Experience of Energy Efficiency in Japan - Argentina.gob.ar · Experience of Energy Efficiency in Japan Yasushi Tanaka For National Energy Day(“Jornada de la Energia”) 23 November

International Collaboration Center,The Energy Conservation Center, Japan

Experience of Energy Efficiency in Japan

Yasushi Tanaka

For National Energy Day(“Jornada de la Energia”)

23 November 2017, Buenos Aires, Argentina

2

- Contents -

Overview of Japan’s Energy Situation

Japan’s Self-sufficiency rate of Energy

Global Warming Effect and reduction of CO2

The situation of the world

Japan’s case: Present Situation & How to reduce CO2?

Japan’s EE&C history in some industries from 1973 to 2015

Trend of the Energy Consumption of each sector in connection with GDP

Production, Energy Consumption and Energy Intensity of some industries

Japan’s Long-term Energy Supply and Demand Outlook

2030 Target of Supply and Demand

EE&C Target from 2012 to 2030 to realize

Counter measures in each sector

Japan’s effort under the Act on the Rational Use of Energy

Overview of the Act

Top Runner Program & Building Efficiency Codes

The other types of approach in recent Japan

Setsu-den Concept after the Great East Japan Earthquake

Third party business operator to cover small size entities

Renewable Energy

3

Primary Energy Self-Sufficiency Rate of OEDC Countries (2014)

1st Norway

2nd Australia

3rd Canada

7th U.S.A.

14th U.K.

15th France

21th Germany

26th Spain

31th Korea

33th Japan

Argentina

・・・

・・・・

・・・・・・・・・・

１６７．９％

９０．８％

６０．３％

５６．５％

３９．１％

３０．６％

１８．３％

６．０％

８９％

２９２．０％Coal

Oil Natural Gas Hydro-Power

Renewable Energy, etc.

（geothermal, solar etc.）

【Source】IEA “Energy Balance of OECD Countries 2016”, Argentina:IEA, Energy Balances of Non-OECD Countries 2015 Edition

Nuclear Power

fy2010 fy2011 fy2012 fy2013 fy2014

Energy Self-Sufficiency Rate

19.9(29th)

11.2(33th)

6.3(33th)

6.2(33th)

6.0(33th)

Nuclear Power 15.0 5.8 0.9 0.5 -

Hydro-Power 1.4 1.6 1.4 1.5 1.6

Natural Gas 0.6 0.7 0.7 0.6 0.6

Oil 0.1 0.2 0.1 0.1 0.1

Renewable Energy 2.7 3.1 3.1 3.4 3.7

Effective Recovery Use of Wasted Energy

2.0 2.3 2.3 2.5 2.5

Natural Renewable Energy

0.7 0.8 0.8 1.0 1.2

６８２．９％

・・

※ IEA includes nuclear power in the first primary energy self-sufficiency rate.

34th Luxembourg ４．０％

Japan’s Self-sufficiency rate of Energy

Japan’s low self-sufficiency rate further down after the big earthquake in 2011

4

- Contents -

Overview of Japan’s Energy Situation Japan’s Self-sufficiency rate of Energy

Global Warming Effect and reduction of CO2 The situation of the world Japan’s case: Present Situation & How to reduce CO2?

Japan’s EE&C history in some industries from 1973 to 2015 Trend of the Energy Consumption of each sector in connection with GDP Production, Energy Consumption and Energy Intensity of some industries

Japan’s Long-term Energy Supply and Demand Outlook 2030 Target of Supply and Demand EE&C Target from 2012 to 2030 to realize Counter measures in each sector

Japan’s effort under the Act on the Rational Use of Energy Overview of the Act Top Runner Program & Building Efficiency Codes

The other types of approach in recent Japan Setsu-den Concept after the Great East Japan Earthquake Third party business operator to cover small size entities

Renewable Energy

Global Warming and CO2 Emission of the world

CO2 emissions by countryCO2 emissions by country are as per the chart left.

Paris agreement (2015)It was agreed to reduce CO2 emissions with a long-term target aiming to contain temperature rise to less than 2ºC compared with the level at the time before the industrial revolution (effort target is less than 1.5ºC).

