NTT Group has been estimated to consume approximately 1% of Japan's electricity. In order to fulfill its social responsibility and its role as a global social infrastructure provider, and accelerate efforts to become carbon neutral by 2050, NTT Group has launched the GX^*1 solution brand "NTT G×Inno."

In this article, we will take a look at two solutions offered by NTT Group companies and explain their specific details, while giving details of the background and issues involved.

^*1Green Transformation: An initiative to reform the entire economic and social system to achieve both social carbon neutrality and economic growth by viewing activities to achieve carbon neutrality and greenhouse gas emission reduction targets as opportunities for economic growth.

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1) Expand the introduction and effective use of renewable energy

In order to achieve carbon neutrality, efforts in the energy sector, which accounts for a large proportion of greenhouse gas emissions, will be important. Among these, the introduction of renewable energy sources such as solar and wind power is expected to expand. Since they use naturally occurring resources, they can be used without depletion and do not emit greenhouse gases during power generation, so they are attracting attention as an environmentally friendly energy source.

For renewable energy to become a major power source, it must also become a stable power source over the long term. However, since the amount of electricity generated by renewable energies fluctuates with the seasons and weather, when supply falls short of demand it is essential to have "adjustability" to flexibly control the balance of supply and demand by combining thermal power generation, which can easily increase or decrease its output, with the increase in renewable energies, However, with the increase in renewable energy, it is necessary to increase the number of storage batteries to then replace thermal power generation as the "regulating power" in order to stabilize the power system.

In this context, "aggregation," which optimizes the supply and demand of electricity by utilizing energy resources as "regulating power," such as storage batteries attached to renewable energy generation facilities or directly connected to the power grid, household fuel cells and storage batteries, and electric vehicles (EVs), is attracting attention.

■Energy Distribution Platform for the Promotion of Aggregation Business

To contribute to the stabilization of electricity supply from renewable energy sources, NTT Anode Energy will promote its aggregation business based on three main components: "renewable energy aggregation," "regulating power aggregation," and "demand aggregation."

(1) Renewable Energy Aggregation

Providing highly accurate power generation forecasts to renewable energy power producers in anticipation of the end of the feed-in tariff (FIT) system's buyback period. Furthermore, by bundling renewable energy from multiple power plants, the system reduces forecast errors in power generation and supports reduction of adjustment costs and stabilization of power output on the part of power generators. The electricity generated is purchased by NTT Anode Energy as an "aggregation coordinator," which also contributes to stabilizing earnings.

(2) Regulating Power Aggregation

Providing integrated and centralized control services of grid storage batteries for businesses that own large grid storage batteries. Specifically, we predict electricity shortages and surpluses, along with market price trends through the data analysis platform within our energy distribution platform, which is built based on the operation of our own grid storage batteries, and support the creation and operation of optimal recharge/discharge plans to determine when and how much electricity to charge and discharge from the storage batteries. We support the creation and operation of optimal recharge/discharge plans.

(3) Demand Aggregation

As a regulating force that supports the use of renewable energy and stable supply, we provide services that bundle low-voltage resources such as electric vehicles (EVs) and household storage batteries, which are expected to proliferate in the future, to reduce electricity rates for electricity consumers, reduce costs for retail electricity providers, and adjust the supply-demand balance of electricity.

(4) Energy Distribution Platform

To smoothly promote the above aggregation business, we will build an energy distribution platform that utilizes NTT Group's latest ICT technologies as a foundation for forecasting and optimally controlling the generation of energy resources.

2) Achieve carbon neutrality throughout the supply chain

While more than 150 countries and regions have set a goal of becoming carbon neutral by 2050, Japan has also set a goal of becoming carbon neutral by 2050 and reducing greenhouse gas emissions by 46% by FY2030. In addition to Scope 1 and 2^*2, which are its own greenhouse gas emissions, NTT Group aims to achieve carbon neutrality by 2040, including Scope 3^*2, which is the greenhouse gas emissions of the entire supply chain.

^*2GHG Protocol standards established for calculating and reporting greenhouse gas emissions

Scope 3 refers to indirect emissions by other businesses and users involved in the company's business activities, and refers to greenhouse gases emitted in the procurement, sale, consumption, and disposal of raw materials. The total emissions of the entire supply chain, including Scope 1, which is the direct emissions of greenhouse gases by the business itself, and Scope 2, which is the indirect emissions from the use of electricity, heat, and steam supplied by other companies, are called "supply chain emissions."

Since emissions in Scope 3 are emissions from outside the company, it is difficult to accurately calculate and take reduction measures. It is common to use the values from the "Emission Intensity Database^*3" for calculating Scope 3 emissions. However, since it is an average value for Japan as a whole, it is difficult to reflect the results of individual activities of each company.

^*3Ministry of the Environment, "Emission Intensity Database"
URL　https://www.env.go.jp/earth/ondanka/supply_chain/gvc/estimate.html

■Features of the Greenhouse Gas Emissions Visualization Platform

NTT DATA developed Japan's first GHG emissions visualization platform, "C-Turtle®", which is compatible with the "Total Emissions Sharing Method." The "Total Emissions Sharing Method" is a method that calculates GHG emissions based on "who you buy from" rather than "what you buy" and is compliant with the GHG Protocol, an international guideline used for calculating and reporting GHG emissions.

Since primary data based on CDP data can be used for the calculation, suppliers' reduction efforts can be incorporated into the company's own emissions, and switching to suppliers with less environmental impact will encourage suppliers to decarbonize their operations.

NTT DATA will continue to collect know-how and improve the functionality of "C-Turtle®" through the efforts of NTT Group companies to visualize emissions, and will lead the entire supply chain to visualize emissions and reduce greenhouse gas emissions, thereby contributing to the achievement of carbon neutrality for society as a whole.

3) Toward Future Solution Deployment

NTT Group will provide solutions in a wide range of fields, from consulting to behavior change, utilizing the most advanced technologies and assets owned by the Group, together with a wide range of partners, including global companies, start-ups, and industry-government-academia collaborations.

■Energy Distribution Platform to Promote Aggregation Business

Currently, we are working on (1) a renewable energy aggregation demonstration with Toshiba Energy Systems Corporation, (2) a demonstration with Kyushu Electric Power Company and Mitsubishi Corporation to reduce output control of solar power generation using grid storage batteries, and (3) a demonstration with Shizen Connect Corporation to reduce building electricity bills and improve resilience through EV recharge/discharge control. In addition to reflecting and upgrading the knowledge and expertise acquired through the aggregation business in the forecasting and optimization engines of the energy distribution platform, we will work toward the realization of an electricity supply model centered on renewable energy sources by utilizing these resources.

■Greenhouse Gas Emissions Visualization Platform

Many companies are beginning to visualize their overall emissions in order to decarbonize their operations, and are required to calculate not only Scope 1 and 2, but also Scope 3. It is important to move toward reduction of emissions, not to stop at calculation of emissions. C-Turtle® will support more companies in their efforts to visualize and reduce their emissions, by linking their reduction efforts with those of their suppliers and promoting visualization and reduction through supplier engagement. C-Turtle® will support more companies in their efforts to visualize and reduce their emissions.

4) Related Information

[Press Conference Information] Launch of "NTT G×Inno," a New Solution Brand to Strengthen Efforts in the GX Field
https://group.ntt/en/magazine/blog/nttgxinno/

What is NTT's GX? Our solution brand "NTT G×Inno"
https://group.ntt/en/magazine/blog/nttgxinno_vol2/