Business Plan in 2015 of Organization for Cross-regional Coordination of Transmission Operators, Japan

Transcription

1 Business Plan in 2015 of Organization for Cross-regional Coordination of Transmission Operators, Japan Version 1.0: 2016/1/21 This Organization has received an approval of establishment on August 22, 2014, as an Organization for Cross-regional Coordination of Transmission Operators, Japan, as specified in Article 28-4 of the Electricity Business Act (hereinafter, the Act ) and was registered and started its business on April 1, 2015, with an aim to enforce cross-regional coordination in the first phase of the reform of electricity business presented in the national Policy on Electricity System Reform (Cabinet decision on April 2, 2013). The mission of the Organization is to address social demands regarding cross-regional coordination of electricity supply, including demand for the enforcement of the system for stable electricity supply in an emergency, securing of stable electricity supply even in the fully liberalized electricity markets, expansion of introduction of renewable energy, and the invigoration of electricity trading. We will carry out the following business to discharge its responsibilities steadily. 1. Establishment and amendment of Business Guidelines for Transmission and Distribution of Electricity (Item 3, Article of the Act) Upon establishment of the Organization on April 1, we will immediately establish the Business Guidelines for Transmission and Distribution of Electricity and receive approval from the Minister of Economy, Trade and Industry and then take all possible measures for proper conduct of business in future. In preparation for the second phase of the electricity system reform, such as full liberalization of entry into the retail markets of electricity, introduction of a license system, and bids of power supply by the Organization in future, we will proceed with reviewing of the Business Guidelines toward 2016 and the drawing-up of a draft amendment of the relevant Business Rules, if necessary, based on opinions from members and other electricity supply companies. 2. Compiling, reviewing and submission to the Minister of Economy, Trade and Industry of supply plans (Item 4, Article of the Act) (1) Compiling of supply plans From 2015, an obligation to submit supply plans will be imposed on all electric power companies. The Organization will become a receiving office of such supply plans. In 2015, as for the supply plans of Vertically Integrated Power Companies and Wholesale Electric Power Companies, we will receive the plans that have been received by state governments, and as for the supply plans of Specified Electric Power Companies and Power Producers and Suppliers, we will receive the plans from them in April We will compile those plans and submit them to the Minister of Economy, Trade and Industry with comments, if any, by the end of June, When the members amend the supply plans, the Organization will receive the amended plans without delay from such members and submit such plans with comments, if any, to the Minister of Economy, Trade and Industry immediately. The same procedures shall be taken for a supply plan of electric power company which newly became a member.

2 (2) Business regarding a review of supply plan For smooth and proper forecast of demand by the members, we will prepare a nationwide economic forecast that will become a precondition of demand forecast and notify the members about and publish such a forecast by the end of November, We will also develop a standard for the nationwide demand forecast that will become a foundation for drawing-up of the demand forecast of the nation. Furthermore, we will summarize demand forecasts of all regions of the country and of each supply region, and notify the members about and publish such summarized forecasts by the end of January We will proceed with development of a system for smooth summarization of supply plans by aiming at launching in Provision of relevant information and liaise and coordination with respect to the services for electricity transmission and distribution, etc. (Item 7, Article of the Act) (1) Long-term guidelines and a development plan of cross-regional interconnection network With the object of cross-regional coordination of electricity, the Organization will proceed with drawing-up of the long term guidelines of the cross-regional interconnection network and a development plan of cross-regional interconnection to achieve its progressive functions for establishment of rational facilities for future cross-regional interconnection network. In order to succeed such an object, we will establish a cross-regional network development committee which includes intellectuals and other persons with professional knowledge as its members. For drawing up the long-term guidelines of the cross-regional interconnection network, we will proceed with drawing-up of the standard guidelines that specify the directions and future visions in respect of development and updating of the nationwide cross-regional interconnection network while considering the middle-and-long term forecasts of demand and supply, new power supply plans, introduction of renewable energies, and information on aging of existing power transmission and transformation facilities, and will complete the drawing-up of such guidelines in this year. Furthermore, we will draw up a cross-regional network development plan by reviewing the necessity of specific and individual enhancement of the network, business implementing entities, cost contribution, etc., at the cross-regional network development committee when the review of matters related to development of cross-regional interconnection network is considered to be necessary from the viewpoint of the cross-regional coordination such as the situation of utilization of interconnection lines or requests from electricity supply companies, or when such review is requested from the state government. As for an enhancement project of the interconnection lines between Tohoku and Tokyo of which coordination process began at the Electric Power System Council of Japan (general incorporated association) on February 2015, the Organization started its planning process after receiving a request of discussion focusing on installation of power supply from electricity supply companies on April At the same time, we will solicit electricity supply companies which plan to expand utilization of the interconnection lines based on provisions of Paragraph 1, Article 31 of the Business Guidelines for Transmission and Distribution of Electricity with the object of exploring needs of enforcement and reviewing the scale of enforcement. As for subsequent planning process, the cross-regional network development committee will organize the standard conditions by September 2015 as a target schedule, and will discuss for about 18 months as a standard discussion period.