Limit of CO2 cumulative emissionsAs of 2011, cumulative emissions of CO2 were 1.9 trillion tons. To contain the temperature rise to less than 2ºC, it is said that the limit is 2.9 trillion tons, which means the remaining quantity is only 1 trillion tons!! 1 trillion tons/33 billion tons per year ≈ 30 years (Sustainable for only 30 years hereafter?!)

China

U.S.A.

Italy

Japan

Others

Russia India

Indonesia

Brazil

Australia

Mexico

Canada

Korea

Germany

U.K.

Source: Handbook of Japan's & World Energy & Economics Statistics 2017

2014

CO2 emissions of the world

(Emission ratio by country)Total emissions of the world

Approx. 33 billion tons

5

Argentina 0.6%

Japan’s case-(1) Present Situation

Japan’s emissionsIncreasing continuously for 5 years since FY2009. By sector, emissions of the “industrial sector” (factories, etc.), which are the largest among the sectors, are decreasing, but those of the “commercial and other sector” including offices and the “residential sector” show increase in recent years.

Japan’s CO2 reduction targetAiming at 26% reduction comparing with FY2013 level. To achieve this target, it is necessary to reduce emissions of the residential sector by approx. 40%.

Un

it:

1 m

illio

n t

on

CO

2 e

qu

ival

ent

■ Transition of CO2 emissions by sector (after distributing electricity and heat)

Un

it:

1 m

illio

n t

on

CO

2

■ Transition of Japan’s greenhouse gasses emissions

Fiscal Year

Fiscal Year

6

Industrial sector (factories, etc.)

Transportation sector (automobiles, etc.)

Residential sector

Energy conversion sector (power plants, etc.)

Industrial processes, use of productsDisposal waste (incineration, etc.)Others

Commercial and other sector (commerce, services, offices, etc.)

Japan’s case-(2) How to reduce CO2?

Greenhouse gases and energyMany of emissions of greenhouse gases, including CO2 and methane, caused by human activities derive from energy, and approx. 90% of Japanese greenhouse gasses are CO2 deriving from energy. Therefore, activities of the residential sector need to focus on improvement of energy efficiency (energy conservation).

Industrial sector

Unit: 1 million ton CO2Unit: 1 million ton CO2 equivalent

Transportation sector

Residential sector

CO2 emissions1,265

(FY2014)

Others

Commercial and other

sector 21%

1,364(FY2014)

Nitrous oxide

Methane (CH4)

Greenhouse gases emissions

CO2 not deriving from energy

5.6%

CO2 deriving from energy

Energy conversion sector 7%

7

FY 2030 greenhouse effect

Gas reduction target

(compared to FY 2013)

FY 2030 greenhouse effect

Gas reduction volume

(compared to FY 2013)

Greenhouse gas emissions

FY 2030 FY 2013

Greenhouse gas reduction volume 26.0% 366 1,042 1,408

Energy-originated CO2 25.0% 308 927 1,235

Other greenhouse gases (*1) 11.9% 20.6 152.4 173.0

Sink measures (*2) － 37 －－

Rough indication of emissions in each sector in FY 2030

(reduction compared to FY 2013)FY 2013

Energy-originated CO2 927 (25.0%) 1,235

Industrial sector 401 (6.6%) 429

Other business sectors 168 (39.7%) 279

Residential sector 122 (39.4%) 201

Transportation sector 163 (27.4%) 225

Energy conversion

sector73 (27.5%) 101

(Unit: million t-CO2)

Energy-derived CO2 (breakdown by sector)

*1 CO2 from non-energy sources, methane, dinitrogen monoxide, four HCFCs*2 Aim to secure an absorption volume of about 37 million t-CO2 by FY 2030 (equivalent to 2.6% reduction of the total emissions in FY 2013)

Breakdown of the 366 million ton of greenhouse gas emissions reduction in FY 2030

Energy-originated CO2308 million t(84.2%)

Other greenhouse gases20.6 million t(5.6%)

Sink37 million t(10.1%)

8

Draft of Japan's pledge (July 17, 2015, decision of the Global Warming Countermeasure Headquarters, submitted to the UN)

9

USAby 26%-28% below its 2005 level in 2025 and to make best efforts to reduce its emissions by 28%.

