Yokohama Smart City Project: Large-scale Demonstration and Future Implementation

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Yokohama Smart City Project: Large-scale Demonstration and Future Implementation City of Yokohama Climate Change Policy Headquarters

1 Challenges That Yokohama Faces 2

Challenges That Yokohama Faces Impacts of global warming year Changes in Yokohama City s average annual temperature The temperature has risen approximately 2.7 degrees Celsius over 100 years. Impacts of global warming such as localized heavy rain that is difficult to predict and other extreme weather events Flood damage due to typhoons Flood damage due to typhoons 3

Ongoing targeted reduction for the amount of greenhouse gas emission Increase of GHG emission Rapid population growth (3.5 times that of 60 years ago) Population in Yokohama expected to increase until 2020 Estimated GHG emission in Yokohama Short-term Goal (ten thousand/co2) Projected amount of emissions compared Long-term Goal Mid-term Goal Benchmark year Current state FY 4

2. About YSCP (Yokohama smart city project) 5

History of YOKOHAMA Project Selection We were selected by the japanese government as a "Next-Generation Energy and social system demonstration area." What is "Next-Generation Energy and Social System Verification"...? It is a project designed to enable the building of smart grids and their promotion overseas, as part of the country's new growth strategy, "Strategy to Achieve Global Leadership in the Environment and Energy Through Green Innovation." Through this verification project, we aim to promote the international standardization of related industries, advance them to the next generation, and improve competitiveness in the area of energy and the environment. Renewable energy should use existing power networks. Advertising period: January 29th February 28th, 2010 April: Of the 20 regions from around the country that submitted applications, four were selected. August: The master plan was announced (plan period: FY 2010 FY 2014). March 11th, 2011: Great East Japan Earthquake Important points made: ~Peak shifting and peak saving should also be part of the objective. 6

organizational diagram Overview and results of the verification project (coordination between Yokohama City, 34 businesses, and 15 projects) results (To FY2013)/goal(FY2010~FY2014) HEMS(Home energy management system)(4,200/4,000) PV(37MW/27MW) EV(2,300/2,000) 77

current states for target and a schedule Technically established a regional system centered by CEMS by the middle of FY2012 and also established operational models such as DR. Verification of various DRs was conducted to examine the effect in FY2013 and FY2014. indicator YSCP House PV (goal:27mw) HEMS (goal:4,000) EV (goal:2,000) FY2010 6.8MW FY2011 19.1MW FY2012 31.0MW accomplishing goal 66houses 995houses 2,640houses 427 1,104 1,859 FY2013 36.9MW 4,230houses FY2014 accomplishing goal 2,294 accomplishing goal CEMS SCADA BEMS HEMS EV Design,developed, inspection demand forecast accuracy DR and OpenADR2.0b verification Short-cycle supply-demand adjustment/ daily operation OpenADR2.0b verification PTR verification CCP verification interlinking heat and power storage. verification of complex energy management based on coge neration and storage cell Social verification Social verification (Reduced power demand) (effective incentives ) Surplus of absorption verification ADR, Verification of energy accommodation between house holds, optimal control of energy use at home Introduction of Smart meter and B-route adapter EV charge/discharge system Eco recharging stand + EV sharing verification 8

3. About YSCP Verification 9

Verification Experiment Using HEMS (Verification for FY 2013) The HEMS records showed that as of the end of FY 2012, approximately 2,500 households had cumulatively installed HEMSs. From FY 2013, of the above households, the approximately 1,900 households linked to a CEMS were divided into groups and participated in an energy conservation experiment. <Composition of verification experiment groups> Actual proof participant Type Menu Visualization 400 Households HEMS+PV CPP1 Total General group 1,200 Households 400 Households 1,900 Households 1,700 Households CPP2 400 Households CPP(Critical Peak Pricing) HEMS Visualization 500 Households 500 Households Specific group HEMS+PV etc Visualization etc 200 Households 200 Households 200 Households <The suggested way to participate in the energy conservation experiment: Engage in energy-saving acts while enjoying the time with your family.> Peak time existing contracts 25 Except Hypothetical electricity prices were used. 10

Results of Verification in Summer 2013 A maximum peak shaving of 15.2% was confirmed with a demand response. Behavioral patterns that can be expected from the table below A: Reduced power demand during hours of demand response B: Usage of home appliances, water heater, etc. during late-night hours when the rates are lower Increase B A DR time A visualization Rate of change Decrease CPP1 11.82/kWh 19.3/kWh 60 円 /kwh 19.3/kWh CPP2 11.82/kWh 13.91/kWh 100 円 /kwh 13.91/kWh 11

