Experience of Energy Efficiency in Japan

Transcription

1 For National Energy Day( Jornada de la Energia ) Experience of Energy Efficiency in Japan 23 November 2017, Buenos Aires, Argentina Yasushi Tanaka International Collaboration Center, The Energy Conservation Center, Japan

2 - Contents - Overview of Japan s Energy Situation Japan s Self-sufficiency rate of Energy Global Warming Effect and reduction of CO2 The situation of the world Japan s case: Present Situation & How to reduce CO2? Japan s EE&C history in some industries from 1973 to 2015 Trend of the Energy Consumption of each sector in connection with GDP Production, Energy Consumption and Energy Intensity of some industries Japan s Long-term Energy Supply and Demand Outlook 2030 Target of Supply and Demand EE&C Target from 2012 to 2030 to realize Counter measures in each sector Japan s effort under the Act on the Rational Use of Energy Overview of the Act Top Runner Program & Building Efficiency Codes The other types of approach in recent Japan Setsu-den Concept after the Great East Japan Earthquake Third party business operator to cover small size entities Renewable Energy 2

3 Japan s Self-sufficiency rate of Energy Japan s low self-sufficiency rate further down after the big earthquake in st Norway 2nd Australia 3rd Canada 7th U.S.A. 14th U.K. 15th France 21th Germany 26th Spain 31th Korea 33th Japan Argentina Primary Energy Self-Sufficiency Rate of OEDC Countries (2014) Coal 6.0% 34th Luxembourg 4.0% Oil Natural Gas Hydro-Power 18.3% 30.6% 39.1% 60.3% 56.5% 90.8% 89% Nuclear Power 682.9% 292.0% Renewable Energy, etc % (geothermal, solar etc.) IEA includes nuclear power in the first primary energy self-sufficiency rate. fy2010 fy2011 fy2012 fy2013 fy2014 Energy Self Sufficiency Rate (29th) (33th) (33th) (33th) (33th) Nuclear Power Hydro-Power Natural Gas Oil Renewable Energy Effective Recovery Use of Wasted Energy Natural Renewable Energy Source IEA Energy Balance of OECD Countries 2016, Argentina:IEA, Energy Balances of Non-OECD Countries 2015 Edition 3

4 - Contents - Overview of Japan s Energy Situation Japan s Self-sufficiency rate of Energy Global Warming Effect and reduction of CO2 The situation of the world Japan s case: Present Situation & How to reduce CO2? Japan s EE&C history in some industries from 1973 to 2015 Trend of the Energy Consumption of each sector in connection with GDP Production, Energy Consumption and Energy Intensity of some industries Japan s Long-term Energy Supply and Demand Outlook 2030 Target of Supply and Demand EE&C Target from 2012 to 2030 to realize Counter measures in each sector Japan s effort under the Act on the Rational Use of Energy Overview of the Act Top Runner Program & Building Efficiency Codes The other types of approach in recent Japan Setsu-den Concept after the Great East Japan Earthquake Third party business operator to cover small size entities Renewable Energy 4

5 Global Warming and CO2 Emission of the world CO2 emissions by country CO2 emissions by country are as per the chart left. Australia U.K. Mexico Italy Canada Others Indonesia Brazil Korea Germany Japan Russia 2014 CO2 emissions of the world (Emission ratio by country) Total emissions of the world Approx. 33 billion tons Source: Handbook of Japan's & World Energy & Economics Statistics 2017 India Argentina 0.6% China U.S.A. Paris agreement (2015) It was agreed to reduce CO2 emissions with a longterm target aiming to contain temperature rise to less than 2ºC compared with the level at the time before the industrial revolution (effort target is less than 1.5ºC). Limit of CO2 cumulative emissions As of 2011, cumulative emissions of CO2 were 1.9 trillion tons. To contain the temperature rise to less than 2ºC, it is said that the limit is 2.9 trillion tons, which means the remaining quantity is only 1 trillion tons!! 1 trillion tons/33 billion tons per year 30 years (Sustainable for only 30 years hereafter?!) 5

6 Unit: 1 million ton CO2 equivalent Japan s case-(1) Present Situation Unit: 1 million ton CO2 Japan s emissions Increasing continuously for 5 years since FY2009. By sector, emissions of the industrial sector (factories, etc.), which are the largest among the sectors, are decreasing, but those of the commercial and other sector including offices and the residential sector show increase in recent years. Japan s CO2 reduction target Aiming at 26% reduction comparing with FY2013 level. To achieve this target, it is necessary to reduce emissions of the residential sector by approx. 40%. Transition of Japan s greenhouse gasses emissions Transition of CO2 emissions by sector (after distributing electricity and heat) Industrial sector (factories, etc.) Transportation sector (automobiles, etc.) Commercial and other sector (commerce, services, offices, etc.) Residential sector Energy conversion sector (power plants, etc.) Industrial processes, use of products Disposal waste (incineration, etc.) Others Fiscal Year Fiscal Year 6

