1. 1 Copyright © 2009, Hitachi, Ltd., All rights reserved. 1 Hitachi’s experience in developing Smart Grids Shin-ichi INAGE Renewable Energy & Smart Grid Division, Hitachi Ltd.

2. 2 Copyright © 2009, Hitachi, Ltd., All rights reserved. 2 Required Technologies for Smart Grids Renewables Energy storage AMI Information Simulation Communication Control Electric vehicle Heat pump Smart Grid (Optimal operation of power grid By control of Demand/Supply) Hitachi has a lot of experiences based on our products and technologies for Smart Grids

3. 3 Copyright © 2009, Hitachi, Ltd., All rights reserved. 3 Mega Solar Plant & Bifacial PV Panel 13MW-class Solar Plant for TEPCO Limit value Harmonic order Predecessor Present PCS Content % Application of Bifacial PV Panel 30 20 10 CELL Efficiency (%) 2005 2006 2007 2008 2009 2010 24.6%

4. 4 Copyright © 2009, Hitachi, Ltd., All rights reserved. 4 Batteries Battery room Lead Acid Battery ■ PCS ＝ 400kW system ■ Battery capacity ＝ 1.7MWh Energy storage model Wind Power-Kuroshio SpecificationsLL1500W-S Voltage8V Energy Capacity12kW Expected life time17 years SOC range30-90% Recycle rate>90% Load Shifting System

5. 5 Copyright © 2009, Hitachi, Ltd., All rights reserved. 5 Heat Pump Water Heater System 0.31 0.52 0.78 -69% 1.0 Heat pump Gas -firing Oil -firing Electric CO 2 cycle 5 ℃ water 90 ℃ hot water Hot water Cold water Low temperature Heat from air Hot-water cylinder Compressor High temperature Air/refrigerant Heat exchanger Water/refrigerant Heat exchanger Expansion valve Overview of systemPrinciple of heat pump water heater Reduction of CO 2 emissions of water heater Applicable to demand response or load shifting Comparison of relative CO 2 emissions Gas-firing Heat pump 0.31 1.0 -69% Comparison of relative operation cost

6. 6 Copyright © 2009, Hitachi, Ltd., All rights reserved. 6 ・ This project evaluates system functionality and energy optimization by using closed Rokkasho-Demonstration Project Photovoltaic （ Hitachi ） Operator Monitor automatic surveillance and control Server (D-EMS server) PCS PV(100kW) Hub Battery (250kW) PHV （ Plug-in Hybrid Vehicle ） PCS （ Power Conditioning System) Charge/ Discharge Control Charge/ Discharge Mini-Information Hub Server ＮＡＳ Battery （Ｎ ＧＫ） Heat Pump Control Multi family housing Smart House （ Panasonic ） Smart house （ JWD ） PHV ＥＶ＆ＰＨＶ （ Smart Center ） Futamata Window Power Generation Site （ JWD ） Energy Service Information Exchange PHV Charger Power Grid Power Distribution Line Information Flow Control Smart Home/ Building Surveillance and Control Information Exchange Smart House （ Toyota ） Control Center （ Hitachi ） Grid Side Information ↓ ↑ Demand Side Energy Service Information Smart Grids Trial at Rokkasho Village

7. 7 Copyright © 2009, Hitachi, Ltd., All rights reserved. 7 Photovoltaic （ Hitachi ） PCS PV(100kW) Hub Battery (250kW) Charge/ Discharge ＮＡＳ Battery （ＮＧＫ） Inter-connection Point Multi family housing PHV Futamata Window Power Generation Site （ JWD ） PHV Charger Smart House （ Toyota ） Control Center Smart House （ JWD ） Smart house （ Panasonic ） Over view of PV Overview of Solar Power System (100kW)

8. 8 Copyright © 2009, Hitachi, Ltd., All rights reserved. 8 Photovoltaic （ Hitachi ） PCS PV(100kW) Hub Battery (250kW) Charge/ Discharge ＮＡＳ Battery （ＮＧＫ） Inter-connection Point Multi family housing PHV Futamata Window Power Generation Site （ JWD ） PHV Charger Smart House （ Toyota ） Control Center Smart House （ JWD ） Smart house （ Panasonic ） Smart meterHeat Pump Over view of the Community Smart House （ Toyota ） Smart House （ JWD ） Smart house （ Panasonic ）

9. 9 Copyright © 2009, Hitachi, Ltd., All rights reserved. 9 The analytical result (24/Sep- 28/Oct,2010) The self-sustenance ratio is 88% Inter-connection Point Futamata Window Power Generation Site -88% of the total energy consumption was provided by the electric power of PV (HUB, Rooftop PV) generation with HUB Power storage. 12% ■ PV+Hub Storage support ratio is 95.9% = (iv) / ( (i) + (ii) ) (%) ■ PV surplus ratio is 56% = (iv) / ( (iii) ) (%) Demand Electric Power charged / discharged PV Output (i) (ii) (iii) (iv) Operation Results: Balance of Supply & Demand

10. 10 Copyright © 2009, Hitachi, Ltd., All rights reserved. 10 Conclusions Through actual demonstration projects in Japan, US and other areas, Hitachi is contributing to R&D of Smart Grids technologies. The concept of Smart Grids should vary in each country and customer. Hitachi is willing to respect the existing power gird, utilities and technologies of the customers. We are intending to contribute to achieve "Best Mix" of the customers' existing power grids and our leading-edge technologies as WIN-WIN solution.

11. 11 Copyright © 2009, Hitachi, Ltd., All rights reserved. 11 Thank you for your attentions