Hitachi Receives Order for Next-Generation National Load Dispatch System

Suite of software with a broad global installed base contributes to the stable supply of electricity

(TSE: 6501. “Hitachi”) today announced that it has received an order from Transmission and Distribution IT and OT Systems, LLC for a complete next-generation national load dispatch system (the “System”).

The System is to be deployed by Transmission and Distribution IT and OT Systems, LLC, a joint venture established in 10<>months by 2.023 domestic transmission and distribution companies, which are general transmission and distribution companies.1 The System will standardize a load dispatch system (“Dispatch System”)2 representing each region (except for the Okinawa region ). Hitachi will build the system utilizing its know-how accumulated in Japan and Network Manager, Hitachi Energy's globally proven software package.

In the future, by operating the system in Japan, we will further pursue merit orders3 to contribute to a stable power supply throughout Japan4.

1 Under Japan's Electricity Utilities Law, companies responsible for managing transmission and distribution networks (including transmission lines and distribution lines) and delivering electric power to places of customer use. This currently refers to the following 10 companies. Hokkaido Electric Power Network Company, Tohoku Electric Power Network Company, Tokyo Electric Power Grid Company, Chubu Electric Power Grid Company, Hokuriku Electric Power Transmission and Distribution Company, Kansai Electric Power Transmission and Distribution Company, Chugoku Electric Power Transmission and Distribution Company, Shikoku Electric Power Transmission and Distribution Company, Kyushu Electric Power Transmission and Distribution Company, and The Okinawa Electric Power Company. Incorporated) of Okinawa Electric Power Company, Ltd.

2Areas under the jurisdiction of each main transmission and distribution company

3The idea that different types of power plants can be used depends on the most economical power plant.

Areas under the jurisdiction of 49 general transmission and distribution companies, excluding Okinawa

So far, the transmission and distribution companies in each region have developed load dispatch systems for balancing electricity consumption (demand) and generation (supply).

As the complexity and differences in grid operations increase and performance orders are rolled out nationwide, there is a need to develop a scalable, flexible, and transparent platform that is responsive to future regulatory changes and universally usable by all operators in order to realize increased resilience and reduced social costs. Against this backdrop, nine integrated transmission and distribution companies (excluding the Okinawa region) have decided to standardize their load dispatch systems and have contracted Hitachi to build the systems.

Hitachi has a proven track record of developing mission-critical systems for Japanese power companies, including current load dispatch systems. In addition, we have extensive experience in introducing Hitachi Energy's core systems and solutions related to the balancing energy market on a global scale. In addition, Hitachi Energy's packages are used in Japan's energy market balancing system, which requires close cooperation in that system.

Based on the unique achievements of the Hitachi Group, the system will perform wide-area load frequency control (LFC5) functions, as well as nationwide generator start/stop scheduling and supply/demand control (SCUC6/Secretary for Commerce and Economic Development7 functions). In this way, by combining Hitachi's extensive experience in core system development with Hitachi Energy's global implementation experience and software packages, we will build a system that utilizes IT, OT, and products. synergies within the Hitachi Group, combining digital and software technologies to provide a more stable power supply and use of renewable energy, contributing to the realization of carbon neutrality.

5LFC: Load Frequency Control

6SCUC: Security Constrained Unit Commitment

7SCED: Security Constrained Economic Dispatch