7 Japan s case-(2) How to reduce CO2? Greenhouse gases and energy Many of emissions of greenhouse gases, including CO2 and methane, caused by human activities derive from energy, and approx. 90% of Japanese greenhouse gasses are CO2 deriving from energy. Therefore, activities of the residential sector need to focus on improvement of energy efficiency (energy conservation). Methane (CH4) Nitrous oxide CO2 not deriving from energy 5.6% Greenhouse gases emissions 1,364 (FY2014) Energy conversion sector 7% Residential sector Others CO2 emissions 1,265 (FY2014) Industrial sector CO2 deriving from energy Commercial and other sector 21% Transportation sector Unit: 1 million ton CO2 equivalent Unit: 1 million ton CO2 7

8 Draft of Japan's pledge (July 17, 2015, decision of the Global Warming Countermeasure Headquarters, submitted to the UN) FY 2030 greenhouse effect Gas reduction target (compared to FY 2013) FY 2030 greenhouse effect Gas reduction volume (compared to FY 2013) Greenhouse gas emissions FY 2030 FY 2013 Greenhouse gas reduction volume 26.0% 366 1,042 1,408 Energy-originated CO % ,235 Other greenhouse gases (*1) 11.9% Sink measures (*2) *1 CO 2 from non-energy sources, methane, dinitrogen monoxide, four HCFCs *2 Aim to secure an absorption volume of about 37 million t-co 2 by FY 2030 (equivalent to 2.6% reduction of the total emissions in FY 2013) (Unit: million t-co 2 ) Energy-derived CO2 (breakdown by sector) Rough indication of emissions in each sector in FY 2030 (reduction compared to FY 2013) FY 2013 Energy-originated CO (25.0%) 1,235 Industrial sector 401 (6.6%) 429 Breakdown of the 366 million ton of greenhouse gas emissions reduction in FY 2030 Other greenhouse gases 20.6 million t (5.6%) Sink 37 million t (10.1%) Other business sectors 168 (39.7%) 279 Residential sector 122 (39.4%) 201 Transportation sector 163 (27.4%) 225 Energy conversion sector 73 (27.5%) 101 Energy-originated CO2 308 million t (84.2%) 8

9 Intended Nationally Determined Contributions (INDCs) USA EU China by 26%-28% below its 2005 level in 2025 and to make best efforts to reduce its emissions by 28%. at least 40% domestic reduction in greenhouse gas emissions by 2030 compared to 1990 To achieve the peaking of carbon dioxide emissions around 2030 and making best efforts to peak early; To lower carbon dioxide emissions per unit of GDP by 60% to 65% from the 2005 level India Japan Russia To reduce the emissions intensity of its GDP by 33 to 35 percent by 2030 from 2005 level at the level of a reduction of 26.0% by fiscal year (FY) 2030 compared to FY 2013 (25.4% reduction compared to FY 2005) (approximately billion t-co2 eq. as 2030 emissions), e 70-75% of 1990 levels by the year 2030 might be a long-term indicator Australia by 26 to 28 per cent below 2005 levels by Brazil to reduce greenhouse gas emissions by 37% below 2005 levels in Argentina by 15% in 2030 from 2005 level(bau), by 30% (conditional case) 9

10 - Contents - Overview of Japan s Energy Situation Japan s Self-sufficiency rate of Energy Global Warming Effect and reduction of CO2 The situation of the world Japan s case: Present Situation & How to reduce CO2? Japan s EE&C history in some industries from 1973 to 2015 Trend of the Energy Consumption of each sector in connection with GDP Production, Energy Consumption and Energy Intensity of some industries Japan s Long-term Energy Supply and Demand Outlook 2030 Target of Supply and Demand EE&C Target from 2012 to 2030 to realize Counter measures in each sector Japan s effort under the Act on the Rational Use of Energy Overview of the Act Top Runner Program & Building Efficiency Codes The other types of approach in recent Japan Setsu-den Concept after the Great East Japan Earthquake Third party business operator to cover small size entities Renewable Energy 10

11 Trends in Final Energy Consumption in Japan The final energy consumption of Japan has basically consistently increased, except for periods immediately following the two oil crises and the recent economic downturn. Until 2015 the GDP continued increasing to about 2.6 times the 1973 level and the consumption of energy for individual sectors significantly increased with the Consumer sector (Residential + Commercial) increasing to about 2.2 times, while the transportation sector increased to about 1.7 times, whereas the industrial sector decreased to about 0.8 times (10 18 J) % 9% 9% 66% Real GDP Times Transportation Residential Commercial Industry (FY) Sources: Comprehensive Energy Statistics and Annual Report on National Accounts. 23% 14% 18% 45% (JPY trillion) Final energy consumption times Transportation Residential Commercial Industry time time times times 11

