System Development Using Demand Response (DR) Patent Technology

– Launch of Full-scale DR Solution using Proprietary Patent Technology for Electricity Retailers –




ENCORED JAPAN Inc. (Minato-ku, Tokyo; President & CEO: Akihiko Nakano; hereinafter “ENCORED”) has developed a demand response core system (hereinafter “DR System”) for electricity retailers that utilizes patent technology related to the Demand Response Management System that Includes Scheduling Function (hereinafter “DR Patent Technology”), which was filed on July 24, 2018 and formally registered with the Japan Patent Office in January 2020. The operation will commence in July 2020. The DR System has also been adopted by electricity retailer, SB Power Corp. (hereinafter “SB Power”).

Electricity retailers are constantly exposed to the risk of fluctuations in the procurement price of power supplies, and depending on the season and time of day, losses may occur when the procurement price of power supplies exceeds the retail sales price. In addition, under the new imbalance rate system to be implemented from 2022, the imbalance rate may increase in times of tight supply and demand, putting pressure on electricity retailers’ profits. This makes it all the more important for electricity retailers to have an efficient way of controlling their electric power demand at the time of need.

In addition, it was found that many customers feel that their electricity bills have increased as a result of an increase of “Home Time” spent at home to prevent the spread of COVID-19, and two-thirds of such customers are trying to save electricity*1. In the future, it is expected that the “Home Time” in this new lifestyle will increase more than ever before, and the number of consumers who are conscious of saving electricity will also increase.

ENCORED provides a DR System that can be introduced by electricity retailers without large-scale system development to solve their problems and meet consumers’ electricity saving needs. Based on ENCORED’s DR Patent Technology, the DR System predicts effective DR request time zones for each consumer by making full use of the energy big data analysis know-how cultivated up to now. It is a comprehensive DR solution for electricity retailers providing a package that includes notifying consumers of DR request time zones and providing a user interface for them to accept participation.

Learn more about SB Power’s commitment to adopting the DR System and commencing operation in July 2020 from below.

ENCORED aims to create new value from energy information through DR Patent Technology and other innovative technologies to create a prosperous future that connects people to people and people to society.

*1: From SB Power’s “Questionnaire on Home Time” conducted by SB Power on June 4, 2020.


■ Features of the DR system

Prior to the development of the DR System, ENCORED filed this DR Patent Technology on July 24, 2018 (Japanese Patent Application No. 2018-138870) and completed the formal registration with the Japan Patent Office in January 2020.
DR System offered by ENCORED has the following features.


1. Provision of comprehensive DR solutions 

It provides a comprehensive solution for DR implementation, including collection of electric power data of consumers and forecast of electric power demand, forecast of Japan Electric Power Exchange (hereinafter “JEPX”) trading prices, calculation of DR request time zones and DR target values, provision of a consumer-specific interface, and generation of DR control signals. It is easy to start a DR service simply by connecting to the server owned by electricity retailers.


The DR Patent Technology consists of a “electric power information transmission device”, “DR System”, “electricity retailers’ server” and “subscriber (consumer) terminals”. Based on the electric power data collected by the electric power information transmission device, the DR System provides optimum DR request time zone to the electricity retailers’ server. Based on the information received from the DR System, electricity retailers make a decision on whether to implement DR and send information on the DR request time zone to the DR System. The DR System generates scheduling information and reflects the information in the subscriber terminals upon receiving the DR request time zone information. Subscribers transmit participation or non-participation in DR to the DR System on their terminals and carry out DR at the specified time. The DR results are transmitted on the DR System to the subscriber terminals.


2. Supporting various electric power data formats

Various formats are supported, including electric power data collected from power transmission/distribution business operators (C-Route data), electric power data collected directly from smart meters through HEMS, etc. (B-Route data), and real-time electric power data obtained from an electric power sensor installed at the distribution board.


3. Highly efficient DR trigger logic using proprietary AI

 Utilizing the electric power data analysis technology cultivated by ENERTALK technology*2, the System calculates highly accurate electric power demand forecasts and JEPX trading price forecasts using proprietary AI algorithms to calculate the optimal DR request time zone and DR target values.


4. Coping with various demand controls

 In addition to action-induced DR, where demand is controlled by consumers themselves, the System also supports various demand control methods, such as home appliance control through smart Home Appliance Remote Controls*3 and ECHONET Lite*4, or API linkage with dedicated servers owned by home appliance manufacturers.


*2: ENCORED’s platform technology for real-time analysis of electric power data using an electric power sensor installed on distribution board.

*3: An infrared remote control device with communication that enables the operation of home appliances with a smartphone.

*4: A communication protocol for smart houses formulated by the ECHONET Consortium.