PV in Japan, Current status And The way to go

1 Smart community 2017 PV in Japan, Current status And The way to go June 8th, 2017 The Japan Photovoltaic Energy Association JPEA 1

2 1. About JPEA 2. Status of PV in Japan 3. Situation of PV in Japan 4. Future of PV in Japan

3 1. About JPEA 2. Status of PV in Japan 3. Situation of PV in Japan 4. Future of PV in Japan

JPEA 4 The Largest Photovoltaic Industry Association in JAPAN Name Japan Photovoltaic Energy Association (JPEA) Foundation April 23, 1987 Chairperson Mr. Shusaku NAGAE (Chairman, Panasonic Corporation) Number of Members (As of April 2017) 133 2

Organization of JPEA 5 General Assembly Board of directors As of April 2017 Secretariat Chairperson of the board JPEA Application Center (JP-AC) Management Committee Management Subcommittee Japan Photovoltaic Construction Technology Center (Jcot) (Standing Committees) Statistics Committee Basic Policy Committee (incl. JPEA Vision) PV generation Residential Use Public and Industrial Use International Operations Public Relations High Density Interconnection Operation of the Qualified Installers System 3

A Leaflet for residential users to avoid troubles 6 JPEA publishes a leaflet in order to educate users as well as sales sectors in order not to be involved in troubles in purchasing a PV system. The title of this leaflet is Start a life with solar how to get a PV system successfully. http://www.jpea.gr.jp/document/handout/leaflet.html 6

PV Construction Engineer Program 7 JPEA has started its PV Construction Engineer Program for roof top systems since 2012. The number of certified engineers amounts to almost 3,000 JPEA also started the Technical Lecture to construct PV systems from 10kW to 50kW in 2014 in order to ensure good quality these systems. http://www.jpea.gr.jp/pdf/t150721.pdf a Technical Lecture to Construct 10kW to 50kW PV Generating Plant held in Osaka 7

Check List of foundation and cradle for 10kW over PV 8 Under FIT, many new comers start to install 10~50kW PV systems. For owner, constructer, and investor of such systems, JPEA published the check list of design/construction of foundation and cradle (mounting base) for 10kW over PV. Electric Equipment 10kW over The check list and remarks of design/construction of foundation and cradle For 10kW over PV. http://www.jpea.gr.jp/pdf/150529_jpea_checklist.pdf 土地調査例の基本 地盤調査 地質調査の例太陽光発電設備を設置するための地盤調査は アレイ架台の自重が 一般住宅等 ( 1) にくらべはるかに軽いことや 一般建築や一般住宅等でみられる水準の地盤調査は大掛かりになることや費用面での負担が大きいことから なるべく簡易的に地盤調査をおこない 基礎設計の資料とすることが好ましい 1 家の重量は 60 m2で基礎込みで 約 60~70t になる 約 1 ton/ m2 8

PV System s Design and Construction 9 JPEA issued the 5 th edition of PV System s Design and Construction in 2015. This issue was realized by dedication of specialists of JPEA s member companies, and it includes some issues reflecting the recent Japanese FIT scheme. This book is called a bible of PV system construction technology and the first edition was published in 1996. http://www.jpea.gr.jp/profile/books/index.html 9

PV maintenance guidelines published by JPEA 10 JPEA has published the some maintenance guidelines for PV systems, and these are open to be accessed through the JPEA s web site. The maintenance guidelines for 10-50 kw PV systems http://www.jpea.gr.jp/pdf/upper10kw.pdf The maintenance guidelines for Roof top PV systems less than 10 kw http://www.jpea.gr.jp/pdf/inspection.pdf Check lists and points of substructures or structures or construction for PV systems, 10kW or more http://www.jpea.gr.jp/pdf/150529_jpea_checklist.pdf

Guideline of Maintenance and Inspection for PV system(http://www.jpea.gr.jp/) 11 Crick here 2017-2-8 現在

12 1. About JPEA 2. Status of PV in Japan 3. Situation of PV in Japan 4. Future of PV in Japan

Introduced PV capacity shares of countries 13 Australia 5.9GW(2.0%) France 7.1GW(2.3%) Spain 5.5GW(1.8%) Others 42.2GW(13.9%) Cumulative capacity of 2015 303GW China 43.5GW(19.2%) China 78.1GW (25.8%) India 9.0GW(3.0%) UK 11.6GW(3.8%) Italy 19.3GW(6.4%) USA 40.3GW (13.3%) Germany 41.2GW(13.6%) Japan 42.8GW (14.1%) Reference Report IEA-PVPS T1-31:2017 SNAPSHOT 2016

40,000 Capacity/Countries MW Annual introduced Capacity 14 W/W capacity MW 80,000 75,000 35,000 W/W 34,540 70,000 Japan 30,000 China 60,000 25,000 Germany US 50,655 50,000 20,000 Italy 36,900 38,700 40,000 15,000 Spain 31,095 15,150 14,730 30,000 11,300 10,560 10,811 10,000 7,609 6,900 9,700 8,600 20,000 5,000 0 暦年 4,751 6,201 7,283 3,510 3,348 3,304 1,900 3,346 1,461 1,461 1,520 2,000 385 276 152 300 373 22 54 55 0 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 10,000 Reference: Report IEA-PVPS T1-31:2017 SNAPSHOT 2016

