Polish-Japanese Smart Grid Demonstration Project in Poland has been completed

Confirmed the technical effectiveness of the Special Protection Scheme system and Hybrid Battery Energy Storage System for full operations.

Hitachi, Ltd. (TSE: 6501, "Hitachi"), Sumitomo Mitsui Banking Corporation ("SMBC"), Polskie Sieci Elektroenergetyczne S.A. ("PSE"), Energa Operator S.A. ("EOP") and Energa OZE S.A. ("EOZE") today announced that the Polish-Japanese Smart Grid Demonstration Project in Republic of Poland ("Poland"), which promoted with Showa Denko Materials Co., Ltd. ("Showa Denko Materials") has been completed on June 30, 2021. The project was supported by the Ministry of Climate and Environment of the Republic of Poland and the Japanese government agency New Energy and Industrial Technology Development Organization ("NEDO") and has been carried out in cooperation with Polish project partner companies: PSE, EOP and EOZE.

The project aimed to contribute to further integration of renewable energy in Poland by achieving secure power grid operation while minimizing investment costs for power transmission equipment at the same time. The project consisted of the implementation of the Special Protection Scheme system (SPS) and the hybrid Battery Energy Storage System (BESS) located at the Bystra Wind Farm in northern Poland and started the full-scale operation gradually from September 2020. These systems will be used continuously for enhancing the management of Polish power grid.

Along with the introduction of large amounts of wind power generation in Poland, the risk of the grid destabilization and the shortage of load balancing capabilities become an issue, generating a need for a system that will stabilize the power grid while at the same time suppressing economic burden and enabling the introduction of large amounts of wind power generation and other renewable energies.

In March 2017, NEDO concluded a Memorandum of Understanding (MOU) with the Ministry of Energy in Poland (currently the Ministry of Climate and Environment) for "The Demonstration Project for Applying Special Protection Scheme in Poland" intended to enable the expansion of renewable energy in Poland. At the same time, three contractors chosen for the project implementation by NEDO, namely Hitachi, SMBC and Showa Denko Materials, conducted on-site surveys and designed, manufactured, transported, and installed equipment, and commenced its demonstrative operation in cooperation with PSE (the transmission system operator in Poland), EOP (a power distribution system operator in northern Poland) and EOZE (a power generation company in Poland).

In parallel with that, Hitachi, SMBC and Showa Denko Materials worked together to develop business models in consideration of the possibility for wide-deployment of such systems and explore their finance schemes.

Within the scope of work, Hitachi designed and implemented SPS in PSE. On September 30, 2020, the SPS has become operational after the demonstrative operation phase. In parallel, Hitachi and Showa Denko Materials supplied BESS located at Energa OZE's Bystra Wind Farm. At the beginning of April 2021, BESS became operational after the demonstrative operation phase.

As the verification of SPS technical ability covering the northern part of the Polish power system, Hitachi developed optimal countermeasures to prevent the overload of transmission lines that may occur during accidents affecting the power grid. It was carried out by conducting simulations that assume the conditions of such accidents and also by examining the methods of control in case of the actual accident. At the same time, the amount of connectable renewable energy that can be raised with the SPS was examined based on the fact that the capacity of the existing transmission lines reserved for accidental situations can be effectively used, enabling connection of more renewable energy.

Regarding BESS, it has been installed at the Bystra Wind Farm in Gdansk, northern Poland. The functionality of alleviating short-term fluctuations in wind power generation and providing necessary reserve power for adjusting demand-supply balance was verified.

Furthermore, SMBC worked with Hitachi and Showa Denko Materials for exploring the business model and the finance scheme for both systems.

This demonstration project was completed upon the accomplishment of the goal that the technical effectiveness of both systems, which were developed under the entrustment by NEDO, were confirmed through the demonstration period.

SPS and BESS will continue to be utilized by Polish companies after the demonstration project. Hitachi, SMBC, and Showa Denko Materials will contribute to the enhancement of Polish power system with the know-how gained from the demonstration project.

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