3 As the national council (Electricity Supply-Demand Verification Subcommittee of the Strategic Policy Committee of the Advisory Committee for Natural Resources and Energy) requested an enforcement up to 3 million kw of interconnection facilities between the Tokyo and Chubu regions, we will start the process toward practical enforcement while conducting technical verification, such as selection of specific routes at the cross-regional network development committee by the end of September 2015 and will report the result of verification to the Electricity Supply-Demand Verification Subcommittee so that the enforcement work can be started as soon as possible by the second half of 2020 as an object schedule. (2) Reception of network access We will be open to applications of prior consultation and consideration of connection from anyone who seek for network interconnection, and confirm, verify, and report the results of consideration from its neutral position where we have no interest with the relevant business entities. We will define and publish the form of application by complying with Article 107 of the Business Guidelines for Transmission and Distribution of Electricity and will strive to improve convenience for applicants by providing entry examples and other measures. Furthermore, we will improve network access business with the Vertically Integrated Power Companies according to Article 110 of the Business Guidelines. In addition to that, we will implement a process of solicitation for connection of neighboring power supplies while ensuring compatibility between the reduction of the cost burden on the applicants for network interconnection and establishment of facilities and will streamline the network interconnection of power generation facilities. (3) Review of the state of adjustment capacity Ability necessary to adjust a balance between supply and demand and a control of frequency has not been reviewed for a long time; therefore, we will discuss the future state of adjustment ability by considering changes in environment, such as introduction of license system in the second phase of the electricity system reform, vitalization of electricity trading by full liberalization of retail markets, dealing with rare accidents including major disasters, and an increase of introduction of renewable energies. Along with such discussion, we will also discuss about the margins of interconnection lines which are closely tied with adjustment ability. For these discussion processes, we will establish a committee regarding adjustment ability which includes intellectuals as its members. (4) Management of interconnection lines between regions To promote cross-regional coordination of electricity, we will manage the interconnection lines between regions, including management of liaison and coordination related to cross-regional electricity trading, securing of a certain quantity of electricity for a long term, and dealing with congestion. In 2015, the power supply management system maintained by Electric Power System Council of Japan (general incorporated association) will be succeeded for operation because the system development has not been completed yet. As for securing of a certain quantity of electricity for a long term, we will accept applications for certification of contracts immediately from April 2015, based on Article 73 of the Business Rules, and will start screening for certification. When setting up the operational quantity and the margin of interconnection lines between regions, we will calculate them and review the reasonability of the calculation by ourselves. As for a new policy on utilization of interconnection lines by persons who installed