Trend of the cumulative capacity of PV systems MW 34,000 15 32,000 30,000 28,000 26,000 24,000 22,000 20,000 18,000 Total 1MW and more over 1MW 10~999kW Less than 10kW under 10kW 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 12 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 2012 2013 2014 2015 2016 Data from METI web site

Cumulative roof top PV systems 16 Number of roof tops 2,200,000 2,000,000 1,800,000 Roof top PV systems 2,011,142 7.0% 1,754,008 1,932,729 2,011,142 1,600,000 1,400,000 1,200,000 Total number of roof tops 28,598,700 1,258,970 1,547,087 1,000,000 93.0% 982,919 800,000 600,000 Data from Statistics of residences and lands, 2013 559,438 747,102 400,000 200,000 0 年度 3,590 9,244 15,596 31,475 52,352 77,503 456,894 352,369 401,794 289,825 217,000 115,765 162,525 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2000~2005 f/y : from subsidy data by the New Energy Foundation 2006~2008 f/y : from New Energy Promotion Council investigation 2008~2013 f/y : from subsidies data by JPEA(J-PEC) 2014~2015 f/y : from the report on PV facilities by METI (2016.4 ~2016.9)

Purchased electric power from PV systems through the FIT TWh 35.0 30.0 25.0 20.0 Cumulative purchased power amounts to 93.7 TWh since the FIT started in 2012. 10kW 未満 10kW 以上 19.0 31.1 32.0 6.5 5.5 17 15.0 10.0 9.1 5.8 24.6 26.5 5.0 0.0 2.5 4.9 13.2 4.2 2.3 0.2 2012 2012 年度 2013 2013 年度 2014 2014 年度 2015 2015 年度 2016 2016 年度 (April.-Dec.) Data from the report on the PV facilities introduction by METI

90,000 Trend of cumulative capacity of the FIT approved systems MW 18 80,000 70,000 60,000 50,000 Total 1MW and more over 1MW 10~999kW Less than 10kW less 10kW 40,000 30,000 20,000 10,000 0 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 1 3 5 7 9 11 2012 2013 2014 2015 2016 Data from METI web site

Only approved systems and Actually operating systems 19 MW 90,000 80,000 70,000 60,000 Total PV capacity approved under FIT compared with actually operating system capacity (July 2012 Dec. 2016) 80,833 MW 5,308 27,043 Less than 10kW 10~49kW 50~499kW 500~999kW 1,000~1,999kW 2MW and more 50,000 40,000 4,527 4,893 48,823MW Over 80GW PV facilities approved so far since the Japanese FIT started 30,000 20,000 12,805 32,010 MW 4,545 10,405 But almost 49GW of approved systems are not yet operated 10,000 0 26,257 3,053 3,342 7,157 3,508 Limited capacity of local grid will influence and delay actual installation Data from METI web site

20 1. About JPEA 2. Status of PV in Japan 3. Situation of PV in Japan 4. Future of PV in Japan 20

3.1 Renovation of the Japanese FIT system 21# The Japanese FIT law for promotion of RE has been revised in June 2016, and its related regulations have been also being amended. The objectives and points are as follows. The objectives : 1. Promotion of the well balanced variety of RE. 2. Relief of the burden of the FIT cost over the people 3. Using the renovation of the electric power system to advantage in order to utilize the RE power. The points : 1. Rearrangement of not yet operated PV systems and renewal of approval systems 2. Introduction of some check systems and mandatory requirements to promote the long life operation of the RE system 3. Cost effective introduction of RE by setting the cost targets and introducing the bidding system for PV systems 4. Setting FIT rates for coming years to promote some REs which take long time for preparation 5. The transmission operators take over the obligation to purchase the FIT power, so that the RE power can circulate nationwide better than before

Important items in the amended regulations of the FIT 22 About Guidelines of the maintenance and inspections for PV systems Maintenance and inspection are important key roles for long life operation Good maintenance and proper inspections are obliged to the PV system owners according to the revised FIT law and regulations including the guidelines for the planning the RE power generation. Guidelines for the planning for the RE power generations The guidelines for the planning of the RE power generations are to be published for the all applicants of the RE power generations applied for the FIT system. The all applicants who are willing to apply the FIT to their own RE power generation projects shall plan their projects according to the said guidelines including a plan for the good maintenance and properly periodic inspections. Guidelines of the maintenance and inspections for PV systems Maintenance and inspections are one of the key items to disseminate the long life PV systems. JPEA and JEMA worked on the project and have successfully published The Guidelines of the maintenance and inspections for the PV system since last Dec. 2016. Reference: METI WEB

