher-level power systems whereas technologies related toDR, batteries, EVs, etc. will be utilised more in terminal systems. However, there is also a possibilityof bottom-up diffusion of distributed power generation, including photovoltaic power generation forhome use, and that of AMI and other measuring devices. Accordingly, the roles of RTOs and ISOs
and technology development and dissemination in these sectors will become increasingly
significant.31 Continuous efforts need to be made for disseminating smart grid technologies that can
provide new investment opportunities to replace investment in existing large-scale powertransmission and distribution, and this is also expected to ensure the economic performance oftechnologies related to batteries and EVs, etc. and further disseminate such technologies. With
regard to smart community-related projects and expansion of services, the key may be thedevelopment of applications in accordance with the growth of IT ventures mainly on the West Coast,
uncovering new needs, and structural integration. However, there is a risk that technologies are
localised to fit individual retail markets and rules have been developed specific to each state or
region, and therefore nationwide measures are required.32

31
In Hawaii, where the power system is rather small in scale and renewable energy has been widely disseminated,such cases of bottom-up diffusion are already observed and corresponding measures are being discussed.
32
In relation to demand response, for example, standardisation of regulations for wholesale markets has been
discussed with the cooperation of RTOs, while matters concerning retail markets are under the jurisdiction of state
governments.

109

(2) Japan
A) Domestic power situation and existing smart community-related projects
In Japan, smart grid projects have been promoted from a different perspective than those in the
United States. Japan’s transmission and distribution infrastructure is highly efficient, among the bestin the world in terms of outage time and transmission loss. Whereas discussions centre on smart gridtechnologies in the United States, Japan is promoting advanced smart community projects.
Specifically, the Master Plan for the Demonstration of Next-Generation Energy and Social
Systems was established on 11 August 2010 and four locations were designated. The demonstration
projects at these four locations mainly focused on the following.33 “Operational experiments inthese cities will be conducted for a five-year period from 2010 to 2014, and will verify elements
ranging from technologies for the realisation of the smart grid and smart cities to related mechanisms
and business models. Specifically, the subjects to be verified include ways to make power use visible,
the control of home electronic devices, hot water systems, etc., demand response, which involves theadjustment of energy demand that is encouraged from the supply side, the linking of EVs and homes,
the optimal design of energy storage systems, EV charging systems, and transport systems. The
projects seek to create Community Energy Management Systems (CEMS) that will bring all of thesetogether and optimise energy use for the community as a whole.”
The following year, the Great East Japan Earthquake struck and revealed that the current powersystem has limits in that its stability is maintained only by adjusting demand and accommodation
capacity between the eastern part and the western part of the economy. Therefore, the objective ofcreating a disaster-resilient system and providing services that will contribute to economic
revitalisation was newly incorporated in smart community projects, and so such efforts are expected
to be made in demonstration projects.
Accordingly, the smart projects that are now being carried out in Japan place emphasis on what
content should be incorporated in a system centring on energy management specific to each area.
Thus, there are higher expectations for technologies related to smart communities and smart cities
than those for macroscopic technologies related to smart grids.
Meanwhile, the commencement of the feed-in tariff system in 2012 led to the rapid introduction ofrenewable energy generation, revealing the capacity limit of the power system. In response, theMinistry of Economy, Trade and Industry established a working group of experts and clarified theamount of power produced by renewable energy generation, or by intermittent generation inparticular, that the current power system can accept. As measures to increase such capacity, flexible
output control for power generation facilities, building of a wider-area power system, and utilisationof interconnected power lines are being discussed. Smart technologies related to batteries, etc. are
expected to support such measures and expand the possibilities, and smart grid-related technologies
33

http://jscp.nepc.or.jp/article/jscp/20120817/319944/

110are also expected to enable wide-area highly-efficient system operation.
GW
20.0
17.8
Approval

16.0

12.0

Limit

10.8
8.2

8.0
5.6

5.5
4.0

0.0

2.9

5.3

Hokkaido

2.2

1.2

1.2

2.5
0.6

0.7
TohokuHokuriku Chugoku

Shikoku

Kyusyu0.4

Okinawa

Figure 3-7 Acceptable Limit of Power by PV Generation and Amount Approved
under the FIT System
Source: Created based on ANRE, New Energy Subcommittee (2014)
B) Electricity market and smart technologies
In Japan, vertically integrated general electric utilities that have a local monopoly are obliged tosupply power in their respective regions. Regarding utilisation of the electricity market, thetransaction volume on the JEPX was limited, especially before the Great East Japan Earthquake.
However, the transaction volume has been increasing thanks to voluntary efforts in the private sector
and under the instruction of the Ministry of Economy, Trade and Industry after the earthquake, andthe ministry concluded that the market has been revitalised to some extent. Discussions are under
way on policies to further revitalise and utilise the power of the market to diversify services bymeans such as through the development of a real-time market and ancillary services market.
Electricity system reforms are currently the subject of much attention: it is planned to introduce alicense system and to fully liberalise the electricity market in 2016 and to implement legal
unbundling in 2020. Such changes in the business environment will also require Japanese electric
power suppliers, which have developed high-quality electrical grid infrastructure under an integrated
power generation and transmission system, to take a different approach to investment. The key is
whether the new system is designed to continue attracting stable investment in infrastructuredevelopment.
A report by the Expert Committee on the Electricity System Reform published in February 2013111

04スマートコミュニティ本文.indd

111

2015/12/07

12:28:05

describes the direction of the electricity system reforms and identifies the following issues: i)utilisation of markets (revitalisation of wholesale electricity markets, etc.); ii) wide-area and neutral
power transmission and distribution (expansion of wide-area operation, implementation of legal
unbundling); iii) measures to ensure load capacity for stable power supply (new mechanism toensure load capacity, creation of an hour-ahead market and real-time market, market-linked
mechanism of imbalance settlement, mid- and long-term measures to ensure load capacity); and iv)
other system reforms (regulatory organisation, self-wheeling, etc.). Technologies to support these are
expected to be introduced from now on, and so the introduction of smart metres and other equipment
for ascertaining real-time power demand and supply is likely to be promoted.
One particular issue identified in the report is the roles of the Organisation for Cross-regional
Coordination of Transmission Operators (OCCTO) and the negawatt market; the System Design
Working Group has been discussing relevant technologies for this issue as a priority. The OCCTO
will encourage transmission and distribution companies, which have so far made and implemented
their infrastructure development plans by only considering the demand and supply balance within
their respective areas, to draw up plans that take into account other companies’ power supply plans,
thus identifying concrete problems. In addition, incorporating the concept of DR in long-term
equipment planning, as is being discussed in the United States, may facilitate forward-looking
utilisation of DR and dissemination of related technologies. The negawatt market is also a promisingsolution to the imbalance in liberalising electricity markets, for which EMS and other related
technologies will be helpful.
Ahead of the market development and system reform as mentioned above, power companies haveannounced deadlines for introducing smart metres, which suggests that smart metres will steadily
become part of the infrastructure. Market development for utilising the potential of suchinfrastructure is urgently needed.
Table 3-4 Smart Metre Introduction Plan
Ho kkaid o

