Renewable Energy

APEC Workshop on Renewable Energy Promotion and Pricing Mechanism,
Taipei, Chinese Taipei
The Renewable Energy Development and
Related Promotion and Pricing
Mechanism in Japan
September 26, 2013
Takao Ikeda
The Institute of Energy
Economics, Japan (IEEJ)
Generation Mix
1
Generation Mix Trend in Japan
§ LNG mainly compensates for the decline of nuclear after 2011
(Source) METI
2
Current Generation Mix in Japan


Among the total electricity generated in fiscal 2010, renewable energy, etc. accounted for
approximately 10%; approximately 9% of which is hydraulic power generation.
Other renewable energy is still cost prohibitive.
Composition of annual electricity generated in Japan
FY 2010
FY 2011
Renewable
energy
excluding
hydropower
Hydropower
Coal
Petroleum
Approx. 24%
Approx.
8%
Hydropower
Approx. 9%
Natural gas
Approx.
27%
Nuclear power
Natural gas
Approx. 9%
Approx
10.7％
Approx. 1%
Renewable
energy
excluding
hydropower
Approx.
31%
Approx. 1.4%
Approx
39.5％
Approx.
14.4%
Petroleum
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
3 in FY 2010”
3
Promotion and Pricing Mechanism
of New and Renewable Energy
4
Major laws and strategies for Renewable Energy in Japan #1
1. Sunshine Project (1974)
Long-term national project for new energy technology research and development in
Japan launched in July 1974.
In 1993, Sunshine project was renewed as the New Sunshine Project consolidated with
Moonlight Project ( Energy Efficiency) and other environmental project. The project has
finished in 2000.
2. Law Concerning Promotion of the Development and
Introduction of Alternative Energy (1980）
Known as “Oil Alternative Energy Law”. Oil Alternative Energy were developed and
introduced for (1)Combustion, (2)heat, (3)energy, and (4)electricity which are generated
from other than oil products. In 2009, oil alternative law was renewed as “NonFossil Energy
Law”. In this law, energy suppliers (Electricity/Gas/Oil companies) have to use non-fossil
energies while using fossil oil efficiently.
3. Law Concerning Special Measures to Promote the Use of
New Energy (1997)
Known as “New Energy Law”. New Energy is energy which are not price-competitive
among Oil Alternative Energy. Hydropower and Geo-thermal power are not included
because of their price-competitiveness.
（http://www.japaneselawtranslation.go.jp/law/detail/?ft=1&re=02&dn=1&co=01&ky=%E6%96%B0%E3%82%A8%E3%83%8D%E3%83%AB%E3%82%AE%E
3%83%BC&page=3）
5
Revision of “New Energy”
Innovative High-level
Energy Utilization Technology
Oil
Alternative Energy
Coal
Large Hydropower
Small Hydropower
Geothermal(binary)
Photovoltaic Power
Natural Gas
Renewable Energy
New Energy
(Black Liquor)
(Scrap Wood)
Biomass Thermal
Unutilized Energy
(Temperature
Deference Energy)
Biofuels
(Energy Crops)
Natural Energy
PV（High Efficiency, New Materials）,
Battery for PV and Wind in parallel
including capacitor, Ethanol Production
Technology from lignocellulosic
biomass,
BTL （Biomass to Liquid） Production
Technology, Gasification Power
Generation from Biogas
Rapid Advancement of Energy
Efficiency
Biomass Power
Solar Thermal
Unutilized Energy
(Snow Ice)
Geothermal
Biomass
Wind Power
Ocean Energy
Nuclear Power
Development of Renewable Energy
Recycling Energy
Waste Power
Waste-based Fuels (RDF)
Waste Thermal
Stationary Fuel Cell, Hybrid Auto, Natural
Gas Cogeneration, Heat Pump, Oil
Residue Gasification Technology (IGCC,
IGFC, etc), Clean Coal Technology
Diversification of Energy Source
Fuel Cell Vehicle, Electric Vehicle,
Plug-in Hybrid Vehicle, CNG Vehicle,
Diesel-substitute LP gas Vehicle,
Hydrogen Vehicle, High Concentration
Bio Fuel Vehicle, GTL Production
Technology, DME Production
Technology, Non-traditional Fossil
Fuel Usage Technology (Methane
Hydrate, Oil Sand, etc)
(Source) Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry (METI), Japan (modified by IEEJ)
6
Major laws and strategies for Renewable Energy in Japan #2
4. Special Measures Law Concerning the Use of New Energy by
Electric Utilities (2002)
Known as RPS (Renewable Portfolio Standard) Law. In this law, the amount usage of
renewable energy goals were established with 5 kinds of electricity (wind, solar, small
hydropower, biomass power generation , binary geothermal).