ＥＵat least 40% domestic reduction in greenhouse gas emissions by 2030 compared to 1990

ChinaTo achieve the peaking of carbon dioxide emissions around 2030 and making best efforts to peak early; To lower carbon dioxide emissions per unit of GDP by 60% to 65% from the 2005 level

IndiaTo reduce the emissions intensity of its GDP by 33 to 35 percent by 2030 from 2005 level

Japanat the level of a reduction of 26.0% by fiscal year (FY) 2030 compared to FY 2013 (25.4% reduction compared to FY 2005) (approximately 1.042 billion t-CO2 eq. as 2030 emissions), e

Russia 70-75% of 1990 levels by the year 2030 might be a long-term indicator

Australia by 26 to 28 per cent below 2005 levels by 2030.

Brazil to reduce greenhouse gas emissions by 37% below 2005 levels in 2025.

Argentina by 15% in 2030 from 2005 level(BAU), by 30% (conditional case)

Intended Nationally Determined Contributions (INDCs)

10

- Contents -







Renewable Energy

0

100

200

300

400

500

600

0

3

6

9

12

15

18

1973 1975 1980 1985 1990 1995 2000 2005 2010 2015

（1018J）

（FY）

Industry

Residential

Transportation

Commercial

Trends in Final Energy Consumption in Japan

11

Final energy

consumption

1973→2015

1.2-times

Tra

nsp

orta

tion

19732015

1.7-time

Resid

en

tial

19732015

1.9-time

Com

me

rcia

l

19732015

2.4-

times

Ind

ustry

19732015

0.8-

times

(JPY trillion)

Sources: “Comprehensive Energy Statistics” and “Annual Report on National Accounts.”

9%

9%

66%

23%

14%

18%

45%

Real GDP1973→2015

2.6 Times

16%

The final energy consumption of Japan has basically consistently increased, except for periods immediately following the two oil crises and the recent economic downturn.

Until 2015 the GDP continued increasing to about 2.6 times the 1973 level and the consumption of energy for individual sectors significantly increased with the Consumer sector (Residential + Commercial) increasing to about 2.2 times, while the transportation sector increased to about 1.7 times, whereas the industrial sector decreased to about 0.8 times.

(FY)

(FY1973=100)

20

40

60

80

100

120

140

160

180

200

1965 1977 1982 1987 1992 1997 2002 2007 2012

Indices of Industrial Production (IIP)

Indices of Energy consumption by the Manufacturing industry

IIP intensity

Source: Institute of Energy Economics, Japan “Handbook of Energy & Economic Statistics”

12

Production, Energy Consumption and Energy Intensity of Japanese manufacturing industries

(FY)

(FY1973=100)

20

40

60

80

100

120

1965 1977 1982 1987 1992 1997 2002 2007 2012

Indices of Steel Production (IIP)

Indices of Energy consumption by the Steel industry

IIP intensity


13

Production, Energy Consumption and Energy Intensity of Japanese steel industry

(FY)

(FY1973=100)

50

100

150

200

250

300

1965 1977 1982 1987 1992 1997 2002 2007 2012

Indices of Chemical Production (IIP)Indices of Energy consumption by the Chemical industryIIP intensity


14

Production, Energy Consumption and Energy Intensity of Japanese chemical industry

(FY)

(FY1973=100)

20

40

60

80

100

120

1965 1977 1982 1987 1992 1997 2002 2007 2012

Indices of Cement Production (IIP)

Indices of Energy consumption by the Cement industry

IIP intensity


15

Production, Energy Consumption and Energy Intensity of Japanese cement industry

(FY)

(FY1973=100)


20

40

60

80

100

120

140

1965 1977 1982 1987 1992 1997 2002 2007 2012

Indices of Food Production (IIP)

Indices of Energy consumption by the Food industry

IIP intensity

Production, Energy Consumption and Energy Intensity of Japanese food industry

16

1,0

1,1

1,2

1,3

1,4

1,5

1,6

1,7

1,8

1,9

2,0

19

73

19

74

19

75

19

76

19

77

19

78

19

79

19

80

19

81

19

82

19

83

19

84

19

85

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

20

14

20

15

0,81,0 1,1 1,1 1,2 1,4 1,4 1,6

2,02,3

4,8 4,95,3

6,1

5,5

6,2

7,8

2,5

0

1

2

3

4

5

6

7

8

9

Japan’s Energy Efficiency Efforts after the Oil Crises

Source）Total Energy Statistics by ANRE/METI

Primary energy use per real GDP of Japan

（Oil converted Mt /1 trillion yen）

Approx. 40% improvement

Calculated according to IEA statistics

Primary energy supply per GDP unit of each country（2013）

（Index : Japan=1.0）

17

2.7

Japan has improved energy efficiency by approx. 40% after the oil crises in the 1970s as a result of positive actions byboth public and private industrial sectors.