HV

LV

2016
Start

2015

End

2023

TohokuTokyo

Finished FinishedChubu

Ho kuri ku

Kansai

Chugo ku

Shiko ku

KyusyuOki nawa

2016

Finished

2016

2016

2016

Finished

2016

2014

2016

2016

2023

2023

2024

2014

2014

2015
Jul

2015

-

2016

2023

2020

2022

2023

2022

2023

First half First half

Second half

Source: Smart Meter Institution Subcommittee, ANREIn Japan, frameworks for respective markets with the objective of reforming the electricity system
are now being developed; the future trends need to be watched.
112C) Future developments
Electricity system reforms are now under way in Japan, and the key is how to encourage the useof technologies to ensure the stability of systems both in the power generation sector and the retailsector. The issue of how to overcome system constraints due to increasing renewable energy
generation has also been attracting attention.
Smart metres will be installed for all consumers by the mid-2020s, but if the fragmentation ofmarkets and technologies is not eliminated, it may be impossible to fully utilise diverse technologies,
such as demand response technologies and EVs on the consumer side and dispatchable distributed
generation networks on the power company side.
The abovementioned demonstration projects in Kitakyushu City, Toyota City, Yokohama Cityand Keihanna Science City are being carried out in closed communities by related parties in a
unified manner with the support of respective local governments. These demonstration projects are
more like technology demonstrations carried out jointly with the current administration; they are notintended to prove whether technologies related to demand response and V2G (Vehicle to Grid), etc.
may be commercialised under common rules in the nationwide market to meet common needs. In
order to disseminate these technologies more widely, the negawatt market and capacity market,
which are now being discussed as part of the system reforms, will need to play a significant role.
We must also monitor the progress of smart community projects in Japan utilising suchtechnologies as distributed CHP and community energy management in relation to seeking
market-based economic efficiency, creating a disaster-resilient energy system and offering services
that will contribute to economic revitalisation.

(3) People's Republic of ChinaA) Domestic power situation and ongoing smart community-related projects
In China, power demand has been increasing significantly since the beginning of this century intandem with accelerating economic growth, and there has been an urgent need to develop electric
power sources to meet the increasing demand. In addition to coal-fired power generation, which has
been the major electric power source, the government announced a policy of increasing facilities for
gas-fired power, nuclear power, wind power and photovoltaic power generation in the future.
However, the imbalanced distribution of resources and energy transportation are problems inherent
to the Chinese energy system. In China, natural gas is transported from inland or from othereconomies in the west to places of demand in the eastern coastal areas, and the same structure also
applies to the electricity supply system. Thermal power plants that use coal produced inland, wind
power plants that are constructed inland where wind conditions are favourable, and inland water
resources have been utilised with the aim of connecting the whole economy through a project to113

transport power generated in the west to the eastern part, and a project to exchange power between
the south and the north. Such economy-wide initiatives will have to be strengthened further.

Figure 3-8 Outline of Chinese Electricity System and Problems in Grid Networks
Source: Created based on State Grid Corporation of China (2014), White Paper on Green
Development, http://www.sgcc.com.cn/ywlm/projects/
The State Grid Corporation of China34 plans to develop a large-scale electricity system andconstruct highly efficient 1000kV transmission lines and a large number of UHV transmission lines.
The Corporation considers “robust smart grids” to be the key for integrating the state’s energy
systems and has set the goals of constructing large-scale power plants in the power generation sector,
building a special high-voltage grid in the power transmission sector, liberalising the powertransformation and distribution sector, and introducing smart metres and building a two-way
communication network in the retail sector. Highly efficient power transmission and distribution
technologies are expected to be introduced mainly in these fields.
Big cities such as Beijing and Shanghai, which are the major centres of demand, now face
problems such PM2.5 pollution and serious traffic congestion due to population increase. In
particular, there is severe atmospheric pollution in cities and only 17 out of 471 cities larger thanhsien satisfied air quality level 1 in 2010.35 To resolve these problems and to enhance energy
efficiency, China aims to increase the efficiency of city systems and thereby improve the34

The Smart Grid Construction Plan compiled by the State Grid Corporation of China in March 2010 set up thefollowing overall objectives: 1) Optimal distribution of resources, 2) Stable operation of grids, 3) Development of
renewable energy, 4) Improvement of services to consumers, and 5) Improvement of services through interactive
communications.
35
Japan Electric Power Information Center (2014) “Electric Power Business in Foreign Countries Volume 1 (part 2)”114

environment and energy system, and is promoting smart city projects.
Thus, China is endeavouring to develop higher-level power system infrastructure by utilisingsmart grid technologies and to promote smart city-related projects on the demand side, taking into
consideration the stabilisation of energy systems, power resource development and achievement of alow-carbon society. Related technologies are expected to be disseminated both in higher-level powersystems and subordinate power systems.
B) Electricity market and smart technologies
In China, a regional grid corporation and provincial power corporation in each province
exclusively supply power to consumers via distribution companies in respective city or hsien under
their jurisdiction. The authority to grant permission for the allocation and change of business areas,
the authority to grant licenses for supplying power, and the authority to grant licenses for theelectricity business are delegated to the regional bureaus of the Bureau of Energy. Furthermore, thecreation of electricity markets by region is now being discussed, and it is expected that transport,
electricity and city infrastructure will be developed uniformly with local administration, electricity
markets suited to the characteristics of respective regions will be created, and related technologies
will be introduced in such processes.
A project under way in Tianjin36 aims to reduce CO2 emissions by 50% by 2030 by efficiently
and integrally utilising diverse technologies centred on low-carbon construction, low-carbon
indicators, low-carbon transport, low-carbon finance, low-carbon energy, etc., mainly through EMS
covering the entire city. The project will also serve as a model low-carbon city and the city
government is playing the central role. On the other hand, market-linked initiatives may be difficult
as the reform of the electricity market is still under discussion. Nevertheless, the project has set
social and economic targets, which include creating an innovative city with a low-carbon economy,
leading carbon finance and carbon trading.
The 12th five-year plan (2011–2015) published by the Chinese government in March 2011 called
for the creation of an emissions trading market,37 and in October 2011, the National Development
and Reform Commission (NDRC) issued a notice on the development of an emissions trading model
project to seven major local cities: Beijing, Tianjin, Shanghai, Chongqing, Guangdong, Hubei and
Shenzhen. In response, each local government has been making preparations, such as establishingsystem rules, setting up emission caps for targeted companies, making an allocation plan, preparing36

http://www.tifi.com.cn/en/51.html?5
http://apecenergy.tier.org.tw/database/db/ewg47/3/1_Yujiapu_Financial_District_Low_Carbon_Town_Index_System.
pdf
37
Ministry of the Environment (2012) “Outline of Emissions Trading System in China”
http://www.env.go.jp/earth/ondanka/det/os-info/mats/cn20121025.pdf