12 Production, Energy Consumption and Energy Intensity of Japanese manufacturing industries (FY1973=100) Indices of Industrial Production (IIP) Indices of Energy consumption by the Manufacturing industry IIP intensity (FY) Source: Institute of Energy Economics, Japan Handbook of Energy & Economic Statistics 12

13 Production, Energy Consumption and Energy Intensity of Japanese steel industry (FY1973=100) Indices of Steel Production (IIP) Indices of Energy consumption by the Steel industry IIP intensity (FY) Source: Institute of Energy Economics, Japan Handbook of Energy & Economic Statistics 13

14 Production, Energy Consumption and Energy Intensity of Japanese chemical industry (FY1973=100) Indices of Chemical Production (IIP) Indices of Energy consumption by the Chemical industry IIP intensity (FY) Source: Institute of Energy Economics, Japan Handbook of Energy & Economic Statistics 14

15 Production, Energy Consumption and Energy Intensity of Japanese cement industry (FY1973=100) Indices of Cement Production (IIP) Indices of Energy consumption by the Cement industry IIP intensity (FY) Source: Institute of Energy Economics, Japan Handbook of Energy & Economic Statistics 15

16 Production, Energy Consumption and Energy Intensity of Japanese food industry (FY1973=100) Indices of Food Production (IIP) Indices of Energy consumption by the Food industry IIP intensity (FY) Source: Institute of Energy Economics, Japan Handbook of Energy & Economic Statistics 16

17 Japan s Energy Efficiency Efforts after the Oil Crises Japan has improved energy efficiency by approx. 40% after the oil crises in the 1970s as a result of positive actions by both public and private industrial sectors. Japan intensively introduced "Energy Management System based on the Act on the Rational Use of Energy, then achieved the lowest level of energy consumption per GDP in the world. Primary energy use per real GDP of Japan Primary energy supply per GDP unit of each country(2013) 2,0 1,9 1,8 1,7 1,6 1,5 1,4 1,3 1,2 1,1 1,0 (Oil converted Mt /1 trillion yen) Approx. 40% improvement (Index : Japan=1.0) 0,8 1,0 1,1 1,1 1,2 1,4 1,4 1,6 2,0 2,3 4,8 4,9 5,3 6,1 5,5 6,2 7, ,5 Source)Total Energy Statistics by ANRE/METI Calculated according to IEA statistics 17

18 - Contents - Overview of Japan s Energy Situation Japan s Self-sufficiency rate of Energy Global Warming Effect and reduction of CO2 The situation of the world Japan s case: Present Situation & How to reduce CO2? Japan s EE&C history in some industries from 1973 to 2015 Trend of the Energy Consumption of each sector in connection with GDP Production, Energy Consumption and Energy Intensity of some industries Japan s Long-term Energy Supply and Demand Outlook 2030 Target of Supply and Demand EE&C Target from 2012 to 2030 to realize Counter measures in each sector Japan s effort under the Act on the Rational Use of Energy Overview of the Act Top Runner Program & Building Efficiency Codes The other types of approach in recent Japan Setsu-den Concept after the Great East Japan Earthquake Third party business operator to cover small size entities Renewable Energy 18

19 Energy demand and primary energy supply 361 million kl Energy demand Economic growth 1.7%/year Thorough energy efficiency and conservation 50.3 million kl 13% lower than before the implementation of the energy conservation measures Primary energy supply 489 million kl Renewable energy 13 to 14% Nuclear power 10 to 11% Selfsufficiency rate 24.3% Electric power 25% Final energy consumption 326 million kl Electric power 28% Natural gas 18% Coal 25% Heat, gasoline, town gas, etc. 75% Heat, gasoline, town gas, etc. 72% LPG 3% Petroleum 30% 2013 (Actual result) 2030 (After energy conservation measures) 2030 * Values are approximate. 19

20 Energy Consumption Efficiency Expected energy demand after the implementation of energy efficiency measures will be approx. 326 million kl (-13% from before the implementation of the measures). As a result of all these measures, considerable energy efficiency improvement will be realized in the same level as after the oil crisis. 110 [Improvement of energy efficiency] % improvement (Year) Energy efficiency = Final energy consumption/ Real GDP 20