Verification Experiment Using HEMS (Verification for FY 2014) The HEMS records show that by the end of FY 2013, approximately 4,200 households had cumulatively installed HEMS. For the 2014 fiscal year, about 3,500 households will participate in one of the largest energy conservation experiments in the country. <Composition of verification experiment groups> Actual proof participant Total About3,500 Households General group About 3,300Households Specific group About 200Households Type HEMS+PV About1,900 Households HEMS About1,400 Households HEMS+PV etc About200 Households <For the verification in summer 2014, new verification items were added: > <Rate plans to be used in the verification> 1CPP: In the event that the supply-demand balance is expected to be tight, an advance notice is given that a higher-than-usual rate will apply. 2TOU: A different rate applies depending on the time, but the same rate applies during the experiment period. 3PTR: In the event that the supply-demand balance is expected to be tight, an advance notice is given that a reward will be paid for reducing energy usage. - A demand response that is less burdensome for the consumer - A mechanism that would attract prospective consumers - Confirm intent to subscribe for the TOU and CPP rate plans and verify a way to predict the extent of the demand response effect Menu 1CPP 2TOU 1CPP 2TOU 3PTR 1CPP 2TOU 12

Results of Verification in Summer 2014 An examination of the effectiveness in energy reduction and effective incentives such as demonstrating the pros and cons of transitioning to a new rate. Ways to encourage subscription subscription providing information offering benefits subscription rate 1 16.3% 2 30.7% 3 47.6% Participant Opinions three times twice Solicitation: Soliciting by introducing new electricity rate plans. Providing information: Provide estimates based on records from the previous year or similar households; explain the pros and cons of subscribing to a new rate plan. Offering benefits: Offer benefits to subscribing to a new rate plan. About 90% of the participants said that their awareness of energy conservation rose and energy use dropped through the use of a HEMS. By installing a HEMS, immediate changes in behavior occurred, such as turning off the lights frequently and shortening the amount of time using a hairdryer. About 80% of the participants requested information on the best electricity rate plan based on the data collected from HEMSs. After the liberalization of the electricity retail market, the criteria for selecting a power company will largely be based on electricity rate plans. 13

The Workings of a BEMS - Integrated BEMS Supply plans Demand forecast (previous day, and day in question) CEMS Internet 統合 BEMS IC calculations for entire groups of buildings DR request issuance IC calculations for individual buildings DR allocation Integrated BEMS Buildings with diverse characteristics, ranging from large scale buildings (contract demand of 500kW or more) to medium to small scale buildings (50 to 500kW), are managed as a group. Optimal allocation of energy conservation amounts and maximization of demand response capacities are conducted. Estimate of adjustment margin Internet DR execution Major facilities participating in the demonstration no Tenant tolerance DR small medium large No BEMS no BEMS small smart BEMS medium adjustment margin smart BEMS + BATTERY large 大成建設技術センター ( 大成建設 ) 14

Integrated BEMS Demand Response Verification (Winter and Summer 2013) Objective: To achieve optimal use of energy at the local level, in the office and commercial building sector, through efforts such as maximizing peak shavings through demand response using integrated BEMSs Content: (1) The CEMS orders DR to an integrated BEMS. (2) The integrated BEMS assigns a DR amount to each building according to the requested DR amount and taking into account the energy conservation and adjustment capacity of each building. (3) Each building cooperates and carries out the energy conservation, reduction, etc. in accordance with the assigned amount. Winter season (January 2013 ) peak hours: 5pm 8pm Number of office buildings and commercial buildings: 6 Summer season (July 2013 ) peak hours: 1pm 4pm Number of office buildings and commercial buildings: 14 maximum22% peak savings maximum22.8% peak savings For both winter and summer of 2013, maximum peak shavings of more than 20% were achieved. An incentive of 15/kWh or more was confirmed to produce an effective demand response. 15

Integrated BEMS Demand Response Verification (Summer 2014) 1)Demand response (DR) implementation format: A DR was implemented on seven occasions between July 1st, 2014 and September 30th, 2014. 2)Scale of implementation: The total contract demand of sites participating in the verification was approximately 70,000kW. This is equivalent to about 23,000 average households (at 3kW per household). 3)Verification items: -Improve the certainty in reduction amount (verified by a bid-based negawatt power trading system) -Shorten the response time after a DR is implemented (verification of "Fast DR") 4)Participating companies: 29 in total, after 15 city-owned facilities etc. were added to the 14 sites Item #1: Improving the certainty in reduction amount (via negawatt power trading) (preliminary report) - On average, a reduction of more than 90% of the reduction target was accomplished across all sites. - It was confirmed that the guideline price in order to achieve reduction targets is about 30/kWh. 16

