[TERA Energy Co., Ltd.] Started offering “ECO Electricity
Coordination” for buying and selling adjustment power from April 1st Aiming to promote renewable energy by revitalizing the supply and demand adjustment market [Tera Energy Co., Ltd., an electric power company started by four monks]
*View in browser* *TERA Energy Co., Ltd.*
Press release: April 9, 2024
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“ECO Electric Power Coordination” for buying and selling adjustment power will be available from April 1st
Aiming to promote renewable energy by revitalizing the supply and demand adjustment market [Tera Energy Co., Ltd., an electric power company started by four monks]
*~ Surplus “adjustment power” becomes an asset, creating sustainable economic and environmental circulation through electricity ~* Terra Energy Co., Ltd. was founded by four monks and sells electricity mainly from renewable energy (Retail Electricity Business Registration Number: A0582) in Kyoto City.
(Head office: 18-124 Nishikyogoku Tsutsumi Sotocho, Ukyo-ku, Kyoto City / Representative Director: Ryogo Takemoto /
(hereinafter referred to as the company) will enter the supply and demand adjustment market, which will be fully operational in Japan from April 1, 2024.
The supply and demand adjustment market is a market that trades “adjustment power” to maintain the balance of electricity supply and demand. Electricity has the characteristic that if the demand (consumption amount) and supply (power generation amount) do not match, the frequency will be disrupted and a stable supply will not be possible (leading to power outages). However, since it is difficult to store electricity, it is difficult to store it, so it is necessary to always match the demand in real time. We need to match supplies. Adjustment power is the ability to supplement supply capacity or increase or decrease demand in response to fluctuations in electricity supply and demand.
This adjustment power is not something special that occurs when the market starts operating, but is a capability that already exists in large equipment such as large electric furnaces, large freezers, regular generators, and large-scale storage batteries. The ability to adjust is particularly important in promoting renewable energy whose supply is subject to fluctuations. The company aims to contribute to the spread of renewable energy in Japanese society and to “change the world with electricity” through “ECO Electricity Coordination,” which allows companies to buy and sell the adjustment power they have previously used within their companies as an asset. .
At the end of the newsletter, we have included an interview with Ryogo Takemoto, the company’s representative director, about the background to their entry into the company and their vision, so please take a look.
◆What is “supply and demand adjustment market”?
The supply and demand adjustment market is a market that trades “adjustment power” to maintain the balance of electricity supply and demand. In particular, in order to expand the use of renewable energy whose supply is subject to fluctuations, it is important to distribute the adjustment power of society as a whole. Renewable energy is becoming more popular overseas, but in February 2021, a large-scale power outage occurred in the U.S. state of Texas due to a lack of adjustment during cold waves, affecting more than 3.8 million homes. As Japan aims to further spread renewable energy in the future, in order to avoid such situations, it is necessary to activate the distribution of adjustment power, where there have been many restrictions on buying and selling. For this reason, the “Demand and Supply Adjustment Market,” which allows adjustment power to be bought and sold regardless of region or company, will be fully operational in Japan from April 2024.
* ◆The “adjustment ability” of each company will become an asset in the future* Companies that use large electric furnaces, large freezers, regular generators, large-scale storage batteries, etc., such as foundries for metal parts and food-related logistics services, require “adjustment power (unit: : delta kWh). Once the supply and demand adjustment market becomes fully operational, it will be possible to buy and sell a portion of the adjustment power that was previously used only for one’s own operations as an asset.
If the adjustment power decreases too much, the power will become unstable, but the company’s “ECO Power Coordination” conducts a detailed six-month survey in advance and sets upper limits for buying and selling, so it is possible to control the company’s operations. There will be no problem. Buying and selling adjustment power not only increases profits, but also contributes to society by stabilizing electricity and promoting the introduction of renewable energy in Japanese society.
* ◆“Adjustment power” buying and selling flow*
1. Schematic simulation based on current electricity demand and equipment assets (survey by Grid Beyond*)
2. Conclusion of basic agreement
3. Ascertain equipment demand through on-site inspection by engineers, examine risk-free adjustment ability, and present profits.
4. Conclusion of this contract
5. After equipment installation and trial run adjustment, start operation (start sales)
There are no initial costs borne by customers when buying or selling. An example of a domestic project based on cogeneration has annual sales profits of 20 million yen. The sales amount and distribution will vary depending on factors such as target equipment configuration and power transmission/distribution area, so please check with a simulation.