21 Energy Efficiency Measures With all the energy efficiency measures in each sector, approx million kl of energy would be saved. <Major energy efficiency measures in each sector> Industrial Sector <approx million kl> Major 4 industries (steel, chemical, cement, and paper/pulp) Promotion of commitment to a low-carbon society Strengthened energy management in factories Improvement of energy efficiency by making production lines observable Development and introduction of innovative technology Introduction of environment-conscious iron manufacturing process (COURSE50) (CO2 reduction by approx. 30% by hydrogen reduction of iron ore and CO2 separation from blast furnace gas) Introduction of technologies to use CO2 as raw material etc. (CO2 and water are used with solar energy to produce major chemicals.) Introduction of highly efficient facilities across several types of industries Low-carbon industrial furnace, high-performance boiler, cogeneration, etc. Transportation Sector <approx million kl> Diffusion of next-generation automobiles and improvement of fuel efficiency. One out of two cars are to be next-generation cars. Fuel cell vehicle: Maximum annual sale of 100,000 or more Traffic flow control Commercial Sector <approx million kl> Energy efficiency in buildings Mandating energy efficiency standards for newly constructed buildings Realization and Promotion of ZEB (Net Zero Energy Building) Introduction of High-efficiency Equipment Promotion of efficient light including LED etc. Making energy consumption visible by BEMS; Energy management Introduction to about half of the buildings Promotion of national movement Residential Sector <approx million kl> Energy efficiency in houses Mandating energy efficiency standards for newly constructed houses Promotion of ZEH (Net Zero Energy House) Introduction of High-efficiency Equipment Promotion of efficient light including LED etc. Making energy consumption visible by HEMS; Energy management Introduction to all houses Promotion of national movement 21

22 - Contents - Overview of Japan s Energy Situation Japan s Self-sufficiency rate of Energy Global Warming Effect and reduction of CO2 The situation of the world Japan s case: Present Situation & How to reduce CO2? Japan s EE&C history in some industries from 1973 to 2015 Trend of the Energy Consumption of each sector in connection with GDP Production, Energy Consumption and Energy Intensity of some industries Japan s Long-term Energy Supply and Demand Outlook 2030 Target of Supply and Demand EE&C Target from 2012 to 2030 to realize Counter measures in each sector Japan s effort under the Act on the Rational Use of Energy Overview of the Act Top Runner Program & Building Efficiency Codes The other types of approach in recent Japan Setsu-den Concept after the Great East Japan Earthquake Third party business operator to cover small size entities Renewable Energy 22

23 Summary of the Act on the Rational Use of Energy Factories/Workplaces Transportation Residences/Buildings Target: Business operators conducting business by constructing factories, etc. (Energy consumption of at least 1,500 kl per year) Obligation to appoint type 1 energy managers, etc. Obligation to periodically report on energy consumption status, etc. Obligation to submit medium and long term plans Obligation for business operators to make efforts Target: Business operators conducting transportation of freight or passengers (Number of cars owned: At least 200 trucks or at least 300 railway cars for railroads, etc.) Obligation to submit medium and long term plans Obligation to periodically report on energy consumption status, etc. Obligation for business operators to make efforts Target: Business operators who have carriers transport their own freight (consigners) (Annual transport volume of at least 30 million ton-km) Obligation to submit plans Obligation to periodically report on energy consumption status, etc. concerning consigned transportation Obligation for business operators to make efforts Target: Construction clients and owners of residences or buildings (Total floor area of at least 300 m 2 ) Obligation relating to the submission of notifications pertaining to energy conservation measures implemented by construction clients, etc. in relation to new constructions and large scale modifications, and obligation relating to reporting the status of overall maintenance Obligation for construction clients and owners to make efforts Target: Suppliers of detached residences (Annual supply of at least 150 units) Obligation to observe targets for improving energy conservation performance of supplied detached residences Obligation for business operators to make efforts Changed to new act from FY2017 Energy consuming equipment, etc. Target: Manufacturers or importers of energy consuming equipment or building materials for preventing heat loss <Top Runner Program (31 types of equipment> (For each type of equipment including passenger cars, air conditioners, television sets, etc., it is required to exceed the performance of most superior products that have been commercialized at the present time.) Obligation for manufacturers and importers to make efforts Provision of information to general consumers Obligation for business operators to make efforts in providing information to general consumers Provision of information on energy conservation (annual electric power consumption, fuel economy, etc.) that is easy to understand at storefronts of retailers who sell household electrical appliances, etc. Popularization of energy saving equipment and the provision of information, etc. by electric power and gas companies 23

24 Current Regulatory Scheme at Manufacturing Plants, etc. Business operators with overall annual energy consumption (head office, manufacturing plants, branch offices, sales offices, etc.) of at least 1,500kl in crude oil equivalent are subject to regulations. Business modes, such as franchized chains of stores, are also considered single business operators and those consuming at least 1,500kl for the whole chain are subject to regulations. On the basis of energy consumption, about 90% of the industriy sector and about 40% of the commercial sector are covered subject to regulations. Obligation to report periodically 1 Transition of energy unit consumption 2 Status of activities relating to energy conserving measures 3 Obligation to annually report on status of benchmark indices (for subject business lines only), etc. Measures, such as instructions, public notices and orders (fines in case of violation against orders) implemented when energy conservation activities of a business operator are significantly inadequate. (Flow of measure implementation) Business operator Submission of periodic reports. Ministry of Economy, Trade and Industry Onsite inspections Evaluation of details of reports and investigati ons. Guidance Rationalization plan instruction When activities are significantly inadequate. When instruction s are not followed. Public disclosures and issuance of orders * Fines imposed when orders are not followed. Numerical targets: Reduction of annual average by at least 1%. Guidelines pertaining to energy conservation measures: Stipulation of standards (guidelines) based on the Energy Conservation Law as observance items for energy management. Energy conservation measures for business operators overall Maintenance of energy management organization. Allocation of persons in charge. Formulation of policies for activities pertaining to energy conservation targets, etc. Energy conservation measures at individual manufacturing plants and business establishments (Example: Air conditioning systems.) Preparation and implementation of management standards (manuals) pertaining to the following measures: Operational management (operating time, set temperature, etc.). Periodical measurement and recording of temperature, humidity, etc. Periodical New numerical maintenance targets and to include inspection addition of facilities. to existing targets Benchmark indices and standards to be targeted Currently set business lines: Iron and steel, electric power, cement, paper manufacturing, petroleum refining and chemical. Standards to be aimed for: Levels satisfied by most superior business operators in respective industries (10 to 20%). 24