115

a registry and developing trading platforms. Tianjin city and other cities may focus on reducing CO2
emissions in their existing or planned smart city projects, and may include the creation of intercity
emissions trading platforms as an objective of their projects.
The roadmap of the NDRC aims to commence pilot projects for the carbon market in 2013,
complete the basic framework for the carbon-trading market in 2015, and operate the carbon-trading
system nationwide during the period of the 13th five-year plan (2016–2020). Depending on how
reforms of the electricity market progress in China, smart projects may be incorporated into
preceding initiatives to develop a carbon-trading market as part of CO2 emissions reduction
measures. In the process, smart community-related technologies, centring on those for energy
conservation and low-carbon power supply, may be disseminated widely.
C) Future developments
China’s electricity business structure consists of government-managed or publicly-managed
large-scale power generation corporations and power transmission corporations that cover the whole
economy, and provincial power distribution corporations in respective provinces. Under thisstructure, smart city projects and smart community projects for urban development have been carriedout in the demand sector, while smart grid projects using large-scale, sophisticated facilities havebeen promoted in the power transmission sector including the economy’s grid, focusing on thedevelopment of 1000kV ultra-high-voltage transmission lines.
Meanwhile, smart city projects in demand areas are likely to promote the dissemination of EVs
and EMS in accordance with the needs of respective provinces, resulting in localisation of suchtechnologies. Accordingly, the central government needs to standardise criteria, create a platform fora carbon-trading market, and promote electricity market reform for fulfilling adjustment functions.
Furthermore, while promoting reforms of the electricity market to create a more flexible market, it isnecessary to change the rate system, which is currently controlled by the central government, toenable electricity charges to be set flexibly depending on regional circumstances. If electricity
market reform progresses favourably, technologies relating to DR and batteries and other ICT may
be further disseminated for flexible operations for achieving peak-shaving, etc. based on a pricesignalling strategy, covering wider areas beyond where smart city projects are now being carried out.

(4) ThailandA) Domestic power situation and ongoing smart community-related projects
In Thailand, the Power Development Plan 2010 Revision 3 (PDP2010R3) published by thegovernment in June 2012 predicts that power demand will double from that in 2011 by 2030, andthat it is indispensable to develop power generation facilities and transmission facilities. At present,
116

coal-fired power generation is the main type, but the Thai people are environmentally conscious andit is difficult to construct new coal-fired facilities. The PDP forecasts the potential of hydropower,
thermal power (gas-fired power, in particular), nuclear power and renewable energy generation.
Regarding hydropower, as large-scale development is difficult domestically, the possibility of smallhydro development and joint projects with Laos and other neighbouring economies is being
considered. As for thermal power, the focus is on replacement with gas-fired power. The setting oftargets for nuclear power has been delayed due to the accident at Fukushima Daiichi NPP, while theplan for renewable energy is scheduled to be revised upward. Furthermore, the PDP has producedplans for reinforcing domestic distribution systems, including rural electrification, and fordeveloping systems for importing electricity from Laos, Malaysia, Myanmar and China.
Due to the difficulty of increasing coal-fired power facilities within the economy as mentioned
above, Thailand needs to develop other power sources and strengthen collaboration with othereconomies in the medium to long term. Furthermore, rural electrification and expansion ofrenewable energy are required domestically and therefore smart grid technologies will be
indispensable in developing efficient infrastructure both in higher-level power systems andsubordinate power systems. The Provincial Electricity Authority (PEA) has officially announced the
PEA Smart Grid Policy to expand the scope and content of smart grid projects in three stages
through carrying out demonstration projects in the power distribution sector in islands and specificareas.

Figure 3-9 PEA Smart Grid Road Map
Source: PEA (2014), Smart Meter – PEA Smart Grid Project in Pattaya
117B) Electricity market and smart technologies
In Thailand, the electricity industry is unbundled and deregulation for allowing new entry is now
under discussion in the power generation sector. In contrast, the power transmission sector ismonopolised by the publicly-managed EGAT and the power distribution sector is managed by the
publicly-managed MEA and PEA. The Thai government clearly positions the smart grid strategy aspart of its energy strategy and the PEA draws up plans and carries out projects to utilise advanced
technologies in the power distribution sector such as projects for automating power distribution tostabilise the system, while promoting rural electrification.
Thailand has a single buyer system with no electricity wholesale market and electricity rates are
regulated. Such cost-based electricity rates ensure stable procurement of funds, and stable
investment is expected to continue as power demand increases. As market-based pricing is not
adopted at present, whether new services and technologies are introduced depends on the transaction
rules of the EGAT. However, one option is that used in Korea, under which thegovernment-managed KEPCO integrally operates power systems while adopting a single buyer
system and introducing the concept of DR in KPX (electricity wholesale market).38 Also in Thailand,
how markets are utilised under the monopolistic system will affect the future introduction of smart
technologies or technologies particularly close to consumers.
C) Future developments
The PEA plays the central role in the current smart grid strategy and the focus is on technologies
for automating power distribution, etc. Therefore, it is expected that the development of advanced
infrastructure, mainly transmission networks, will be steadily promoted and demand response
technologies and EVs may be utilised under the initiative of the PEA as technologies that contributeto stabilising networks.
Meanwhile, the usage of demand response technologies by private companies for business may beaffected by the policies of the Energy Regulatory Commission (ERC) and by a fundamental reviewof the electricity rate system, concerning matters such as how to differentiate rates between the MEA
and the PEA under the instruction of the government. For further utilisation of smart technologies, it
may be necessary to create and utilise an electricity market to ensure transparency in the electricity
rate system and introduce competition.

