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Japan’s Priorities for NRETs 2003-2004. 21 st Meeting of the Expert Group on New and Renewable Energy Technologies October 13-15, 2003 Shanghai, PRC. Mr. Yoshihiro ITOH Chief Officer International Projects Dept.

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Japan s priorities for nrets 2003 2004

Japan’s Priorities for NRETs 2003-2004

21st Meeting of the

Expert Group on

New and Renewable Energy Technologies

October 13-15, 2003

Shanghai, PRC

Mr. Yoshihiro ITOH

Chief Officer

International Projects Dept.

New Energy and Industrial Technology Development Organization (NEDO)


Japan s priorities for nrets 2003 2004

Outline

1. Japan’s New and Renewable Energy Targets

2. Policies for Development and Introduction of NRETs

3. RPS-Background, Outline, Explanation

4. ‘Biomass Nippon Strategy’

5. NEDO’s Role in Japan’s New Energy Scheme

6. Measures to Overcome Grid-Connection Obstacles

2


Japan s priorities for nrets 2003 2004

1. Japan’s New and Renewable Energy Targets

Energy Sources

FY 2001Results

FY 2010 Target on New Energy Introduction (Revised)

Oil Equiv.

Installed Cap.

Oil Equiv.

Installed Cap.

1,000 x kl

MW

1,000 x kl

MW

Photovoltaic(Solar Power)

110

452

1,180

4,820

Solar Thermal

820

-

4,390

-

Wind Power

127

312

1,340

3,000

Waste Power

1,250

1,110

5,520

4,170

Waste Thermal

45

-

140

-

Biomass Generation

48

71

340

330

Biomass Thermal

-

-

670

-

Black Liquor, Waste Wood, etc.

4,460

-

4,940

-

Unused Energy(Including Cooling by Snow & Ice)

44

-

580

-

New Energy Total

(Ratio of total primary energy supply)

6,900

(about 1.2%)

-

19,100

(about 3%)

-

Total primary energy supply (in million kl)

588 Mkl

-

about 602 Mkl

-

3


Japan s priorities for nrets 2003 2004

2. Policies for Development and Introduction of NRETs

Fiscal year

FY1998

FY1999

FY2000

FY2001

FY2002

FY2003

Budget (in 100 million \)

748

875

925

1,105

1,449

1,568

(in million US$)

598

700

740

884

1,159

1,254

※US$1 = \125

Ⅰ.Technological Development

Ⅱ.Demonstrative Testing

  • (Budget for FY2003:

  • about \43.4 billion ≒ US$347 million)

  • Fundamental investigation

  • Development for practical application

  • (Budget for FY2003:

  • about \18.8 billion ≒ US$150 million)

  • Field test

  • Demonstrative research

Ⅲ. Introduction Promotion (full utilization of market mechanism)

  • (Budget for FY2003: about \94.6 billion ≒ US$757 million)

  • Creation of initial demand for inducing market independency

  • Creation of environment suitable for introducing leading-edge new energy systems

  • Financial support (Tax system, Fiscal investment and Loans)

  • The Green Purchase Law

  • Enlightenment and public information activities

  • New market development mechanism ~RPS (Renewable Portfolio Standard) ←Additional Measure

4


Japan s priorities for nrets 2003 2004

3-1. Background on the Introduction of RPS

【Considerations】

- Certain effectiveness of new measure

- Wide choice of sources for electric power company

- Incentive for cost reduction

- Maintenance of free competition in the energy market

- Effect of financial burden on government, etc.

Background

  • Difficulty in achieving the new 2010 target with only current measures.

  • To promote power generation by renewable energy, legislation in US, Europe, etc., had already been introduced/enacted for various systems.

Necessity of studying the introduction of a new system adapted for Japan.

Conclusion

Japanese government decided to introduce a new measure making use of the market mechanism -Renewable Portfolio Standard (RPS)-.

Establishment of the Law Concerningthe Use of New Energy by Electric Utilities (June 2002)

5


Japan s priorities for nrets 2003 2004

3-2. System Outline--Law Concerning the Use of New Energy by Electric Utilities

Dec. 2002

National Government

Apr. 2003

Accreditation of facilities for

New Energy power generation

Requiring use of a certain amount

of electricity by New Energy

Electricity Retailer (A)

(certificate trading)

Electricity Retailer (B)

New Energy Generator

Electricity supply

by New Energy

Solar

Wind

Biomass

Small/Medium Hydro (to 1 MW)

Geothermal

Electricity supply

Consumers

The target for 2010 is 12.2 TWh,

which would comprise 1.35% of national electric supply.

6


Japan s priorities for nrets 2003 2004

3-3. Basic Explanation of the RPS System

The national government obliges each electric power company to use a certain amount of electricity arising from New Energy, according to its sales of electricity.

An electric power company can select the most advantageous way among the following to carry out its obligation;

a) generating by oneself

b) purchasing from others

c) causing other electric company to subrogate the obligation

The national government verifies electric power companies’ use of electricity arising from New Energy each fiscal year.