（http://www.rps.go.jp/RPS/new-contents/top/toplink-english.html）
5. Biomass Nippon Strategy (2002/2006)
Comprehensive strategy of utilization of biomass set by Ministry of Agriculture, Forestry
and Fisheries in cooperation with Ministry of Economy, Trade and Industry, the Ministry of
the Environment, and Ministry of Land, Infrastructure, Transport and Tourism etc.
6. New National Energy Strategy (2006)
National energy strategy for 2030. Regarding renewable Energy, (1) promoting
innovation in new energy technologies (achievement of PV power cost reduction
comparable to thermal power generation etc.), (2) introducing 20% alternative energy in
transportation sector etc.
7. Special Measures Law Concerning the Purchase of
Renewable Energy Electricity by Electric Utilities (2011)
Known as FIT (Feed in Tariff) Law, which will start from July, 2012. In this law, the
purchasing price and its duration will be determined separately.
7
Outline
2003
RPS (Renewable Portfolio Standard)
wind, solar, small hydropower, biomass power generation , binary geothermal
8-year target set by every 4 years
2009 Nov
Buyback surplus PV electricity from residence
Developed from Utilities’ voluntary Net metering system
2011 Aug
Passage of FIT Law
Proposal from the Advisory Committee
2012 Apr
Proposal from Advisory committee for the purchasing rate and the duration
2012 May
Public Comment
From May 16 to June 1
2012 Jul
Commencement of FIT
Start from July 1
FY 2013
Revision of PV tariff
Based on the PV system price decline
8
Renewable Energy Purchased by Utilities under RPS
(TWh)
0.0
2003
2.0
4.0
Hydro
Wind
6.0
8.0
10.0
12.0
Commencement of RPS
Biomass
PV
2004
Wind
Hydro
Biomass
PV
2005
Wind
Hydro
Biomass
PV
2006
Hydro
Wind
Biomass
PV
2007
Wind
Biomass
Hydro
PV
2008
Hydro
Wind
Biomass
PV under
Buyback
PV
2009
Wind
Hydro
Buyback System for surplus PV
electricity from residence
Biomass
PV
2010
Wind
Hydro
Biomass
PV
PV under
Buyback
Source: METI
9
Buyback System started from Nov 2009(1)
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.
(\48/kWh for residential use)
as of Nov. 2009
Surplus electricity
Users of photovoltaic generation
systems
Electricity
Solar surcharge
(Born by all electricity
users)
Electricity Users
Purchase revenue
Electric Power
Companies
Surplus electricity
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.
10
Buyback System started from Nov 2009(2)
November 2009
- March 2011
April 2011
-March 2012 (FY2011)
Continued until April 2013
(FY2012)
Residential Use
Under 10kW
48 JPY/kWh
(39 JPY/kWh)
42 JPY/kWh
(34 JPY/kWh)
Non Residential Use
and Residential Use
Over 10kW
24 JPY/kWh
(20 JPY/kWh)
40 JPY/kWh
(32 JPY/kWh)
*Rate increased because of
finishing subsidy
Rate inside the brackets are for the houses/ facilities using private
generation system (photovoltaic generation plus fuel cells, etc.)
Buybacks rate will be decide each year and the rate continues for 10
years after the start of the program.