38

http://www2.schneider-electric.com/corporate/en/press/press-releases/viewer-press-releases.page?c_filepath=/templat
edata/Content/Press_Release/data/en/shared/2015/01/20150119_energy_pool_speeds_up_its_growth_in_asia_signing_today_a_business_star.xml

118

3.4 Energy/Power-Saving Effect through the Dissemination of Element
Technologies Related to Smart Communities in Each Economy
Many of the projects listed in Chapter 1 are under way or under consideration, but the resulting
energy-saving effect, CO2 emissions reduction effect and economic effect have seldom been fully
reviewed. While it is difficult to clarify the energy-saving effect and power-saving effect from thissurvey, a proper quantitative analysis of the introduction of technologies related to smart
communities, smart cities and smart grids is given below.
As this chapter has shown, projects including the term “smart” in their title are being carried out
with various purposes depending on respective economies’ status, level of infrastructuredevelopment and energy market structure, in consideration of what is necessary at present and in the
future. Therefore, when evaluating the effects of introducing smart community-related technologies,
it is necessary to consider the circumstances of the relevant economy.
Specific matters to be evaluated include the degree of maturity of the energy network
infrastructure, regulations on the energy market, and economic conditions,39 and it is necessary toclassify smart technologies that are introduced preferentially in light of these aspects and evaluate
their effects. For example, in economies like Japan where the grid infrastructure has been developed,
the widespread introduction and dissemination of smart grid technologies will not yield additionalenergy-saving effects which can be expected in other economies. Furthermore, due to the absence of
relevant markets, demand response technologies and batteries installed at consumers’ homes areunlikely to produce an energy-saving or peak-shaving effect. In order to evaluate the futureenergy-saving effect of smart technologies in Japan, infrastructure level and electricity market
forecasts also need to be taken into consideration; technologies that are expected to be introduced arethose related to EMS, batteries, and control of EVs by fully utilising ICT, rather than smart gridtechnologies.
In this manner, when forecasting the energy-saving effect and CO2 emissions reduction effect ofsmart technologies in a certain economy, its infrastructure status, social situation, market trends andregulatory trends must be taken into account and the possibility of introducing relevant technologies
must be examined. Then, the energy- and power-saving effect of introducing element technologies
related to smart communities should be evaluated and accumulated in light of the results ofindividual demonstration projects now being carried out in the economy.

39

In addition to these, whether local governments have strong power or the central government has centralised
power, and the degree of urbanisation of the economy will affect the forecast of future introduction of smart
technologies.

1194 Smart Grid System Integration
4.1 Integration of Renewable Energy Generation Systems
There are various constraints in the integration of renewable energy generation systems, but thissection compiles output fluctuations and constraints due to ramp rates of respective power sources.

(1) Example of the Bonneville Power Administration
The Bonneville Power Administration (BPA), which is engaged in the power transmission
business in the northwestern area of the United States, has introduced 4,782MW of wind power
generation. The BPA publicises actual and estimated wind power generation, actual hydropower
generation and actual thermal power generation every five minutes. The BPA has almost approachedits limit of expanding wind power generation and seems to even suppress output. Actual wind
generation output from January to March 2014 is as shown in Figure 4-1. During this period, output
fluctuated from 0MW to 4,319MW (90% of installed capacity), and the average availability was
24%.

MW
6,000

ActualInstalled Capacity

5,000
4,000
3,000
2,000
1,000
0
1/1

1/8

1/15

1/22

1/29

2/5

2/12

2/19

2/26

3/5

3/12

3/19

3/26

Figure 4-1 Actual Wind Generation Output in BPA
Source: Bonneville Power Administration
The BPA is a balancing authority responsible for maintaining the demand and supply balance andis obliged to minimise area control errors (ACE), which are represented as follows.
ACE = (NIA − NIS) − 10B (FA − FS) − IME
where:

NIA is net interchange (actual)120



NIS is net interchange (scheduled)

B is balancing authority bias

FA is frequency (actual)

FS is frequency (scheduled)

IME is interchange (tie line) metring error
The major task is to equalise scheduled output and actual output in the interconnection within therelevant area, which means to maintain the difference between generation output and demand within
the area so as to match import and export plans.
Additionally, the BPA, as a balancing authority, is obliged to ensure a certain level of reserve
margin, for which it uses thermal power generation and hydropower generation. When using thermal
power generation to ensure the reserve margin, the BPA cannot suppress the output of thermal
generation below the reserve requirement. In the BPA area, when the output of thermal generation
can no longer be suppressed, that of wind generation is suppressed.
Figure 4-2 shows the distribution of load, output of wind generation, output of thermal generation,and net load (load − output of wind generation) in 2014. The net load becomes almost the same level
as the output of thermal generation during certain time zones as seen on 23 May 2014 in Figure 4-3.
At this time of the year, power demand is relatively small in the BPA area, but the output of thermal
generation was suppressed to a level close to the reserve requirement thanks to the increased output
of wind generation. Under such circumstances, when the output of thermal generation can no longer
be suppressed, that of wind generation is suppressed.

MW

12,000Wind
10,000Load
Net Load

8,000

Thermal

6,000
4,000
2,000
0

0%

20%

40%

60%

80%

Figure 4-2 Distribution of Demand and Generation Output
Source: Bonneville Power Administration
121

100%

MW

Hydro
Wind
ThermalLoad
Load+Export
Reserve requiment

0:00
3:50
7:40
11:30
15:20
19:10
23:00
2:50
6:40
10:30
14:20
18:10
22:00
1:50
5:40
9:30
13:20
17:10
21:00

20,00018,00016,00014,00012,00010,000
8,000
6,000
4,000
2,000
0

5/22

5/23

5/24

Figure 4-3 Demand and Supply Balance in BPA (22–24 May 2014)
Source: Bonneville Power Administration
During 28–30 May 2011, as shown in the figure below, the output of thermal generation was
suppressed at the minimum level without any room for further suppression, resulting in thesuspension of wind generation. The BPA is implementing a smart grid project with the aim of
mitigating such demand and supply constraints.
MW
18,00016,00014,00012,00010,000
8,000
6,000
4,000
2,000
0

5/27

5/28

5/29

5/30

Wind Actual

Hydro

ThermalWind Forecast

Area Load

Net Interchange

Figure 4-4 Demand and Supply Balance in BPA (27–30 May 2011)
Source: Bonneville Power Administration122

(2) Example of 50 Hertz Transmission
Fifty Hertz Transmission, which is a power transmission company covering the eastern part ofGermany, has introduced 13,048MW of wind power generation, which significantly affects demandand supply operations. Figure 4-5 shows the situation in January 2014; it can be observed that theoutput of wind generation significantly fluctuated from 10MW to 10,628MW.

MW
14,00012,00010,000
8,000
6,000
4,000

PV

Wind

Load

1/31

1/29

1/27

1/25

1/23

1/21

1/19

1/17

1/15

1/13

1/11

1/9

1/7

1/5

1/3

0

1/1

2,000

Wind Installed Capacity

Figure 4-5 Actual Output of Wind Generation and PV (January 2014)
Source: 50 Hertz Transmission
Figure 4-6 shows the distribution of the load, output of wind generation, output of othergeneration, net load (load − output of wind generation) and reserve requirement in 2014. The output
of other generation becomes almost the same level as the reserve requirement during certain timezones as seen on 24 December 2014 in Figure 4-7. The output of other generation represents theoverall output of power generation in 50 Hertz Transmission’s area except the output of wind
generation, and includes the output by a number of generators that do not constitute the reserve
margin. Therefore, the reserve margin required for demand and supply operations may not have been
fully secured during this period, suggesting that the output of wind generation was suppressed.

