What is the "adjustment power" that supports the expansion of renewable energy behind the scenes? Know the role of the supply and demand adjustment market
In order to expand renewable energy such as solar power and wind power whose output depends on the weather, "adjustment power" that compensates for the fluctuation is required. The "supply and demand adjustment market" opened in 2021 trades that adjustment power. Explain the role of the adjustment power and the supply and demand adjustment market.
Coordinating power required to expand renewable energy
Flexible control of electricity supply and demand
First of all, electricity is a difficult good to store. Therefore, it must be consumed at the same time as power generation. This means that the supply and demand of electricity must always match. If the demand for electricity is always constant, it is easy to control the power generation output on the supply side, but that is not the case.
In addition, the power generation output of renewable energy such as solar power and wind power fluctuates greatly depending on the weather. Since the supply and demand of electricity must always be matched, when the amount of power generated by renewable energy cannot be expected, it is necessary to supplement the supply capacity reduced by another power generation method.
On the contrary, when a large amount of renewable energy is generated and electricity is likely to be surplus, it is conceivable to control the demand side by consuming more electricity to match the supply and demand of electricity.
Such a function of supplementing the supply capacity and increasing or decreasing the demand as needed is called "adjustment power". In order to popularize renewable energy, it is essential to have the ability to flexibly control the supply and demand of electricity.
Specifically, what kind of adjustment power is there is thermal power generation, which can easily increase or decrease the output. It provides adjustment power by increasing or decreasing the output according to the supply and demand of electricity.
In addition, demand response by consumers is also considered to be one of the adjustment capabilities. Demand response has a strong image of power saving, but it is also possible to generate adjustment power through self-consumption by private power generation facilities and energy management.
Supply and demand adjustment market that trades adjustment power
30% reduction in cost through wide area procurement
The place to trade such adjustment power is the "Supply and Demand Adjustment Market" opened in April 2021. Before the supply-demand adjustment market was established, general power transmission and distribution business operators in each region made public offerings to gather adjustment power. In the newly established supply and demand adjustment market, we aim to improve efficiency by consolidating the adjustment power into one market beyond the boundaries of the electric power area.
(Operational image of supply and demand adjustment market. Source: Ministry of Economy, Trade and Industry)
According to the Ministry of Economy, Trade and Industry, it is reported that the cost of gathering adjustment power in 2021 could be reduced by about 30% by opening the supply and demand adjustment market.
In the supply and demand adjustment market, the categories of adjustment capabilities handled are being gradually expanded. From FY2022, the transaction of "tertiary adjustment power ①", which provides adjustment power within 15 minutes from the request, started.
On the other hand, the Japan Photovoltaic Energy Association (JPEA) said, "It is indispensable for the overall optimization and cost efficiency of the electric power system that the renewable energy itself exerts its adjusting power and plays a certain role in the supply and demand adjustment market." We request that the adjustment power handled in the supply and demand adjustment market be added to the classification based on the characteristics of renewable energy and storage batteries.
