the renewable energy development and related promotion and pricing mechanism in japan n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
The Renewable Energy Development and Related Promotion and Pricing Mechanism in Japan PowerPoint Presentation
Download Presentation
The Renewable Energy Development and Related Promotion and Pricing Mechanism in Japan

Loading in 2 Seconds...

play fullscreen
1 / 30

The Renewable Energy Development and Related Promotion and Pricing Mechanism in Japan - PowerPoint PPT Presentation


  • 140 Views
  • Uploaded on

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.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'The Renewable Energy Development and Related Promotion and Pricing Mechanism in Japan' - kalila


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
the renewable energy development and related promotion and pricing mechanism in japan

APEC Workshop on Renewable Energy Promotion and Pricing Mechanism,

Taipei, Chinese Taipei

The Renewable Energy Development and Related Promotion and PricingMechanism in Japan

September 26, 2013

Takao Ikeda

The Institute of Energy Economics, Japan (IEEJ)

slide3

Generation Mix Trend in Japan

  • LNG mainly compensates for the decline of nuclearafter 2011

(Source) METI

2

slide4

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

Coal

Petroleum

Approx. 8%

Approx. 24%

Hydropower

Approx. 1%

Approx. 9%

Renewable energy excluding hydropower

Approx

39.5%

Approx. 27%

Natural gas

Approx. 31%

Nuclear power

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 in FY 2010”

3

slide5

Promotion and Pricing Mechanism

  • of New and Renewable Energy

4

slide6

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%E3%83%BC&page=3)

5

slide7

Oil

Alternative Energy

Coal

Natural Gas

Nuclear Power

Renewable Energy

Large Hydropower

New Energy

Small Hydropower

Geothermal(binary)

Biomass

Photovoltaic Power

Biomass Power

Wind Power

(Black Liquor)

(Scrap Wood)

Unutilized Energy

(Temperature

Deference Energy)

Solar Thermal

Biomass Thermal

Unutilized Energy

(Snow Ice)

Biofuels

Ocean Energy

(Energy Crops)

Natural Energy

Recycling Energy

Waste Power

Waste-based Fuels (RDF)

Waste Thermal

Revision of “New Energy”

Innovative High-level

Energy Utilization Technology

Development of Renewable 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

Geothermal

Rapid Advancement of Energy Efficiency

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)

6

(Source) Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry (METI), Japan (modified by IEEJ)

slide8

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

slide9

Outline

  • RPS (Renewable Portfolio Standard)
  • wind, solar, small hydropower, biomass power generation , binary geothermal
  • 8-year target set by every 4 years

2003

  • Buyback surplus PV electricity from residence
  • Developed from Utilities’ voluntary Net metering system

2009 Nov

2011 Aug

Passage of FIT Law

  • Proposal from the Advisory Committee
  • Proposal from Advisory committee for the purchasing rate and the duration

2012 Apr

  • Public Comment
  • From May 16 to June 1

2012 May

  • Commencement of FIT
  • Start from July 1

2012 Jul

  • Revision of PV tariff
  • Based on the PV system price decline

FY 2013

8

slide10

(TWh)

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Commencement of RPS

2003

Hydro

Wind

Biomass

PV

2004

Wind

Hydro

Biomass

PV

2005

Wind

Hydro

Biomass

PV

2006

Hydro

Wind

Biomass

PV

2007

Biomass

Wind

Hydro

PV

2008

Hydro

Wind

Biomass

PV under

Buyback

PV

Buyback System for surplus PV electricity from residence

2009

Wind

Hydro

Biomass

PV

2010

Hydro

Biomass

Wind

PV

PV under

Buyback

Renewable Energy Purchased by Utilities under RPS

Source: METI

9

slide11

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.

Electric Power Companies

Electricity Users

Surplus electricity

Electricity

Purchase revenue

(\48/kWh for residential use)

as of Nov. 2009

Solar surcharge

(Born by all electricity users)

Surplus electricity

Purchase revenue

(\24/kWh for purposes other than residential use)

Users of photovoltaic generation systems

※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

slide12

Buyback System started from Nov 2009(2)

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

slide13

Electricity from Renewable Source

Supply Electricity

Power producers utilizing renewable energy

Utilities

PV

Middle & Small Hydro

Purchase Electricity

Collecting Surcharge rate for FIT

With ordinary electricity rate

Wind

Fund for Purchasing Electricity from Renewable Energy

Payment of collecting amount 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

Decide Surcharge rate for FIT every fiscal year

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

FIT Basic Scheme (Started From July 2012)

Source: METI

slide15

Electricity Cost Estimation in Japan

(Japanese Yen/kWh)

Source: National Policy Unit, Cabinet Secretariat

http://www.npu.go.jp/policy/policy09/archive02_shisan_sheet.html

2010

2030

2020

14

slide16

Feed in Tariff started from July 2012

FY 2013; PV 10kW >=: \37.8(36.0+Tax)/kWh, 10kW< \38.0/kWh (Incl. Tax)

15

Source: METI

slide17

Deployment in FY2012 and FY2013(April and May)

Major part of deployment under FIT is PV due to the development Terms

16

Source: METI

slide18

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 Subsidyfor Residential PV system

17

slide20

Geothermal Power Plants (Japan)

(Source) Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry (METI), Japan

slide21

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)

[Targets] Cost of test drilling, etc. including geological surveys.

Budget: \9.05 billion

Subsidy ratio: 50% to 75%

Installation of power generation facilities

Exploration (drilling of

exploration wells, etc.)

Geological survey

Construction stage

Risk

Feed-in tariff scheme

Subsidy

[Targets] Cost of drilling exploration wells to check whether a sufficient volume of steam can be stably extracted from heat sources.

Budget : \5 billion

Investment ratio: 50%

Investment

Loan guarantee

[Targets] Cost of drilling wells necessary for power generation

Budget: \1 billion

Loan guarantee ratio: 80%

Electric utilities purchase electricity generated from renewable sources including geothermal

at the procurement price and for the procurement period.

slide22

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, maintenance and operation of the power facilities.

slide23

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

Offshore of Choshi, Chiba Pref.(2.4MW)

/Offshore of Kitakyushu, Fukuoka Pref (2.0MW)

Offshore of Goto, Nagasaki Pref.(2.4MW)

Wind Resource

Wind Speed

  • MOE
  • 100KW class floating wind turbine from FY2012
  • 2MW class floating Wind from FY2013
  • METI(NEDO)
  • 2MW class wind turbine
  • Wind observatory tower
  • demonstration projects
  • started from FY2012

22

slide25

Grid Framework in Japan

Hokkaido

Direct current power transmission

Tohoku

Tokyo

Hokuriku

Kansai

Chubu

Kyushu

Shikoku

Frequency converter station

Direct current power transmission

24

slide27

Large Battery Demonstration Projects

Large Battery Demonstration Projects for Grid Stabilization

R&D Target : Cost reduction of batteries as same level as Pumped Hydro in 2020

Redox FlowBattery

Lithium-ion Battery

NASBattery

26

slide28

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

Demonstration using new technologies in science city

Yokohama City

Kitakyushu City

Large-scale demonstration in major city

Demonstration in industrial city

Toyota City

Community-based demonstration in provincial city

27

slide29

Information of Smart Community Projects

http://jscp.nepc.or.jp/en/

http://jscp.nepc.or.jp/en/video.shtml

28