Introduction to Hitachi s Smart City Demonstration Project - Hawaii Demonstration Project -

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Introduction to Hitachi s Smart City Demonstration Project - Hawaii Demonstration Project - February 8, 2013 Hitachi, Ltd. Infrastructure Systems New Business Promotion Department Hiroaki Sugita 0

1. Hitachi Group Introduction (WW Activities) Europe 142 companies 10,783 employees $ 9.3 billion sales China 154 companies Hitachi Europe Ltd. Asia (incl. China) 322 companies 78,361 employees $ 24.4 billion sales 42,053 employees $ 13.1 billion sales Hitachi (China) Ltd. Hitachi India Pvt. Ltd. Hitachi Asia Ltd. Hitachi, Ltd. Digital Media & Consumer Products Components & Devices Automotive Systems Japan 341 companies 212,302 employees $ 67.5 billion sales Financial Services 8% 7% 9% 13% 4% 7% Others 16% 117.9 Billion dollars 7% 10% North America 75 companies 14,539 employees $ 10.6 billion sales 8% 11% Hitachi America, Ltd. Other Areas 60 companies 7,555 employees $ 6.1 billion sales Information & Telecommunication Systems Power Systems Social Infrastructure & Industrial Systems *As of March 31, 2012 High Functional Materials & Components Construction Machinery Electronic Systems and Equipment 1

2. Hitachi Group Introduction (Social Innovation Areas) Infrastructure Systems Cloud Computing Consulting Data Centers Storage Information & Communication Systems Eco-city Development (Water Treatment) Construction Machinery Green Mobility Health Care Smart Grid Building, Elevators Energy (Steam powered, atomic power, renewable energy) Electric Power Systems As a global leading company, Hitachi provides multiple solutions to Social Innovation Areas. 2

3. Smart Community Solution (Major 10 Activities) CHINA [Tianjin] Eco-City Construction of Model Environmentally Conscious City U.S.A. [Hawaii] Remote Island Smart Grid Demonstration IT SPAIN [Malaga] Smart Community System Demonstration Project IT CHINA [Guangzhou] Construction of Knowledge City U.S.A. [New Mexico] Smart Grid Demonstration JAPAN [Okinawa] EV Charge Management System IT JAPAN [Rokkasho-village] Smart Grid Demonstration Site JAPAN [Yokohama] JAPAN [Kashiwa-city] JAPAN [Hitachi-city] Smart City Project Demonstration Kashiwa-no-ha Smart City Project Future City Model in Hitachi City Real business Development & Renovation of Smart City(incl. IT) Energy Mobility Water IT IT 3

4. Smart Grid Project in Hawaii Island style smart grid demonstration utilizing PV and EV EV charge Energy situation in Hawaii Introduction of clean energy(15 40%) EV introduction is on the way(transfer, sight seeing ) Establish a system model for the introduction of clean energy Demonstrate most advanced smart grid, verify business model issue in system instability *Year2030 target Wind power Station EV spot Maui CEMS FuPF Standardized internationally by joint U.S-Japan project and develop to Similar island and semitropical region 4

5. Demonstration Organization & Schedule Demonstration Schedule 2011 2012 2013 2014 Feasibility Study System Impact Study System Design Construction Demonstration Other supporting partners Nissan Motor Co., Ltd. Advanced Energy Company U.S. Verizon Gr. Okinawa Electric Power Company 5

6. Overview of Demonstration Project Task I EV Based Remote Island Smart Grid Model on Maui island Wide Energy Surveillance & control System EMS EVECC Electric Power Storage Charging Station Windturbine Photo voltaic μdms Transmission DMS Distribution Thermal Power information Power Distribution Substation information Smart PCS EV/PHEV Task II Smart Grid Model at a Substation with One Distribution Grid Level in Kihei Task III Smart Grid Project for Lowvoltage Transformer Level Systems Task IV Comprehensive Research -Analysis and evaluation from efficiency view points for the result of respective demonstrations in Kihei and in Wailea -Evaluation for the result of Cyber security assessment -Evaluation for the system in the demonstration project from economic view points -Simulation and study of the business model which shall be suitable solution for Island Smart Grid and Low carbon society 6

7. 6 targets to achieve for success in this world-leading PJ 7

8. The segmentation of EV users Category Use Study the Driving Pattern Study Parking/Staying Pattern Category1 "Tourist" Rental Car Taxi Shuttles Free run Free run Shuttle Rental Car Station High-speed Charger Staying time 8-10hrs Normal Hotel Normal Condominium Shopping Mall High-speed Staying time 6-12hrs Staying time 30mins-2hrs Category2 "Local Corp." Category3 "Local Resident" Service/ Sales Delivery/ Go-Around Service Students Worker Senior Generation Milk run Weekend Center service Agent Weekday Normal Office Staying time 8-10hrs Normal Hom e Staying time 8-10hrs Picture 2.3.2 Survey steps High-speed Staying time 15-30mins Office Mall Leisure Staying time 8-10hrs Sales Meeting Normal Staying time 30mins-1hrs Staying time 1-3hrs Staying time 30mins-2hrs High-speed Normal Normal 8

9. An advanced Island Smart Grid Demonstration Project In Maui, Larger scale renewable energy has been already introduced. In addition, PV and EV high penetration have been expected. Hitachi Island Smart Grid Solution Technological elements Smart PCS EVs and PHVs charger control Battery system RE Generation Forecast Demand Response Information and communication Technologies Wind Pow er Electric Pow er Storage Thermal Pow er μ-dms EVECC Solar Pow er MAUI DMS + Control & Information HUB μ-dms Smart PCS Issues Excess Energy Influence on frequency Influence on distribution line voltage Difficulty of resource planning Project Feed back to the Products Basic Policy for Demonstration Solution for Impact of EV & PV High Penetration Stable Supply of Electric Power Maximum Utilization of Renewable Energy 9

END Introduction to Hitachi s Smart City Demonstration Project - Hawaii Demonstraition Project - February 8, 2013 Hitachi, Ltd. Infrastructure Systems New Business Promotion Department Hiroaki Sugita 10