Japan intensively introduced "Energy Management System based on the Act on the Rational Use of Energy”, thenachieved the lowest level of energy consumption per GDP in the world.

18

- Contents -







Renewable Energy

2030

(After energy conservation measures)

2013

(Actual result)

Energy demand

Final energy consumption

Heat,

gasoline,

town gas,

etc.

75%

Electric

power 25%

361 million kl

Thorough energy efficiency and conservation

50.3 million kL13% lower than before the

implementation of the energy conservation measures

Electric

power

28%

Heat,

gasoline,

town gas,

etc.

72%

Economic growth

1.7%/year

326 million kl

Primary energy supply

2030

Coal

25%

Natural gas

18%

Petroleum

30%

Renewable energy

13 to 14%

Nuclear power

10 to 11%

489 million kL

LPG 3%

Self-

sufficiency

rate

24.3%

* Values are approximate.

19

Energy demand and primary energy supply

60

70

80

90

100

110

0 5 10 15 20

1970-1990

1990-2010

2012-2030

Energy Consumption Efficiency

Energy efficiency = Final energy consumption/ Real GDP

35% improvement

Expected energy demand after the implementation of energy efficiency measures will be approx. 326 million kL (-13% from before the implementation of the measures).

As a result of all these measures, considerable energy efficiency improvement will be realized in the same level as after the oil crisis.

[Improvement of energy efficiency]

(Year)

20

Energy Efficiency Measures

<Major energy efficiency measures in each sector>

Industrial Sector <approx. -10.42 million kL> Commercial Sector <approx. -12.26 million kL>

Residential Sector <approx. -11.60 million kL>

Transportation Sector <approx. -16.07 million kL>

Major 4 industries (steel, chemical, cement, and paper/pulp) Promotion of commitment to a low-carbon society

Strengthened energy management in factories Improvement of energy efficiency by making production lines

observable

Development and introduction of innovative technology Introduction of environment-conscious iron manufacturing process

(COURSE50)(CO2 reduction by approx. 30% by hydrogen reduction of iron ore and

CO2 separation from blast furnace gas)

Introduction of technologies to use CO2 as raw material etc.(CO2 and water are used with solar energy to produce major chemicals.)

Introduction of highly efficient facilities across several types of industries Low-carbon industrial furnace, high-performance boiler,

cogeneration, etc.

Diffusion of next-generation automobiles and improvement of fuel efficiency. One out of two cars are to be next-generation cars. Fuel cell vehicle: Maximum annual sale of 100,000 or more

Traffic flow control

Energy efficiency in buildings Mandating energy efficiency standards for newly constructed

buildings Realization and Promotion of ZEB (Net Zero Energy Building)

Introduction of High-efficiency Equipment Promotion of efficient light including LED etc.

Making energy consumption visible by BEMS; Energy management Introduction to about half of the buildings

Promotion of national movement

Energy efficiency in houses Mandating energy efficiency standards for newly constructed houses Promotion of ZEH (Net Zero Energy House)

Introduction of High-efficiency Equipment Promotion of efficient light including LED etc.

Making energy consumption visible by HEMS; Energy management Introduction to all houses

Promotion of national movement

With all the energy efficiency measures in each sector, approx. 50.3 million kL of energy would be saved.

21

22

- Contents -







Renewable Energy

Target: Business operators conducting

business by constructing factories, etc.(Energy consumption of at least 1,500 kl per year)

Obligation to appoint type 1 energy managers, etc.

Obligation to periodically report on energy consumption status, etc.

Obligation to submit medium and long term plans

Obligation for business operators to makeefforts

Factories/Workplaces Transportation Residences/Buildings

Energy consuming equipment, etc. Provision of information to general consumers

<Top Runner Program (31 types of equipment> (For each type of equipment including passenger cars, air conditioners, television

sets, etc., it is required to exceed the performance of most superior products that

have been commercialized at the present time.)

Obligation for manufacturers and importers to make efforts

Target: Manufacturers or importers of

energy consuming equipment or building

materials for preventing heat loss

Obligation for business operators to make efforts in providing

information to general consumers

Provision of information on energy conservation (annual electric power consumption, fuel economy, etc.) that is easy to understand at storefronts of retailers who sell household electrical appliances, etc.

