November 17, 2015

SAKANASHI, Yoshihiko

J-POWER

Electricity System and Coal

- A Perspective from Japan -

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1. Electricity Sector: System Team Work

2. Electricity Sector: Locality of Electricity System

3. International Cooperation:

Integration of Different Characteristics

4. Japanese High Efficiency, Low Emissions

Technology (HELE)

5. Japan’s New Energy Mix and CO2 Target for 2030

Contents

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1. Electricity Sector : System Team Work

Primary energy

(Natural resources)

Natural gas

Coal

Oil

Uranium

Hydro

……

Transformation/control

(Power plants /technologies)

Gas-fired power

Coal-fired power

Oil-fired power

Nuclear power

Hydro power

……

Secondary energy

(Electricity)

Homogeneity Versatility - Lighting - Heat - Power Accurate control Safety Difficult to stock Hard to transport

Electricity sector - Key strategic roles for energy security

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Electricity Sector

Variable cost = marginal cash cost Wind, photovoltaic, hydro, geothermal ＜ nuclear ＜ coal ＜ LNG ＜ oil

＜ pumped-storage hydro (assuming 1/0.7 to nuclear or coal for pumped-storage)

Load following capability Wind, photovoltaic, flow type hydro (negative) ＜ geothermal ＜ nuclear ＜ coal

＜ LNG ＜ oil ＜ reservoir hydro ＜ pumped-storage hydro

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Team Work ：Rugby

Source: http://photo.shinmura.net/?p=202

Electricity System : Team Work

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2. Electricity Sector : Locality of Electricity

System

0

2

4

6

8

10

12

14

16

18

20

2005 07 09 11 13

US Fuel Prices

(Annual Average) US$/MMBtu

CAPP coal

WTI

Henry Hub

Source: BP Statistical Review of World Energy, June 2015

US$/MMBtu

0

2

4

6

8

10

12

14

16

18

20

2005 07 09 11 13

Natural gas market in US

Indigenous

Pipeline network

Hub price

Liquidity

Natural gas market in Japan

Import

LNG

Oil-linked price

Locked system

Steam coal

LNG

Crude oil

Source: J-POWER’s trial calculation based on the data from the

Institute of Energy Economics, Japan

7

JFY

Japan Fuel Prices (CIF)

(Annual Average)

Locality of Natural Gas

8

Source: METI materials

EU has broad expansion of transmission network.

Japan has ‘linear type’ of transmission network with very narrow lines among the utilities.

EU and Japan had their own development taking its advantage.

Locality of Transmission Network : EU and Japan

Kyushu

Electric

Kansai

Electric

Chubu

Electric

Tokyo

Electric

Tohoku

Electric

Hokkaido

Electric

Shikoku

Electric

Chugoku

Electric

Hokuriku

Electric

50Hz 60Hz

Conceptual

diagram

9

It is expected that electricity demand will increase rapidly in emerging countries, especially in Asian region, that from cost perspective, coal-fired power plants will play an crucial role.

Some countries, Multi-lateral Development Banks, and financial institutions recently have decided to scale back or to stop funding new coal fired power plants.

However, as more efficient technologies generally are more expensive, and for those region with capital constraint, promoting high-efficiency coal fired power plants with public finance is necessary to fulfill demand increase, and contribute to CO2 emissions reduction.

Policies of public financing for coal-fired power plants

Source: World Energy Outlook, special report, Southeast Asia

Energy Outlook 2015, October 2015

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3. International Cooperation :

Integration of Different Characteristics

Example: JCM (Joint Crediting Mechanism)

Source: Developed from “Recent Development of The Joint Crediting Mechanism (JCM)”, Government of Japan

Using to achieve Japan’s

emission reduction target

Host Country

Credits

JCM Projects

Japan

MRV*

MRV*: Measurement, Reporting, and Verification

GHG emission

reductions/removals

Operation and

management

by the Joint

Committee

Leading low

carbon

technologies

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Indigenous Efforts & International Cooperation

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Electricity generated by the

imported hydrogen

Vessel to transport the hydrogen

Brown coal in Australia

Hydrogen-fired power plant

Hydrogen produced by

Japan’s gasification

technology from brown coal

Photo: Kawasaki Heavy Industries

Photo: Kawasaki Heavy Industries

Cross-border project to exchange advantages

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4. Japanese High Efficiency, Low Emissions

Technology (HELE)

25%

27%

29%

31%

33%

35%

37%

39%

41%

43%

45%

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

Gro

ss T

he

rmal

Eff

icie

ncy（

LHV

,％）

J-POWER

Japan

Germany

UK+Ireland

United States

Australia

China

India

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Energy efficiency of Japan’s coal-fired power generation is higher than those of other

countries including China, India and USA. Isogo PS marks the highest level in the world.

