An initiative of: Recent Topics: Energy Conservation Policies in Japan Tadashi Mogi Director of Energy Efficiency and Conservation Division, METI February 25, 2013 Iino Hall, Tokyo, Japan for challenge to use ISO 50001 Energy management system
(Petroleum equivalent in millions of tons) 450 400 350 300 250 200 150 100 50 0 Energy-consumption structure trends in Japan Final energy consumption has increased about 1.4 times since 1973, whereas the Real GDP increased about 2.3 times in the same period. Energy consumption of industrial sector has leveled off, but a significant increase of energy consumption has been observed in the consumer sector (commercial & residential sectors). Real GDP 1973 2010 2.3 倍 Transportation sector Consumer sector Industrial sector (JPY: trillions) 600 1973 1974 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 22.9% 33.2% 43.9% Transporta for Source: challenge Comprehensive to Energy use Statistics ISO and 産業民生運輸実質 GDP 50001 Annual Report Energy National management Accounts Industrial system Consumer tion 1 500 400 300 200 100 0 Transportation Consumer Industrial Final energy consumption 1973 2010 1.4 times 1973 2010 1.9 times 1973 2010 2.5 times 1973 2010 0.9 times
Energy Conservation Efforts of Japan after Oil Crises Japan has improved its energy efficiency by about 40% since the 1970s through continued efforts for energy conservation by the both public and private sectors. The Energy Conservation Law was introduced in 1979, and The Top Runner Program started in 1999 under this law. Primary energy use per real GDP of Japan (Oil converted Mt /1 trillion yen) 1.300 1.200 1.100 1.000 about 40% improvement 0.900 0.800 0.700 Energy Conservation Law Top Runner Program 0.600 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 200520072009 for challenge to use ISO 50001 Energy management system (Source: Total Energy Statistics by ANRE/METI) 2
Energy Conservation Law The Energy Conservation Law covers usage in industrial, commercial, residential and transportation sectors. The Law has 1) a framework which requires business operators to annually measure and report their energy usage to the government, 2) energy efficiency standards for buildings and housing, and 3) the The Top Runner program, which is applied to household appliances and equipment to automobiles. for challenge to use ISO 50001 Energy management system 3
Top Runner Program The Top Runner Program is a mandatory program that encourages competition among companies by setting efficiency targets 3 to 10 years in advance. Companies make efforts toward these goals; the program has contributed to improvement of energy efficiency of consumer electronics and automobiles in Japan. Example of Top Runner Program Improvement of energy efficiency Fuel Efficiency (km/l) 16 15km/L 14km/L 13km/L 12km/L At the time of standard setting 19km/L 18km/L 17km/L 15km/L Achievement is judged by weighted average per product-category Target Fiscal Year Gasoline passenger vehicles 48.8% (FY1995 FY2010) Air conditioners (For those of 4.0kW or less in cooling capacity) 16.3% (FY2005 FY2010) Refrigerators 43.0% (FY2005 FY2010) TV sets (LCD and PDP TV) 29.6% (FY2004 FY2008) etc. for challenge to use ISO 50001 Energy management system 4
Electricity- saving after the earthquake After the 2011 earthquake, Japan was facing a shortage of electric power, so the government asked the public to make energy-saving efforts by various tools. Request of concrete measure for electricity saving Large customers (500kW or more) Small customers (50kW ~ 500 kw) Households (<50kW) Voluntary plans for minimizing power consumption during peak times Restrictions on use of electricity Provided suggestions for electricity-saving measures Voluntary electricity-saving action plans Visits from electricity-saving supporters Provided suggestions for electricity-saving measures Request for electricity saving through the media Policy of Home Electricity-saving Declaration Approaches across several fields Electricity-saving campaign through various media Electricity forecast Alert of tight supplydemand balance Last summer, almost all regions achieved their electricity-saving targets. (Ratio of the maximum demand compared to 2010 was from -2.5% to -10.2%.) for challenge to use ISO 50001 Energy management system 5
Policy development after the earthquake Our challenge is how to maintain consumer efforts for energy conservation into the future. Normal energy conservation Improve energy efficiency of houses and buildings Energy consumption Last year This year Next year Promote demand side management for challenge to use ISO 50001 Energy management system 6
Enhancement of Building Material Performance In order to reduce energy use at home and in buildings, METI decided to set energy saving standards for building materials, such as insulation and windows by using the top runner program. METI will submit a bill in the coming Diet session to partially amend the The Top Runner regulation in the Energy Conservation Law. for challenge to use ISO 50001 Energy management system 7
Appliances & Equipment covered by the Top Runner Program The Top Runner standard is associated with about 70% of the energy consumption of households. Solar heating, Electric cooking 0.2% appliances (IH), 0.7% Other heating equipment, 4.2% 70% is covered by the the Top Runner program Network DVD recorders, 0.4% devices, 0.5% Rice cookers, 1.1% Microwave ovens, Computers, 0.9% 1.2% Electric carpet, 1% Washing machines/dryers, 1% Dishwashers/dryers, 1.8% Ecocute, 1.8% Electric water Videotape recorders, 0.3% heaters, 2.6% Oil fan heaters, 6.2% Gas heating stoves, 0.3% Electric toilet seats, 1.8% Other electric appliances, 11.7% Air conditioning units, 3.5% Oil waterheaters, 4.1% TV sets, 4.3% Gas water heaters, 23.7% Gas cooking appliances, 8.3% Refrigerators, 6.8% Lighting equipment, 6.4% Gas heating stoves, 5.4% for challenge to use ISO 50001 Energy management system 8
