Yokohama, Japan－JGC Holdings Corporation (Representative Director, Chairman and Chief Executive Officer: Masayuki Sato) announces that it has newly joined the Ministry of Economy, Trade and Industry(METI)'s "FY2021 Demonstration Project for Further Utilization of Distributed Energy Resources" (hereinafter, Demonstration Project), along with three other companies. In June of this year, Enaris Corporation (President and Representative Director: Mitsuhiro Tsuzuki*1) and 12 other companies were already jointly selected for participation in this demonstration project.

As the use of renewable energy sources such as solar power and wind power continues to expand as we move toward the realization of a decarbonized society, various issues affecting the power system, such as output fluctuations and the generation of excess power, are expected to become apparent. Since "regulating power" is an essential element in achieving a stable supply of electricity, METI is aiming to establish a "supply and demand adjustment market" for the wide-area procurement and operation of regulating power capabilities, including distributed energy resources (DER) such as storage batteries.

The consortium, consisting of 16 companies including JGC Holdings, aims to establish a stable and efficient power system using DERs and to expand the use of renewable energy by identifying issues and verifying technologies for the future full-scale deployment of the "supply and demand adjustment market" throughout Japan.

We have been developing and operating VPP systems that control multiple DERs, such as solar power generation, industrial storage batteries, and private power generation facilities, together and operate them as a single virtual power source*2.

In this demonstration, we will act as a resource aggregator*3 to demonstrate the control of the regulating power of energy resources, targeting industrial storage batteries and electric vehicles, the use of which is expected to expand. In the future, we aim to develop a platform that can control a variety of energy resources and enter the supply and demand adjustment market.

The JGC Group has set business expansion in the energy transition field as one of its basic policies in its long-term management concept "2040 Vision" and in its medium-term management plan "Building a Sustainable Planetary Infrastructure 2025,". Through this demonstration, we aim to establish an "energy supply optimization platform" and contribute to the expansion of the use of renewable energy generation and the realization of a stable supply of electricity in a decarbonized society.

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  *1 https://www.eneres.co.jp/english/company

• *2 https://www.jgc.com/en/business/tech-innovation/environment/power-system.html

• *3 Operators who control DER such as storage batteries

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