Tokyo Gas Co. and Osaka Gas Co. announced on May 14, 2010, that they are launching an initiative called the Smart Energy Network Demonstration Project. The network will introduce considerable amounts of renewable energy and currently unused energy to dispersed energy systems, and will employ information technologies (IT) to optimally control energy supply and demand.

The demonstration project will be divided into two systems. The first (System A) is aimed at optimization through the interchange of electricity and heat within specific areas. The second (System B) is aimed at optimization across larger areas by linking geographically scattered System A communities and large cogeneration systems. The project is expected to reduce carbon dioxide (CO2) emissions by over 30 percent.

Tokyo Gas Co. is in charge of System A, where electricity and heat supplied by high-efficiency cogeneration, solar heat collection, and solar power generation facilities installed at the Tokyo Gas Senju Techno Station (Arakawa Ward, Tokyo) will be interchanged among multiple buildings both in and out of the compound.

Osaka Gas is in charge of System B, and it will build a remote supervisory control system in order to optimize electricity interchange. The system will link the Iwasaki Energy Center, an existing district cooling and heating facility in the city of Osaka, with solar power generation facilities in about four locations, including the city of Kakogawa in Hyogo Prefecture and the city of Konan in Shiga Prefecture, as well as with five customer cogeneration facilities.