The Federation of Electric Power Companies (FEPC)

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1 The Federation of Electric Power Companies (FEPC)

2 Past Efforts Achievements since the oil crises of the 197s Although Japan s electric power consumption has tripled since the first oil crisis of the 197s, emissions of CO2 have merely doubled. This means a reduction in CO2 emissions intensity (that is, CO2 emissions per kwh of user end) of about two-thirds of the previous figure. This improvement is largely the result of expanded use of nuclear power and liquefied natural gas (), as well as the enhanced efficiency of thermal power generation. Environmental Action Plan of the Japanese electric utility industry The Japanese electric utility industry announced its Environmental Action Plan, affecting twelve electric power companies*, in November 1996 to build on its voluntary and proactive efforts to mitigate climate change. The group follows up the Environmental Action Plan annually to ensure transparency and target achievement. *The twelve affected electric power-related companies include ten members of the Federation of Electric Power Companies (Hokkaido Electric Power Co., Tohoku Electric Power Co., Tokyo Electric Power Co., Chubu Electric Power Co., Hokuriku Electric Power Co., Kansai Electric Power Co., Chugoku Electric Power Co., Shikoku Electric Power Co., Kyushu Electric Power Co. and Okinawa Electric Power Co.) as well as Electric Power Development Co. and Japan Atomic Power Co. The electric power utility industry has achieved about two-thirds reduction of the previous figure in intensity of CO2 emissions since the first oil crisis. CO2 Emissions from Electric Utility Industry 1, CO2 Emissions (million tons) Electric Power Consumption (billion kwh) Power Generation (billion kwh) Electric Power Consumption CO2 Emissions CO2 Emissions Intensity (user end) Power Generation CO2 Emissions Intensity (user end) (kg-co2/kwh) Fiscal Year 2

3 Results of fiscal 22 efforts to reduce CO2 emissions Electric power consumption stood at approximately 841 billion kwh in fiscal 22, a roughly 17 billion kwh increase (2.1%) from the fiscal 21 level. At the same time, CO2 emissions in fiscal 22 stood at 342 million tons of CO2, a 3 million ton CO2 increase (9.7%) from the fiscal 21 level. As a result, CO2 emissions intensity for fiscal 22 was.47kg-co2/kwh, an increase (7.4%) over the fiscal 21 figure of.28 kg-co2/kwh. Note that electric power consumption is 28% higher than in fiscal 199 (an annual average increase of 2.1%), and in that period, CO2 emissions increased 24%. The result is a 3% reduction (.14 kg-co2/kwh) in CO2 emissions intensity. CO2 Reduction through Use of Non-Fossil and Other Energy Sources The result of reducing CO2 emissions through the use of nuclear power, liquid natural gas, and hydroelectric power is provisionally estimated at 373 million tons of CO2. This is a reduction effect equal to or greater than actual CO2 emissions for fiscal 22. The emissions savings from the use of nuclear power are especially significant: 225 million tons of CO2. This corresponds to 19% of CO2 emissions in Japan (1,214 million tons of CO2) for fiscal 21. The result of reducing CO2 emissions through the use of liquid natural gas is provisionally estimated at 86 million tons of CO2. CO2 Emissions and Reduction of Potential CO2 Emissions in fiscal 22 (preliminary calculation by FEPC) 715 CO2 emissions when it is assumed that the percentage of electricity generated by nuclear power, liquid natural gas, hydroelectric power, new energy sources, and geothermal power is substituted for thermal generation (except for liquid natural gas). CO2 emissions (million tons of CO2) Amount of reduction in emissions 373 Reduction through use of nonfossil and other energy sources New energy Geothermal 3 (.8%) 3 (.8%) Hydroelectric 56 (15.%) 342 Actual figures for CO2 emissions in fiscal 22 Reduction through use of non-fossil and other energy sources 86 (23.1%) 225 (6.3%) 3