25 EE Standards for Machineries and Equipment (Top Runner Program) Energy Efficiency Performance (Energy Consumption Efficiency) With using the shipment volume weighted average energy consumption efficiency to judge the standard achievement status, Top Runner Program can encourage energy efficient products to increase the number of shipment volume while keeping the diversity of product models in the market. <<Compare & Contrast>> Top Runner Method (TR) and Minimum Energy Performance Standard Method (MEPS) More Efficient TR Case 1 : Not Achieved TR Case 2:Achieved Manufacturer A Manufacturer B TR Target Standard = Product The same modes are expressed in the same color. Number of equals to the shipment volume Product:X Category:Y Shipment volume weighted average energy consumption efficiency MEPS Case 3:Achieved Model C MEPS MEPS Case 4:Not Achieved Less Efficient Shipment volume weighted average energy consumption efficiency of Case 2 Model D SUM { (2 * ECE of ) + (3 * ECE of ) + (1 * ECE of ) + (2 * ECE of )} = ( ) 25

26 EE Standards for Machineries and Equipment (Top Runner Program) Target products have been gradually expanded since As of July 2017, 32 target products (29 for machineries & equipment and 3 for construction materials) are covered under Top Runner Program. Target Product (Designated machineries & equipment) (Designated construction materials) <Addition in 1999> 1. Passenger Vehicles 2. Freight Vehicles 3. Air Conditioners 4. TV sets 5. Video Tape Recorders 6. Lighting Equipment (using Fluorescent Lamps) 7. Copying Machines 8. Computers & Servers 9. Magnetic Disk Units 10. Electric Refrigerators 11. Electric Freezers <Addition in 2002> 12. Space Heaters (using Gas or Oil) 13. Gas Cooking Appliances 14. Gas Water Heaters 15. Oil Water Heaters 16. Electric Toilet Seats 17. Vending Machines 18. Transformers <Addition in 2006> 19. Electric Rice Cookers 20. Microwave Ovens 21. DVD Recorders <Addition in 2009> 22. Routers 23. Switching Units <Addition in 2013> 24. Multifunction Devices 25. Printers 26. Electric Water Heaters (Heat Pump Type) 27. AC Motors 28. LED Lamps 29. Insulation Materials <Addition in 2004> 30. Sashes 31. Double-glazed Glass <Addition in 2017> 32. Showcase (for Cold or Frozen Food) 26

27 Appliances & Equipment covered by the Top Runner Program Top Runner Program is implemented in about 70% of the energy consumption in households. 2009, Energy consumption level per household 34,905MJ/Year 70% is covered by the program *1. Estimated by the Institute of Energy Economics, Japan (IEEJ), based on the Agency for Natural Resources and Energy's FY2009 Residential and Commercial Sector Energy Data Survey (10,040 valid responses) and Supplementary Survey concerning Appliance Use(?) (1448 valid responses) *2. This survey is based on tabulation and analysis of each energy source, with values unified and converted on megajoule (MJ) basis. Electric power in secondary conversion value. 27

28 Improvements in Energy-Efficiency with Top Runner Program Fuel economy (km/l) 12,3 12,1 [Passenger vehicles] Transition in fuel economy of average new cars 13,5 14,0 13,2 14,6 12,4 12,9 14,7 15,0 18,3 16,5 17,8 15,1 15,7 15,5 21,1 22,5 19,5 23,8 FY (Note) Fuel economy values for the mode. 96.7% improvemen t Electric power consumption for period (kwh) Electric power consumption for period 1241 [Air conditioners] % improvement FY (Note) Wall mounted cooling and heating units with cooling capacity of 2.8kW-class model; simple average values for a representative model of energy conserving-type products. 28

29 Target buildings and procedures Non-residences, 2,000 m 2 or larger Energy efficiency standards Evaluation for compliance Building confirmation Final inspection New construction Extensions renovations Compliance Certification (energy efficiency standards) Certification (building standards) Construction begins Certification (inspection) Use of building begins (Inspection also for energy efficiency standards) Buildings, 300 m 2 or more New construct ion Notification Administrative agencies with jurisdiction Residence Non-residence Extensions renovations (Up to 21 days before construction begins) Construction begins Others: Detached residences constructed by large residence supply companies (150 residences or more/year) must satisfy the top runner standards. 29