123

MW
20,00015,00010,0005,000
0-5,000-10,000

0%
20%
40%
Wind
Net Load
Reserve requirement

60%
80%
100%
Load
Other Generation

Figure 4-6 Distribution of Demand and Generation Output
Source: 50 Hertz Transmission

MW
20,000

Export18,00016,00014,00012,00010,000
8,000
6,000
4,000
2,000
0
12/23
Wind

12/24
Other Generation

12/25
Load
Reserve requirement

Figure 4-7 Demand and Supply Balance in 50 Hertz Transmission (23–25 December 2014)
Source: 50 Hertz Transmission
124Here, the effect of wind power generation on maintaining the demand and supply balance isanalysed. When the output of wind generation is as planned in advance, the demand and supply
balance within the area can be maintained by adjusting the output of other generation sources andexports and imports. Therefore, the degree of forecast errors of the output of wind generation andtheir influence on the overall demand and supply balance will be evaluated. Figure 4-8 shows
forecast errors of the load, output of wind generation and output of PV generation in January 2014.
Errors in load forecast, which greatly affect the maintenance of demand and supply balance, werelarger than forecast errors of the output of wind generation and output of PV generation.

MW
8,000

PV

Wind

6,000

Load

Total

4,000
2,000
0
-2,000-4,0001/1

1/4

1/7 1/10 1/13 1/16 1/19 1/22 1/25 1/28 1/31

Figure 4-8 Forecast Errors of Load, Output of Wind Generation and Output of PV Generation
Source: 50 Hertz Transmission
However, forecast errors may be dealt with if they have certain patterns. Figure 4-9 shows thehourly distribution of forecast errors of load in January 2014. Errors tended to be smaller during
night-time hours and larger during the day. When forecast errors are positive, errors throughout the
day may be dealt with by operating standby power plants, while when forecast errors are negative,
they may be handled by suspending the operation of the relevant power plants.

125

Average
Max

22:00

20:00

18:00

16:00

14:00

12:00

10:00

8:00

6:00

4:00

2:00

Min

0:00

MW
6,000
5,000
4,000
3,000
2,000
1,000
0
-1,000-2,000-3,000Figure 4-9 Distribution of Forecast Errors of Load
Source: 50 Hertz Transmission
On the other hand, Figure 4-10 shows the hourly distribution of forecast errors of the output ofwind generation in January 2014. Forecast errors are close to zero on average but fluctuate randomly
in both the positive and negative directions.

Average
Max

22:00

20:00

18:00

16:00

14:00

12:00

10:00

8:00

6:00

4:00

2:00

Min

0:00

MW
3,000
2,500
2,000
1,500
1,000
500
0
-500
-1,000-1,500-2,000Figure 4-10 Distribution of Forecast Errors of Output of Wind Generation
Source: 50 Hertz Transmission
When forecast errors fluctuate randomly in this manner, certain constraints arise in maintaining
the demand and supply balance through the alteration of operational schedules. In the case of126

thermal power generation, it takes several hours to resume the operation of plants that use some
types of power sources. If there are many such facilities within the system, it will be difficult tomaintain the supply-demand balance and there is no choice but to use wind power generation for
output suppression. Table 4-1 shows the ramp rates of respective power sources. Open cycle gas
turbine (OCGT) plants can quickly resume operation, but plants using other types of power sources
typically require several hours.
Table 4-1 Ramp Rates of Respective Power Sources
Mini Stable output
Firm RE

Dispatchable
non-RE

Ramp rate (%/min) Lead time, warm (h)Reservoir hydro5%-6%

15%-25%<0.1h

Solid biomass

-

-

-

Biogas---Solar CSP/STE

20%-30%

4%-8%

1h-4h

Geothermal

10%-20%

5%-6%

1h-2h

0%

10%-100%

0.1h-0.16h (6min-10min)

Gas CCGT inflexible

40%-50%0.8%-6%2h-4h

Gas CCGT flexible

15%-30%6%-15%

1h-2h
0.1h-1h

Combustion engine bank CC

Gas OCGT

0%-30%

7%-30%

Steam turbine (Gas/Oil)

10%-50%0.6%-7%1h-4hCoal inflexible

40%-60%0.6%-4%5h-7hCoal flexible

20%-40%

4%-8%

2h-5h

Lignite40%-60%0.6%-6%2h-8hNuclear inflexible

100%

0%

na

Nuclear flexible

40%-60%0.3%-5%na

Notes: CC: combined cycle, CSP: concentrated solar power, STE: solar thermal energy
Source: IEA, “The Power of Transformation – Wind, Sun and The Economics of Flexible Power
Systems,” 2014

(3) Difference in Ramp Rates and Responses to Renewable Energy Output
Fluctuations
As shown in Table 4-1, the minimum stable output and ramp rate vary by type of power source.
The minimum stable output is the minimum output required for maintaining the operation ofgenerators and the ramp rate represents the response capacity towards instructions on output
fluctuations.
Figure 4-11 shows forecast errors of the output of wind generation and output changes by unit
time (1 hour and 30 minutes) of the BPA from January to March 2014. How does a powertransmission company make adjustments by using its reserve margin in order to deal with suchoutput changes?

127

MW

2,500

Forecast Error

2,000

Change(1hour)

1,500

Change(30min)

1,000
500
0
-500
-1,000-1,500-2,0001/1

1/8

1/15 1/22 1/29

2/5

2/12 2/19 2/26

3/5

3/12 3/19 3/26

Figure 4-11 Forecast Errors of Output of Wind Generation and Output Changes by Unit Time
Source: Bonneville Power Administration
The definitions of frequency control reserves to be used by power transmission companies for
dealing with rapid fluctuations in demand and supply vary as shown in Table 4-2. Various frequency
control reserves from primary ones to tertiary ones are envisaged, but the following is the calculationof the capacity of thermal power generation required to increase output from the minimum state by
100MW in 5, 10 and 15 minutes (see Figure 4-12).
Minimum Capacity(100M reserve)=100÷(Ramp rate×min*)÷(1-min stable output rate)*If ramp rate×min>100%, 100%

MW

100MW

Minimum stable
output

0min

5min

10min

15min

Figure 4-12 Concept Regarding Minimum Capacity Required to Increase Output by 100MW

