Big Data innovation in Japan’s energy industry Deputy Chairman of Smart House and Building Committee, Japan Smart Community Alliance, Japan Fellow, ECHONET Consortium Keio University Prof. Masaki Umejima

1. Big Data innovation in Japan’s energy industry
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Deputy Chairman of Smart House and Building Committee,
Japan Smart Community Alliance, Japan
Fellow, ECHONET Consortium
Keio University
Masaki Umejima

2. To be an ice breaker
• What is big data innovation?
– Google has gathered a lot of personal data by providing
with many free services, e.g. G mail and Google Doc
– Why google can do that?
• Big data innovation has 6 components:
1. Sensing
2. Collecting
3. Analyzing
4. “Platform” to ease application service development
5. Application development
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6.Modeling

4. Evidence Based Approach
ASEAN EBA Leader
with Resilience, Innovation and Sustainability
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5. Smart House
Micro Hydraulic
Plant
Quick Charging
Station
LRT
Power PlantWind Power
Smart
Building
Electric Bus
Large Energy
Storage
Utilize Natural
Wind Flow
EV
Community Energy
Management
System (CEMS)
ITS
Quick Charging
Station
Quick Charging
Station
Television
Heat Pump Water Heater
Air Conditioner
Dryer/Washer Dish Washer
Home Area Network
Home Gateway
Electric Car
PV
LED Light
Smart Meter
Smart HouseSmart House
Discharge
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New Information
Network
“Internet of Things”
New Energy System
“Smarter Grids”
New Eco-Friendly
City
New Transportation
System
EV as a part of
Energy Infrastructure
EV as a part of
Energy Infrastructure
80% charge in 30 minutes
Charge
V2H, V2G
Redesigning the management of community systems and creating a new lifestyle
GPS
Charging Station
ITS
E-Bus
EV
Control Center
ITS
(Telematics)
ITS
(Telematics)
Mega Solar
Smart Community showcases in Japan
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6. G to G collaboration to implement Community Cloud
• Bandung city,
Indonesia and JSCA,
the industry and
government liaison to
export Japanese
infrastructure to
overseas, have signed
LOI to drive research
and business
development
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http://regional.kompas.com/read/2014/12/05/17184381/Sepakat.Jepang.Akan.Bantu.Bandung.Jadi.Smart.City.

7. Support and Cooperation
Electric Utility
Members
Home Electronics Industry
Gas Utility
IT Company
Heavy Electric Industry
Developer
Total 350 companies and associations
Japan Smart Community Alliance [JSCA]
g
Board
Meeting
International Strategy
International Standardization
Roadmap
Smart House and Building Committee
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JSCA, government–industry liaison, has addressed DSM
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8. What happened in Japan’s electric industry?
• Japan lost electric supply due to a big earthquake
in Mar 2011. That was 30% nation wide supply.
– 30% power supply was generated by nuclear. After
Fukushima, it has become zero.
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8.1
24.7
29.4
7.6
29.2
1.1
Water
Coal
LNG
Gasoline
Nuclear
Returnable

9. What are Japan’s options?
1. Restart nuclear power plant
2. Increase coal and gasoline turbine
3. Increase returnable energy
4. Develop demand side management system
5. Open electric utility market to a new entry
• Now, Japanese electric market is under regional monopoly.
In many countries, this market is state owned.
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10. Business requirements of PPS demand supply balancing rules
transmission network of
electric power company
Supply side x m
Demand side x n
Generated power Electricity Demand
Ｍ Ｍ
DB
Power
meter
Consignment Supply
Power plant for
regulation Ｍ
Time
Demand
Time
Generated
power
JEPX
(Japan Electric Power Exchange)
Demand supply balancing rules
Power
meter
Consignment
Supply
・ Due to Japanʼs regulation, the volume between demand and supply must be balanced
within ±3% every 30 minutes in each region of electric power companies.
・ optimal scheduling of power plant operation based on demand forecast.
・ real time control based on monitoring data of power plant and customers.
Reference: Electricity Business environment

11. 10
JAPAN’S CURRENT ELECTRICITY MARKET
STRUCTURE
Source: The Federation of Electric Power Companies of Japan Source: Electric Power System Council of Japan
MAP OF JAPAN’S ELECTRIC UTILITIES
BY SERVICE AREA
PEAK DEMAND IN EACH SERVICE TERRITORY AND
INTER-UTILITY TRANSMISSION CAPACITY, FY2013
Hokkaido
5.4GW
Tohoku
14.0GW
Tokyo
50.9GW
Chubu
26.2GW
Hokuriku
5.3GW
Kansai
28.2GW
Shikoku
5.5GW
Chugoku
11.1GW
Kyushu
16.3GW
0.6GW
FC
50Hz60Hz
0.6GW
2.2GW2.4GW
1GW
1GW
0.3GW0.3GW
1.3GW
1.6GW
2.5GW
1.6GW
3.8GW
2.7GW
1.2GW
1.4GW
1.2GW
1.4GW0.3GW2.7GW