30 Overview of the Energy Conservation Law and the Related Regulations on Buildings Obligation of the Building Owners under the Energy Conservation Law Design Construction Operation Renovation For Design and Maintenance Buildings having total floor area 300 m2 or larger Compliance to the EC standard (guideline) specified in the EC law (2000m2 and more) Notification of energy saving measures to the competent authority (local government) After operation start Submission of periodical maintenance report to the competent authority (local government) Compliance to the EC standard (guideline) specified in the EC law (2000m2 and more) Notification of energy saving measures to the competent authority (local government) Implemented by Ministry of Land, Infrastructure, Transportation& Tourism (MLIT) and the Local Government For Operation Specified Business Operator Classified by annual energy consumption 1500kL or more (oil) Energy management control officer is selected from executives. Energy management planning promoter to support energy management control officer is selected. Energy managers are selected for each designated energy management factory. [Plan settlement and report] Submission of medium and long-term plan and periodical report by each company. Implemented by METI 30

31 Three Factors and the Standards of the EE&C in Buildings Factors related to architectural planning, construction methods and materials, such as shape of the building, layout of rooms, materials and structures of parts facing exterior space (e.g. external walls, roofs and windows) Outdoor climate Condition Factors related to the characteristics and performances of the system components such as efficiency of various machines that constitute the building equipment system Architectural Design Equipment Design Performance Standards (PAL*) PAL: Perimeter Annual Load Energy Saving Primary Energy Consumption Standard Control & Management Equipment efficiency Standards (no more) Factors related to how to operate, control and manage the building equipment system Evaluation Criteria Fixed an architecture for a sustainable future( IBEC) 31

32 Scale of extension or renovation of non-residential buildings as target of regulatory measures Of extension or renovation of non-residential buildings, those which satisfy the following conditions become the target of compliance obligation. (1) Total area after extension or renovation is 2,000 m 2 or larger. (2) Ratio of area of extension or renovation against total area after extension or renovation exceeds 1/2. * Area (1) excludes portion with high openness. Total area after extension or renovation [B] Existing portion Extended or renovated portion Area of extended or renovated portion [A] [C] Ratio of extension or renovation = Area of extended or renovated portion [A] / Total area after extension or renovation [B] [A] Area of extended or renovated portion [B] Total area after extension or renovation [C] Ratio of extension or renovation Regulatory measures under Building Energy Efficiency Act 300 m 2 or larger 2,000 m 2 or larger Exceeding 1/2 Below 1/2 (Specified extension or renovation) Mandatory compliance Mandatory notification Less than 2,000 m 2 Mandatory notification Less than 300 m 2 Out of regulation 32

33 Target buildings Building Energy Efficiency Act Act on the Improvement of Energy Consumption Performance of Buildings Large-scale buildings 2,000 m 2 or larger Non-Residence Residence Specified Buildings Mandatory compliance [Linked to building confirmation procedures] Mandatory notification [When the standards are not complied with, give instructions, orders, etc. when necessary] Medium-scale buildings 300 m 2 or larger and less than 2,000 m 2 Non-Residence Residence Mandatory notification [When the standards are not complied with, give instructions, orders, etc. when necessary] Small-scale buildings Less than 300 m 2 Residence business construction client (Housing top runner) 150 residences or more a year Mandatory efforts Mandatory efforts [Recommendation, orders, etc. if deemed necessary] 33

34 Expansion of application of the benchmark system in the commercial sector The 1st expansion of application (6 industries) realizes the coverage rate of 65% and the 2 nd expansion (schools, hospitals, etc.) will increase it up to 75%. Expand from the applicable fields as soon as possible to aim at 70%. Currently 59.4% is covered. Paper and pulp 3% Wholesalers/retai lers, department stores & supermarkets 4% Aim to target 70% of all the industries. Hotels and inns 2% Steel 22% Chemical 24% Ceramic 4% Offices and buildings 5% Other 35% Blast and electric furnaces Ethylene, soda, etc. Cement Paper and paperboard Department stores Convenience stores Hotels Introduced in April, 2016 Supermarkets Rental office business Shopping centers Introduced in April, 2017 Consideration will be made for Introduction Industrial Sector: Review of Target Level Business Sector: Expansion of Target Industries Source: Ministry of Economy, Trade and Industry 34