4 power generation facilities and other matters presented in the working group for system design of the electricity system reform subcommittee in Japan, a framework for implementation will be prepared from Furthermore, we will promote system development to realize effective and flexible operation of management of interconnection lines between regions and to coordinate frequency across the nation by utilizing the interconnection lines in consideration of an increase of renewable energies, such as wind power and solar power, based on Article 82 of the Business Rules by aiming at launching of the system in (5) Coordination of suspension plans for work From the viewpoint of further securing of transparency of coordination process regarding suspension of the use of interconnection lines, we will coordinate plans on suspension of operation of distribution facilities and power generation facilities to carry out work, such as inspection and maintenance (hereinafter suspension plan for work ) and compile the suspension plan for work on cross-regional interconnection network. In 2015, we will succeed an annual suspension plan for work on interconnection lines compiled by March 2015 from the Electric Power System Council of Japan (general incorporated association), and will be submitted an annual suspension plan for work on cross-regional interconnection network of each area by Vertically Integrated Power Companies, then will carry out coordination for shorter term than a month, and coordinate and compile the annual suspension plans for the work of In addition to that, we will promote system development for streamlining of coordination of suspension plans for work by aiming at launching in (6) Switching support for users By succeeding the result of the working group for support system for switching implemented by an association for preparation of establishment of the Organization for Cross-regional Coordination of Transmission Operators, Japan, we will proceed with development of the switching support system to facilitate procedures for changes in the wheeling-service contracts between retail electricity suppliers and general transmission and distribution companies, when users change their electric power supplier after full liberalization of entering into retail markets of electricity. Along with that, we will coordinate with the government to review rules regarding business utilizing such a system that electric companies should comply with through incorporation of opinions from relative main members and will publish the result of such review in an effort to smoothly materialize the full liberalization from (7) Support for utilization of information communication technology To help the streamlining of the business of members who use the transmission network (network users) and nationwide streamlining of the electricity business, we will draw up a standard specification for mutual data exchange among network users. In 2015, we will duly and officially draw up and publish a mutual standard between retail electricity companies and general electricity transmission and distribution companies and a standard for each type of plan to be submitted to the Organization based on results of consultation with network users conducted by an association for preparation of establishment of the Organization for Cross-regional Coordination of Transmission Operators, hearing of opinions from intellectuals, and Request For Comments (RFC) from publics. As for drawing-up of the standard specification and development of each type of system, cyber security measures against external threats, or leak of information shall be reflected on the specifications and systems sufficiently. For system operation, we will

5 take all possible measures such as updating of the internal software and dissemination of the countermeasures among members and officers according to necessity. (8) Publication of network information In accordance with the concepts on publication of network information defined by the state government, we will publish information on interconnection lines between regions and nationwide supply and demand of electricity on its internet website. As for operational quantity and margin from the next fiscal year, we will publish the progress and result of discussion at the investigative commission that confirms the validity of calculation results so as to maintain transparency. Along with that, we will promote system development for further enrichment of information on cross-regional interconnection network and other matters to be published by aiming at launching in (9) Development and operation of a network analysis tool To carry out business related to drawing-up of a cross-regional network development plan, verification of inspection results of network access and management of interconnection lines between regions, we will receive network data necessary for analysis of a simulation analysis tool that can evaluate stability and other matters of the network which we prepare from transmission departments of the Vertically Integrated Power Companies and will immediately establish and operate a system to evaluate, analyze and verify the validity of each business. (10) Smooth implementation of system development In addition to carrying out business such as monitoring of demand and supply of electricity, compiling of supply plans, publication of network information, coordination of suspension plans for work and management of interconnection lines between regions effectively and smoothly, we will develop a cross-regional organization system to realize a cross-regional coordination of frequency in consideration of an increase in renewable energies in future. We will also develop a switching support system to support the switching of suppliers by users. Association for preparation of establishment of the Organization for Cross-regional Coordination of Transmission Operators has selected venders of the Cross-regional organization system and the switching support system in 2014 and proceeded with development of those systems since then. In 2015, in addition to continuous development of those systems, we will carry out connection tests with members, securely transfer data from an existing power supply management system of the cross-regional organization system, and we will provide the follow-up support for the handling of the system accompanying with implementation of demand and supply balancing system for members and other network users so that business can be started smoothly in April Monitoring of demand and supply situation of electricity (Item 1, Article of the Act) For smooth conduct of the business of the Organization, we will monitor the following situations of supply and demand of electricity related to electricity business by members. a. Demand and supply capacities of each member (including adjustment capacity and reserve capacity, hereinafter, the same shall apply) b. Demand and supply capacities of each supply area c. Demand and supply capacities across the nation

