Sumitomo Forestry to Test P2P Power Retailing

2020/02/26 22:56
Sousuke Kudou, technical writer
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Sumitomo Forestry Co Ltd announced Feb 17, 2020, that it will test power retailing using "Digital Grid Platform (DGP)," a power transaction center being promoted by Digital Grid Corp (Chiyoda-ku, Tokyo).

The DGP is Japan's first power transaction center run by a private company, and Sumitomo Forestry will become the first company that has utilized it.

Sumitomo Forestry will make wholesale supply contracts with power producers by using the DGP. As a result, it will become a provider of services for utility customers and retail power to five houses for exhibition in a peer-to-peer (P2P) manner.

The DGP is capable of accurate supply-demand prediction using AI (artificial intelligence) and equipped with an automatic matching system. And it is expected to reduce management cost. Therefore, Sumitomo Forestry will test whether the cost reduction effect can be reflected in pricing.

Sumitomo Forestry will start to switch to electricity using the DGP Feb 3, 2020. It will move forward with the verification test in stages and consider new services for its customers. The DGP is planned to be equipped with a system capable of the supply-demand adjustment of a power source whose output is unstable in the future. With this system, the company plans to test power retailing that distinguishes renewable energy-based power sources in fiscal 2020.

Also, Sumitomo Forestry will install Digital Grid Controller (DGC), which measures environmental values produced by the self-consumption of renewable energy-derived electricity, at the exhibition site and record the data of power generation sources in a blockchain on a trial basis.

Environmental values measured with the DGC are scheduled to become tradable in or after April 2020. The company is considering a business of attaching the DGC to houses equipped with solar power generation (PV) facilities and purchasing measured environmental values.

The Sumitomo Forestry group's long-term goal for the reduction of greenhouse gas emissions (reducing Scope 1 and Scope 2 by 21% and Scope 3 by 16% by 2030, compared with 2017 levels) was certified as SBT (science-based target) in July 2018. It plans to contribute to realizing the SBT by launching new services such as retail electricity business through the test.