SMART GRID Exhibition 2010 Summary Report

Compiled by:

Swiss Business Hub Japan

Tokyo, July 2010

1. General Overview

Trade show Smart Grid Exhibition 2010, SGE10 http://www.nikkan.co.jp/eve/smart/english/index.html

Venue Tokyo Big Sight (Tokyo International Exhibition Center) Tokyo http://www.bigsight.jp/English/index.html

Date June 16 (Wed) - 18 (Fri), 2010

Organiser Nikkan Kogyo Shimbun Ltd (Business & Technology Daily News) 14-1 Nihombashi Koami-cho, Chuo-ku Tokyo 103-8548, Japan Tel: +81-3-5644-7000 Fax: +81-3-5644-7100 E-mail: j-event@media.nikkan.co.jp http://www.nikkan.co.jp/cop/english/cop-e00100.html Periodicity Every year

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Date of next trade show June 15 (Wed) - 17 (Fri), 2011

Type of trade show Professionals and public

Trade show focus Power generation/transmission: Solar power, hydraulic power, wind power, geothermal power, micro gas turbine, micro gas engine, IPP (independent power producer), PPS (power producer & supplier), cogeneration unit, micro grid, superconductive cable, voltage adjustment device Eco-house, eco-office, smart house electrical appliance, heat pump Censor, AMI (advanced metering infrastructure), smart meter, crowd computing, software/solution for control and management, power grid communication infrastructure, automatic control system, energy management system, crystal oscillator, information security, data centre, green IT Storage battery (NAS battery, lead battery, nickel-hydride battery, etc.), fuel cell, inverter, power conditioner, super capacitor, electrical vehicle, plug-in hybrid vehicle

Housing and office: IT and control:

Battery and vehicle:

Sectors Power generation, construction, IT, batteries, automobiles, etc.

Foreign exhibitors None (c.f. Japanese branch of GE exhibited) Exhibitors list: http://www.nikkan.co.jp/eve/smart/english/list_of_exhibitors.html

Swiss exhibitors None

National pavilions None

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Visitors There were 27,574 visitors in Smart Grid Exhibition 2010. There were 10,883 visitors in Automotive NEXT Industry Fair 2010 which was held in the same exhibition hall. The main industries where visitors are engaged is shown in Table1. Table1 Visitors industry type
Industry Electrical and electronics IT and communication Trading Energy Construction Other % 32.8 10.6% 8.3% 8.1% 7.7% 32.5%

2. Assessment of Trade Show / Results General impression on trade show and scope From June 16 to 18, 2010, Smart Grid Exhibition 2010 was held at Tokyo Big Sight. Developing a smart grid is becoming one of the priorities in Japan. This year, there were 90 exhibitors including Japans leading companies such as Toshiba Corporation, Hitachi Group and Toyota Motor Corporation. Exhibitors from the electricity, IT, construction and other related industries presented their latest products and technologies. Since a smart grid is a new concept of a modernised electricity network, most of exhibitors introduced their technologies under development. Number of visitors reached 27 thousand.

Products / services in demand (market trends) See the next subject, General economic situation of the exhibiting sector in Japan.

General economic situation of the exhibiting sector in the host country

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A smart grid in Japan In order to reduce CO2 emissions, Japanese government plans to enthusiastically introduce solar power generation systems and other power generation systems using renewable energies. For example, the government set up the volume target of a 280 billion kW of PV (photo voltaic) power generation in 2020 whereas PV generation was approximately 14 billion kW in 2005 (Figure1). Figure1 PV introduction scenario (Source: Ministry oh Economy, Trade and Industry)

The adoption of many renewable energy power generations will cause several issues in electricity transmissions and distributions. Different from a conventional grid with only one-way flow of electricity, the reverse flow can happen in a smart grid if a local sub-network generates more power than it consumes. The reverse flow deteriorates the quality of electricity by increasing an electricity voltage in distribution networks. Secondly, there is a possibility of generating more electricity than demanded (i.e. the combined volume of the base load electricity supply by an electricity utility and electricity supplies by non-utility entities exceeds the overall electricity demand). Finally, some power generations using renewable energies such as solar and wind have fluctuating outputs because they are heavily dependent on weather conditions. The electricity frequency might not be maintained at predetermined levels. The introduction of a smart grid in Japan is mostly for tackling above issues caused by the adoption of renewable energy power generations whereas some countries such as the US also consider to strengthen their weak electricity transmission and distribution systems with the use of smart grids.

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Technologies in demand There are number of ways to solve the issues caused by the introduction of many renewable energy power generations. One of the most effective ways is to integrate rechargeable batteries in a smart grid in order to load-level supply of electricity. In this sense, electric vehicles with rechargeable batteries are expected to work importantly in a smart grid. Frequency and voltage controlling devices will be also key technologies in order to secure the quality of electricity in a smart grid. Since power generations become decentralised and complex in a smart grid, individual consumer demands need to be identified to maintain optimal electricity supply. Accordingly, sophisticated IT software will be required to realise, for example, a home energy management system. Furthermore, new technologies which enhance complex systems of a smart grid such as a heat pump consuming redundant electricity are demanded.

