The distributed energy project will be managed by NTT Facilities, a subsidiary of Japanese telecommunications giant NTT.

The diversified baseload energy will be used to power a university, a welfare institution, a high school and a water purification plant.

The project is being touted as a showcase for the environmental benefits of distributed energy networks, providing baseload energy through smaller energy generation alternatives instead of the traditional large fossil fuel (or nuclear) power distribution model.

One of the theoretical advantages of distributed energy networks is improved energy efficiency, through minimisation of transmission losses, although there are still concerns over the model’s capacity to generate baseload energy requirements.

NTT Facilities will be responsible for comprehensive engineering services, including the procurement of equipment; project development; project management; installation of the equipment, including the fuel cell power plant; and the long-term operation of the pilot “micro-grid”.

Fuel cell technology has the potential to make the distributed energy model viable, as the power plants can be modified to operate on a range of fuels such as natural gas or hydrogen, with current research exploring options for alternative fuels.

More importantly, fuel cells generate power at a consistent rate, which is one of the key criteria for the baseload energy problem.

NTT has chosen to use the project to trial United States-developed Direct FuelCell power plants, sold by Marubeni in Japan under licence from FuelCell Energy.

FuelCell Energy said that the DFC units would also provide heating for domestic water systems in addition to contributing to baseload power supply in the distributed energy project.