Japanese telecom giant NTT Group plans to enter the electricity transmission and delivery business using a system that centrally controls renewable energy within power grids.
NTT Anode Energy developed the grid-control system with communications technology. It analyzes the power output from renewable sources and stores electricity in batteries when necessary.
The amount of electricity generated by solar and other renewable sources varies widely depending on weather conditions. An imbalance between supply and demand could lead to massive blackouts.
The NTT subsidiary teamed up with other companies, including NEC and Mitsubishi Electric. A test is set to begin this month in Gifu Prefecture, in central Japan.
NTT says it aims to provide the system to major power companies and hopes to enter the transmission and delivery business in its own right as early as next year.
If NTT wins government approval, it will become the first new entrant in Japan’s power delivery business since it was opened up two years ago.