11
FIT Basic Scheme (Started From July 2012)
Power producers
utilizing renewable
energy
Electricity from
Renewable Source
Supply Electricity
Utilities
PV
Middle &
Small Hydro
Wind
Purchase
Electricity
Fund for Purchasing
Electricity from
Renewable Energy
Collecting Surcharge
rate for FIT
Payment of
With ordinary
collecting amount
electricity rate
of surcharge
Organization for adjusting the
surcharge by different region
Customers
Biomass
Geothermal
Decide the tariff rate every fiscal
year with respect for the opinion
from advisory committee for
purchasing price
Minister
Economy, Trade and Industry
Power from PV at houses
Approving power
generation facilities
Advice of Rate and Duration
Advisory committee for
purchasing price etc
Source: METI
Decide Surcharge
rate for FIT every
fiscal year
Major Revision from RPS to FIT
RPS
(PV: Buyback)
Feed in Tariff
PV
Under about 500kW
No Limitation by Capacity
Wind
-
-
Hydro
Under 1MW
Under 30MW
Geothermal
Only Binary Cycle power plant
No Limitation
(Including Flash Steam Plant)
Biomass
No category
Differentiate the purchase rate by category
Source: METI
13
Electricity Cost Estimation in Japan
2010
2020
2030
(Japanese Yen/kWh)
Source: National Policy Unit, Cabinet Secretariat
http://www.npu.go.jp/policy/policy09/archive02_shisan_sheet.html
14
Feed in Tariff started from July 2012
FY 2013; PV 10kW >=: \37.8(36.0+Tax)/kWh, 10kW< \38.0/kWh (Incl. Tax)
Source: METI
15
Deployment in FY2012 and FY2013(April and May)
Major part of deployment under FIT is PV due to the development Terms
(MW)
Cummulative Deployment Start operation from
Volume as of March 2011 April 2012 to March
(Approxmate)
2013
Start operation
from April to May
2013
Development
Term
PV (Residential)
4,400
1,269
(Apr-Jun: 300)
279
2-3months
PV (Non Residential)
900
706
(Apr-Jun: 2)
961
1 Year
Wind
2,600
63
(Apr-Jun: 0)
2
4-5 Yrs
Middle and Small Hydro
(More than 1MW)
9,400
1
(Apr-Jun: 1)
0
2-3Yrs
Middle and Small Hydro
(Less than 1MW)
200
3
(Apr-Jun: 1)
0
2-3Yrs
Biomass
2,300
36
(Apr-Jun: 6)
38
3-4Yrs
Geothermal
500
1
(Apr-Jun: 0)
0
9-13Yrs
Source: METI
16
PV System cost revison (residential use)
FIT for PV residential sect which is started from July 2012 was based on the PV System cost of JPY(10
thousand) 46.6 / kW in 1st Q 2012.
Revised FIT for residential PV for FY 2013 should be based on the latest (4th Qtr) cost which is JPY(10
thousand) 42.7 / kW.
About JPY(10 thousand) 4 / kW has dropped
(10thousand
JPY/kW)
Already
Build
Total Ave.
Newly Build
System cost for
FY2012 tariff
Latest System cost
for FY2013 tariff
Source: METI
Oct-Dec,
2011
Jan-Mar,
2012
Apr-Jun,
2012
Jul-Sep,
2012
Oct-Dec,
2012
Jan-Mar,
2013
Apr-Jun,
2013
National Government Subsidy for Residential PV system
Fiscal Year
Subsidy
(10Thousand JPY/kW)
Condition
(10Thousand JPY/kW)
Buy BackTariff
(JPY/kWh)
2010
2011
2012
70
48
35
650
600
475
48
42
42
2013
20
410
38
17
Development in the Future
18
Geothermal Power Plants (Japan)
M oriG eotherm alP lant
(H okkaido Electric P ow er C o.,Inc.D onan
G eotherm alEnergy C o.,Ltd.)
O num a G eotherm alP lant
(M itsubishiM aterials C orporation)
Sum ikaw a G eotherm alP lant
(Tohoku Electric P ow er C o.,Inc.
and M itsubishiM aterials C orporation)
U enotaiG eotherm alP lant
(Tohoku Electric P ow er C o.,Inc.
and A kita G eotherm alEnergy C o.,Ltd.)
M atsukaw a G eotherm alP lant
(Japan M etals & C hem icals C o.,Ltd.)
Kakkonda G eotherm alP lant,U nit 1
(Tohoku Electric P ow er C o.,Inc.and Japan M etals & C hem icals C o.,Ltd.)
Kakkonda G eotherm alP lant,U nit 2
(Tohoku Electric P ow er C o.,Inc.and Tohoku G eotherm alEnergy C o.,Ltd.)
H acchobaru G eotherm alP lant,
U nit 1 and U nit 2
(Kyushu Electric P ow er C o.,Inc.)
SuginoiG eotherm alP lant
(SuginoiH otel)
O take G eotherm alP lant
(Kyushu Electric P ow er C o.,Inc.)
Takigam iG eotherm alP lant
(Kyushu Electric P ow er C o.,Inc.
and Idem itsu O ita G eotherm alC o.,Ltd.)
O nikobe G eotherm alP lant
(Electric P ow er D evelopm ent C o.,Ltd.)
Yanaizu-N ishiyam a G eotherm alP lant
(Tohoku Electric P ow er C o.,Inc.and O kuaizu G eotherm alC o.,Ltd.)
H achijojim a G eotherm alP lant
(Tokyo Electric P ow er C o.,Inc.)
Kokonoe G eotherm alP lant
(Kokonoe Kanko H otel)
Takenoyu G eotherm alP lant
(H irose Trading C o.,Ltd.)
Yam agaw a G eotherm alP lant
(Kyushu Electric P ow er C o.,Inc.and
Japex G eotherm alKyushu C o.,Ltd.)
O giriG eotherm alP lant
(Kyushu Electric P ow er C o.,
Inc.and N ittetsu Kagoshim a
G eotherm alC o.,Ltd.)