35 Overview of the Business Operator Classification Assessment System This system classifies all the business operators, who submit the periodical report stipulated by the Energy Conservation Act, into 4 classes of S, A, B and C to take explicit responses according to the classes. They make public and praise the business operators with superior energy conservation in each industry, on the other hand examine those with inactive energy conservation in a stricter manner. The business operator can compare himself with others to understand his own position. The system will start from Class S Business operators with superior energy conservation performance 6,657 companies (58.3%) *1 [Standards] (1) The target of utmost efforts *2 are achieved. or (2) The benchmark targets *3 are achieved. [Response] As superior business operators, the business operator s name and the number of successive years that the targets were achieved are displayed on the Ministry of Economy, Trade and Industry website. Class A General business operators 3,378 companies (29.6%) *1 [Standards] Business operators that do not correspond to the Class S or Class B [Response] No particular response Class B Business operators that are inactive in energy conservation 1,386 companies (12.1%) *1 [Standards] (1) The target of utmost efforts *2 are not achieved, and the intensities of the most recent two years in succession have increased compared to the previous fiscal year, or (2) The five-year average intensity shows an increase of more than 5% per year. [Response] Caution documents are sent, and local investigations, etc. are implemented with high priority. Class C Business operators to be required cautious attitude [Standards] Among the Class B business operators, these are operators whose compliance with Energy Conservation Guideline is particularly insufficient. [Response] Guidance based on Article 6 of the Act of Ratinal use of Energy is implemented. *1 FY2016 periodical reporting (Actual results from FY2015) Calculated from the total number of 11,421 business operator companies. *2 The target of utmost efforts: There should be a reduction of 1% or more per year in the five-year annual intensities. *3 Benchmark targets: Standards that should be aimed at by business operator in the subject sector in the medium to long term. 35

36 - Contents - Overview of Japan s Energy Situation Japan s Self-sufficiency rate of Energy Global Warming Effect and reduction of CO2 The situation of the world Japan s case: Present Situation & How to reduce CO2? Japan s EE&C history in some industries from 1973 to 2015 Trend of the Energy Consumption of each sector in connection with GDP Production, Energy Consumption and Energy Intensity of some industries Japan s Long-term Energy Supply and Demand Outlook 2030 Target of Supply and Demand EE&C Target from 2012 to 2030 to realize Counter measures in each sector Japan s effort under the Act on the Rational Use of Energy Overview of the Act Top Runner Program & Building Efficiency Codes The other types of approach in recent Japan Setsu-den Concept after the Great East Japan Earthquake Third party business operator to cover small size entities Renewable Energy 36

37 Policy Development After the Earthquake Peak Demand Management Standard energy conservation Power demand(kw) Energy consumption Peak hours Power supply Demand curve morning daytime night Last year This year Next year Improve Energy efficiency of houses and buildings Promote Energy Management Systems 37

38 Use of Energy Management System Energy Management Business, such as ESCO, is becoming more common. This business provides various service as follows; advice about replacement of facility visualization of electricity consumption control of connected devices and comparison to the past results, etc. Energy Management Business Introduction of energy-saving facilities Consumer Information of energy use Management by EMS Energy Management Service Provider Main Service Contents Visualization service Give electricity consumption in real time(at 30minutes interval) Demand Response service Reduce the load on power grids Diagnostic service Provide continuous energy-saving advice and make a proposal about renewal of facilities and systems. Energy-saving service Provide Energy-saving service such as energy-saving advice, tuning and ESCO 38

39 Next Step in Energy Management Handle electricity supply-demand problem with promotion of introduction of HEMS / BEMS, high efficient air conditioners, lighting and hot-water supply. Pursue energy efficiency of entire systems by managing entire houses and buildings. In addition, more efficient energy management can be realized by cross-management of houses and buildings, or regional management. Installation of energy management equipment Optimize houses and buildings Regional or cross-regional optimization HEMS GE BEMS ZEB - Net zero energy building GE Smart community Cooperate by buying equipment such as efficient air conditioners and lighting, and controlling them with HEMS or BEMS. ZEH - Net zero energy house Net zero energy means that net annual primary energy consumption is approximately zero. 39

40 - Contents - Overview of Japan s Energy Situation Japan s Self-sufficiency rate of Energy Global Warming Effect and reduction of CO2 The situation of the world Japan s case: Present Situation & How to reduce CO2? Japan s EE&C history in some industries from 1973 to 2015 Trend of the Energy Consumption of each sector in connection with GDP Production, Energy Consumption and Energy Intensity of some industries Japan s Long-term Energy Supply and Demand Outlook 2030 Target of Supply and Demand EE&C Target from 2012 to 2030 to realize Counter measures in each sector Japan s effort under the Act on the Rational Use of Energy Overview of the Act Top Runner Program & Building Efficiency Codes The other types of approach in recent Japan Setsu-den Concept after the Great East Japan Earthquake Third party business operator to cover small size entities Renewable Energy 40

