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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.
Taipei, Chinese Taipei
September 26, 2013
The Institute of Energy Economics, Japan (IEEJ)
Composition of annual electricity generated in Japan
Renewable energy excluding hydropower
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”
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.
Waste-based Fuels (RDF)
Revision of “New Energy”
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
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)
(Source) Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry (METI), Japan (modified by IEEJ)
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).
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.
Passage of FIT Law
Commencement of RPS
Buyback System for surplus PV electricity from residence
Renewable Energy Purchased by Utilities under RPS
Major points of the buyback system
Electric Power Companies
(\48/kWh for residential use)
as of Nov. 2009
(Born by all electricity users)
(\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.
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.
Power producers utilizing renewable energy
Middle & Small Hydro
Collecting Surcharge rate for FIT
With ordinary electricity rate
Fund for Purchasing Electricity from Renewable Energy
Payment of collecting amount of surcharge
Organization for adjusting the surcharge by different region
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
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: National Policy Unit, Cabinet Secretariat
FY 2013; PV 10kW >=: \37.8(36.0+Tax)/kWh, 10kW< \38.0/kWh (Incl. Tax)
Major part of deployment under FIT is PV due to the development Terms
System cost for FY2012 tariff
Latest System cost for FY2013 tariff
National Government Subsidyfor Residential PV system
(Source) Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry (METI), Japan
[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.)
Feed-in tariff scheme
[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%
[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.
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.
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.
Offshore of Fukushima Pref.
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)
Direct current power transmission
Frequency converter station
Direct current power transmission
Large Battery Demonstration Projects for Grid Stabilization
R&D Target : Cost reduction of batteries as same level as Pumped Hydro in 2020
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
Large-scale demonstration in major city
Demonstration in industrial city
Community-based demonstration in provincial city