Japan s Energy Policy Agency for Natural Resources and Energy (ANRE) METI, JAPAN 1
- Contents - Japan s Energy Situation The Strategic Energy Plan of Japan Improvement of Energy Efficiency in Japan Promotion of New and Renewable Energy in Japan Innovative Energy Technology Development 2
Japan s Energy Situation 3
100millionKL<Oil Equivalent> Japan s Energy Situation (1) - Total Primary Energy Supply in Japan - 600,000 500,000 Other Hydro 1 st Oil Crisis in 1973 2 nd Oil Crisis in 1979 Gulf War in 1991 400,000 300,000 Nuclear power Natural gas Coal 200,000 100,000 Oil 77% 48% 0 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 Source: METI Comparison of structure of energy demand and supply with other industrialised countries (Year 2002) (%) Japan USA UK France Germany Italy EU Dependence on Oil 49% 39% 35% 34% 37% 51% 40% Dependence on Oil Imports 99.7% 60% 54% 98% 97% 94% 74% Dependence on Middle East 87% 23% 5% 24% 10% 30% 22% Source :IEA 4
Japan s Energy Situation (2) - Primary Energy Supply MIX in Japan - 10% 16% Fossil fuel dependence REN NUC GAS Coal LPG OIL 5 0 1973 1979 1990 1995 2000 2007
Japan s Energy Situation (3) - POWER Generation MIX in Japan - NUC P.Hydro Hydro, Geo, Renewable GAS COAL OIL 6
The Strategic Energy Plan of Japan Energy security Environmental protection Efficient supply 7
Japan s Energy Policy Energy-based economic growth Safety and public understanding Reform of energy industry and social system Energy policy Energy security Environmental protection Efficient supply - Formulating the Strategic Energy Plan of Japan (revised in June 2010) in line with the New Growth Strategy in Japan - Directing bold, concrete policy targets and specific policy measures
The Strategic Energy Plan of Japan (1) - Ambitious Targets Toward 2030 - Doubling Japan s energy self-sufficiency ratio and its selfdeveloped fossil fuel supply ratio its energy independence ratio to about 70%. Raising the zero-emissions power source ratio to about 70%. Halving CO2 emissions from the residential sector. Maintaining and enhancing energy efficiency in the industrial sector at the highest levels in the world. Maintaining or obtaining major shares of global markets for energy-related products and systems. Domestic energy-related CO2 emissions will decline by 30% or more in 2030. 9
The Strategic Energy Plan of Japan (2) - Specific Measures to Achieve Targets (Supply side) - Securing resources and enhancing supply stability Deepening strategic relationship with resource rich countries under the cooperation between the public and private sectors Support for upstream concessions with the risk money Enhancing development of domestic and overseas energy resources An independent and environment-friendly energy supply structure Expanding a feed-in tariff system Building 9 new or additional nuclear plants by 2020 and more than 14 by 2030 New coal thermal plants planned for the future to be CCS-ready The world s most advanced next-generation interactive grid network as soon as possible in the 2020s. 10
The Strategic Energy Plan of Japan (3) - Specific Measures to Achieve Targets (Demand side) - Realizing a low carbon energy demand structure (Industrial sector) World s most advanced energy efficiency through introducing the most advanced technologies Enhancing energy conservation law implementation (Households) Net-zero-energy houses available by 2020 Replacing 100% of lights with high-efficiency lights (including LED and organic EL lighting) (Offices) Net-zero-energy building in new public buildings by 2020 Enhancing support and regulatory measures (including top runner standards) to promote use of highly efficient equipment (Transportation sector) Next generation vehicles share of new vehicle sales to 50% by2020, and up 11 to 70% by 2030
The Strategic Energy Plan of Japan (4) - Specific Measures to Achieve Targets (Demand side) cntd.- Building next-generation energy and social systems Demonstration projects for smart grid and smart communities both domestically and abroad, and strategic international standardization Introducing smart meters for all users as early as possible in the 2020s Disseminating fixed fuel cells and developing a hydrogen supply infrastructure Developing and disseminating innovative energy technologies Drafting a new energy innovation technology road map Developing public-private cooperation on highly efficient and low carbon technologies Building a new mechanism to appropriately evaluate how international dissemination of Japan s technologies, products and infrastructure contributes to reducing global greenhouse gas emissions 12