Kirishim a KokusaiH otelG eotherm alP lant
(D aiw abo Kanko C o.,Ltd.)
(Source) Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry (METI), Japan
19
Governmental support measures FY 2012 budget
Choice of Energy Options:Issued on June 2012
The geothermal amount of introduction is made into 3% of the total electric power production (27,200
millions kwh) at the maximum in 2030. ※2010 track record: 0.2% (2,600 millions kwh)
Geological survey
Exploration (drilling of
exploration wells, etc.)
Construction stage
Investment
Loan guarantee
Installation of power
generation facilities
Risk
Subsidy
[Targets] Cost of test drilling, etc.
including geological surveys.
[Targets] Cost of drilling
exploration wells to check
whether a sufficient volume of
steam can be stably extracted
from heat sources.
[Targets] Cost of drilling
wells necessary for
power generation
Budget: \9.05 billion
Subsidy ratio: 50% to 75%
Budget : \5 billion
Investment ratio: 50%
Budget: \1 billion
Loan guarantee ratio:
80%
Feed-in tariff
scheme
Electric utilities
purchase electricity
generated from
renewable sources
including geothermal
at the procurement price
and for the procurement
period.
20
Regulations on geothermal development
１．Natural Park Act
Geological surveys and drillings for geothermal energy in national parks are restricted according to the protection
zones.
２．Hot Spring Act
Drilling in pursuit of hot springs (hot water, mineral water, steam and other gas from underground) requires a
permission of the prefectural governor.
３．Forest Law
Cutting down protected forests for constructing a base for drilling or a power generation plant requires delisting
from protected status. Delisting requires a proven necessity for the public interest.
４． Act on Special Measures concerning Reform of National Forest Business Management
Constructing a base for drilling or a power generation plant in a national forest requires loaning. A national forest
can be used for public use or within 5ha in area, otherwise it cannot be used.
５． The Environmental Impact Assessment Law
Constructing a power generation plant with output of 10,000kW or over requires EIA.
When constructing a power generation plant with an output of 7,500kW-10,000kW, the necessity of EIA is judged
by project.
６． Electric Utilities Industry Law
Power facilities requires placing chief engineers in charge of supervision of safety matters of construction work,
21
maintenance and operation of the power facilities.
Offshore Wind demonstration project
Offshore of Fukushima Pref.
METI
2MW class Floating offshore wind turbine and
2 set of 7 MW class floating wind turbine
Floating substation from FY2013
Wind Resource
Wind Speed
Offshore of Goto, Nagasaki Pref.(2.4MW)
MOE
100KW class floating wind
turbine from FY2012
2MW class floating Wind
from FY2013
Offshore of Choshi, Chiba Pref.(2.4MW)
/Offshore of Kitakyushu, Fukuoka Pref (2.0MW)
METI (NEDO)
2MW class wind turbine
Wind observatory tower
demonstration projects
started from FY2012
22
Renewable Energy Deployment Potential in Japan -19%
23
Grid Framework in Japan
Hokkaido
Direct current
power
transmission
Tohoku
Hokuri
ku
Tokyo
Kansai
Kyushu
Shikoku
Chubu
Frequency
converter station
Direct current power
transmission
24
Solar and Wind Power Deployment Potential in Japan
25
Large Battery Demonstration Projects
Large Battery Demonstration Projects for Grid Stabilization
Hokkaido Electric Company
Type of Battery
Capacity
Project Objective
Tohoku Electric Company
Redox Flow battery
40MW
Lithium-ion Battery
20MW
Surplus Electricity from
Wind power
Frequency Fluctuation
Chubu Electric Company
Kansai Electric Company
NAS Battery
6MW
Grid Stabilization from PV
(Surplus Elec. & Frequency
Fluctuation)
R&D Target : Cost reduction of batteries as same level as Pumped Hydro in 2020
Redox Flow Battery
Lithium-ion Battery
NAS Battery
26
Demonstration Project on Next-generation Energy and Social
Systems in Japan (FY 2010-FY2014)
Large-scale and cutting-edge pilot projects have been launched in 4 areas.
The outcomes to be accumulated through the projects will be utilized to
create smart communities and smart cities in Asia and other countries.
Kyoto Keihanna District
Yokohama City
Kitakyushu City
Demonstration in industrial
city
Demonstration using new
technologies in science city
Large-scale demonstration in
major city
Toyota City
Community-based
demonstration in provincial
city
27
Information of Smart Community Projects
http://jscp.nepc.or.jp/en/
http://jscp.nepc.or.jp/en/video.shtml
28
Thank you
for your attention!
29

Download Report