4 Efforts to Achieve Target By fiscal 21, we aim to further reduce CO2 emissions intensity (emissions per unit of user end electricity) by approximately 2% from the fiscal 199 level, to about.34 kg-co2/kwh. The increase in CO2 emissions will be limited to about 12% even as power consumption rises by 4%. Power consumption 1.4 times the fiscal 199 level CO2 emissions intensity = (per unit of user end electricity) 2% reduction from fiscal 199 Summary of CO2 emissions reduction measures Supply Side Demand Side Increased use of non-fossil energy sources Efficiency improvement of electric power plants Energy conservation Load-leveling CO2 emissions 1.12 times the fiscal 199 level Expanded introduction of nuclear and thermal power generation sources and increased use of nuclear power Development and application of natural energy sources (Hydroelectric, geothermal, solar, wind power generation) Efficiency improvement of thermal power generation (Combined cycle power generation and high-efficiency coal thermal power generation) Reduction of transmission and distribution loss (High-voltage transmission) PR activities aimed at energy conservation Development and application of highly efficient energysaving appliances (Regenerative and other heat pumps) Enhanced utilization of untapped energy sources (Heat recovery from river water, waste incineration facilities and substations) Promotion of load-level management through the use of regenerative systems (Regenerative heat pumps) Although the electric utility industry continues to take measures on both the supply and demand sides to achieve its CO2 emissions reduction target, the outlook for meeting the Environmental Action Plan target has become more difficult because of the prolonged process for siting nuclear plants. Despite this adverse business climate, the industry is dedicated to meeting its targets by more closely examining the efforts it should make. Efforts that are seen as particularly critical include: Stepping up the promotion of nuclear power Future increase in the efficiency of thermal power, and reviewing thermal power plant operating methods Approaches based on Kyoto Mechanisms, etc. 4

5 power for lower CO2 emission power is the preferred option to mitigate climate change as it emits significantly less CO2 over the entire lifecycle of a plant, including plant construction, operation and disposal. Lifecycle Assessment of CO2 Emissions Intensity for Japan s Energy Sources 1.2 CO2 Emissions intensity (kg-co2/kwh) Power plant (Source: the Report of the Central Research Institute of Electric Power Industry) Coal Oil combined Combustion Facility/Operation Solar Wind Geothermal Hydroelectric * Based on total CO2 emissions from all energy consumed in energy extraction, plant construction, transportation, refining, plant operation and maintenance, etc., in addition to burning of the fuel. power as core of best energy mix power offers supply stability that is superior to other forms of energy. It also has economic and environmental advantages, and together these make it indispensable for maintaining energy security on a long-term basis. power accounted for more than one-third of the electricity generated in Japan for fiscal 22. Power Generation (billion kwh) 1,2 1, (Research by FEPC) Breakdown of Power Generation by Energy Source Thermal Hydroelectric, etc. 6.8% 11.9% 27.3% 55.9% 9.9% 34.3% 55.6% 9.8% 34.6% 59.4% 9.4% 31.2% 53.1% 1.5% 36.4% 5.7% 1.% 39.4% Fiscal year Results Estimates * Figures do not add up to 1% for some fiscal years due to the rounding up of numerical data. 5

6 Efforts to Achieve Target Make thermal power plants and substations more efficient By developing and introducing advanced combined-cycle (ACC) power generation, which combines steam and gas turbines, we aim to improve the gross efficiency of thermal power plants to more than 52% (high heat value). High-efficiency coal-fired thermal power generation technologies, such as pressurized fluidbed boiled combined cycle (PFBC) and integrated coal gasification combined cycle (IGCC), are being developed. We work to reduce transmission and distribution losses, as well as undertake research and development on large-capacity transmission, such as ultrahigh-voltage transmission lines of one million volts. Thermal Efficiency and Transmission/Distribution Losses % Gross thermal efficiency (maximum designed value) ('97) ('98) Gross thermal efficiency (actual average) 5. ('99) 52.8 (27) Transmission and distribution loss rate Fiscal Year (Research by FEPC) Working to increase the use of natural energy sources Power generation from natural energy sources, such as solar and wind power, does not emit CO2 and is therefore viewed as an effective means of mitigating climate change. However, natural energy sources have low power density, are easily influenced by weather and require high initial costs. Issues remain in connection with windpower, such as the need to set up systematic links, so we have to move toward solving these problems as well. Electric utilities are performing the R&D to solve these problems and also working to enhance the use of natural energy sources, such as by purchasing surplus power. 6