12. 11
JAPAN 10 REGIONAL UTILITIES’ GENERATION MIX
(TWh)
0
10
20
30
40
50
60
70
80
90
Jan2009
Jul2009
Jan2010
Jul2010
Jan2011
Jul2011
Jan2012
Jul2012
Jan2013
Jul2013
Jan2014
Jul2014
Thermal Nuclear Hydro Renewables
March 2011
0
5
10
15
20
25
30
35
40
Jan2007
Jul2007
Jan2008
Jul2008
Jan2009
Jul2009
Jan2010
Jul2010
Jan2011
Jul2011
Jan2012
Jul2012
Jan2013
Jul2013
Jan2014
Jul2014
LNG Nuclear Coal Oil
March 2011
Note: Excludes purchased electricity
Source: Federation of Electric Power Companies of Japan, Bloomberg New Energy
Finance
JAPAN REGIONAL UTILITIES
GENERATION MIX, TWh
JAPAN POWER UTILITIES THERMAL AND
NUCLEAR GENERATION BY FUEL, TWh

13. Electric Consumption Ratio (2:PM)
出所：資源エネルギー庁2011年5月13日、6月4日公開資料
HE Cooking Machine＋
Electric Consumption in Japanese house
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Air conditionerRefrigerator

14. Two methods enables saving energy: SSM and DSM
 Supply Side Management VS Demand Side Management
 Deliver efficiency on energy usage to Demand Side
 Connect multiple and different devices by IP network
 Integrate it as one system・・HEMS, BEMS, CEMS、e.t.c
 Develop a new business model・・Aggregator, PPS, e.t.c.
Utility
Home Appliance
Demand Side
Power meter
ＨＥＭＳ
BＥＭＳ
Supply Side

15. Demand for Energy Management System
Demand
 Control of Demand - Energy Conservation, Demand Response
Simultaneous optimization on both demand and supply sides minimizing cost and maximizing social
benefit.
Switch from “Megawatts” to “Combining Negawatts with Megawatts” by introducing “Demand Response
(DR)”.
Conventional Planning Alternative Methods
Reserve margin
Reserve margin
Saving from DR
Supply
Demand
Supply
Down
Sizing
Down
Sizing
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16. New business model: Aggregator who integrates smart houses
Commercial-scale Utility Customers
BEMS Vendor
BEMS is in business so that every user has big demand
Commercial-scale
Utility Customers
Small and Medium-sized
Enterprises
Low Voltage Consumers
〔Number of Meters〕
〔about 50,000〕
〔about 770,000〕
〔about 71,800,000〕
Contract
Capacity
500ｋＷ
50ｋＷ
Peak Demand
About 180 GW
About 1/3
About 1/3
About 1/3
○ In the layers such as “Small and Medium-sized Enterprise” and “Low Voltage Consumer”, every
demand and consumption is small
○ Thus, aggregation is important to make scalable till the appropriate size for commercialization
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MEMS Aggregator
Aggregator Constructor
Deploy MEMS
Energy Management Service
Selling
Purchase
Payment
Reform
Utility

18. ECHONET CONSORTIUM
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Layer
1-4
OSI
Layer
Layer
5-7
ECHONET Lite interface as open standard
ECHONET Lite Communication
Processing Block
Application
Lower Communication Block
（IEEE802.15.4 etc.）
Transmission Medium
IP AddressMAC Address or
• Specifies OSI Layer 5 - 7
• Communication Address is
“MAC Address” or “IP Address”.
ECHONET Lite
• IP based, Media Free, and IEC Standard
– ECHONET Lite is IP based interface and interoperable to any standardized medias.
• Open Standard
– ECHONET-Lite, owned by ECHONET Consortium, has become open interface since on Dec 21, 2011.

19. Utility
Smart Meter
PV
Battery
EV
Electric appliances
Users
Fuel Cell
ECHONET-Lite is recommended as the standard interface for connecting appliances and smart meter.
Communication protocol between HEMS and devices should be based on IP.
“ECHONET Lite” [IEC Standard] enables the internet of things
ECHONET-Lite, IEC standard interface, has become open standard since
Dec 2011. ECHNET Lite has provided 100 devices with network access,
included home appliances, power meter, EV, and PV.
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20. Yokohama City
Toshiba, Panasonic, Nissan,
Tokyo Electric, etc.
CEMS, HEMS, BEMS, PV（27MW）
4,000 Smart Houses, 2,000 EVs
Use of heat and unused energy
Toyota City
Toyota Motor, Sharp, Chubu Electric, etc.
CEMS, Demand response
260 Smart House
3,100 EVs/PHEVs deployment. V2H, V2G
Use of heat and unused energy as well as
electricity
Kitakyushu-City
Fuji Electric, IBM, NTT,
Nippon Steel, etc.
CEMS, HEMS, BEMS and main grid system.
Real-time management in 70 companies and
200 Smart Houses
Kyoto Keihanna District
Mitsubishi Group, Omron, Kansai Electric, etc.
CEMS, Battery Management
Smart House: Visualizing energy consumption
and controlling home electronics energy usage.
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Smart Community “Pilot Projects” in Japan
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21. For your information
• Download free Bloomberg white paper to know
ongoing Japanese electric market reform
– http://about.bnef.com/white‐papers/japans‐approach‐
to‐demand‐side‐management/
• Contact me, masaki27@sfc.keio.ac.jp
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