Enel X expands its demand response leadership with tender award of more than 1 GW in Japan

Published on Thursday, 8 October 2020

“We are proud to build on our strong foundation of offering demand response services to Japan’s national electricity grid. As the country’s leader in demand response services, we are promoting these resources as a cost-effective alternative to traditional generation, which is also key to supporting grid integration of renewables. Looking ahead, with demand response participating in Japan’s capacity market from its inaugural year, we expect an ever-growing role for these services in the country’s power markets.”

– Ushio Okuyama, Head of Enel X Japan

With its real-time flexibility platform, Enel X is able to optimize the use of demand response resources across all areas of Japan’s rapidly evolving power market. In Japan, Enel X is currently the leading independent provider of ‘1-dash’ reserves, a demand response program based on annual tenders that is in place until the capacity market comes into effect. In addition, Enel X recently secured its membership on the Japan Electric Power Exchange (JEPX), the country’s wholesale electricity trading market, enabling it to bid demand response into the electricity market on a day-ahead or intraday basis.

With its market-leading platform, comprised of 211 MW in the ‘1-dash’ program, alongside more than 1 GW just awarded on the capacity market, Enel X manages a significant Virtual Power Plant aimed at helping to stabilize the country’s electricity grid. The company is therefore well-positioned to help Japanese businesses maximize the value they can access from actively participating in the country’s power market. With their participation, qualifying businesses earn a new revenue stream that can improve their profitability, while also supporting the integration of renewables. Enel X’s current customer portfolio spans many business sectors, including heavy industry, manufacturing, information technology, logistics and commercial properties.   

Demand response programs encourage energy users to adjust their energy consumption in order to help stabilize the grid when requested by the system. Enel X Japan is a subsidiary of Enel X, the Enel Group advanced energy services company holding the leading position among private players in demand response programs globally, with more than 6 GW of capacity currently managed and assigned in the Americas, Europe, Asia and Oceania.

Enel X is leading the transition toward a sustainable business model, with circular economy as a crucial pillar. Enel X was one of the first businesses to offer products that apply the principles of circular economy and supports businesses to do the same.  Demand Response is a key service in which circular economy principles are met, due to its design that uses two of the business models of the circular economy: Sustainable inputs and Sharing Platforms. By joining Demand Response programs, commercial and industrial businesses can participate in the electricity market and be compensated for modifying their energy consumption to respond to the peaks in the electrical supply or demand, while contributing to the global decarbonization.

Japan’s capacity market is designed to procure the power capacity needed in order to maintain the country’s security of supply. Capacity is procured through a four-year forward auction, where demand response alongside other technologies can participate.

Enel X is Enel's global business line dedicated to the development of innovative products and digital solutions in sectors where energy is showing the greatest potential for transformation: cities, homes, industries and electric mobility. The company is a global leader in the advanced energy solution sector, managing services such as demand response for over 6 GW of total capacity at global level and 110 MW of storage capacity installed worldwide, as well as a leading player in the electric mobility sector, with around 130,000 public and private EV charging points made available around the globe. Innovation and sustainability are at the heart of Enel X’s strategy since its inception, with circular economy being the perfect combination of these two elements, applied in many of Enel X products and services.