[Project results] promotion of an energy-saving & low-carbon system through application of advanced EMS and energy creation, storage, and renewable energy technology, plus power peak shaving through demand response based on interlinkage with EMS at each site Storage Battery SCADA Integrated control of storage batteries Interface enabling consolidation System for virtual consolidation of plural batteries Promotion of interface standardization Short-cycle supply-demand adjustment/ daily operation FEMS Extensive use of large-scale storage batteries and renewable energy Integrated optimal control of CGS and RF storage batteries Accommodation of OpenADR2.0b BEMS Large-scale building cluster management/extensive use of heat storage PTR-type DR: attainment of 22% peak shaving at maximum CCP-type DR: average target attainment rate of over 90% at all sites Optimal operation of heat and power source systems Stationary, large-scale lithium-ion power storage system Hybrid power storage system Shinjuku Demonstration Utility DRAS CEMS Major metropolitan area type: total control of plural divisions Attainment of 5% demand forecast accuracy Accommodation of OpenADR2.0b (instantaneous end-to-end confirmation from DRAS to each site) Proving test results Achievement of energy-circulating cities by making the most of proving test results HEMS Energy-saving manual and automatic control/optimal control of storage batteries/ Power and heat interchange among housing units Peak-shaving effect: 15.2% maximum Effects of measures for inducing a switch to floating power tariffs Double with information provision Triple with information provision & privileges ADR power-saving effect: 16.6% at maximum Harmonized control of solar batteries and storage batteries Establishment of a fuel battery sharing model for collective housing EV-EMS Shaving of peak demand associated with EV recharging through storage battery control EV charge/discharge system PV consumption on-premise rate improvement of 25%, CO2 emission reduction of 25% Eco recharging stand + EV sharing PV on-premise consumption rate: about 30%, CO2 emission reduction of 15% 17

4. From Verification of YSCP to Implementation 18

Achievement of community energy management based on specified supply Disaster preparedness will be improved through energy cooperation between hospitals and the ward hall. By implementing the cogeneration of energy, not only will operations become more efficient but waste heat will be effectively used, thereby reducing CO2 emissions as well as cost. Old heat source equipment will be renewed, and optimal energy control will be conducted by a BEMS. Electric power utility Yokohama City University Medical Center electricity Special high voltage Bandobashi Station heat 受電 BEMS 3 Specified supply 1 Cogeneration system 2 Minami Civil Engineering& Construction Office Minami Ward administration office electricity Self operated lines electricity 1 Generated electricity will be supplied to specified partners with close ties. 2 While electricity will be generated via gas engines etc., the accompanying waste heat will be used to meet the demands for heat such as air conditioning. 3 Effective utilization of waste heat and optimal control of local energy will be conducted via a BEMS. 19

Achievement of an Energy - recycling City Fuel cell Community bicycles Solar power generation Cities that have an increased supply of energy from their vicinity and make waste-free, efficient use of it. EV Car sharing service BEMS Biomass power generation City of YOKOHAMA Energy Action Plan (March 2015) Try to achieve a secure, safe, and eco-friendly city by realizing low carbon society, contributing to regional stable supply of electricity, and reducing impacts caused by disasters based on introduction of autonomous distribution type power source as well as efficient use of heat by using renewable energy. As a Future City, try to set such a life style in place that allows for promotion of energy policy enforcement, introduction of new technologies and environment while sharing a plan with 3,700,000 citizens and 110,000 business operators 20

Approaches for transition from proving tests to actual implementation based on public-private partnership Institution of the Yokohama Smart Business Council, a new organization resting on public-private partnership (slated for April 2015), in order to bring energycirculating cities* into reality by making full use of the results of proving tests in the Yokohama Smart City Project (YSCP). * Cities that have an increased supply of energy from their vicinity and make waste-free, efficient use of it. Promotion of new approaches to operation of energy management systems and energy coordination, and deployment of the technologies and systems developed to date both inside and outside Japan YSCP proving tests YSCP Promotion Council YSCP implementation Yokohama Smart Business Council -Partner companies- Energy suppliers, construction companies, manufacturers of electrical machinery etc. Power peak dispersion Demand response Reduction of the total level of power use etc. Promotion of energy reduction and creation Higher resilience to disasters Economic stimulation Further heightening of citizen recognition 21