Smart Grids & Smart Community


Smart Grids

Session background and objectives

Due to increase in renewable energy and distributed energy resources, a more advanced management of power supply and demand is needed in power grids across the world. Advanced ICT technologies and Internet of Things (IoT) have enabled a new possible solution to address such a challenge: a solution that seeks to control various aggregated resources (i.e. home electronics, EV’s, energy storage, and distributed energy resources) by establishing communication between them, and to treat them as one supply/demand resource. In this session, technologies and policies that promote such solution and their arising new business models are to be discussed.


Bo Normark [Chair]

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Chairman Annex 6 Power T&D; Systems, ISGAN

Hideo Ishii

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Professor, Advanced Collaborative Research Organization for Smart Society, Waseda University


Energy Resource Aggregation

After the Great East Japan Earthquake, it has been argued that Electric Energy System relying entirely on electricity supply from large scale power stations should be changed so as to incorporate self-support sub-systems with distributed energy resources and controlled electricity consumption. As more and more distributed energy resources will be installed on consumer side, it will be essentially important to aggregate these resources to contribute to system operators and markets to make substantially large virtual power by their integrated operation. Along with these vision, METI started a new government-industry-academia collaboration and demonstration projects. The entire sketch of “Energy Recourse Aggregation” will be presented.

Stuart McCafferty

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VP, EnergyIoT, Hitachi Energy Solutions Division, North America


Introduction to OpenFMB™

What if utilities could reduce stranded assets and extend the life of fielded devices even as technology and functionality requirements change? What if fielded devices and systems could announce themselves and securely interact with other fielded assets? What if analytics and some command and control could happen in the field instead of a centralized location?
Other industries are seeing these possibilities become reality as they invest in the Internet of Things (IoT), creating interoperable devices and systems that previously required enormous, complex, and unscalable solutions. IoT leverages Internet protocols, communication networks, and device identification to allow different systems and devices a common methodology to interoperate and bring richer functionality.
Volunteer utility and vendor technology experts have designed an IoT framework called OpenFMB™ that was designed with the dream of distributed intelligence at the grid edge and true interoperability that is scalable and secure.
This presentation introduces OpenFMB, how it is different, and what is happening today.

Norio Murakami

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President & CEO of ENERES Co., Ltd


Designing VPP and its service implementation

Last November Mr. Murakami asked Prime Minister Abe for the creation of negawatt transactions market and also explained the need of Virtual Power Plant (VPP) system directly at the Public-Private Dialogue towards Investment for the Future.
Then Prime Minister Abe promised to create this market and also the rules for transactions between businesses and create telecommunications standards for remote control operations and energy equipment during next fiscal years.
By this decision, recently the Agency for Natural Resources and Energy has started initiative subsidized project for VPP system and negawatt transactions, Eneres and some Japanese enterprises have teamed up to launch this project.
Mr. Murakami explains Eneres VPP system model which will make use of IoT.


1. The new business model in smart grids using UioT (Utility Internet of Things) technologies

  • The various energy resources on the distribution and the consumer side of the grid can better be managed and utilized by establishing communication between them. What kind of new business models do you think would arise and what are their strengths?
  • What sort of value do such models offer to the customers?

2. Challenges in resource aggregation business model

  • It is important for market mechanisms that enable such innovative business models to be implemented a timely manner. What kind of policy and market mechanism design can properly evaluate the value of such business models and promote their implementation?

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