First Domestic Demonstration for Supplying Electricity to Electric Systems Using Storage Batteries on Electric Vehicles (V2G)

Toyota Tsusho Corporation (hereinafter, "Toyota Tsusho") and Chubu Electric Power Corporation (hereinafter, "Chubu Electric Power") will conduct the first domestic demonstration (hereinafter, "this demonstration") in supplying electricity charged in electric vehicles to the power grid (V2G: Vehicle to Grid (Note 1)) in Toyota-shi, Aichi in two session from November 14 - 16, 2018 and December 12 - 14, 2018. This demonstration will test for ways to use electric vehicles not only as a means for transportation but also as something that provides additional value when parked. Specifically, we will be testing how our V2G control system's demand-supply adjustment capability performs on an actual electrical power system and measure the impact that V2G has on the power system.

Deployment of renewable energy such as solar power generation and wind power generation has been growing worldwide but there still exists issues such as variation in output due to the weather and the possibility of excess electricity due to the generated amount exceeding demand.

Much is expected of V2G as a technology that utilizes storage batteries on vehicles to "provide load balancing capability", suppressing the impact of renewable energy output and enabling the "shifting of supply capabilities", storing excess electricity generated by renewable energy and supplying it to meet peak demand, thus solving the issues facing renewable energy.

In this demonstration, the charging/discharging device that is linked up with the V2G control system, that Toyota Tsusho has built with the Nuvve Corporation from the US, will be connected to an electric car. We will verify the response time and continuity of receiving and supplying electricity from the electric vehicle storage battery to the actual power system based on directives from the V2G control system to confirm the supply and demand adjustment capability of V2G. We will pay particular attention to its potential as a load balancing capability (in frequency regulation (Note 3)) that can respond quickly to directions from the V2G control system. Instrumentation will also be installed on the power system to confirm the impact that the charging/discharging device has on the power system.

Based on the results of this demonstration, challenges in implementing V2G will be compiled into a report to be submitted to the Agency for Natural Resources and Energy in February 2019.

Toyota Tsusho will utilize the V2G control system as an aggregator (Note 4) and aim to create new value for the electrical vehicle by providing load balancing capabilities for the power system, shifting the supply capability of renewable energy and such.

Chubu Electric Power will assess the impact of V2G on the power system as a general power transmission and distribution business operator and improve technology to secure new load balancing capabilities so as to provide electricity to customers in a safe and stable manner at an affordable price.

[Demonstration overview]

Toyota Tsusho and Chubu Electric Power jointly applied for the "V2G aggregator business" in the "FY2018 Subsidy for demonstrations to build a virtual power plant using demand-side energy resources" which was hosted as an auxiliary business for the Agency for Natural Resources and Energy. The subsidy was granted by the Sustainable open Innovation Initiative, an execution body for the subsidy, on May 29, 2018. This demonstration is being implemented given this decision. (Related notice issued on May 30, 2018)

[Terminology]

(Note 1) Technology to charge and supply the charged electricity to the power system utilizing the storage batteries on plug-in hybrid vehicles (PHV/PHEV) and electric vehicles (EV).

(Note 2) Start-up company based in the US that is rolling out V2G in the US and in Europe. Provides frequency regulation to countries all over the world and successfully commercialized V2G, the first in the world, in Denmark. Toyota Tsusho has gained an equity stake in the company in December 2017.

(Note 3) Electricity used by general power transmission and distribution operators to maintain supply and demand balance (for frequency regulation and to keep supply and demand in balance) to keep system frequency stable (at 50Hz/60Hz). Variations in the frequency reduce the quality of the electricity and can cause malfunctions in industrial equipment and so maintaining the system frequency is crucial. With the introduction of renewable energy, the balance between supply and demand is more likely to be disturbed and frequency regulation is expected to become more important.

(Note 4) A company that provides services to electricity generators, general power transmission and distribution operator, electricity retailers utilizing energy resources.