Special Feature 1: Starting a Verification Project to Establish a Virtual Power Plant (VPP) Using a Residential Fuel Cell, “ENE-FARM”


Technology that Contributes to the SDGs
Electricity cannot be stored, so continual adjustments of power generation must be made to ensure a balance between supply and demand. If power generation is not balanced, the frequency of the electricity will fluctuate, potentially resulting in large-scale power outages, in the worst-case scenario. As a result, general electricity transmission and distribution utilities currently maintain frequencies within a certain range, mainly by limiting the output of power stations to match demand.
Renewable energy, which does not generate CO2 when electricity is generated, may become a key energy source in future under Japan’s energy policies. Still, solar power generation and wind power generation are affected by weather conditions such as the amount of solar radiation and strength of the wind, causing issues when adjusting the balance of grid electricity supply and demand.
On the other hand, fuel cells characteristically enable free control of the output power, and are attracting attention as a resource that can contribute to adjustment of grid electricity supply and demand in a society in which a large amount of renewable energy is introduced.

Innovation by the Daigas Group
Osaka Gas is conducting a verification project to build a virtual power plant (VPP)*1by controlling approximately 1,500 units of residential fuel cells, “ENE-FARM type S (equipment sold after April 2018),” installed at customers’ homes (the total rated output reaches around 1 MW*2) as energy resources as if they are a single power plant, so as to utilize it for effective adjustment of grid electricity supply and demand. While the aggregation coordinator*3 in this verification project is Chubu Electric Power Miraiz Co., Inc., Osaka Gas participates in the project as a resource aggregator*4.
We have installed the IoT function on our products starting at the “ENE-FARM type S*5 ,” which was released in 2016, and approximately 50,000 units*6 are currently connected to the server of Osaka Gas. We will verify that the output power of “ENE-FARM” can be controlled in accordance with the grid supply and demand situation, including the output fluctuation of renewable energy, by utilizing the know-how of remote control technology cultivated through the efforts to realize IoT applications.

- *1 Virtual power plant. It is realized by business operators called “aggregators” using, in a bundle, the adjustment power supplied by distributed power sources.
- *2 If the rated power output of “ENE-FARM” is estimated to be 700 W, the total rated power output of 1,500 units of “ENE-FARM” will be 1,050 kilowatts ≈ 1 MW.
- *3 A business operator who aggregates the electric power controlled by a resource aggregator, and trades electricity directly with general electricity transmission and distribution utilities and electricity retailers
- *4 A business operator who controls resources by directly concluding VPP service contracts with customers
- *5 A device that directly generates electricity through the chemical reaction between hydrogen and oxygen. It generates electricity continuously for 24 hours according to the amount of electricity used at each house. Meanwhile, the heat generated during power generation can be used for hot water supply and storage in a tank.
- *6 As of May 31, 2020
- Sustainability of
the Daigas Group -
President's Commitment
Transition Finance
- Values and Sustainability Promotion of the Daigas Group
- Daigas Group's Values Daigas Group Charter of Business Conduct and Management Policy Daigas Group Code of Business Conduct Sustainability Promotion System and Management Stakeholder Engagement Initiatives the Daigas Group Participates In Commendation from the Outside
- Sustainability Management and Value Creation Process
- Value Creation Process of the Daigas Group Long-Term Management Vision 2030 Medium-Term Management Plan 2023 Daigas Group Carbon Neutral Vision
- Actions on Materiality
-
Materiality of the Daigas Group
Materiality Review Cycle
Creating Value for Customers
(Charter I) Contributing to the Sustainability of the Environment and Society
(Charter Ⅱ) Engaging with and Contributing to Society (Charter Ⅲ) Respecting Human Rights
(Charter IV) Complying with Laws and Regulations (Charter V) Providing Work Environment That Supports Employees’ Personal Growth (Charter VI)
- Corporate Governance
- Corporate Governance Risk Management Compliance Messages from Outside Directors
- FY2022 Activities Report
-
- Creating Value for Customers (Charter I)
-
Charter I Index
Management for Creating Value for Customers
Safety and Security 1:
Procurement Stage Safety and Security 2:
Processing Stage Safety and Security 3:
Distribution Stage Safety and Security 4:
Consumption Stage Incorporating Customer Opinions Proposing New Value
- Contributing to the Sustainability of the Environment and Society (Charter Ⅱ)
- Charter Ⅱ Index Management toward Contributing to the Sustainability of the Environment and Society Environmental Management Environmental Management: Indicators, Targets and Results Actions for Climate Change: Recognition of and Action on Risks and Opportunities Actions for Climate Change: Method to Evaluate Effects of CO2 Emissions Reduction Actions for Climate Change: Working to Reduce CO2 Emissions in Business Activities Actions for Climate Change: Working to Reduce CO2 Emissions at Customer Sites Efforts in Resource Recycling Conserving Biodiversity Developing Environmental Technologies Addressing Environmental Risk Promotion of Green Purchasing Environmental Communication
- Engaging with and Contributing to Society (Charter Ⅲ)
- Charter Ⅲ Index Management of Engagement with and Contribution to Society Activities for Promoting Communication with Society Corporate Volunteering Activities under the Small Light Campaign Social Contribution Activities Activities at Osaka Gas' Foundations
- Respecting Human Rights (Charter IV)
- Charter IV Index Status of Management regarding Respect for Human Rights Human Rights Due Diligence Action on Human Rights
- Complying with Laws and Regulations (Charter V)
- Charter V Index Management for Complying with Laws and Regulations Compliance Promotion Efforts Efforts for Protection of Personal Information Information Security Consultations and Reports from Partner Companies
- Providing Work Environment That Supports Employees’ Personal Growth (Charter VI)
- Charter VI Index Status of Management to Support Employees' Personal Growth Employment Acceptance of Diversity Balancing Work and Family Human Resource Development and Rewards Communication Between Employees and Company Improving Occupational Health and Safety
- Reporting Guidance and Guidelines and ESG Data
- Reporting Guidelines