*What is GridBeyond? A leading Irish power technology company. It has a strong track record in the cutting-edge UK electricity market. https://gridbeyond.com/
* ◆Background of entry*
The company has been selling renewable energy with the aim of increasing the number of options available to change society. However, while the value of renewable energy is recognized socially, concerns about supply stability still remain, and it is difficult to say that renewable energy is widespread in Japan.
Under such circumstances, with the start of full-scale operation of the supply and demand adjustment market, if each company can properly utilize the asset of adjustment power, it will be possible to “stably expand” renewable energy throughout Japanese society. Become.
Through ECO Power Coordination, the company aims to distribute adjustment power worth approximately 300 million yen in the first year. By revitalizing this distribution, “choosing the electricity you use” will become a natural act in Japan, and we will aim to “change the world with electricity.”
* *Please also take a look at the newsletter below, where we asked the representative director about the background to his entry into the company and his future vision. *
◆Company information
Company name: TERA Energy Co., Ltd.
Location: 18-124 Nishikyogoku Tsutsumi Sotocho, Ukyo Ward, Kyoto City Representative: Ryogo Takemoto
Representative number: 075-874-4851
F A X: 075-874-4852
Established: June 11, 2018
U R L: https://tera-energy.com/
Business details: Sales of electricity mainly from renewable energy (retail electricity business registration number: A0582), support for social good activities
* N E W S L E T T E R*
Terra Energy Co., Ltd., which sells electricity mainly from renewable energy, spoke to Representative Director Ryogo Takemoto about the circumstances behind its entry into the electricity supply and demand adjustment market and its vision.
* As a “translator” of familiar electricity*
* A sense of satisfaction and peace of mind for each individual * *Toward a connected world*
* Ryogo Takemoto *
TERA Energy Co., Ltd./Representative Director
While pursuing the “meaning of life” during his student days, he encountered Buddhism. Impressed by the logic and advanced nature of Buddhism, he became a monk. In 2018, four monks launched Terra Energy, and as CEO, he sells electricity mainly from renewable energy. Terra Energy is an electric power company started by four monks, including myself. *
Our business is “selling renewable energy electricity,” and our purpose is “creating a sustainable economic and environmental cycle.” *
The system we used as a reference for our business was Germany’s Stadtwerke. This involves operating multiple public services (electricity, gas, waste disposal, public transportation, public facilities, etc.), and using the revenue from services that are more profitable (e.g. energy business) as services that are less profitable but in demand. public transportation, etc.) to circulate the economy and society. I am also involved in the operation of a suicide counseling center, and I wanted to create a similar economic circulation system in Japan through the electric power business, so I launched Terra Energy.
I chose renewable energy because I wanted to provide something that would cause fewer people to feel bad about using it and less damage. In particular, one of the directors who started the company with me had a deep understanding of “Buddhism and environmental issues,” and one of the great significances of starting the company was to expand renewable energy and address environmental issues.
As the operation of our energy business gradually stabilizes, we have decided to enter the supply and demand adjustment market in earnest from 2024. The electric power industry and its structure is extremely complex and constantly changing, and many people may not be familiar with the terms supply and demand adjustment market and adjustment power. Although I am still learning, I feel that revitalizing this market is essential for the spread of renewable energy in Japan. Its value goes beyond just being “good for the environment.” Japan currently relies on imports from overseas for most of its energy resources, including oil, coal, and natural gas. In other words, we are dependent on foreign countries, which is a very risky situation. * Renewable energy can become an important source of “self-sustaining and circulating energy” for Japan, an island nation. *
I think there are almost no people in today’s world who do not use electricity. Although it is a very important and familiar item, it is difficult to understand the structure of the electric power industry in Japan, so it is difficult to “know about it, think about it, and choose for yourself” in Japan. However, I believe that even the smallest things can lead to a sense of satisfaction in knowing that you have made your own choices, leading to peace of mind in life. *
That’s why I feel that one of our roles in the electricity retail business is to “translate,” so to speak, to convey the overall system in an easy-to-understand way, rather than just showing the surface, saying, “This is good.” *
In the current supply and demand adjustment market, if someone translated it, it would surely reach more people and become more active. We would be happy if by participating in the project and spreading the word, it would be an opportunity for people to think about the power they use every day, and what kind of mechanisms work behind the scenes when electricity is turned on with the flick of a switch. Then, by choosing the electricity you use yourself, as many people as possible can move closer to living a satisfying life. * We believe that each person’s sense of understanding and peace of mind will create the “warm connection” that we aim for, and increase the number of comfortable places in the world. *
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