Improvement of Energy Efficiency in Japan 13
Improvement of Energy Efficiency in Japan (Oil ( 石油換算キロトン converted /10 kilo 億円 ) ton/1 billion yen) 1.7 1.6 1.5 1.4 1.3 1.2 1.1 1 0.9 Japan improved the energy efficiency by 37% after the oil crises in the 1970s as a result of active activities made by both public and private sectors. Japanese primary energy supply per GDP is the lowest in the world owing to Energy 我が国の実質 use per GDP real 当たりエ GDP of Japan various energy conservation measures taken for the respective sectors. Approx. 37% Approx. 37% improvement 約 37% 改善 improvement Primary energy supply per GDP unit of each country (2007) 18 16 14 12 10 8 6 4 2 0 (Index Japan=1.0) 1.0 2.0 1.8 2.5 3.1 3.1 6.0 6.0 7.9 7.9 7.8 17.5 3.0 0.8 1965 1970 1975 1980 1985 1990 1995 2000 2005 Fiscal ( 年度 Year ) (Source) Total Energy Statistics by ANRE * Calculated according to IEA Energy Balances of OECD/Non-OECD Countries(2008edition) Index of each country making Japan 1, based on the value dividing primary energy supply by GDP. 5
8 Overall Picture of Energy Efficiency Initiatives Energy Efficiency is promoted through both regulatory and supportive measures. Industrial Commercial (Business) Commercial (Residential) Transport Measures based on Energy Conservation Law Effort obligation and judgment standards Reporting Requirements Obligations (Appointment of Energy Manager etc) Reporting Requirements Measures to encourage improvements in EE in housing Reporting Requirements Top Runner Standard (for household appliances, automobiles, etc.) Promotion of introduction of energy-efficient equipment, etc. and development of energy conservation technology (budget, taxation, policy-based financing) Supporting private business operators that invest in improving energy-efficiency Supporting the introduction of energy-efficient equipment such as high-efficient water heaters Supporting energy-efficiency diagnosis and introduction of ESCO services
Top Runner Program Fuel Efficienc y (km/l) 16 Example of Top Runner Program 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 Energy conservation standards according to Top Runner method Target products (23 products) 1. Passenger vehicles 12. Space heaters 2. Freight vehicles 13. Gas cooking appliances 3. Air-conditioners 14. Gas water heaters 4.TV sets 15. Oil water heaters 5. Video-cassette recorders 16. Electric toilet seats 6. Fluorescent lights 17. Vending machines 7. Copiers 18. Transformers 8. Computers 19. Electric rice cookers 9. Magnetic disc units 20. Microwaves 10. Electric refrigerators 21. DVD recorders 11. Electric freezers 22. Residential router 23.Layer 2 switch Top Runner Program: The concept of the program is that fuel economy standards for vehicles and energy conservation standards for electric appliances, etc. shall be set exactly the same as or higher than the best standard value of each product item currently available in the market. 14
Energy-saving Effects from Top Runner Program Equipment TV sets (CRT-based television) Improvement of energy consumption efficiency (Results) 25.7%(FY1997 FY2003) 16.4% Videocassette recorders 73.6%(FY1997 FY2003) 58.7% Air conditioners* 67.8%(FY1997 FY2004) 66.1% Electric refrigerators 55.2%(FY1998 FY2004) 30.5% Electric freezers 29.6%(FY1998 FY2004) 22.9% Improvement of energy consumption efficiency (Initial expectation) Gasoline passenger vehicles* 22.8%(FY1995 FY2005) 22.8%(FY1995 FY2010) Diesel freight vehicles* 21.7%(FY1995 FY2005) 6.5% Vending machines 37.3%(FY2000 FY2005) 33.9% Computers 99.1%(FY1997 FY2005) 83.0% Magnetic disk units 98.2%(FY1997 FY2005) 78.0% Fluorescent lights* 35.6%(FY1997 FY2005) 16.6% Energy-saving standards for equipments with marks are defined by energy consumption efficiency per unit (ex: km/l), and those for equipments without marks are defined by energy consumption quantity (ex: kwh/year). Improvements of energy consumption efficiency in the above Table are judged by standards of each equipment (ex: If 10km/h changes to 15km/h, this is 50% improvement. (It is not calculated by fuel quantity of 10 liter/100km and improved quantity of 6.7 liter/100km to say the improvement is 33%.). And if 10kWh/yr changed to 5kWh/yr, this is also 50% improvement.) 15
Promotion of New and Renewable Energy in Japan 18