128

eden

an

FCR-N: Frequency Containment Reserves for normal operating band, FCR-D: Frequency Containment Reserves for disturbancess: NERC, “NERC IVGTF Task 2.4 Report- Operating Practices, Procedures, and Tools,” 2011/3 and others

129

Secondary Frequency
Tertiary Frequency Control Reserves
Control Reserves
Operating Reserve(Biggest unit)
Frequency Response
Regulation(5m)(0.7% ofReserve beyond 30 minu
(30s(no recommendation))
Spinning
Quick Start Reserve(10m)Peakdemand)(Marginal(±0.36Hz)(Obligation)
Reserve(10m)
Pricing)
Operating Reserve
Frequency Response
Regulation(10m)Contingency Reserve
Replacement Reserve and30s(no recommendation))
Supplemental Energy
Non-Spinning(±0.36Hz) (Obligation)
Spinning Reserve(10m)Reserve(10m)Secondary Reserve(5m)Minutes Reserve(15m) (3% of Peak
Hours Reserve and Emergency
Primary Reserve (5s) (±0.2Hz)(over 2,000MW)(Pay as
demand) (Pay as Bid)
Reserve(663MW)
Bid)
Secondary Reserve (5m)
Tertiary Reserve
Primary Reserve(30s)(500-1,000MW) (Pay as(±0.5Hz) (700MW) (Obligation)
Rapid 15 Minutes Reserve(15m)Complementary 30 Minute Reserve(30mBid)
Operating Reserve
Operating Reserve(5m)Contingency Reserve(5m-120m)
Short-term
Response
N.A.
BM Start-Up
operatingPrimary/Secondary
Fast Reserve(2m) Fast Start(5m)reserve(5m- (Warming and Hot StandHigh Frequency (10s, 30s)
120m)(±0.2Hz, ±0.5Hz) (Obligation)
SecondaryPrimary Reserve(±0.8Hz)(30sTertiary Reserve(15m-2h)
Reserve(100s-15m) (Av.
15m) (1.5% of Peak demand)
500MW)
FCR-N(±0.1Hz, 3m) and FCRManual Frequency Restoration Reserves(FRR-M)(15m)and Automatic FrequeN.A.
D(-0.3Hz, -0.5Hz, 30s）(559MW)
Restoration Reserves(FRR-A)(2m) (Biggest unit(weekly))(1,220MW)
Operating Reserve
Spinning Reserve(10s)Cold Reserve (no recommendation)(10m)(5% of Peak(no band, but target:
demand)±0.2Hz)(3% of Peak demand)

Germany

SwedenSecondary Frequency
Tertiary Frequency Control Reserves
Control Reserves
Operating Reserve(Biggest unit)
Frequency Response
Regulation(5m)(0.7%ofReserve beyond 30 minutes(30s(no recommendation))
Spinning
Quick Start Reserve(10m)Peak demand)(Marginal(±0.36Hz)(Obligation)
Reserve(10m)
Pricing)
Operating Reserve
Frequency Response
Regulation(10m)Contingency Reserve
Replacement Reserve and30s(no recommendation))
Supplemental Energy
Non-Spinning(±0.36Hz) (Obligation)
Spinning Reserve(10m)Reserve(10m)Secondary Reserve(5m)Minutes Reserve(15m) (3% of Peak
Hours Reserve and Emergency
Primary Reserve (5s) (±0.2Hz)(over 2,000MW)(Pay as
demand) (Pay as Bid)
Reserve(663MW)
Bid)
Secondary Reserve (5m)
Tertiary Reserve
Primary Reserve(30s)(500-1,000MW) (Pay as(±0.5Hz) (700MW) (Obligation)
Rapid 15 Minutes Reserve(15m)Complementary 30 Minute Reserve(30m)
Bid)
Operating Reserve
Operating Reserve(5m)Contingency Reserve(5m-120m)
Short-term
Response
N.A.
BM Start-Up
operatingPrimary/Secondary
Fast Reserve(2m) Fast Start(5m)reserve(5m- (Warming and Hot Standby)
High Frequency (10s, 30s)
120m)(±0.2Hz, ±0.5Hz) (Obligation)
SecondaryPrimary Reserve(±0.8Hz)(30sTertiary Reserve(15m-2h)
Reserve(100s-15m) (Av.
15m) (1.5% of Peak demand)
500MW)
FCR-N(±0.1Hz, 3m) and FCRManual Frequency Restoration Reserves(FRR-M)(15m)and Automatic Frequency
N.A.
D(-0.3Hz, -0.5Hz, 30s）(559MW)
Restoration Reserves(FRR-A)(2m) (Biggest unit(weekly))(1,220MW)
Operating Reserve
Spinning Reserve(10s)Cold Reserve (no recommendation)(10m)(5% of Peak(no band, but target:
demand)±0.2Hz)(3% of Peak demand)

Primary Frequency Control
Reserves

Table 4-2 Types of Frequency Control Reserves in Japan, the United States and European Economies

Primary Frequency Control
Reserves

129

Notes: FCR-N: Frequency Containment Reserves for normal operating band, FCR-D: Frequency Containment Reserves for disturbances
Sources: NERC, “NERC IVGTF Task 2.4 Report- Operating Practices, Procedures, and Tools,” 2011/3 and others

Japan

in

Spain

at
ain

Great
Britainnce

France

many

CAISO

SO

PJM

M

Table 4-2 Types of Frequency Control Reserves in Japan, the United States and European Economies

In the case of reservoir hydropower generation with a high ramp rate, the minimum capacity
required to increase output by 100MW is around 100MW, while in the case of lignite-fired power
generation with a low ramp rate, as much as 5,556MW is required to achieve a 100MW output
increase in five minutes.

MW

700
600
500
400

5min=100

300

10min=100

200

15min=100

100
0
15%

25%

Reservoir
hydro6.0% 15.0% 7.0% 30.0% 4.0%
Gas CCGT
flexible

Gas OCGT

8.0%

Coal flexible

Figure 4-13 Case of Flexible Generation

MW

6,000
5,000
4,000

5min=100

3,000

10min=100

2,000

15min=100

1,000
0
0.8%

6.0%

Gas CCGT
inflexible

0.6%

7.0%

0.6%

4.0%

Steam turbine Coal inflexible(Gas/Oil)

0.6%

6%

LigniteFigure 4-14 Case of Inflexible Generation
Each power source has constraints relating to ramp rate and minimum output, and when many
inflexible power sources, such as coal-fired power generation, are linked in the system, the minimum
output constraint of intermittent renewable energy generation becomes larger.
130

On the other hand, when many reservoir hydropower facilities and gas-fired power facilities witha high ramp rate exist in the system, the flexibility of the system is high and the capacity to accept
renewable energy generation increases accordingly. In this manner, how much intermittent
renewable energy generation can be introduced depends on the characteristics of the composition of
power sources in respective areas.

