Daikin clinches New Energy Foundation prize for pioneering micro hydroelectric solution

The New Energy Award is a system that encourages new energy establishment by recognising efforts such as the development and application of new outstanding energy-related machinery and equipment, public awareness-raising activities.

Daikin Group was granted the “New Energy Foundation Chairman’s Prize” for the “2023 New Energy Award,” which is sponsored by the New Energy Foundation. DK-Power runs a micro-hydroelectric power generation firm that uses existing municipal waterworks facilities to create electricity at no expense to local governments.

The New Energy Award is a system that encourages new energy establishment by recognising efforts such as the development and application of new outstanding energy-related machinery and equipment, public awareness-raising activities, the use of decentralised energy systems, and the implementation of community-based initiatives.

Initially, the micro-hydroelectric power generating sector failed to become successful due to high installation costs relative to the quantity of power produced, but DK-Power changed that with its achievement in miniaturisation and cost reduction for micro-hydroelectric power. DK-Power has also received high acclaim for originality in a business model that reduces the financial burden on local governments by having DK-Power bear initial and maintenance costs.

For a generator, the system utilises a low-cost, miniaturised, high-efficiency motor that was developed by the air conditioning and oil hydraulic equipment businesses of Daikin Industries. DK-Power further lowered costs with the use of a vertical inline pump reverse turbine that uses an inexpensive general-purpose pumpBy selling the generated electricity as renewable energy through the feed-in tariff system (FIT system), initial and maintenance costs can be compensated by revenue from electricity sales, with a percentage of the profits going to the local government. In this approach, DK-Power creates a business model that benefits local governments without incurring any costs.

DK-Power began operations in 2017 as Daikin Industries’ first startup company, commercialising a research project theme from the Technology and Innovation Center, the Daikin Group’s development basis for key technologies. DK-Power has developed the micro-hydroelectric power generation system by leveraging the energy-saving technologies that the Daikin Group has cultivated in developing its air conditioning and hydraulic equipment. DK-Power has expanded its energy creation business for use at water facilities owned by local governments and other organisations through the installation of this system. Since electricity is generated from the unused hydroelectric energy at existing water facilities, the installation of new, large-scale facilities is unnecessary. Local governments promoting environmental protection have also highly praised the system for its capacity to generate energy without emitting CO2 during the power generation process. DK-Power is currently building micro-hydroelectric power generation projects in over 40 water facilities across the country.

Together with the support of the Daikin Group, DK-Power plans to further promote the use of micro-hydroelectric power generation systems and contribute to the realization of a carbon-neutral society by providing sustainable and independent electricity with low environmental impact.