Next Kraftwerke team with joint venture agreement.
Image by Next Kraftwerke.
Toshiba Energy Systems & Solutions Corp, or Toshiba ESS, and German firm Next Kraftwerke GmbH earlier this week said they are teaming up to offer virtual power plant (VPP) technology for load balancing to owners of renewable energy plants.
The companies have agreed to set up and start operating a joint venture (JV) called Next Kraftwerke Toshiba Corporation by the end of the month.
The new entity will offer VPP technology to be used by renewable energy asset owners and aggregators with the aim of reducing imbalance risk, optimising the operation of trading and enhancing profits in the electricity spot market and control reverse market.
Toshiba ESS will own 51% of the JV, while Next Kraftwerke will hold the remaining 49%. The company will have a capital of JPY 180 million (USD 1.74m/EUR 1.47m) and its main focus will be Japan, but the partners will consider an overseas expansion.
The strategic move comes ahead of the control reserve market opening in Japan in April 2021, which is expected to result in more effective utilisation of distributed energy resources. The agreement follows a study on VPP technology and sales tie-ups launched by Toshiba and Next Kraftwerke in October 2019.