Hitachi Receives Order for Electricity Balancing Market System to Be Established Through Joint Procurement for Tepco Power Grid, Inc. and Chubu Electric Power Co
August 02, 2019 at 07:56 am EDT
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Hitachi, Ltd. has announced that it received an order for the electricity balancing market system to be established through joint procurement for TEPCO Power Grid Inc. and Chubu Electric Power Co. The system will serve as a platform that realizes market transactions in the electricity balancing market to be established in April 2021 in order to enable efficient procurement of adjustment capacity contributing to the stable supply of power, and TEPCO PG and Chubu Electric Power are advancing development on behalf of the 10 domestic power companies that are general transmission and distribution operators. This time, based on a strategic partnership concluded with ABB Ltd. in December 2017, Hitachi will build the system using the ABB's Market Management System solution. At present, the capacity to store generated power is still technically developing and is difficult; and it is thus necessary to adjust the balance between the supply and demand for electricity consumption (demand) and power plant output (supply). Moreover, to prevent malfunctions in the use of the equipment, it is also necessary that the frequency be kept constant by balancing the demand and supply of power. "The electricity balancing market" is the supply capacity that allows general transmission and distribution operators to finally match supply and demand, and maintain the frequency, and it is to be established as a market for trading "adjustment capacity" to realize stable supply; and the system will function as a platform that supports the base of the new market.
Hitachi specializes in manufacturing and marketing of electronic and industrial equipments. Net sales (including intragroup) break down by family of products and services as follows:
- social infrastructure and industrial systems (24.7%): elevators, escalators, industrial facilities, railway systems, power generation units, etc. The group also provides engineering and construction of nuclear, hydroelectric, and thermal power plants services;
- information and telecommunications products and services (20.1%): systems integration, cloud computing, software, servers, hard disks, PCs, ATMs, data communication base stations, payment terminals, etc.;
- materials and components (16.6%): semi-conductor materials, printed circuit cards, cables, copper and forged steel products, magnetic materials, organic and inorganic chemical products, etc.;
- construction equipment (10%) : hydraulic excavators, wheel loaders, mining equipment, etc.;
- automotive systems (9.4%): powertrain systems, control systems, etc.;
- electronic products (9.2%): fiber-optic components, screen tubes, testing and measurement equipment, medical equipment, equipment for manufacturing semiconductors, etc.;
- household appliances (4.7%): heating and air conditioning equipments, refrigerators, washing machines, etc.;
- other (5.3%): mainly transport, financial and logistical services.
Net sales are distributed geographically as follows: Japan (49.2%), Asia (21.3%), North America (12.7%), Europe (10.8%) and other (6%).
Hitachi Receives Order for Electricity Balancing Market System to Be Established Through Joint Procurement for Tepco Power Grid, Inc. and Chubu Electric Power Co
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