Future development of the Top Runner Program The Top Runner Program is being expanded to include equipment for commercial use, such as commercial refrigerators, heat-pump type hot-water boilers and LED lighting. Commercial refrigerators Multi-function Printers Printers Heat-pump type hot-water boilers 3-phase induction motors LED lighting for challenge to use ISO 50001 Energy management system 9
Introduction of BEMS and HEMS METI provided 30 billion yen for introduction of BEMS (for small- and medium-size buildings) and HEMS. (April 2012 March 2014) Purposes of this subsidy Spread use of BEMS to small- and medium-size building. Develop energy management services, such as Aggregators Develop Demand Response services. BEMS means Energy Management System for Buildings. HEMS means Energy Management System for Homes. METI Subsidies Smaller high voltage consumers Target of the subsidy BEMS Aggregator Provide BEMS with reasonable price and energy conservation consulting service Equipment such as smart meters, storage batteries After-sales services, such as energy conservation consulting Demand Response service Power company for challenge to use ISO 50001 Energy management system 10
Promotion of Demand Response (1): Demonstration of Smart Communities in Japan Starting in FY2011, large scale smart community demonstration projects began in 4 regions across Japan, which constitute representative examples of various patterns, based on participation by many residents, local governments and corporations. Yokohama City Toyota City Keihanna Kitakyushu City Large metropolis Introduction of an energy management system for an existing large metropolis. As the sample number is high (4,000 households), demonstration using a variety of hypotheses is possible. Detached housing Automatic control of home appliances in 67 homes. Secondary cells equipped in vehicles are used to supply energy to households. Approaches for drivers to alleviate congestion. Housing development Demand response demonstration based on a point system is being implemented for general households (approximately 700 households) where PV or HEMS automatic control has not been introduced. Designated supply area In an area where power is supplied by Nippon Steel Corporation, a pricing system where the power price fluctuates for 2 hours afterwards, in accordance with the state of supply and demand of energy on that day; applicable to 50 business establishments and 230 households, and is being implemented. for challenge to use ISO 50001 Energy management system 11
Promotion of Demand Response (2): Incentive Program for Demonstration in Kitakyushu City Depending on the extent of the power crunch for the day, this chart indicates where pricing fluctuated based on 5 patterns, implemented from Level 1 (15 yen/kwh) to Level 5 (150 yen/kwh). Pricing table (yen/kwh) Category Season Time period Level 1 Level 2 Level 3 Level 4 Level 5 Peak periods May to Oct. 1 P.M. to 5 P.M. 15.18 50.22 75 100 150 Nov. to Apr. 8 A.M. to 10 A.M. 6 P.M. to 8 P.M. 15.09 50.02 75 100 150 May to Oct. 10 A.M. to 1 P.M. 15.18 15.18 15.18 15.18 15.18 Daytime Nov. to Apr. 10 A.M. to 6 P.M. 15.09 to 15.18 15.09 to 15.18 15.09 to 15.18 15.09 to 15.18 15.09 to 15.18 Living time May to Oct. Nov. to Apr. 8 A.M. to 10 A.M. 5 P.M. to 10 P.M. 8 P.M. to 10 P.M. 10 10 10 10 10 Nighttime Year round 10 P.M. to 8 A.M. 5.94 5.94 5.94 5.94 5.94 for challenge to use ISO 50001 Energy management system 12
Promotion of Demand Response (3):Results of Demand Response Demonstration From the results of the demand response demonstration, peak cut effects of 20% and energy saving effects have been statistically confirmed. A review is ongoing regarding reflection of these results in the reform of power regulations. Peak cut effects from demonstration in Toyota City Energy saving effects from demonstration in Toyota City Peak cut effects (1 to 5 P.M.) Effect (%) Statistical significance Energy saving effects Effect (%) Statistical significance November 2011 (Visualization) 15.9% 10% level December 2011 (Visualization + fluctuating prices) January to August 2012 (Visualization + fluctuating prices + Recommendations) 30.1% 5% level 20.9% 10% level Data from November 2011 to August 2012. Sample number = 11 November 2011 (Visualization) 15.5% 5% level December 2011 (Visualization + fluctuating prices) January to August 2012 (Visualization + fluctuating prices + Recommendations) 35.4% 1% level 22.9% 5% level Data from November 2011 to August 2012. Sample number = 11 Peak cut effects from demonstration in Kitakyushu City Peak cut effects (1 to 5 P.M.) (Base price = 15 yen) Effect (%) Statistical significance CPP=50 yen 18.0% 5% level CPP=75 yen 21.8% 1% level Data from July 2012. Sample number = 180 Source: Results of statistical demonstration by Professor Yoda of the Graduate School at the University of Kyoto, Associate Professor Tanaka of the for National challenge Graduate Institute to use for Policy ISO Studies, 50001 and Energy researcher, Mr. management Ito of the Stanford Institute system for Economic Policy Research at Stanford University 13