ISOGO PS

Thermal efficiency of coal-fired power generation in major countries (1990-2011)

Source: Ecofys “Ｉｎｔｅｒｎａｔｉｏｎａｌ Ｃｏｍｐａｒｉｓｏｎ of Fossil Power Efficiency and CO2 Intensity”

Efficiency has a large room to improve

Insta

lled g

ross th

erm

al e

ffic

ien

cy (

%, b

ase

d o

n H

HV

)

Takehara No.1

（250MW）

566 / 538℃

16.6MPa

Matsushima

（500MW x 2 Units）

538 / 538℃

24.1MPa

Matsuura No.1

（1,000MW）

538 / 566℃

24.1MPa

Tachibanawan

（1,050MW x 2 Units）

600 / 610℃

25.0MPa

Isogo New No.2*

（600MW）

600 / 620℃

25.0MPa

Subcritical Supercritical (SC) Ultra-supercritical (USC)

Measures for improving generation efficiency Improve steam conditions Enlarge plant scale

Isogo New No.1*

（600MW）

600 / 610℃

25.0MPa

Trends in capacity per unit

45%

40%

35%

1965 1970 1975 1980 1985 1990 1995 2000 2005 2010

Takasago

（250MW x 2 Units）

566 / 538℃

16.6MPa

Takehara No.3

（700MW）

538 / 538℃

24.1MPa

Ishikawa

（15.6MW x 2 Units）

566 / 566℃

14.6MPa

Matsuura No.2

（1,000MW）

593 / 593℃

24.1MPa [Legend]

Power plant names

(Capacity, number of units)

Steam temperature / Reheat steam temperature

Main steam turbine pressure

* Isogo No.1 (started operation in 1967) and No.2 (1969) have been replaced with cutting-edge units.

500MW

（1981）

1,000MW

（1990）

1,050MW

（2000）

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Highly-efficient coal power plants have been introduced in a stepwise manner.

History of Japan’s Energy Efficiency Improvements

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Isogo Coal-Fired Power Plant

opened in 1967

New Isogo Coal-Fired Power Plant

Unit1 opened in 2002, Unit2 in 2009

17% of CO2 Intensity

improvement

Numbers in （ ） are for Unit #1

Capacity 530MW 1200MW

（265MW×2） （600MW×2 ）

SOx 60ppm 10ppm (20)

NOx 159ppm 13ppm (20)

PM 50mg/m3N 5 mg/m3N (10)

Steam Subcritical Ultra-Supercritical

Efficiency (gross HHV) 38% 43%

CO2 Intensity (Net) 100 (base) 83

New Isogo: The world’s leading USC Coal Power Plant

Fuel cell

Integrated coal

gasification combined

cycle

Gas turbine combined

cycle

Pulverized

coal-fired (PCF)

Super-critical

(SC)

<Latest coal-fired>

Ultra-SC (USC)

Advanced USC

(A-USC)

1300 ℃ GT 1500 ℃ GT 1700 ℃ GT

<Osaki CoolGen>

1300 ℃ IGCC 1500 ℃ IGCC 1700 ℃

IGCC

MOFC

SOFC

Integrated coal gasification

fuel cell combined cycle (IGFC)

Efficiency: 38% Efficiency: 41% Efficiency: 46%

Efficiency: 46-48%

Efficiency: over 55%

Efficiency: Net/ HHV

CO2 emissions

(g-CO2/kWh)

Source: Coal/ The Company’s estimates, oil and gas/ CRIEPI

795 709 679 593 695362

USC (41%) A-USC (46%) 1500℃ IGCC

(48%)

IGFC (55%) Oil (38%) 1300℃ LNG

(50%)

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HELE evolution involves developments of gas turbine, metal material, fuel cell, etc.

Context for Evolution of HELE

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Renewable Energy (solar, wind / FIT, tax exemption)

Coal-fired power plants with

load following capability

(ancillary services)

Rectified electricity

hour

MW

Conceptual

diagram

Flexibility of Coal-fired Power Plants

Fossil fuel fired power plants with load following capability is in need as

ancillary services.

