October 14 th, 2010 Global Business Dialogue on e Society Shinsuke Ito Infrastructure and Advanced Systems Promotion Office Manufacturing Industries

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1 October 14 th, 2010 Global Business Dialogue on e Society Shinsuke Ito Infrastructure and Advanced Systems Promotion Office Manufacturing Industries Bureau Ministry of Economy, Trade and Industry

2 -1- Smart Grid is a boom in the world Increasing reliability of power supply Intelligent power management systems Better customer management Smart meters Stabilizing fluctuation from renewable energy sources Demand response and energy storage Building charging infrastructure for electric vehicles Charging spots and battery management systems Major focus on the supply side

3 Smart grid in Japan -2- We call it Smart Community We also look at the demand side Designing the way people live, work, and move Creating new comfort in our daily lives while reducing the use of fossil fuel Smart House and Smart Offices Designing a new energy system Designing a new city Designing a whole new society Smart Community

4 -3- Smart Community It all started from 2050 Working Group 2050 Working Group (October 2008) Objective: To come up with actual solution to realize 50% CO2 emission reduction by 2050 Method: Challenging on backcast approach with people with innovative mindset (closed discussion) 2050 Vision (June 2009) Conclusion: Sharing Economy and Co creation Society Shift from Possession Economy to Sharing Economy Opening doors to consumers, citizens, and foreign countries for realizing better society, thereby creating Co creation Society

5 -4- Smart Community Excerpt from 2050 Vision Shift from production efficiency to usage efficiency Less focus on production efficiency which only results in lowering costs and increasing desire to possess Focus more on usage efficiency in order to come up with creative ideas to make better use of resources taken from the nature Creating a system where sustainability equals better economy New equation for sustainability: better for the people = better for the environment = better for the economy Focus on long term profit, including more externalities to the market mechanism More contribution to the society, more corporate profit New energy system Shift from single directional to multidirectional energy system Conversion of transportation and energy system (V2H, V2G)

6 -5- Smart Community Designing our society for generations to come Smart House and Smart Offices Utilizing natural sunlight and wind flow Creating more comfortable environment at homes and offices Simultaneously reducing the use of energy Connecting appliances at homes for better management Connecting PVs, storage (home batteries and electric cars) and demand response devices (water heaters, ACs) for stabilizing fluctuation caused by weather changes Realizing a smart phone like house by introducing house API which enable many applications to be developed over HAN (home area network)

7 -6- Sekisui House Natural symbiotic Smart House Utilizing natural sunlight and wind flow to create comfort at homes while reducing energy use Utilizing the power of IT for home security and better energy management Network Daiwa House D s Smart House Turning a house into a smart phone IP-based interoperable HAN (home area network) using ECHONET Standard Enabling control of all electric and electronic devices at home through JAVA-based home server and open API Water & Sunshade PV To Smart Community Center Wind flow Health Care Security Using smart phone to control home appliances Turning the security system on with one touch on the screen Window shade shutter Monitoring operating status of appliances Using digital photo frame to monitor energy usage

8 -7- Smart Community Designing our society for generations to come Designing a new energy system Community Grid Interconnected energy system Managing distributed energy sources (PVs, wind power, fuel cells) in each community to stabilize fluctuation and to make most use of energy produced Utilizing demand response or home storage batteries to absorb excess energy produced in the community, in order to minimize negative impact on the main grid system Moving storage device Electric cars as energy storage Introducing smart charging system at homes in order to absorb fluctuation in the energy system Utilize electric cars as energy storage (G2V & V2G) in the Community Grid to stabilize energy supply (near future)

9 Community Grid interconnected energy system -8- Smart House Enabling self supply of energy by combining PVs, demand response appliances and home batteries (and EV) Sharing energy within the community to stabilize fluctuation in demand or supply Smart School Information flow Energy flow Smart Store Building charging outlet in the parking lots Utilizing EVs for energy backup of stores when necessary Supplying energy to the community from PVs in schools Educating the children by showing the energy flow from school to the community Community Grid System Smart Office Utilizing EVs for energy backup of office buildings Main Grid System Supplying base load to community grid system Utilizing low carbon energy sources such as nuclear, geothermal, and hydraulic Battery System Nuclear Geothermal Hydraulic

10 Electric Car as Energy Storage example Car Makers Smart House Concept Increase energy efficiency of house by introducing intelligent and energy efficient appliances Combining PVs and Electric Car to increase energy security at homes -9- Converter PV DC AC night time power Grid System sell power charge to LiB switchboard AC DC charge to LiB discharge energy efficient appliances Battery (LiB)

