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Demand Response

Business Solutions

What is Demand Response?

Demand Response was introduced in Japan as a new solution to stabilize the grid by adjusting "demand-side resources" rather than the supply-side of electricity. Organisations offer their capacity to support the electricity grid in exchange for regular payments. Businesses respond by powering down or switching to a backup power source to give their capacity back to the grid. They do this via our Virtual Power Plant (VPP) which has unmatched access to a range market programs.

Demand Response Programs

The capacity market is a market where "future supply capacity (kW)" is traded, rather than the "quantity of electricity (kWh)" traded in the traditional wholesale electricity market.

 

How to participate:Businesses generate or share their reserve electricity by either starting up their own generators or powering down or adjusting their production facilities for a few hours.
History:Established in FY2020; starts in FY2024 (bidding in July 2020)
Procurement period:Procurement four years in advance
Procurement organization:Organization for Cross-regional Coordination of Transmission Operators, Japan (OCCTO)
Procurement area:Nationwide
Bidding method:Single-price auction

Demand Response is called on when the system is facing a low reserve margin.

 

How to participate:We give customers the opportunity to sell 'Negawatts' or excess power capacity on the Japan Electric Power Exchange (JEPX) and earn revenue.
History:Enel X entered the market in December 2020
Procurement period:Trading on the wholesale electricity market (JPEX) on the day before and on the day of the transaction
Procurement organization:Japan Electric Power Exchange (JEPX)
Procurement area:Nationwide
Bidding method:Single-price auction (Spot Market), multi-price auction (Forward Market)

The Balancing Market is a platform for trading the power needed to match electricity demand with supply.

 

How to participate:Businesses generate or share their reserve electricity by either starting up their own generators or powering down or adjusting their production facilities for a few hours.
History:Established in FY2020; starts in FY2024 (bidding in July 2020)
Procurement period:Procurement four years in advance
Procurement organization:Organization for Cross-regional Coordination of Transmission Operators, Japan (OCCTO)
Procurement area:Nationwide
Bidding method:multi-price auction

Similar to the Capacity Market, this market requests power reserves from energy users to help the grid cope with supply shortages, particularly during extreme heat and severe cold weather conditions.

 

How to participate:Businesses generate or share their reserve electricity by either starting up onsite generators or powering down or adjusting their production facilities for a few hours.
History:Ends at the end of March 2024; shifts to the Capacity Market in April 2024.
Procurement period:Procurement around October of the previous year, and annual public procurement for each area
Procurement organization:Each Transmission System Operator (TSO)
Procurement area:Nationwide
Bidding method:multi-price auction

Public tenders are solicited when demand is expected to exceed supply due to seasonal factors.

 

How to participate:Participation is only available for additions to existing demand response contracts or new contracts with Enel X.
History:Commenced in winter 2021
Procurement period:Seasonal additional procurement
Procurement organization:Transmission System Operator (TSO)
Procurement area:Single public bidding for 9 areas
Bidding method:multi-price auction
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How to Start Participating Demand Response

startHow to start participating in Demand Response

Why Enel X

Extensive experience

Businesses trust our proven track record as the market leader. Enel X manages the world’s largest commercial and industrial (C&I) Virtual Power Plant (VPP), with 8.2 GW of Demand Response offered. Our ambition is to grow this to 13GW by 2024.

Enel X Japan is the largest independent aggregator in Japan.

Customized programs

Enel X offers customized programs and operation methods that are best suited to your business, prioritising your operations first.

No CAPEX investment

Enel X Japan provides all the analysis, proposals, equipment/software, and systems necessary for participation in Demand Response without any cost.

Unmatched market access

Enel X Japan is the only aggregator in Japan that offers Demand Response  programs in all nine areas.

24/7 Monitoring

Enel X Network Operations Center operates 24 hours a day, 7 days a week, 365 days a year to execute, manage, and monitor all Demand Response in real time throughout the globe.
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