Shizen Connect and Kansai Electric Power conduct low-voltage VPP demonstration for capacity market

- Aiming for commercial operation from FY2025 linking system to HEMS installed in homes by Kansai Electric Power -

2024.05.30[Press Release]

Shizen Connect Inc.(Shizen Connect), a VPP*1 platform developer, will conduct a joint demonstration with Kansai Electric Power Co., Inc. (Kansai Electric Power) in preparation for entering the capacity market through the control of residential storage batteries. This demonstration will be conducted as part of the ongoing demonstration of HEMS (Home Energy Management System *2) in homes using solar power generation, storage batteries, and EcoCute being conducted by Kansai Electric Power *3.

Since April 2024, Kansai Electric Power has been conducting a demonstration project to optimally control residential solar power generation equipment, EcoCute water heaters, and storage batteries using HEMS with demonstration participants. As part of this project, Kansai Electric Power plans to demonstrate the control of residential storage batteries for trading in the capacity market, which has been established to ensure Japan’s future power generation capacity.

In this demonstration, the VPP platform “Shizen Connect”, developed and operated by Shizen Connect, will be linked with HEMS to achieve control for the capacity market for residential storage batteries.

One of the features of “Shizen Connect” is its “multi-purpose” versatility, which supports various types of DR control, including the “equipment control-type DR support service” *4 already provided for DR control measures to alleviate supply and demand constraints, reduce electricity procurement costs linked to wholesale market prices, and reduce capacity payments (Figure 2). Another feature is that it is “vendor-free”, therefore it can be linked to and control a wide range of devices from a variety of manufacturers, including residential storage batteries, EV AC chargers and V2H devices, EcoCute water heaters, and HEMS, which is the focus of this demonstration.

In this demonstration, Shizen Connect will simulate the creation of a demand response equivalent to a capacity market demand response, and remotely control the residential storage batteries owned by the demonstration participants via the HEMS installed by Kansai Electric Power, which is linked to the system. After the technical evaluation and troubleshooting of this demonstration, Shizen Connect, in cooperation with Kansai Electric Power, aims to enter the capacity market with HEMS-controlled residential storage batteries from 2025.

Shizen Connect will continue to work with leading companies in various fields to contribute to the realization of a decarbonized society.


Figure 1: Scheme of this demonstration


Table 1: Overview of demonstration


Verification of the feasibility of participating in the capacity market through the control of residential storage batteries via HEMS

Demonstration period

January 2025 – February 2025

Evaluation System

Technical evaluation (resource responsiveness to control instructions)

Role of Kansai Electric Power

  • Obtaining control permissions from participants in the demonstration as a resource aggregator, and various coordinating tasks
  • Controlling residential storage batteries via HEMS server

Role of Shizen Connect

  • Creation of a simulated demand response equivalent to a capacity market demand response
  • Planning control programs and sending control instructions to the HEMS server
  • Verification of technical feasibility and reporting



Figure 2 Controls provided by “Shizen Connect”

*1 Virtual Power Plant (VPP): a generic term for digital technology that collectively controls distributed power sources (power generation facilities, storage batteries, EVs, etc.) and demand-side facilities as if they were a single power plant.

*2 Home Energy Management System (HEMS): A system that visualizes the energy used in a home (such as the amount of electricity generated and consumed) and controls HEMS-compatible appliances and residential equipment

*3 Kansai Electric Power news release on the demonstration of a HEMS (Home Energy Management System) in a house that uses solar power, storage batteries, and EcoCute (March 27, 2024) (Japanese only) 

*4*3 “Shizen Connect” selected as control platform for Tokyo Gas IGNITURE storage batteries (April 23, 2024 Press release) (Japanese only) 

*5 Aggregation Coordinator (AC): a business operator that trades balancing capacity created by resource aggregators with Transmission System Operators and electricity retailers 

*6 Resource Aggregator (RA): a business operator that controls the resources by entering into a VPP service contract directly with the consumer


EMS “Shizen Connect” 
“Shizen Connect” is an aggregation energy management system (EMS).  It can provide individual control for storage batteries and EV chargers, control for microgrids connecting multiple buildings with their own private transmission lines, as well as control of VPPs for large scale energy resources. Individual control and VPP control tended to be separate, but Shizen Connect provides a one-stop service allowing energy resources to be used multi-purposefully, which also improves economic efficiency. The system can be adapted with any equipment supplier, allowing energy resources to be chosen freely without relying on a certain manufacturer.

Shizen Connect Inc. 
Head Office:  2-4-7 Nihonbashi-honcho, Chuo-ku, Tokyo
Founded: October 2, 2023    
Shareholder:  Shizen Energy Inc. 100% 
Representative Director: Munekazu Matsumura 
Business: VPP platform, energy management service, IoT equipment sales, etc.
URL: (Japanese only)