NEDO Launches a Demonstration Project on Automated Demand Response Technology in Portugal
－Aiming for the Stabilization of Power Supply and Demand Associated with the Mass Introduction of Renewable Energy－
November 22, 2016
New Energy and Industrial Technology Development Organization (NEDO)
On November 21, NEDO and the National Laboratory for Energy and Geology (LNEG) of Portugal have reached an agreement to jointly develop a demonstration project on automated demand response technology that will contribute to stabilizing power supply and demand, which is essential for dealing with the introduction of large amounts of renewable energy, and have concluded a Memorandum of Understanding (MOU) for the project. On the same day, NEDO and the city of Lisbon agreed on a project plan which includes demonstration sites at Lisbon City Hall and other municipal facilities and signed an implementation agreement (IA) for the project.
This demonstration project will be carried out through December 2019 with the participation of the Portuguese partners EDP, EFACEC and everis Portugal, and Daikin Industries, Ltd. as contractor, and will install building-scale multiple air-conditioner systems which have a cold air storage function in public buildings including Lisbon City Hall. The objective of the project is to demonstrate an automated demand response system to control those air-conditioning systems capable of adjusting output based on power supply and demand. The project also intends to evaluate the business model for electric power retailers utilizing such systems.
Portugal is one of the leading countries in Europe to actively promote the introduction of renewable energy. As of 2015, the proportion of renewable energy capacity such as wind power generation and hydro power generation to total electric power consumption has already reached 22% from wind power alone and 48% from renewable energy sources as a whole. In May of this year, it was recorded that all domestic electricity consumption was covered by renewable energy for 107 consecutive hours. For the further development of wind power and solar power in the future, there is a growing need for technologies to stabilize power supply and demand and accommodate the high penetration of renewable energy.
Thus, NEDO and the National Laboratory for Energy and Geology (LNEG)*1 of Portugal have reached an agreement to jointly develop a demonstration project on automated demand response technology*2 that will contribute to the stabilization of power supply and demand, which is essential for dealing with the introduction of large amounts of renewable energy, and a Memorandum of Understanding (MOU) for the project was concluded on November 21. On the same day, NEDO and the city of Lisbon agreed on a project plan which includes demonstration sites at Lisbon City Hall and other municipal facilities and signed an implementation agreement (IA) for the project.
In the case of conventional demand response technologies, the uncertainty of the amount of supply and demand adjustment required has been regarded as a problem. This demonstration project aims to improve the reliability of electrical supply and demand adjustments by automating the demand response system and more effectively stabilizing electrical overall supply and demand, which is essential for maintaining a functional electrical grid when the system includes a high proportion of renewable energy.
This demonstration project will be carried out through December 2019 with the participation of the Portuguese partners EDP, EFACEC and everis Portugal, and Daikin Industries, Ltd. as contractor which expands the use of building-scale multiple air-conditioner systems globally and supplies the cold air storage and remote management technologies that will form the core of the demonstration. A demonstration system consisting of multiple air conditioners equipped with a cold storage function will be installed in several buildings such as the city hall and laboratories in Lisbon so as to examine the performance of the automated demand response technology. Based on the demonstration results, we will evaluate the feasibility of the business model for this type of automated demand response in Portugal as well as throughout Europe. Furthermore, we will cooperate with local electric retailers and VPP*3 service providers, so that the automated demand response is adapted the actual business environment in Portugal and other European regions.
2．MOU Signing Ceremony
On November 21, 2016 (local date), in a signing ceremony at the Ministry of Economy, Trade and Industry, Executive Director Makoto Watanabe of NEDO and President Dr. Teresa Ponce de Leão of LNEG signed the MOU to promote the demonstration project by establishing a cooperative partnership in the presence of Ambassador Extraordinary and Plenipotentiary of Japan to Portugal Hiroshi Azuma and H.E. Mr. Jorge Seguro Sanches, the Secretary of State for Energy of the Government of Portugal. Lisbon city agreed to provide some facilities including city hall as demonstration sites. Mr. Watanabe and Mr. Alberto Laplaine Guimarães, Secretary General of the Municipality of Lisbon, signed the Implementation Agreement.
- *1 LNEG
- National Laboratory for Energy and Geology (Laboratório Nacional de Energia e Geologia)
- *2 Automated Demand Response
- A system for adjusting power consumption through automatic control of operating equipment from demand side operators and systems.
- *3 VPP (Virtual Power Plant)
- A system that remotely controls and integrates several types of energy sources for distribution on the demand side in order to provide a reliable overall power supply.
3．For more information, please contact
NEDO Smart Community Department
Contact Persons: Hayahi, Takada TEL: +81-44-520-5274
NEDO International Affairs Department
Contact parson: Sakai TEL: +81-44-520-5190