Smart grid development in Japan Japanese government and companies are currently testifying their smart grid technologies mostly in micro grid projects. Following projects are related to smart grid development in Japan. AMI (advanced metering infrastructure) introduction Kansai Electric Power Company started to test AMI from April 2008. Other utilities such as Kyushu Electric Power Company, Tokyo Electrical Power Company and Tokyo Gas are currently testifying AMI or planning to introduce AMI. Project to identify the effects of load leveling devices From 2010, Tokyo Electric Power Company and Kansai Electric Power Company are testing the effects of smart meters on load leveling under the project of Agency for Natural Resources and Energy. Smart grid project in New Mexico From 2010, in collaboration with Los Alamos National Laboratory, NEDO (New Energy and Industrial Technology Development Organization) conducts a micro-grid and smart house demonstration project in New Mexico. 19 companies such as Toshiba Corporation and Kyocera Corporation participate in the project. Rokkasho village smart grid project From 2010, Japan Wind Development Co Ltd and Rokkasho village started a micro grid and smart house demonstration project. Companies such as Toyota Motor Corporation, Hitach Group and Panasonic Corporation attend the project. Wind power generation and electricity utilization in smart houses are tested in the project. Smart grid project in Tokyo Institute of Technology Between 2010 and 2012, s smart grid demonstration project is conducted in the buildings of Tokyo Institute of Technology. Companies such as Tokyo Electric Power Company, Toshiba Corporation, Hitachi Group and Itochu Corporation participate in the project. Electricity usage through PV power generation, redundant electricity trading mechanisms and other related issues are tested in the project. Next generation electricity grid project in isolated islands Between 2009 and 2012, a micro grid with conventional and renewable power generations is tested in 10 islands such as Miyako Island and Yonaguni Island. 4 large scale smart grid demonstration projects Between 2010 and 2015, Ministry of Economy, Trade and Industry conducts 4 large scale smart grid demonstration projects in Yokohama City, Toyota City, Kyoto Keihanna District and Kitakyushu City. A smart grid is tested in area levels. For example, in Kitakyushu City, electricity usage of 70 companies and 200 houses are real-time monitored and overall power supply is controlled by integrating the demand side monitoring information.

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Smart Community Alliance In April 2010, Smart Community Alliance was established to promote public-private cooperative activities to develop smart communities. In the alliance, NEDO serves as the secretariat and 287 companies such as Toyota Motor Corporation, Panasonic Corporation, Toshiba Corporation and Tokyo Electric Power Company work as a member. The alliance tackles four main issues: finding international trends and developing strategic plans for Japanese companies to act internationally; including Japanese technologies in the international standards; making a roadmap for future technological development; developing IT systems realising a smart house. Working group for the international standards of next generation energy systems In August 2009, Ministry of Economy, Trade and Industry set up a working group for the international standards of next generation energy systems and considered how Japanese smart grid technologies are included in international standards. The working group identified 26 items which should be particularly focused on. These items are, for example, demand response networks, battery modules and AMI gas meters. Table2 illustrates the current level of smart grid development and future directions. Table2 Next generation energy system (Source: NEDO)
Today - 2020 - Solar panel prices will decrease significantly due to large-scale residential and commercial installations. - Measures to maintain power quality will be carried out mainly for the grid side as PV is in stalled on large-scale. Energy storage systems will be installed at substations. - As regional EMSs are further demonstrated, technology and know-how will be accumulated. - The cost of battery storage will decrease as technology is developed and demonstrated. - Smart meters will allow for remote meter reading. - HEMS will be deployed. Some houses will install home servers. Demand response demonstration will start. - Demonstration of EVs will start. - ZEB (zero emission building) will begin to be built. - PHEVs and EVs permeate. - Vehicles are connected to ICT (information and communications technology) systems. - FCVs (fuel cell vehicles) will begins to be used. Hydrogen stations will begin to be built. 2020 - 2030 - Declining PV prices will increase installations. - Regional EMSs, which contribute to effective use of renewable energy generated at houses, will become more important. - Declining battery storage prices will increase regional EMSs installations. - Distribution and transmission networks that enable two-way communication between demand side and grid side will be established. 2030 - Cost competitiveness of renewable energy will improve as fossil fuel prices more than double. Use of renewable energy will be prioritised and nuclear power will be used as a base. - EMSs that can provide an optimised balance in terms of economy and security between regional EMSs and grid will be established. - EMSs, that create demand by charging EVs when renewable energy is excessive and supplying energy to grid at peak demand, will be used. - A fully-automated HEMS will be realised.

Relation Between regional EMS (energy management system) and entire grid

Houses

Buildings

- HEMS and regional EMSs will be integrated. All power generated at houses will be used optimally. - Various services using home servers will be disseminated. - EVs will be used for power storage. - New public buildings will be ZEB. - Most of vehicles are connected to ICT systems. - FCVs and hydrogen stations permeate. - Small EVs permeate. - Contactless battery charging technology is developed.

Transportation

- ZEB will lead to greatly reduced emissions for new buildings as a whole. - Effective electrical transportation systems permeate - Contactless battery charging infrastructure is developed. - Durable power devices permeate.

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International strategies

- Overseas demonstration projects are conducted. Constructing region based EMS know-how. Making an effort to include Japanese smart grid technologies into international standards. - Winning overseas contracts.

- Developing a master plan. Obtaining a certain international share.

Evolution of trade show (compared to last years event) Smart Grid Exhibition started from 2010. A number of conferences and seminars were conducted during the exhibition. There were organized by public bodies (e.g. Ministry of Economy, Trade and Industry), research institutions (e.g. NEDO) and private companies. Following conferences were held during the trade show. Smart grid summit: trend of the world; market development by multinationals; international standardisation Smart community forum: future towns created by a smart grid Smart grid ICT seminar Environmental and energy related technologies for next generation vehicles

Date: Contact address:

July 15, 2010 Swiss Business Hub Japan c/o Embassy of Switzerland 5-9-12 Minami Azabu, Minato-ku Tokyo 106-8589 Japan Phone: +81-3-5449-8400 Fax: +81-3-3473 6090 e-mail : tok.sbhjapan@eda.admin.ch homepage: www.osec.ch

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