SODEN Develops In-House Gateway and Local EMS for Grid-Scale and Distributed Battery Storage Facilities

VPP startup SODEN Co., Ltd. (headquartered in Chuo City, Tokyo; Representative Director: Rui Iino; hereafter “SODEN”) has developed its own gateway and local energy management system (EMS) to support the operation of grid-scale and distributed battery storage facilities in electricity markets.

The gateway and local EMS transmit instructions from SODEN’s VPP cloud platform to each storage facility and control on-site equipment, including power conversion systems (PCS) and battery management systems (BMS). Together, they form a system that enables integrated control and management from the VPP cloud platform through to on-site equipment.

SODEN plans to introduce the systems progressively at grid-scale and distributed battery storage facilities it develops, beginning in fall 2026.

Background

Alongside medium- and large-scale grid-connected battery storage facilities, SODEN is developing a distributed battery storage business. This involves installing smaller batteries across multiple sites, including underused urban spaces, and aggregating them through a VPP system so they can operate as a single energy resource in electricity markets.

Because this business model involves deploying batteries at many small sites, keeping equipment and operating costs low at each location is critical to its commercial viability. Using the same gateways and EMS as conventional large-scale storage facilities would make system installation and running costs disproportionately high relative to the size of each site, reducing profitability.

SODEN therefore drew on the gateway and local control technologies it has developed for EV charging, V2X, and battery control to create a gateway and local EMS that can be used across both grid-scale and smaller distributed storage facilities.

By developing the communications and control software in-house, SODEN aims to accommodate each facility’s equipment configuration and operating requirements while reducing installation and running costs for distributed storage sites.

Overview

The gateway and local EMS connect SODEN’s VPP cloud platform with equipment at each storage facility and control the batteries according to instructions from the cloud.

They deliver instructions to each facility, control equipment such as PCS and BMS, and send operating data back to the cloud. This enables batteries across multiple sites to be monitored and controlled through one system and operated together in electricity markets.

Main Features of the Gateway

• Sends and receives control instructions and equipment data between the VPP cloud platform and each storage facility

• Supports a redundant configuration with two gateways and automatically switches to the backup unit if a fault occurs

• Enables remote monitoring of communications and equipment status at each site

Main Features of the Local EMS

• Automatically controls on-site equipment, including PCS and BMS, based on instructions from the VPP cloud platform

• Monitors equipment operation and collects data and logs

• Supports participation in electricity markets that require rapid response, including primary balancing services

What In-House Development Enables

By developing the gateway and local EMS in-house and integrating them with its existing VPP cloud platform, SODEN will be able to manage electricity market operations and on-site equipment control within a single system it develops and operates.

This shared platform will support both grid-scale and distributed storage facilities while allowing control to be tailored to each site’s size and equipment configuration. At distributed storage sites in particular, SODEN aims to simplify the system configuration, reduce installation and running costs, and make smaller facilities more commercially viable.

Developing and operating the VPP cloud platform, gateway, and local EMS in-house will also allow SODEN to add capabilities more quickly as electricity market rules change or new PCS and battery systems become available.

Next Steps

SODEN plans to introduce the gateway and local EMS progressively at the grid-scale and distributed battery storage facilities it develops, beginning in fall 2026.

SODEN will also accelerate the development of its distributed battery storage business by installing smaller batteries at sites such as underused urban spaces and aggregating them through its VPP.

By managing large grid-scale facilities and numerous distributed storage sites on a common VPP platform, then operating them as one large energy resource in electricity markets, SODEN aims to help make electricity supply and demand more flexible through the use of battery storage.