41 Ratio of Electricity Generation by Renewable Energy Ratio of Electricity Generation by Renewable Energy in Japan is 14.6 % (in FY 2015). On the other hands, ratio of Electricity Generation by Renewable Energy except Hydro is only 6.0% 100% Nuclear, 0.9 Nuclear, 04 90% Nuclear; 15,6 Nuclear; 20,8 Nuclear; 19,0 Nuclear; 19,2 80% Gas; 10,0 Gas; 40,5 Oil; 0,9 70% Gas; 17,2 Gas; 30,0 Gas; 26,9 Gas, 54 60% Oil; 5,1 Nuclear; 78,4 50% 40% 30% 20% 10% 0% Coal; 45,8 Renewable Energy 27.6% Hydro; 3,1 Coal; 16,5 Renewable Energy 40.3% Hydro; 14,2 Renewables; 24,5 Renewables; 26,1 Oil; 0,5 Renewable Energy Coal; 30,4 20.3% Renewable Energy 16.9% Hydro; 1,8 Renewables; 18,5 Gas; 2,3 Oil; 0,3 Coal; 2,2 Hydro; 11,3 Oil; 0,9 Coal; 39,7 Renewable Energy 13.4% Oil; 12,2 Coal; 31,9 Renewable Energy 14.6% Hydro; 6,1 Hydro; 8,6 Renewables; 5,6 Renewables; 7,3 Renewables; 6 Oil, 14 Coal, 2 Renewable Energy 24% Hydro, 22 Renewables, 2 41

42 Current State of Renewable Energy Renewable energy accounted for approximately 14.6% of power generation in More specifically, hydroelectric power generated by large-scale dams, etc., accounted for 8.6%, with solar PV, wind, geothermal and biomass power accounting for 6.0%. Composition of power generation by energy source in Japan (FY 2015) Hydroelectric 8.6% 6.0% Renewable energy (excluding hydroelectric) Oil 12.2% Coal 31.9% LNG 40.5% 42

43 History of Introduction of RES The main driver shifted to RPS in 2003, Residential Surplus Electricity Purchasing Scheme in 2009 and then, to Feed-in Tariff in (10MW) Solar PV Wind power Biomass Geothermal Middle and small hydropower Average annual growth rate 5% Average annual growth rate 9% Average annual growth rate 29% (FY) RPS System Excess Electricity Purchasing Scheme FIT system 43

44 Acceleration of introduction of renewable energy Steps toward problem solution Technology development & demonstration, transmission & distribution network construction, rationalization of procedure for environmental assessment Technology development & corroboration Demonstration of floating wind power generation station off Fukushima aiming at first actual operation in the world (7MW and 5MW station were installed 2017: \24 billion) [7MW station, world s largest in scale] Blade radius: 80 m Construction of transmission and distribution networks Constructing and testing transmission and distribution networks in appropriate places for wind power in Hokkaido and Tohoku (2017: \3 billion) [Route scheduled for constructing transmission/distribution network in Hokkaido] Douou Okhotsk route Rationalization of procedure for environmental assessment Shorten period of procedure for environment assessment of wind and thermal power generation, which usually takes 3 or 4 years (2017: \0.6 billion ) 44

45 Current Status of Geothermal Power Generation Geothermal power generation, which has a higher operating rate (83%) compared to other renewable energy, is a stable power source at low power generation cost that can play a role of a base-load power source. Japan has the world's third largest amount of geothermal energy resources (23,470 MW) but has only 530 MW of installed capacity. The government has been trying to facilitate the development of geothermal power generation, with appropriate support measures such as subsidy for geological survey, investment for exploration, loan guarantee for construction of power generation facilities, and R&D. Furthermore, Feed-in Tariff Scheme obliges electric utilities to purchase electricity generated from renewable energy sources at the procurement price and for the procurement period. (started on July 2012) Three Japanese manufacturers, Mitsubishi Hitachi Power Systems, Toshiba and Fuji Electric, account for 70% of the global market for geothermal turbines. World geothermal resources Country Geothermal Resources (10,000kW) Installed capacity( kw) USA 3, Indonesia 2, Japan 2, Kenya Philippines Mexico Iceland Ethiopia New Zealand Italy Peru Energy source Procurement category Procurement price per kwh Tax exclusive Procurement period Feed-in Tariff Geothermal power 15,000 kw or more Less than 15,000 kw 26 yen 40 yen 15 years 15 years Global geothermal turbine market share Ansaldo/Tosi (Italy) 13% Ormat (Israel) 10% others Fuji Electric 20% 10% Total 11,682MW Mitsubishi Hitachi Power Systems 24% Toshiba 23% Japan (70%) Source: Reports from JICA(2012) and AIST(2010) and so on. Source: Ruggero Bertani 2010, Geothermal Power Generation in the World, Update Report (revised) 45

46 Thank You Very Much For More Information; The Energy Conservation Center, Japan <from 1996> Asia Energy Efficiency and Conservation Collaboration Center (Established in April 2007) Japanese Business alliance for Smart Energy-Worldwide (Established in October 2008) The Energy Conservation Center, Japan Since 1978 The Symbol of Energy Conservation Since 2005 ECCJ has been spread the symbol mark with the visual image of a flour-leaf clover which is thought to bring happiness named as SMART CLOVER, representing everyone s energy conservation activities. 46