6 d. Power flows of interconnection lines between regions e. Information on quantity of wholesale electricity trade by members In particular, we will monitor the demand and supply situations by comparing the demand and power flow of interconnection lines of each supply area grasped in real time and the continuously-fluctuating supply capacity grasped through close cooperation with the Vertically Integrated Power Companies based on demand and supply plans to be collected via the Vertically Integrated Power Companies (including Power Producers and Suppliers) In addition to the above, we will proceed with development of a system to collect demand and supply plans of the members and information monitored by each central load dispatching instruction center having jurisdiction over each member who are Vertically Integrated Power Companies on a steady basis to enhance monitoring operation by aiming at launching in Instructions to members when supply and demand situations become worse (Item 2, Article of the Act) To secure a stable supply even in cases of disasters and problems with the power supply, we give instructions to the members necessary for improvement of the situation of demand and supply of electricity, if demand and supply situations of the members became or might become worse. In 2015, we will take all possible measures for securing of stable supply in this summer as we received a request from the state investigation committee regarding demand and supply of electricity. In addition to that, to disseminate widely a new stable-supply scheme of instructions to cross-regional organizations, training for countermeasures against aggravation of demand and supply situations that take account of not only summer but for cases of major disasters will be conducted twice a year with the cooperation of the Vertically Integrated Power Companies and new electricity companies. As for business on the resolution of an insufficient ability to decrease power supply through interconnection lines presented by the state working group for the design of an electricity system reform subcommittee, we will establish a framework to carry out the business from Handling of complaints or inquiries from the electricity supply companies and conflict resolution (Item 6, Article of the Act) (1) Handling of complaints or inquiries When we receive complaints or inquiries regarding our business operation, such as transmission and distribution of electricity from electricity supply companies, we take initial steps of giving responses according to the contents of complaints or inquiries without delay so as to secure stable supply of electricity through smooth and effective business. If such complaints or inquiries are not dissolved with the initial steps and further measures are needed, we will take the necessary measures of mediation of reconciliation (mediation and arbitration) and giving instructions or warnings to electricity supply companies and will strive to settle the problems. We also compile, investigate, and verify the contents of complaints and inquiries on a regular basis and publish to disseminate the results on its website so as to promote improvement of business with an object of more effective and streamlined conduct of business. (2) Conflict resolution

7 To resolve conflicts between electricity supply companies regarding the business of the transmission and distribution of electricity, we seek an approval as a dispute resolution institution based on the Act on Promotion of Use of Alternative Dispute Resolution (Act no. 151, 2004) while mediating reconciliation (mediation and arbitration ) reconciliation by establishing a conflict resolution panel comprised of academic experts and lawyers other than personnel of the Organization according to requests from the members. 7. Instructions and recommendation for electricity supply companies (Item 5, Article of the Act) We give instructions or make recommendations to electricity supply companies when it is necessary to secure smooth conduct of business such as transmission and distribution or stable supply of electricity according to provisions in Article 100 of the Business Rules. 8. Ancillary business (Item 8, Article of the Act) (1) Preparation and publication of reports In Article 101 of the Business Rules, we annually compile and publish reports on the forecast and agenda of the mid- and long-term demand and supply of electricity and network development (including forecast of mitigation of constraints on network interconnection of power generation facilities) based on performance up to the preceding year in respect of the demand and supply of electricity (frequency fluctuation, voltage fluctuation, power failure, and risk factors of each supply area), network utilization, and network access and on results of compiling of supply plans. In 2015, we will compile reports on actual supply and demand of electricity and network utilization in 2014, and investigate and inspect towards compilation and publication in (2) Investigation and research The Organization conducts investigation and research on technical trends on national and international electricity business, various national systems, social economic conditions on cross-regional coordination, risk analysis of demand and supply of electricity, etc., to help improvement of the business. In 2015, we will conduct trend surveys on the adjustment capacity in foreign countries necessary for investigation by committee regarding the adjustment capacity and about long-term facility plans in foreign countries that will contribute to the drawing-up of the long term policy of the cross-regional network by the cross-regional network development committee and will investigate matters that will contribute to drawing-up of rules toward the second phase of electricity system reform and trend of policy in foreign countries accompanying with an increase of renewable energies and will compile the results within this fiscal year. (3)Publication To enhance the transparency of the business of the Organization and improve the convenience of business of the members and other electricity supply companies, we will make an effort to reinforce and enhance publication with regard to cross-regional coordination of our business and electricity business. In particular, we will immediately publish information on business conducted by the Organization, such as instructions to members upon aggravation of demand and supply situations through its website and also publish agenda and summary of proceedings of the board of directors, councilors, and committees in principle. Upon change of the Business Guidelines for Transmission

