NTT Anode Energy Corporation (NTTAE), Kyushu Electric Power Company, Inc. (Kyuden), and Mitsubishi Corporation(MC)are pleased to announce that we have officially launched operations of a 1.4 MW / 4.2MWh grid-scale battery storage system in Tagawa-gun, Fukuoka Prefecture. The aim of this system is to promote renewable energy as a major power supply by minimizing solar power curtailment*.
*Deliberate reduction of power outputs to balance energy supply and demand.
Driven by its goal to be carbon neutral by the year 2050, Japan is endeavoring to make renewables central to its energy mix. Unfortunately, those efforts are hampered by the need for curtailment when output exceeds demand. Thus, measures for the effective use of renewables are required. In fiscal year 2023, curtailment in the Kyushu area alone is expected to result in the loss of roughly 740 GWh, enough electricity to power 170,000 households for an entire year. Since the spring of 2022, curtailment of electricity generated by renewables has been increasing in both Kyushu and other parts of Japan.
Since June 2022, our three companies have been pooling our respective management resources, know-how to jointly develop businesses that will both promote effective use of surplus solar power and leverage the development of additional power reserves. As the first step, from this July, by utilizing this grid-scale battery storage system installed in Tagawa-gun, we have established and are operating a business model that will minimize the curtailment of surplus renewables and supply power when supply-demand balance is tight. From April to June of 2023, when the amount of solar power curtailment increased, we conducted 47 cycles, representing a total energy charge and discharge of 260,000 kWh.
With this battery storage system, we have begun the following verifications.
1.Business model validation
In addition to minimizing solar power curtailment, business feasibility of multi-use of batteries in various power markets such as spot markets, supply-demand adjustment markets, and capacity markets.
2.Verification of synchronous operation of multiple solar power plants
Towards realizing effective use of renewables by minimizing curtailment, trials to simultaneously charge equal volumes of renewable generated by solar power plants in remote locations to this battery storage system.
Our companies also have plans to supply Japan’s capacity market beginning in fiscal year 2025. In the meantime, we shall continue to do our part to help minimize solar power curtailment and investigate ways to grow our businesses in the future.
