Japan’s Priorities for NRETs Japan’s Priorities for NRETs

2003-20042003-200421st 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)

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

OutlineOutline

-19,100

(about 3%)-

6,900

(about 1.2%)New Energy Total

(Ratio of total primary energy supply)

-580-44Unused Energy (Including Cooling by Snow & Ice)

-4,940-4,460Black Liquor, Waste Wood, etc.

-670--Biomass Thermal

3303407148Biomass Generation

-140-45Waste Thermal

4,1705,5201,1101,250Waste Power

3,0001,340312127Wind Power

-4,390-820Solar Thermal

4,8201,180452110Photovoltaic (Solar Power)

MW1,000 x klMW1,000 x kl

Installed Cap.Oil Equiv.Installed Cap.Oil Equiv.

FY 2010 Target on New Energy Introduction (Revised)

FY 200 １ Results

Energy Sources

Total primary energy supply (in million kl)

588 Mkl -about 602 Mk

l-

1. Japan’s New and Renewable Energy Targets1. Japan’s New and Renewable Energy Targets

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(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

(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

Ⅰ ． Technological Development Ⅱ ． Demonstrative Testing

Ⅲ. Introduction Promotion (full utilization of market mechanism)

(in million US$)

1,5681,4491,105925875748Budget (in 100 million \)

FY2003FY2002FY2001FY2000FY1999FY1998Fiscal year

598 700 740 884 1,159 1,254※US$1 ＝ \125

※

2. Policies for Development and Introduction of NRETs2. Policies for Development and Introduction of NRETs

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3-1. Background on the Introduction of RPS3-1. Background on the Introduction of RPS

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

• 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.

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

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

- 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.

【 Considerations 】

Background

Conclusion

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3-2. System Outline--Law Concerning the Use of New E3-2. System Outline--Law Concerning the Use of New Energy by Electric Utilitiesnergy by Electric Utilities

National Government

New Energy Generator Electricity Retailer (A)

　　　　　　　　 (certificate trading)

Electricity Retailer (B)

Requiring use of a certain amount of electricity by New Energy

Accreditation of facilities for New Energy power generation

Electricity supply

Consumers

Electricity supplyby New Energy

FY 2003 2004 2005 2006 2007 2008 2009 2010

TWh 7.32 7.66 8.00 8.34 8.67 9.27 10.33 12.20

The target for 2010 is 12.2 TWh, which would comprise 1.35% of national electric supply.

SolarWind Biomass Small/Medium Hydro (to 1 MW)Geothermal

Dec. 2002 Apr. 2003

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3-3. Basic Explanation of the RPS System3-3. 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.

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4-1. Biomass Nippon Strategy4-1. Biomass Nippon Strategy

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Background1. 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]

4-2. Biomass Nippon Strategy4-2. Biomass Nippon Strategy

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Specific Targets

Recycling-Oriented Society(based on regional factors)

Biomass Production

Biomass Collection

Biomass Transformation

Biomass Utilization

National perception Global approach

4-3. Biomass Nippon Strategy4-3. Biomass Nippon Strategy

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GOALS1) Evolutionary Direction

Today—Waste Biomassca. 2010—Unused Biomassca. 2020—Energy Cropsca. 2050—New Crops

2) Developmental DirectionConstruction of a Biomass RefineryCascaded 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….

4-4. Biomass Nippon Strategy4-4. Biomass Nippon Strategy

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Promotion of Biomass Utilization Establishment of: Biomass Information Headquarters (infor

mation 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

4-5. Biomass Nippon Strategy4-5. Biomass Nippon Strategy

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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

4-6. Biomass Nippon Strategy4-6. 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

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4-7. Biomass Nippon Strategy4-7. 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

Private Sector

Plans, FS, Introduction

Local Gov’ts

Visions, FS, Introduction

NEDOAdvisory Activities

• Explanatory Meetings

• Dispatch of Experts

• Consultation

• Workshops

• etc.

Projects & Programs

・for Local Gov’ts

・for Private Sector

・for Both Local Gov’ts and Private Sector (Joint)

Other Related Organizations

Manufacturers, NEF, Think Tanks, Industrial Orgs.

R&D Projects and Programs

5. NEDO’s Role in Japan’s New Energy Scheme5. NEDO’s Role in Japan’s New Energy Scheme

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6-1. Measures to Overcome Grid-Connection Obstacles6-1. Measures to Overcome Grid-Connection Obstacles

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

ObjectivesObjectives

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

6-2. Measures to Overcome Grid-Connection Obstacles6-2. Measures to Overcome Grid-Connection Obstacles

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

Power GenerationPV 50kW; Biogas 60kW

Site:Sihanoukville, Cambodia

～／－

110kV/10kV

Bulk PV Amorphous PV

Switch

Transformer

Medium-Voltage Power Line

System Design

6-3. Measures to Overcome Grid-Connection Obstacles6-3. Measures to Overcome Grid-Connection Obstacles

Demonstrative Research on High-Efficiency PV Power Generation Systems

Site:

Beijing City, PRC Total Power Generation: 180kW18

6-4. Measures to Overcome Grid-Connection Obstacles6-4. Measures to Overcome Grid-Connection Obstacles

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

ＰＶ

Turbine

Adv. Batt.

Mini GridSystem Design

Site:

Gansu Prov., PRC

PV Power Generation: 100kW

Wind Power Generation: 100kW19

6-5. Measures to Overcome Grid-Connection Obstacles6-5. Measures to Overcome Grid-Connection Obstacles

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

Water-cooled PVAdv. Batt.

DG

Ballast Load

Mini GridSystem Design

Site:

Xinjiang Prov., PRC

PV Power Generation: 60kW

DG Power Generation: 100kW20

Thank Thank You!!!You!!!