8 and Distribution of Electricity or the Business Rules, we will publish the progress of discussion from time to time and widely collect opinions and enrich the information on coordination of systems towards 2016 and closely share information with members and others. (4) Response to disasters, etc. In case of an emergency, such as when significant damages are caused to electric facilities due to major natural disasters and other equivalent reasons (hereinafter Disasters ), we will draw up an operational plan for disaster prevention as a designated public corporation based on the Basic Act on Disaster Control Measures so that the members can tackle with cooperated restoration and other work, and based on such a plan, we will establish emergency contact system and structures against disasters, give necessary information to the state government or other relevant institutions, and conduct an emergency response training more than once a year with cooperation of members and relevant institutions so as to conduct business regarding liaison and coordination securely upon disasters. We will also draw up a Business Continuity Plan (BCP) according to the cabinet s Business Continuity Guidelines in preparation for a case where the headquarters of the Organization is damaged by disasters. Furthermore, we will draw up a business plan on measures against novel influenza viruses and protection of the people and take necessary measures as a designated public corporation based on Act on Special Measures Concerning Novel Influenza Virus, etc., and Act concerning the Measures for Protection of the People in Armed Attack Situations, etc. 9. Other business (Item 9, Article of the Act) We will carry out the following business for smooth conduct of business of the Organization in addition to the business specified in Articles 1 to 8 above. (1)Smooth collection of membership fee After the start of the business of the Organization, we will borrow working capital for a short period of time until the collection of membership fees is completed. We will let every member understand the obligation of payment of the membership fee and consider every measure for convenience of the members and smooth collection of membership fees by preparing multiple bank accounts as members have not experienced a procedure for the collection of membership fees. (2) Transition business toward introduction of license system Membership will be given in accordance with a gained license from 2016 accompanying the transition to the second phase of the electricity system reform. Thus we will discuss the necessary changes in the Articles of Organization, the Business Rules, and the Business Guidelines for Transmission and Distribution of Electricity, such as changes about handling of voting rights of each license, at an early stage of this year. We will widely inform relevant information to the current members and persons installing power generation facilities who will gain membership from 2016 and encourage exhaustive registration of membership. (3) Relocation of the headquarters and development of a base for back-up operation The headquarters as of the start of the business of the Organization in 2015 was a temporary one, and we are preparing the headquarters in preparation for an increase of business in the second phase of electricity system reform from The current headquarters will be relocated to Toyosu in Tokyo at the beginning of 2016 after

9 sufficient preparation so that business will not be disturbed. We will also proceed with establishment of a base for backup operation in Osaka. (4) Increase in the number of personnel and capacity development We will increase the number of personnel accordingly in preparation for increase of management business of interconnection lines or business at the cross-regional organization center toward the second phase of electricity system reform from As for securing of personnel, we will accept temporary transfer of personnel and properly employ multiple personnel. We will also progressively adopt senior personnel with professional knowledge and external advisers. In the end of 2015, the number of personnel is expected to increase by 20 comparing to the beginning of the year. As for capacity development of personnel, we will combine the training for new employees, regular lessons, external training, dispatch training and support for self-development while being based on OJT.