7 Present status of natural energy sources in the electric utility industry (end of 22) Type Capacity (kw) Solar power generation Approx. 4,511 Wind power generation Approx. 17,761 The industry is promoting the use of natural energy sources by offering our customers the chance to buy surplus power from solar or other natural energy sources at cost, and by newly offering the Green Electric Power System, wherein customers, power generators and power companies work together to advance power from natural sources. Tappi Wind Park, Tohoku Electric Power Co. Approaching CO2 reduction activities through international cooperation The Japanese electric power industry promotes promising projects for reducing CO2 emissions as called for by the Kyoto Mechanisms, as well as joint research through international cooperation. Major projects are shown in the table below. Examples of CO2 Reduction and Absorption by Electric Utilities Overseas Project Upgrading thermal efficiency by improving operational levels of an existing thermal power plant in Thailand Technical cooperation in China to improve thermal efficiency of an existing thermal power plants Installing solar power systems and small-scale hydroelectric power systems in Indonesia Joint development of tropical forest regenerating technology with Gadjah Mada University in Indonesia Development of afforestation technology for reviving mangrove ecosystems by the Thai Office of Marine and Coastal Resources Afforestation business projects in Australia Joint research on afforestation in Australia Participation in the World Bank Prototype Carbon Fund and the European Bank for Reconstruction and Development (EBRD) Fund Outline Project implemented to improve/recover the thermal efficiency of an existing thermal power plant in cooperation with The Electricity Generation Association of Thailand (EGAT) Project to improve the thermal efficiency of an existing thermal power plant of the electric company, Zhongguo Shandong Dianli Cooperative project with the government for local electrification and utilization of renewable energy in Indonesia by installing solar power generation systems and small-scale hydroelectric power systems Joint research project on technologies based on the symbiotic relationship between lauan trees and mycorrhizal fungi that are applicable to large-scale afforestation Experimental afforestation project in damaged mangrove forests (such as former sites of shrimp-raising ponds), seeking to restore these potentially effective carbon sinks Afforestation projects designed to preserve the world s forest resources and fix atmospheric CO2 Afforestation experiment that examines environmental planting on coal mine sites Afforestation experiment to improve the soil with gypsum from the desulfurization process of coal-fired thermal power plants The Prototype Carbon Fund established and operated by the World Bank and other institutions designed to provide accommodate for and invest in projects to reduce greenhouse gases in developing countries World Bank Carbon Fund (PCF) World Bank Community Development Carbon Fund (CDCF) Eastern Europe Energy Efficiency Reserve Fund (EEERF) 7

8 Power Supply Concept Electric power companies strive to maintain a proper balance among power sources in consideration of stabilizing fuel supplies and the economies, and develop power sources and supply power in the face of future fluctuations in power demand. billion kwh 1,2 1, New energy 2.9 Trends in Total Power Generation Oil etc Coal Hydroelectric Fiscal 21 Results Fiscal 22 Results Fiscal 27 Estimates Fiscal 212 Estimates Based on the Outline of Fiscal 22 Power Supply Plans (Agency of Natural Resources and Energy) Concept of CO2 Reduction by Cutting Total Customer Power Consumption General electricity utilities supply customers with the best ration of hydroelectric, thermal and nuclear power resources. Accordingly, the following form represents the appropriate formula to use in calculating the overall reduction of CO2 emissions when efforts to save energy on the part of users cut total power consumption. New energy Oil etc. Coal Hydroelectric Power generation Supply Best Ration of Power Resources Total power consumption in previous fiscal year Total power consumption in current fiscal year Overall reduction in power consumption Average CO2 emissions intensity for all power sources (.47 kg-co2/kwh at user end in fiscal 22) = [total CO2 emitted in generation of electricity supplied by general electricity utilities (kg-co2)] [total electricity supplied by general electricity utilities (kwh)] Total reduction in CO2 emissions (kg-co2) = [total CO2 emissions in previous fiscal year] [total CO2 emissions in current fiscal year] = [total power used in previous fiscal year] [CO2 emissions intensity for all power sources in previous fiscal year] [total power used in current fiscal year] [CO2 emissions intensity for all power sources in current fiscal year] The Federation of Electric Power Companies of Japan Keidanren Bldg Otemachi, Chiyoda-ku, Tokyo , Japan TEL website: Printed on recycled paper with soy ink

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