3.2 Reform of the electric power system 23 In Japan, the reform of the electric power system is proceeding toward the final stage of the unbundling the power companies in 2020. The first stage (Apr. 2015): Established OCCTO The second stage (Apr. 2016): liberalized the retail market The final stage (Apr. 2020): Unbundling the power system Japanese government consulting committee s report has been issued Dec. 2016 Key points Competitive new business RE power promotion Financial support for the decommission of the nuclear power plants

Electricity Market Reform KANTETSU Committee Summary 24 Scheme Issue Plan Creation of the Baseload Market New Transmission Interconnection Rules including implicit auction Occupied by the Major Electricity Companies Occupied by the Major Electricity Companies (until 10 years later) Open the market and welcome to new comers to use the Baseload generation Electricity of lower cost is to be used through the new rules including implicit auction Introduction of the Capacity Mechanism Electricity of high cost is difficult to exist Create the Capacity Market for retailers to buy KW Creation of the Non-Fossil Credits Market Non-fossil value of electricity is not recognized Create the Non-Fossil Credits Market for retailers Accounting measures to abolish nuclear powers Not considered in the past Collet money through the new transportation service fare scheme

Electricity Market Reform KANTETSU Committee 25 Planned Schedule

Reform of the power system for PV 26 Critical points for the PV systems I. Increase the interconnections Flexibility of the power network is crucial point II. III. Vitalizing the electricity wholesale market and circulating the RE power in it Utilizing the benefits from the wholesale markets, which can provide the adjustment of imbalance and others. Reform of the transportation service rules Promoting the utilization of the local PV systems including systems with the FIT term expired.

I.Increase the interconnections and the flexibility 27 1. OCCTO revised rules applicable to use of the interconnections for more effective use by auction. 2. Effective use of the interconnections will result in lower curtailment of renewable energy. 3. Connect & Manage style should be adopted so as to reduce curtailment as little as possible.

系統利用の在り方 : 日本版 Connect and manage? 28 第 8 回系統 WG 資料より In discussion of a METI Working Group, a Japanese style Connect and Manage case is introduced by an Electric Company, which is very practical in this country s current circumstances. 28

II. Vitalizing the electricity wholesale market 29 1. Vitalizing the electricity wholesale market is necessary. Only a few percent of total electricity consumption is under dealing in this country. 2. Establishing new demand and supply control system, including Nega-watt trade, DR (Demand Response), VPP (Virtual Power Plant) etc. as well as EV and Heat-pump system is essential. 3. Starting the Real-time Market for imbalance adjustment by market mechanism is desired. Trade of FIT electricity in the Wholesale Market Use of generation after FIT duration(new scheme) Better forecast and VRE trade in the Market

III.Maintenance of Grid and Reform of the Transportation Service Rules 30 1. Effective use of existing grid should be realized on the Connect & Manage basis. 2. Grid Maintenance should be carried out in accordance with a well-designed, long-term plan and proper transportation service fee scheme. 3. Self and local consumption of RE generated electricity should be promoted to avoid congestion in the grid. Proper transportation service fee for this purpose is essential.

31 4.Future of PV in Japan 31

4. 太陽光発電産業の未来 : パリ協定について 32 世界共通の長期削減目標として 産業革命前からの気温上昇を2 未満に抑制することを規定するとともに 1.5 までへの抑制に向けた努力を継続する 主要排出国 途上国を含む全ての国が Explanation of main points of the Paris Agreement of COP21 1 削減目標を策定し国内措置を遂行 5 年ごとに目標を提出 2 自国の取組状況を定期的に報告 3 世界全体としての実施状況の検討を5 年ごとに行う Target CO₂ emission 出典 ) 全国地球温暖化防止活動推進センター (http://www.jccca.org/) 出典 ) 外務省 HP http://www.mofa.go.jp/mofaj/ila/et/page24_000810.html

A doubling of the renewable energy share in the global energy mix by 2030 would set the world on a path that could limit global warming well below 2 C above pre-industrial levels by the end of this century, in line with what the countries have agreed in Paris at the COP21. (IRENA:Road map for renewable energy future 2016) 33

MOE Long-term Low-carbon Vision 34

Necessity of RE use 35 Purpose of decarbonizing RE generation CO2 free energy Ultra-high efficiency and saving energy Promotion of electrification society of use of electricity in every aspect electrified transportation and heating system DE-carbonization of generation non-fossil or CCS No use of energy is non-sense. We should use sustainable energies Industrial use of energy makes production. Home use of energy leads us to happy life. New needs are foreseeable to promote DE-carbonization in various industries. PV industries successive contribution Competency of effective use of energy is crucial.

For more use of solar generation 36 What is necessary to advance use of VRE including solar? Electricity Reform Use of the interconnections Strengthen the interconnections Vitalizing of electricity market Proposal to the scheme Re-considering priority in case of curtailment New scheme to make use of RE generation after the FIT duration Smart operation Forecasting technology Fair access to the grid Solar Generation goes to new step Self consumption and local consumption Maintenance scheme for long term operation stable operation of the FIT scheme

37 Thank you for your kind attention Japan Photovoltaic Energy Association http://www.jpea.gr.jp/