11 -10- Smart Community Designing our society for generations to come Designing a new city New transportation system (modal shift) Enabling various type of personal vehicles (including bicycles and small EVs) to run inside the city Introducing environmentally friendly and convenient public transportation system such as LRT or connectable electric bus Designing organic transportation system which enables smooth transfer from personal vehicles to public transportation and vise versa A city coexistence with the nature Redesigning and redeveloping a city to create environmentally friendly but comfortable environment which utilizes natural wind flow, river flow, and sunlight

12 Control Center Control Center for optimizing energy demand/supply An Image of Smart Community Maximize the use of renewables, such as PVs, wind power, and micro hydraulic In order to absorb fluctuation caused by renewables in the community, share energy with homes and office in the region Utilize electric cars and buses as part of energy infrastructure by managing their location and battery status Original Visual Image made by Mitsubishi Heavy Industries -11- Nuclear Power Plant Thermal Power Plant Utilize Electric Car As a part of energy infrastructure Smart Building Utilize Natural Wind Flow ITS Control Center Large Energy Storage LRT Wind Power Mega Solar Power Line Free LRT LRT with Battery At the station: Charge to battery Between stations: Move by battery Quick Charging Station Electric Bus Electric Car Quick Charging Station 80% charge in 30 minutes Shortage: EV House Excess: House EV Smart House Micro Hydraulic Plant Smart House Photovoltaic Cell Electric Bus (works like LRT when connected) Battery Replaceable Bus / Works like LRT by connecting multiple buses Dryer/Washer Dish Washer LED Light Television Li-Ion Battery (Fixed) AC Inverter Smart Meter Home Area Network Home Gateway Motor Li-Ion Battery (Replaceable) Air Conditioner Heat Pump Water Heater Electric Car Connected buses will operate like LRT

13 -12- Establishment of Japan Smart Community Alliance Objective: promote public private cooperative activities toward realization of a smart community (establishment: April 6 th, 2010) Japan based alliance open to companies outside Japan (ABB, Accenture, Cisco, GE, Google, HP, IBM, Intel, Schneider, TI, etc.) Secretariat: NEDO (New Energy and Industrial Technology Development Organization) Member companies: 453 (As of Sep, 2010) Board: Toshiba, Itochu, Tokyo Gas, TEPCO, Toyota, JGS, Panasonic, Hitachi, Mitsubishi Electric Industries: Power, Gas, Oil, Telecom, Internet, IT, Electronics, Machinery, Automobile, Battery, House, Developer, Chemical, Media, Finance, Trading, Consulting, University, Industry Org., etc. Working groups Global Strategy WG International Standardization WG Roadmap WG Smart House WG japan.org/ Japan Smart Community Alliance Power and gas utilities Manufacturers Developers Universities

14 -13- Smart Community Projects 4 sites in Japan was chosen to run large scale pilot projects on smart grid and smart community Kyoto Keihanna District Kyoto Prefecture, Kansai Electric Power, Osaka Gas Power, KANSAI SCIENCE CITY, Kyoto University CO2 20 :houses, 30 :transportation from 2005 Smart tap which visualizes energy consumption control home electronics energy usage. Electric power virtual coloring technology actualizes total home energy management system. Kitakyushu City Kitakyushu City, Fuji Electric Systems, GE, IBM, Nippon Steel CO2 50 from 2005 Real time management in 70 companies and 200 houses Energy management by HEMS, BEMS Energy system which integrates demandside management and high energy system. Yokohama City Yokohama City. Toshiba, Panasonic, Meidensha, Nissan, Accenture, etc. CO2 30 by 2025 from 2004 Energy management system which integrates HEMS,BEMS,EV PV kw Use of heat and unused energy 4000 Smart houses, 2000 EVs Toyota City Toyota City. Toyota Motor, Chubu Electric Power, Toho Gas, Toshiba, Mitsubishi Heavy Industries, Denso, Sharp, Fujitsu, Dream Incubator, etc. CO2 20 :houses, 40 :transportation Use of heat and unused energy as well as electricity Demand response with more than 70 home 3100EV, V to H, to G

15 -14- Summary Due to rapid increase in population, resource scarcity and environmental problem will definitely be a significant problem in the world If information on resources can be shared and utilized to share scarce resources, we might be to avoid battling over limited resources Smart Community is a concept to utilize IT for sharing resources and to enhance participation and collaboration to make better use of available sources For our generations to come, can we cooperate?

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