Variable renewable

DemandFollowing capacity offlexible generation

Reserve requirement (down)

Minimum stable output of flexible generation
In-flexible generation
Figure 4-15 Case of Flexible Generation

4.2

Grid Integration of EVs

Two-way grid integration making use of the storage battery function of electric vehicles (EVs) is
under consideration in various regions. In particular, methods such as using EVs as reserves forancillary services and using them to contribute to voltage stability in the wholesale market are underconsideration. However, as there is no market for electricity for voltage stability in many cases,
using EVs as reserves for ancillary services is the main method under consideration.

131

Figure 4-16 Concept of Grid Integration of EVs
The University of Delaware is identifying challenges and considering measures to resolve them in
a comprehensive manner, including electrical engineering, mechanical engineering, softwaresystems, economics and the market. In 2003, Pepco Holdings Inc (PHI), an electricity company inthe state of Pennsylvania, commissioned the University of Delaware to conduct a theoretical analysisof the vehicle-to-grid (V2G) system in the service area of PJM Interconnection, a wide-area gridorganisation in the Northeast, in view of initiatives in the State of California and other regions to
introduce EVs and hybrid vehicles and the possibility of effective use of storage batteries installedon such vehicles. As a result of designing the V2G concept for the Mid-Atlantic region through these
initiatives, the University was able to obtain funds from various sources including Google and to
conduct further research and development. In October 2007, PHI, PJM and the University of
Delaware succeeded in developing eBOX, which is capable of receiving signals from PJM’s power
supply instruction system. Subsequently, the University jointly conducted a demonstration researchwith PJM, the results of which were summarised in “A Test of Vehicle-to-Grid (V2G) for Energy
Storage and Frequency Regulation in the PJM System” 40. Later, the University published “Acomparison of two GIV mechanisms for providing ancillary services at the University of
Delaware,”41 which explained the analysis of its participation in PJM’s frequency regulation service
market through the use of storage batteries installed on EVs with the support of partners such as
NRG Energy, AC Propulsion, BMW, AutoPort, EVGrid, and JM Interconnection. Below, after
40

http://www.udel.edu/V2G/resources/test-v2g-in-pjm-jan09.pdf

41

http://www.udel.edu/V2G/resources/Vandael-TwoGIVMechanisms2013.pdf

132

explaining the key points of the PJM market, we will mainly discuss the abovementioned two
papers.
PJM is a wide-area grid operation organisation managing supply and demand through the capacity
market, the energy market and the ancillary service market. The flow of wholesale electricity
transactions conducted by PJM is as shown in Figure 2-5. The University of Delaware studied
mainly the effects and economic cost of transactions using EV storage batteries in transactions in thefrequency regulation service market. This market is for reactive supply capacity which is obtainable
within five minutes upon issuance of an order from PJM. The output of supply capacity participatingin the market is required to be adjusted in accordance with frequency regulation signals issued by
PJM every two to four seconds. Figure 4-17 shows the output values indicated by frequency
regulation signals. It is necessary to follow the signal indication in order to keep the maximum
capacity for frequency regulation service within the range of minus 1 to plus 1.

1.0

Reg D
Reg A

0.8
0.6
0.4
0.2
0.0
-0.2
-0.4
-0.6
-1.0

17:00
17:15
17:30
17:45
18:00
18:15
18:30
18:45
19:00
19:15
19:30
19:45
20:00
20:15
20:30
20:45
21:00
21:15
21:30
21:45
22:00
22:15
22:30
22:45
23:00

-0.8

Figure 4-17 Frequency Regulation Signals Issued by PJM
Source: PJM Interconnection

133

Figure 4-18 Relationship between PJM and Aggregator
Source: University of Delaware, “A Test of Vehicle-to-Grid (V2G) for Energy Storage andFrequency Regulation in the PJM System,” November 2008
In a test conducted in 2007, the response of an EV equipped with a storage battery with a voltageof 355V and a generation capacity of 35kWh to frequency regulation signals was examined. Figures
4-19 and 4-20 show the key results. It was found that while the response to frequency regulation
signals was sometimes not good at high discharge rates, the batteries mostly responded well to thesignals.

Figure 4-19 Example of Response during Daytime Hours
Source: University of Delaware, “A Test of Vehicle-to-Grid (V2G) for Energy Storage and Frequency
Regulation in the PJM System,” November 2008

134

Figure 4-20 Example of Response during Daytime Hours
Source: University of Delaware, “A Test of Vehicle-to-Grid (V2G) for Energy Storage and Frequency
Regulation in the PJM System,” November 2008

Many electricity companies in California offer time-zone pricing. Consequently, charging atresidential charging stations is often concentrated in off-peak zones in which the applicable
electricity rate is relatively low. However, at private and public charging stations to which time-zone
pricing is not applicable, the timing of charging apparently depends on the periods of activity. In
particular, residential charging in San Diego and San Francisco starts at midnight in most cases, so it
is presumed that most EV owners there implement charging according to the electricity pricing menu.
It should be noted that no particular problem has arisen in terms of voltage or frequency stability
because the installed capacity is small.

135

Figure 4-21 Example of EV Charging Pattern (San Francisco)
Note: April–June 2013
Source: The EV Project, “Q2 2013 Report – The EV Project”

Figure 4-22 EV Charging Pattern (Los Angeles)
Note: April–June 2013
Source: The EV Project, “Q2 2013 Report – The EV Project”
136The demonstration test conducted by the University of Delaware, which is advanced in studies on
V2G, showed that participating in the frequency regulation service market using EV storage batteries
is feasible technologically. However, the response capability of storage batteries deteriorates in earlymorning hours when the charging rate is high. It is possible to supplement the supply capacity bysecondary use of EV storage batteries, thereby increasing the value of the batteries as a supply
capacity. Still, as the reliability of storage batteries as a supply capacity cannot be secured without acertain number of EVs, it is necessary to encourage greater participation as a wide-area initiative. At
a minimum, it may be essential for each transmission and distribution company to develop a V2Gprogramme. To broaden the geographical scope of the V2G initiative, government involvement is
indispensable (such as the V2G promotion initiative in California).
Usually, the frequency regulation service market is designed on the premise of using conventionalenergy sources such as fossil fuel thermal power and hydropower generation. Therefore, it isnecessary to modify the market design as PJM has done in order to enable participation by storage
batteries, which respond well to regulation signals in the short term but whose sustainability is low.