Coal fired power plants: mill control, steam inputs, condenser control, etc.

under investigation ⇒ Loss / Sacrifice of energy efficiency

In order for those ancillary services to be in place, appropriate pricing

structure is crucial for it be invested and installed.

Appropriate

pricing

structure is

crucial

Research and Demonstration Tests CO2 Capture Methods

Pre-combustion capture

CO2 separation and capture

from the gas produced by

IGCC before combustion in gas

turbine.

Post-combustion capture

CO2 separation and capture

from the gas produced by coal

combustion in boiler.

Oxyfuel combustion

CO2 separation and capture

from the gas produced by coal

combustion in boiler, to which

oxygen is supplied instead of

air.

Coal

Gasification

Pulverized

Coal-fired

EAGLE Project

Organization J-POWER/ NEDO

Test period FY2001 to FY2014

Osaki CoolGen Project

Organization Osaki CoolGen Corporation

Test period From FY2016 (planned)

Matsushima Power Plant

Organization J-POWER/ Mitsubishi Heavy Industries, Ltd.

Test period FY2007 to FY2008

Callide Oxyfuel Project

Organization Oxyfuel Joint Venture (Japanese partners: J-POWER, Mitsui & Co., Ltd., and

IHI Corporation, Australian partners: CS Energy, the

Australian Coal Association, Glencore, Schlumberger

Location The Callide A Power Station in Queensland

(Capacity: 30MW)

Test period FY2012 to FY2014

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Development of CO2 Capture Technologies by J-POWER

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5. Japan’s New Energy Mix and CO2 Target

for 2030

(1) Renewables (solar, wind, geothermal, hydroelectricity, biomass) Promising, multi-characteristic, important, low carbon and domestic energy sources. Accelerating their introduction as far as possible for three years, and then keep expanding renewables.

(2) Nuclear Power Important base-load power source as a low carbon and quasi-domestic energy source,

contributing to stability of energy supply-demand structure, on the major premise of ensuring of its safety, because of the perspectives; 1) superiority in stability of energy supply and efficiency, 2) low and stable operational cost and 3) free from GHG emissions during operation.

Dependency on nuclear power generation will be lowered to the extent possible by energy saving and introducing renewable energy as well as improving the efficiency of thermal power generation, etc.

Under this policy, we will carefully examine a volume of electricity to be secured by nuclear power generation, taking Japan’s energy constraints into consideration from the viewpoint of stable energy supply, cost reduction, global warming and maintaining nuclear technologies and human resources.

2. Evaluation of each energy source

(3) Coal Revaluating as an important base-load power source in terms of stability and cost

effectiveness, which will be utilized while reducing environmental load (utilization of efficient thermal power generation technology, etc.) .

(4) Natural Gas Important energy source as a main intermediate power source, expanding its roles in a variety of fields.

(5) Oil Important energy source as both an energy resource and a raw material, especially for the

transportation and civilian sectors, as well as a peaking power source. Source: Made from METI materials

The 4th Strategic Energy Plan (Extract) (April, 2014)

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Following to the direction of the 4th Strategic Energy Plan, Japanese

government decided “2030 Energy target and generation mix” together with

“GHG reduction target” for COP 21 in July 2015.

Three basic requirements were set to develop the energy target and generation mix:

1. Improvement of self-sufficient rate of energy supply to the level before “Fukushima”.

2. Reduction of electricity tariff from the current level.

3. CO2 reduction target comparable with that of EU and USA.

2030 Energy Target and generation mix

（Total Electricity generation）

1,065TWh Energy

Conservation

＋Renewable

Energy

= about 40%

Energy conservation

196TWh

（▲17%）

Electricity

Demand

981

TWh

Electricity generation mix

1,278TWh

2030 2030 2013

(actual results)

GDP growth

1.7%/year

Electricity

Demand

967

TWh

Oil 2%

Coal 22%

LNG 22%

Nuclear

18～17%

Renewable

Energy

19～20%

Energy

Conservation

17%

（loss form Electricity

transmission etc,）

Hydro

8.8～9.2%

Solar PV

7.9%

Wind 1.7%

Bioenergy

3.7～4.6%

Geothermal

1.0～1.1%

Total base load

power ratio

：56%

Renewable

Energy

22～24%

Nuclear

22～20%

LNG 27%

Coal 26%

Oil 3%

Electricity Demand

Source: Made from METI materials

Japan’s New Electricity Generation Mix in 2030

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Thank you very much for your attention.

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