7


Japan s priorities for nrets 2003 2004

4-1. Biomass Nippon Strategy

Background

1. Prevention of Global Warming--carbon-neutral energy source; mitigate CO2 emissions--

2. Creation of a ‘Recycling-Oriented Society’--more effective use of finite resources--

3. Fostering of New and Competitive Strategic Industries--trailblazing business model to revive industrial competitiveness--

4. Activation of Agriculture, Forestry, Fishery Industries and the Associated Rural Communities--effective use of abundant biomass in farm villages--

[http://www.maff.go.jp/biomass/eng/biomass_honbun.htm]

8


Japan s priorities for nrets 2003 2004

4-2. Biomass Nippon Strategy

Biomass Production

Recycling-Oriented Society

(based on regional factors)

Biomass Utilization

Biomass Collection

Biomass Transformation

Global approach

National perception

Specific Targets

9


Japan s priorities for nrets 2003 2004

4-3. Biomass Nippon Strategy

GOALS

1) Evolutionary Direction

Today—Waste Biomass

ca. 2010—Unused Biomass

ca. 2020—Energy Crops

ca. 2050—New Crops

2) Developmental Direction

Construction of a Biomass Refinery

Cascaded Utilization of Biomass

Specific goals to be established, e.g. energy conversion efficiency, cost target of process equipment/systems, clear target level of biomass utilization….

10


Japan s priorities for nrets 2003 2004

4-4. Biomass Nippon Strategy

  • Promotion of Biomass Utilization

  • Establishment of: Biomass Information Headquarters (information clearinghouse) and ‘Biomass Nippon Comprehensive Strategy Promotion Council’

  • Study of new legislation

  • R&D for designing a social system in which efficient utilization of biomass is encouraged; demonstrative testing

  • Comprehensive package of measures in model communities under a coordinated program headed by relevant government offices

  • Evaluation of possible merits and demerits to establishing new competitive conditions for biodiesel fuels

11


Japan s priorities for nrets 2003 2004

4-5. Biomass Nippon Strategy

  • Production-Collection-Transport

  • Formulation of an efficient collection/transportation system

  • Exploration of possible means to expand the boundaries of the recycling qualification of waste biomass which shall meet certain requirements; e.g. the biomass should not decompose so easily

  • To produce biomass efficiently by utilizing special zones for structural reform

12


Japan s priorities for nrets 2003 2004

4-6. Biomass Nippon Strategy

  • Conversion

  • Development/promotion of conversion technologies

  • Support of the establishment of a ‘model facility’

  • Exploration of means to simplify the approval procedure required for the installation of waste treatment facilities intended for handling biomass with similar properties

13


Japan s priorities for nrets 2003 2004

4-7. Biomass Nippon Strategy

  • Post-Conversion Utilization

  • Investigation of a procedure to be applied to biomass-derived plastic materials as specific procurement items covered by the Green Purchasing Law

  • Arrangements so that biomass power generation can be handled in the same manner as other kinds of new energy under the New Energy Law

  • Promotion of agriculture which is oriented toward environmental conservation

  • Facilitation of power supply by means of distributed power sources, including biomass power generation

  • Quality evaluation of biomass-derived automotive fuels, assessment of their safety and environmental performance, and driving tests on those fuels as well as evaluation of the merits and demerits of their introduction into Japan

14


Japan s priorities for nrets 2003 2004

5. NEDO’s Role in Japan’s New Energy Scheme

15


Japan s priorities for nrets 2003 2004

6-1. Measures to Overcome Grid-Connection Obstacles

  • Demonstrative Research on Combined Power Generation Systems (PV + Biogas)

  • Objectives

  • Early commercial application of a system that maximizes the utilization of RE to promote mass introduction

  • Establishment of an effective system on the demand side

  • Resolution of instable PV power generation

  • Demonstration of a combined system in which instable energy is transferred and utilized to produce stable, renewable energy, while stable PV energy is directly supplied to the grid

16


Japan s priorities for nrets 2003 2004

6-2. Measures to Overcome Grid-Connection Obstacles

Demonstrative Research on Combined Power Generation Systems (PV + Biogas)

Site:

Sihanoukville, Cambodia

Power Generation

PV 50kW; Biogas 60kW

17


Japan s priorities for nrets 2003 2004

6-3. Measures to Overcome Grid-Connection Obstacles

~/-

Demonstrative Research on High-Efficiency PV Power Generation Systems

Medium-Voltage Power Line

110kV/10kV

Switch

System Design

Transformer

Site:

Beijing City, PRC

Bulk PV

Amorphous PV

Total Power Generation: 180kW

18


Japan s priorities for nrets 2003 2004

6-4. Measures to Overcome Grid-Connection Obstacles

Demonstrative Research on Combined Power Generation Systems (PV + Wind + Advanced Battery)

Turbine

PV

Adv. Batt.

System Design

Mini Grid

PV Power Generation: 100kW

Wind Power Generation: 100kW

Site:

Gansu Prov., PRC

19


Japan s priorities for nrets 2003 2004

6-5. Measures to Overcome Grid-Connection Obstacles

Demonstrative Research on Combined Power Generation Systems (Water-cooled PV + DG + Advanced Battery)

Adv. Batt.

Water-cooled PV

DG

System Design

Mini Grid

Ballast Load

Site:

Xinjiang Prov., PRC

PV Power Generation: 60kW

DG Power Generation: 100kW

20


Japan s priorities for nrets 2003 2004

Thank You!!!


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