Japan s Policy on Energy Conservation and Renewable Energies

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1 4 th APEC EGEE&C November, 22 Japan s Policy on Energy Conservation and Renewable Energies Yo Mishima International Affairs Office, Energy Conservation and Renewable Energy Dept. Agency for Natural Resources and Energy

2 Innovative Strategy for Energy and the Environment - Issued on September 4, 22 - Aimed at creating new energy society with collective efforts of every single nation in Japan - Consists of three key elements: (a) Realization of a society not dependent on nuclear power with 3 guiding principles and 5 policies (b) Realization of green energy revolution (c) Ensuring stable supply of energy -The three key elements to be backed up by the bold implementation of electricity system reform -Global warming countermeasures to continue to be steadily implemented 2

3 Innovative Strategy for Energy and the Environment Realization of green energy revolution Path to the electricity & energy saving in FY 23 Electricity and energy saving Power generation (TWh), -25 (-2%) -5 (-5%) - (-%) Total final consumption (G Litter) 3-6 (-4%) -3 (-8%) -2 (-%) % = compare to 2 Path to the renewable energy use in 23 Renewable energy Power generation (TWh) 4 (.4 times) 8 (. times) 3 (3 times) Capacity (GW) Power generation (TWh) (excluding hydro) 25 5 (2 times) 8 (3 times) (8 times) X times compared to 2 3

4 Energy Efficiency 4

5 Energy Conservation Efforts of Japan after Oil Crises Japan has been improved energy efficiency by about 4% after the oil crises since s as a result of positive action by both public and private industrial sectors. Japan intensively introduced "Energy Management system based on Energy conservation law", then realized the lowest energy consumption per GDP Primary energy use per real GDP of Japan (Oil converted Mt / trillion yen) Approx. 43% improvement Primary energy supply per GDP unit of each country(2) (Index : Japan=.) Source)Total Energy Statistics by ANRE/METI Calculated according to IEA statistics

6 . Regulation Japan s Energy Efficiency Policy Energy Conservation Law : Enacted in Upgraded and improved several times responding to social needs 2. Promotion - Tax incentives - Subsidies (including for R&D) - Preferential interest rate 3. Voluntary action (by private sector) 6

7 Historical Development of Energy Conservation Law Industry 4 Establishment of heat management Establishment Designated Energy Management Factories Guidance for Buildings and Appliances 83 Amendment Licensed energy manager system 3 Amendment Periodical reporting 8 Amendment Expand coverage of factories 25 Amendment Integration of Heat and Power Control 28 Amendment Company based regulation include franchised chains Residential Commercial Effective use of electric power and fuel in industrial sector 22 Amendment Energy Management of Office Buildings 8 Amendment Transportation Promote energy efficiency of automobiles and household electrical appliances Top Runner Program for automobiles and household electrical appliances 25 Amendment Reporting System on Energy by Carriers 22 Amendment Measures on demand side at peak demand hours Top Runner Program for Building Materials etc.

8 Japan s Energy Efficiency Policy <Regulations> Automobiles/Electronic Appliances Top Runner Program Target products : 23 products (kwh) 3 Average electricity 期間消費電力量 consumption of air conditioner % improvement ( 年 ) 8

9 SETSUDEN (power saving) Campaign, Summer 2 () Large users (contract electricity > 5 kw) Every large user to map out and implement their own plan Mandatory demand restriction by the Electricity Business Act (Art 2) (2) Small users (contract electricity < 5 kw) To map out specific targets and voluntary plans according to the business type The government conducted awareness campaigns and individual visits using Standard Format for Action Plan of Electricity Saving (3) Households and individuals Government provided Menu of Electricity Saving Measures by Households Electricity Saving Manifesto by Households on the website prepared by the government Promote energy saving through education (4) Nation-wide activities Providing electricity supply-demand forecast. Tight Supply-Demand Alert and announcement of the possibility of rolling blackout announce to individual cell-phone Ad on newspaper Menu of Electricity Saving by Households Standard Format for Action Plan Electricity Saving Manifesto by Households Electricity demand forecast

10 Renewable Energies

11 Current Composition of Power Sources in Japan Among the total electricity generated in fiscal 2, renewable energy, etc. accounted for approximately %; approximately % of which is hydraulic power generation. Other renewable energy is still cost prohibitive. Composition of annual electricity generated in Japan FY 2 FY 2 Coal Petroleum Hydropower Renewable energy excluding hydropower Approx..4% Approx. 24% Approx. 8% Hydropower Nuclear power Approx. % Natural gas Natural gas Approx. 2% Approx. 3% Approx. % Approx. % Renewable energy excluding hydropower Petroleum Approx.% Approx. 4.4% Approx 3.5% Nuclear power Approx. 25% Coal Note: Etc. of Renewable energy, etc. includes the recovery of energy derived from waste, refuse derived fuel (RDF) products, heat supply utilizing waste heat, industrial steam recovery, and industrial electricity recovery. Source: Prepared based on the Agency for Natural Resources and Energy s Outline of Electric Power Development in FY 2

12 Basic Mechanism of the Feed-in Tariff Scheme Under the feed-in tariff scheme, if a renewable energy producer requests an electric utility to sign a contract to purchase electricity at a fixed price and for a long-term period guaranteed by the government, the electric utility is obligated to accept this request. Those engaged in the power generation business using renewable energy sources Sale of electricity produced from renewable energy sources Electric utility Electricity supply Purchase of electricity at a fixed price for a government guaranteed period Payment for the purchase cost Submission of the collected surcharge Surcharge adjustment organization (organization to collect and distribute the surcharge) Collection of surcharge together with the electricity charge Electricity customers Deciding tariffs and durations, respecting the opinion of the special committee (every fiscal year) Decision of surcharge unit price per kwh (every fiscal year) Those who generate power at home Approval of facilities (Government confirms whether the facility can generate electricity stably and efficiently. The approval is cancelled when the facility no longer satisfies the requirements.) Minister of Economy, Trade and Industry Opinion on tariffs and duration Special committee for determination of tariff s and durations Government 2

13 Renewable Energy Forecast (FY22) Estimating based on officially announced projects and recent trend, approximately 2.5GW renewable energy facilities would be installed in this fiscal year.(current renewable energy generation capacity approx..45gw,expected to increase to approx.22gw.) < Renewable energy installation situation in FY 22(as of September) > Already installed capacity by FY2 Installed capacity already operational at the end of September Installed capacity already authorized by the end of September Forecast of newly installed capacity in FY22 Residential PV Approx. 4GW.4GW.44GW + Approx.5GW (4% increase from new installation in 2) Non-Residential PV Approx..8GW.4GW.3GW +Approx.5GW (Estimate by METI) Wind Approx. 2.5GW.GW.3GW +Approx.38GW (5 % increase from recent annual installation) Small and Medium scaled hydro (MW to 3MW) Small and Medium scaled hydro (Less than MW) Approx..35GW.GW GW +Approx.2GW (Estimate by METI) Approx..2GW.2GW.2GW +Approx.GW (5 % increase from recent annual installation) Biomass Approx. 2.GW.GW.6GW +Approx.GW (5 % increase from recent annual installation) Geothermal Approx..5GW GW GW +GW Total Approx..45GW.GW.8GW +Approx 2.5GW 3

14 Thank you very much! ありがとうございます! Questions? 4