137

5 References
・ ADB Project: http://www.adb.org/projects/
・ Smart Grid 2013 Global Impact Report: http://www.smartgridimpact.com/
・ World Bank: http://www.worldbank.org/
・ ISGAN;http://www.iea-isgan.org/
・ Nikkei BP, “Overview of Smart Cities around the World 2012”
http://cleantech.nikkeibp.co.jp/report/smartcity2012/
・ Japan Electric Power Information Center (2014), “Electricity Business in Foreign Countries Vol.
1 (I, II)”138

6 Mission Report(Report on Participation in APEC Workshop on Smart DC Power
Opportunity for Community)
1.

Date: 10–11 November 20142.

Location: Chiang Mai Rajabhat University, Chiang Mai, Thailand

3.

Participants: Representatives from APEC economies, university officials, companies involvedin businesses related to direct current (DC) electricity, Provincial Electricity Authority ofThailand, Thai government officials, etc.

4.

Key Pointsi) The APEC Workshop on Smart DC Power Opportunity for Community was held tocoincide with a meeting on new energy sources. Given the expected increase in the use ofPV, the adoption of direct current (DC) power transmission would reduce losses arisingfrom the conversion between alternating current and direct current, as LED lighting andelectrical equipment such as TVs use DC electricity. This demonstration project focuseson the efficient use of electricity by creating a DC community using DC equipment. The
project is based on the principle that using DC electricity without conversion is more
efficient.
ii) In the workshop, in addition to sharing information on a smart DC community,
discussions were held in small groups on expansion of the DC community from theviewpoints of policy, subsidy, technological strategy, etc. The following day, the results ofthe discussions were shared among all participants.

5.

Key Points of Individual Sessions

Session 1. Overview on Smart Grid Systems for the Community LevelIn the ASEAN region, there is a strong need for an international grid in order to utilise
various economies’ resources. Challenges include setting economy targets, enacting laws,
harmonising standards and securing finance for projects.



The Provincial Electricity Authority of Thailand (PEA) is implementing a smart grid
programme in three locations.

Session 2. Best practice for Community Power Systems in the APEC RegionIn the United States, federal budget funds are used to support many micro-grid projects.



In some parts of the APEC region, grid interconnection is insufficient, and DC has anadvantage in that DC facilities can be installed there together with PV and other power
supply facilities. Expectations are also rising for EVs as DC equipment.



In Thailand, a project to integrate renewable energy into a smart grid is under way at the139

University of Phayao.


As Viet Nam is lagging behind in developing low-voltage grids, the economy is
implementing a smart power distribution project in the Cau Giay district of Ha Noi and a
project to improve the operation of the Dich Vong distribution and transformer substation.
Viet Nam aims to realise smart power distribution by improving regulation facilities andinstalling PV and DC facilities as backups.

Session 3. The Challenges and Barriers for DC Community Power Systems Development and
Implementation
On both the supply and demand sides, DC-capable facilities, including PV facilities, areincreasing. Partly as a result, unnecessary power losses are arising from AC/DC
conversion. There is a plan to develop an economy-wide grid first and regional grids
subsequently.



The cost of regulating a DC network may be as small as one tenth that of an AC network.
An increasing number of facilities for commercial buildings are DC-capable, and such
facilities are highly efficient.

A DC solar power system costs 20% more than an AC system. However, the additional
cost may be offset if the system is installed at a new building.

While the debate on standards is ongoing at the IEC and the IEEE, there are challenges interms of technology and technological certification.



The challenges for DC networks are policy-related ones, rather than technological ones
that require improvements of equipment. It is necessary to create a DC market.

Session 4. Group Breakout: Overall Roadmap for DC Community Power Development in the
APEC RegionDiscussions were held in three groups, one for technological standards, one for policies
and subsidies, and one for technological development and dissemination strategy.

Session 5. Opportunities for DC Community Power Systems in the APEC RegionTechnological development and cost reduction of PV will promote the dissemination of
DC networks.

A combination of smart grid and DC, which has an advantage in terms of energy
conservation and other matters, can be achieved through the integration of various
technologies. This combination will contribute to the reduction of ancillary services anddevelopment of off-grid mini-networks. DC will contribute to the expansion of household
systems combined with PV.
140

A major challenge is the low level of awareness among relevant people. Other challenges
include misunderstanding of technologies, low level of technology, priority given toexisting facilities, sunk costs, and a lack of policy support.



The Chiang Mai World Green City (CWGC) started in 2009. It consists of a smart
community, highly efficient buildings and seminar halls made of natural materials, etc. It
uses various technologies, including DC micro-grid, AC micro-grid, PV, HP, a recycledplastic walkway and bio gas derived from waste. DC equipment uses up to 30% lessenergy on average than AC equipment. The energy conservation rate is 33% for air
conditioners, 27% for refrigerators, 16% for TVs and 30% for lighting equipment. The
CO2 reduction effect is around 2,000 tons over a 15-year period compared with thebusiness-as-usual (BAU) case. The use of renewable energy and environmental
management produce particularly large reduction effects.



It is expected that through this workshop, the concept will evolve further, triggering asequence of processes, including growth of public awareness, implementation ofdemonstration projects, provision of policy incentives, drafting of standards, setting ofpolicies and dissemination in the market.

Session 6. Group Presentation on Road Map for DC Community Power Development in the APEC
RegionRegarding technologies and standards:


It is necessary to promote exchanges of information between relevant parties and outreach
initiatives, introduce existing sites, develop standards, devise solutions and provide
systems. In addition, in order to develop global standards, it is necessary to use an existing
framework for cooperation and create a forum for exchanging information among major
players.

Regarding policy and finance:Raising awareness among policymakers: To promote programmes at the economy andlocal levels as well as in non-electrified areas and to identify merits and benefits, such asreliability improvement.



Policy measures: Cost reduction, tax credits, feed-in-tariff (FIT) programme,
environmental policy incentives. The creation of subsidy programmes and R&D funds will
be considered. Carbon credits, employment and GDP.



Barriers: A lack of political leadership and a lack of awareness about the importance of themerits of regional DC grids. It is necessary to send clear messages with regard to education,technological development plans and financial resources.

Technological development and dissemination strategy:141

Develop a dissemination strategy by clarifying the objectives of R&D through a
combination of education, awareness-raising and technological innovation.

APEC DC Smart Grid Workshop Wrap-up


Expectations for DC smart grid-related workshops organised by APECExpectations for the development of a database and implementation of activities to raiseawareness about DC networks under APEC’s leadership

Necessity of platforms for research and exchanges of information concerning DC smart
grids

Figure 6-1 PEA Smart Grid Road Map

142

A Study on Smart Communities in the APEC Region

A Study on Smart Communities
in the APEC Region
November 2015

APERC

Asia Pacific Energy Research Centre

Published by
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