Shizen Connect Selected for "Demand Response Demonstration Project Utilizing Smart Meters"

Shizen Connect, which holds the No. 1 market share in VPP (Virtual Power Plant) platforms for integrated management of distributed energy, announced today that it, along with Eneres Co., Ltd., Osaka Gas Co., Ltd., OMRON SOCIAL SOLUTIONS CO., LTD., The Kansai Electric Power Co., Inc., Daikin Industries, Ltd., Tokyo Gas Co., Ltd., TEPCO Energy Partner, Inc., Toho Gas Co., Ltd., and Panasonic Electric Works Co., Ltd., has been selected as a consortium (the "Consortium") led by Shizen Connect for the "Feasibility Study Project (C Project)" under the "FY2025 Supplementary Demand Response Demonstration Project Utilizing Smart Meters" (*2) by the Ministry of Economy, Trade and Industry (executing body: Environmental Energy Initiative) on June 30, 2026. The Consortium will jointly commence the project (the "Project").

Through this Project, we will verify the possibility of commercial use of demand response (DR) (*4) utilizing the IoT route (*3) of next-generation smart meters, and identify challenges for its realization.

To achieve carbon neutrality by 2050 and make renewable energy (RE) (*1) the primary power source, DR is crucial for absorbing output fluctuations of RE due to weather and other factors, and contributing to the stabilization of power supply and demand.

As one means to achieve this, participation in DR by low-voltage resources such as home storage batteries is expected. In this Project, we will conduct a feasibility study for the demonstration, security verification, and environment construction of DR utilizing the IoT route of next-generation smart meters.

[Project Overview]

Objective

Feasibility study for the demonstration, security verification, and environment construction of DR utilizing the IoT route of next-generation smart meters.

Participating Companies

Lead Company

・Shizen Connect Inc.

Demonstration Cooperation Companies

・Eneres Co., Ltd.

・Osaka Gas Co., Ltd.

・OMRON SOCIAL SOLUTIONS CO., LTD.

・The Kansai Electric Power Co., Inc.

・Daikin Industries, Ltd.

・Tokyo Gas Co., Ltd.

・TEPCO Energy Partner, Inc.

・Toho Gas Co., Ltd.

・Panasonic Electric Works Co., Ltd.

Demonstration Period

June 30, 2026 - February 1, 2027

The main research contents of this Project are as follows (Table 1).

Comparative evaluation of cost benefits for each of the IoT route and existing routes, based on use cases envisioned by aggregators.

Organization of operational challenges and security measures for commercial use, based on the responsibilities of general transmission and distribution utilities, aggregators, and equipment manufacturers.

Investigation of technical specifications for IoT route wireless terminals, etc.

Organization of requirements from aggregators and equipment manufacturers for the IoT route.

The Consortium is composed of diverse players involved in the DR business, including VPP/DR platformers, retail electric power companies/aggregators, and equipment manufacturers. By integrating the expertise and knowledge of each company, we can conduct verification that is practical and directly linked to business from a multifaceted perspective.

Based on the business challenges and technical requirements identified and organized in this Project, a field demonstration including actual control of low-voltage resources installed in general households is planned for FY2027 as the next phase.

This Consortium will continue to cooperate closely across industry boundaries to contribute to the realization of a sustainable energy society that balances the mainstreaming of renewable energy with the stabilization of power supply and demand.

*1 VPP (Virtual Power Plant): Abbreviation for Virtual Power Plant. A system that integrates and controls multiple distributed power sources (storage batteries, renewable energy power generation facilities, etc.) using IoT technology, enabling them to function as a single power plant. *2 FY2025 Supplementary Demand Response Demonstration Project Utilizing Smart Meters Webpage https://sii.or.jp/smartmeterjisshou07r/ *3 IoT route: The wireless interface between the electricity smart meter and the wireless terminal connected to the special meter, etc. *4 DR (Demand Response): Changing power consumption patterns by controlling customer electricity usage to balance electricity supply and demand.

Table 1: Research Contents of This Project

Research Item

Research Content

Common Research: Identification of low-voltage use cases

・IoT route specification research

・Organization of IoT route applicability (use cases)

・Comparison and consideration of usage with existing control routes

Organization of operational challenges

・Investigation of operational challenges between systems

・Investigation of installation and operational challenges for IoT route wireless terminals

・Organization of operational flow for field demonstration

Cost-benefit evaluation

・Research on IoT route usage costs

・Organization of IoT route applicability (technical characteristics, etc.)

・Research on benefits of using IoT route

・Comparative evaluation with existing routes

Definition of field demonstration requirements

・Organization of field demonstration implementation details

・Organization of resource acquisition methods

・Organization of IoT route operational flow

Definition of security risks

・Consideration of IoT route security risks

・Consideration of security risks when used in conjunction with existing routes

Proprietary Research: Consideration of collaboration between TSO and aggregators

・Organization of the boundary of responsibilities between TSO and aggregators

・Organization of specification requirements for aggregators and equipment manufacturers

Consideration regarding IoT route wireless terminals

・Consideration of specifications for combined DR control/metering data transmission

・Research on procurement methods for IoT route wireless terminals

[About the Energy Management System "Shizen Connect"]

"Shizen Connect" is a VPP (Virtual Power Plant) platform that controls energy equipment such as grid-connected and RE-interconnected storage batteries, home storage batteries, EcoCute, and EVs using IoT/AI technology to perform optimal electricity market transactions.

It holds the No. 1 market share in the DR/VPP platform corporate contract count (according to Fuji Keizai, FY2023) and the No. 1 market share in AC system and RA system corporate contract count (according to Fuji Keizai, FY2025).

It has been adopted in the home DR domain by Tokyo Gas, TEPCO Energy Partner, Tohoku Electric Power, Hokuriku Electric Power, Hokkaido Electric Power, and others, and in the grid-connected storage battery domain by Osaka Gas, Tokyo Gas, JERA Cross, Shikoku Electric Power, Hokuriku Electric Power, and others.

[Company Profile of Shizen Connect Inc.]

Company Name: Shizen Connect Inc.

Head Office Location: 2-4-7 Nihonbashi Honcho, Chuo-ku, Tokyo

Established: October 2, 2023

Principal Shareholder: Shizen Energy Inc.

Capital and Business Alliance Partners: Osaka Gas Co., Ltd., Kyushu Electric Power Co., Inc., JERA Co., Inc., Shikoku Electric Power Co., Inc., Shinnihon Air Technologies Co., Ltd., SORACOM, INC., Daikin Industries, Ltd., Tokyu Land Corporation, Tokyo Gas Co., Ltd., Toho Gas Co., Ltd., Nishitetsu Co., Ltd., Panasonic Electric Works Co., Ltd., BIPROGY INC., Hokuriku Electric Power Co., Inc., Hokkaido Electric Power Co., Inc., and others. Representative: Munekazu Matsumura, Representative Director and CEO Business Activities: VPP platform business, IoT device sales business, etc.

URL: https://se-digital.net