Future vision for Renewable Energy deployment Increase Renewable Energy / Primary Energy Supply to 13% in 2030, depending on installation design. 700 600 500 400 300 200 100 Renewable energy, etc. Nuclear power 60 (10%) Natural gas 105 (18%) Coal 130 (22%) LPG 18 (3%) Petroleum 244 (41%) Renewable energy, etc. 67 (13%) Nuclear power 122 (24%) Natural gas 80 (16%) Coal 85 (17%) LPG 18 (3%) Petroleum 142 (28%) 0 Actual, fiscal 2007 Estimated, in 2030
(100GWh/ 年 ) Regulatory Scheme & Incentives for Promoting New and Renewable Energy Revision of Alternative Energy Act Areas to develop and promote installation : from oil alternative to non fossil New Energy Promotion Act Act for Promotion of Non-fossil Energies by Energy Suppliers energy suppliers (electric power companies, gas companies, oil companies) have to use non-fossil energies while using fossil oil efficiently RPS(Renewables Portfolio Standards)Act - electric utilities have to use electricity generated from renewable energies - the target increases until FY2014 year by year Subsidies Numerical Target of RPS Act Breakdown Result 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 2003 2004 2005 2006 2007 (Fiscal Year) Wind Power PV Hydro Biomass Others Incentives (Subsidies and Taxations) for Residence Photovoltaic 70,000 yen per kw (system under 700,000 yen) for Non-Residence All the New Energies non profit bodies etc. half of installation cost companies 1/3 of installation cost Incentives - subsidies and tax incentives for residence and non-residence Taxations Photovoltaic Tax Reduction for Home Loan and for Reform to save the energy All the New Energies 7% Tax Reduction (Small & Medium Entities) or Special Depreciation 20
Outline of the New Buyback Program for Photovoltaic Generation Major points of the buyback system Of the electricity generated by photovoltaic generation systems, surplus electricity will be purchased. The buyback period is within the 10 years from the start of the program. The buyback price is fixed. ( The buyback price may differ depending on the fiscal year in which a panel is installed. In the initial stages, it is 48/kWh for residential use [less than 10kW].) Expenses will be born by all electricity users. Surplus electricity Purchase revenue ( 48/kWh for residential use) Surplus electricity Electric Power Companies Electricity Solar surcharge (Born by all electricity users) Electricity Users Users of photovoltaic generation systems Purchase revenue ( 24/kWh for purposes other than residential use) In the initial stages after installation, 48/kWh for residential use (less than 10kW) and 24/kWh for other uses. In the case where a private electric generator is also installed, 39/kWh and 20/kWh, respectively.
Innovative Energy Technology Development 22
Demand Side Supply Side Innovative Energy Technology Development Efficiency Improvement Low carbonization Power Generation /transmission 1High-Efficiency Natural Gas Fired Power Generation 2High-Efficiency Coal Fired Power Generation 6High-Efficiency Superconducting Power Transmission 3Carbon Dioxide Capture and Storage(CCS) 4Innovative Photovoltaic power Generation 5Advanced Nuclear Power Generation Transportation 7Intelligent Transport System 8Fuel Cell Car 9Plug-in Hybrid Vehicle / Electric Vehicle 10Production of Transport Biofuel Industry 11Innovative materials, Production/Proceeding 12Innovative Iron and Steer making process Commercial 16Ultra High- Efficiency Heat pumps 13High-Efficient house & building 14Next-Generation High Efficiency Lighting 17High-Efficiency Information Device and System 15Stationary Fuel Cell 18HEMS/BEMS/Local-Level EMS Cross-Cutting 19High-Performance Power Storage 20Power Electronics 21 Hydrogen Production, Transport and Strorage 3CCS (restated) EMS:Energy Management System HEMS:House Energy Management System BEMS:Building Energy Management System 23
Budget 128 billion yen for FY 2010 Budget Request unit :100 million yen Deployment (Subsidy) Budget Request Budget Supplemental Budget for FY2010 for FY2009 for FY2009 Subsidy for Installation of Residential Photovoltaic System 412 201 220 Subsidy for Purchasing of Clean Energy Vehicle 114 43 0 Subsidy for Installation of Residential Fuel Cell Subsidy for Installation of New Energy (non-residence) 80 389 61 364 20 161 Research and Development Post-silicon Innovative Photovoltaic Cells 15 15 9 Next Generation Wind Power Technologies Bio-ethanol Production System from Celluloses Effective Transform Technologies for Biomass Energy 3 19 35 3 8 36 2 R&D for Scientific Innovation on New Generation Batteries Research on Storage Batteries with Various Appliances R&D for Practical Use of Polymer Electrolyte Fuel Cell 30 64 51 30 Advanced Research on Materials for Storage of Hydrogen 9 10 3 24