Social Issues addressed by Sumitomo —Compass for the Future—
Multifaceted support for decarbonizing social infrastructure
Compact, high-efficiency substation equipment with excellent environmental performance
Focusing on its Power Supply and Environment System Business, Nissin Electric manufactures and sells electrical equipment and apparatus and also performs associated engineering work. The company’s products and services fulfill vital roles in social infrastructure, such as power grids, factories, transportation, and water treatment. For electricity infrastructure, ensuring safe and secure supply of electricity has traditionally been the top priority. In line with the increasing need to address the SDGs, however, it has also become essential to use less electricity and use it wisely. In the Power Supply and Environment System Business, Nissin Electric is offering multifaceted support in response to this changing environment.
Seizing the initiative, Nissin Electric is addressing social issues by offer solutions dubbed “Smart Power Supply Systems (SPSS).” The company’s objective in promoting SPSS is fourfold: expansion of environmentally friendly products, response to distributed energy, response to renewable energy, and application of digital transformation (DX) to products and business. By transitioning from a business model focused on conventional equipment sales to one centering on provision of systems and solutions integrating control technology, software, and networks, the company is endeavoring to resolve energy-related issues.
SPSS comprises five types of solutions: SPSS-Factory to address issues of factories and office buildings related to electric power, SPSS-Water to facilitate energy saving and efficient use of resources at water treatment facilities, SPSS-Grid for power plants and substations to ensure stable power supply and grid stabilization, SPSS-Island for energy management on remote islands and for microgrids, and SPSS-Home for energy optimization in the home. Whereas SPSS-Grid is a solution for the energy supply side, the other four are solutions designed to resolve issues on the demand side.
SPSS-Factory for factories and office buildings accounts for a large share of Nissin Electric’s revenue from SPSS. Factories increasingly use extra-high-voltage electricity of 60,000 to 70,000 volts as a countermeasure for rising energy costs as well as a way of advancing toward carbon neutrality by reducing CO2 emissions. Nissin Electric, with a leading market share for extra-high-voltage substation systems, offers environmentally friendly systems that help manufacturers address such issues.
With respect to substation systems, Nissin Electric already sells the A (Advanced)-XAE substation, a next-generation compact substation. The A-XAE substation has a small footprint, can be installed quickly, and is environmentally friendly. Compared with the conventional XAE substation, the A-XAE substation achieves a 25% reduction in installation space, a 27% reduction in the number of days required for on-site construction, and a 13.5% reduction in CO2 emissions during substation construction. As well as reducing environmental impacts during construction, the A-XAE substation offers higher efficiency with less loss, contributing to lower running costs and energy saving. Going forward, the company intends to launch and promote an environmentally friendly substation system with even better environmental credentials.
Several technological breakthroughs have an important bearing on progress in the environmental friendliness of substation systems. Firstly, improvement of the efficiency of transformers, which convert the extra high voltage received to a voltage usable in factories. A certain level of loss is inevitable with transformers, resulting in wasteful power consumption on a daily basis. Nissin Electric has developed and commercialized super high efficiency transformers with reduced losses by applying novel materials and devising ingenious structures. For example, if a 10MVA transformer of a model introduced 30 years ago is replaced with a super high efficiency transformer, Nissin Electric estimates that the loss can be halved and CO2 emissions can be drastically reduced from 144 tons to 71 tons. Since transformers are used for several decades and infrequently replaced, replacing them with super high efficiency transformers as soon as possible will lead to lower environmental impacts for many years to come.
In addition, reduction of the loss of power capacitors used in substations will contribute to lower costs and cut CO2 emissions. Other measures include changing the insulating oil in transformers from mineral oil to plant-derived oil that is biodegradable so that even if leakage occurs, the environmental impact is minimal.
SPSS-Factory also enables efficient utilization of renewable energy, such as photovoltaic power. Storage batteries are used to efficiently utilize the power generated by photovoltaic power generation systems installed in factories and other facilities. Surplus power generated in good weather and on holidays is stored for use when needed. Moreover, SPSS-Factory enables power wheeling, which is flexible distribution of electricity among sites. Nissin Electric’s long-cultivated expertise in energy management makes all the difference. The company is also promoting the application of AI for photovoltaic power generation supply/demand forecasting, optimized control of various power supply facilities, and control of water quality in water treatment.
Nissin Electric has formulated the Medium-to-Long-Term Business Plan “VISION 2025” with a view to achieving carbon neutrality by 2050. In this plan, the company has set its vision for 2050 and created the roadmap by backcasting from the goal. SPSS’s solutions reflect a similar approach. Nissin Electric endeavors to deliver the optimum solutions while identifying customer needs, including improved energy efficiency and greater use of renewables.
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