Rui Yu
Japan Electric Power Exchange (JEPX) will use N-SIDE's solution to optimize supply and demand in the complex and evolving energy market
N-SIDE, a Belgian provider of innovative software and services that improve decision-making and supply management in the energy and life sciences industries, has launched its Power Matching algorithm in Japan to calculate day-ahead electricity prices. The Japan Electric Power Exchange (JEPX) has officially started using the solution to optimize supply and demand. Ten years after the successful go-live of Euphemia in Europe, and after having ventured into the Indian electricity market, this introduction in Japan is another important milestone for N-SIDE.
The launch of N-SIDE’s Power Matching algorithm in Japan was preceded by a period of extensive testing in collaboration with JEPX. This demonstrates N-SIDE’s commitment to precision and reliability in daily market operations by using advanced mathematical models. The solution will optimize supply and demand in a blind single price auction fashion, ease the implementation of complex bid types, and accommodate a large number of market participants.
Supporting a challenging market in full evolution
N-SIDE recently celebrated the tenth anniversary of the go-live of Euphemia, the algorithm used by power exchanges and market participants in 26 countries in Europe to trade electricity and capacity across borders. In 2021, India’s premier power exchange IEX also partnered with N-SIDE to determine the daily price and traded volume of electricity in the day-ahead market. These experiences are important assets to support Japan’s complex and growing market.
Japan has an ambitious strategy to integrate renewables into the grid and achieve a 36-38% renewable energy share by 2030 (compared to 18% in 2019). This is particularly challenging in a context where congestion and power generation curtailment are already a topic. The scalability of N-SIDE’s algorithm will be key to managing complexity as Japan’s renewable energy footprint grows.
In addition, the wholesale or “day-ahead” market in Japan has experienced significant growth since the full liberalization of the electricity market in 2016. The collaboration between N-SIDE and JEPX is meant to further the growth of this market. With a focus on innovation, the objective is to provide more flexibility to market participants, while better responding to the grid’s physical constraints. Recognized worldwide as a leading solution,N-SIDE’s algorithmhas indeed been carefully configured to address Japan’s specific market conditions and regulations.
Ambitious to establish a long-term presence in Japan
N-SIDE recently opened its first office in Tokyo, in addition to the company’s headquarters in Belgium (Louvain-la-Neuve), and a US office in Boston. To support customers such as JEPX in their own time zone with cutting-edge local expertise, N-side has been recruiting top talent in Tokyo to ensure that its solutions are supported by experts who understand the unique characteristics of the Japanese energy sector. In a later stage, this will also enable N-SIDE to further expand its activities in energy and life sciences in the Asia-Pacific (APAC) region.
Furthermore, N-SIDE sees a lot of potential in Japan that goes beyond the current collaboration with JEPX. Their ambition is to design efficient and meaningful marketplaces for the participants while ensuring the technical feasibility of the exchanges, within the day-ahead market but also for other energy-related markets with their distinctive and international expertise,. In addition, N-SIDE aims to support Japan’s regional system operators regarding the development, planning and operation of the network.
Contributing to a more efficient and sustainable energy market in Japan
JEPX has selected N-SIDE’s Power Matching Algorithm, renowned for its accuracy and efficiency, to determine the day-ahead electricity market prices and executed volumes in Japan. This algorithm will optimize supply and demand matching, ultimately supporting the sustainable growth of the Japanese energy market. Having successfully deployed and continuously enhanced EUPHEMIA in Europe for over a decade and more recently implemented its Power Matching Algorithm for two of India’s largest power exchanges, N-SIDE is now collaborating with JEPX since June 2023.
Kunimatsu Ryoichi, JEPX: “To support the rapidly growing energy market in Japan, we need to adopt and integrate world-class solutions. N-SIDE’s advanced power matching algorithm and the company’s industry expertise will help us develop a dynamic and efficient electricity market. The solution has been thoroughly tested to meet our needs and is ready to empower our market participants with an exchange system that will help us achieve a more sustainable energy landscape.”
ABOUT N-SIDE
N-SIDE is a world leader in increasing the efficiency of life sciences and energy industries by providing software and services that optimize the use of natural resources, facilitating the transition to a more sustainable world.
To achieve this, N-SIDE leverages its deep industry knowledge, technical expertise, and understanding of applied mathematics to help global pharmaceutical and energy companies anticipate, adapt, and optimize their decisions.
In the life sciences industry, N-SIDE reduces waste in clinical trials, leading to more efficient, faster, and more sustainable clinical trials. In the energy industry, N-SIDE helps electricity market and grid operators in enabling a safer and faster transition toward renewable sources.
N-SIDE is driven by a diverse team of over 200 passionate engineers, computer scientists, and business experts from 30+ different nationalities, with 25% holding PhDs. Together, they are committed to making a meaningful impact toward a more sustainable future.
N-SIDE is headquartered in Belgium with offices in the USA and Japan. The company is certified B Corporation, Best Managed Company by Deloitte Belgium, ISO 14001 and ISO 27001.