Popularization of energy saving equipment and the provision of information, etc. by electric power and gas companies

Target: Business operators conducting transportation of freight or passengers(Number of cars owned: At least 200 trucks or at least 300 railway cars for railroads, etc.)

Obligation to submit medium and long term plans

Obligation to periodically report on energy consumption status, etc.

Obligation for business operators to make efforts

Target: Business operators who have carriers transport their own freight (consigners) (Annual transport volume of at least 30 million ton-km)

Obligation to submit plans

Obligation to periodically report on energy consumption status, etc. concerning consigned transportation


Target: Construction clients and owners of residences or buildings(Total floor area of at least 300 m2)

Obligation relating to the submission of notifications pertaining to energy conservation measures implemented by construction clients, etc. in relation to new constructions and large scale modifications, and obligation relating to reporting the status of overall maintenance

Obligation for construction clients and owners to make efforts

Target: Suppliers of detached

residences(Annual supply of at least 150 units)

Obligation to observe targets for improving energy conservation performance of supplied detached residences


Changed to new act from

FY2017

Summary of the Act on the Rational Use of Energy

23

Current Regulatory Scheme at Manufacturing Plants, etc.

24

○Obligation to report periodically

① Transition of energy unit consumption

② Status of activities relating to energy conserving measures

③ Obligation to annually report on status of benchmark indices (for subject business lines only), etc.

(Flow of measure implementation)

Bu

siness o

perato

r

Submission of periodic reports.

Min

istry of Eco

no

my,

Trade an

d In

du

stry

Ratio

nalizatio

n

plan

instru

ction

Gu

idan

ce

On

site in

spectio

ns

Evaluation of details of reports and investigations.

When activities are significantly inadequate.

When instructions are not followed.

* Fines imposed when orders are not followed.

○ Guidelines pertaining to energy conservation measures: Stipulation of standards (guidelines) based on the Energy

Conservation Law as observance items for energy management.

Energy conservation measures for business operators overall・ Maintenance of energy management organization.・ Allocation of persons in charge. ・ Formulation of policies for activities pertaining to energy

conservation targets, etc.

Energy conservation measures at individual manufacturing plants and business establishments (Example: Air conditioning systems.)

Preparation and implementation of management standards (manuals) pertaining to the following measures:

・ Operational management (operating time, set temperature, etc.). ・ Periodical measurement and recording of temperature, humidity,

etc. ・ Periodical maintenance and inspection of facilities.

On the basis of energy consumption, about 90% of the industriy sector and about 40% of the commercial sector are covered subject to regulations.

○ New numerical targets to include in addition to existing targets Benchmark indices and standards to be targetedCurrently set business lines: Iron and steel, electric power, cement, paper manufacturing, petroleum refining and chemical. Standards to be aimed for: Levels satisfied by most superior business operators in respective industries (10 to 20%).

○ Numerical targets: Reduction of annual average by at least 1%.

Pu

blic d

isclosu

res an

d issu

ance o

f o

rders

Measures, such as instructions, public notices and orders (fines in case of violation against orders) implemented when energy conservation

activities of a business operator are significantly inadequate.

Business operators with overall annual energy consumption (head office, manufacturing plants, branch offices, sales offices, etc.) of at least 1,500kl in crude oil equivalent are subject to regulations.

Business modes, such as franchized chains of stores, are also considered single business operators and those consuming at least 1,500kl for the whole chain are subject to regulations.

25

<<Compare & Contrast>>Top Runner Method (TR) and Minimum Energy Performance Standard Method (MEPS)

Ener

gy E

ffic

ien

cy P

erfo

rman

ce(E

ner

gy C

on

sum

pti

on

Eff

icie

ncy

)

Less Efficient

More Efficient

Manufacturer A Manufacturer B

Shipment volume weighted average energy consumption efficiency

TR Target Standard

TR Case 1 : Not Achieved TR Case 2：Achieved

MEPS Case 3：Achieved

MEPS Case 4：Not Achieved

Model C

Model D

MEPS

= ProductThe same modes are expressed in the same color.Number of equals to the shipment volume

Product：XCategory：Y

With using the shipment volume weighted average energy consumption efficiency to judge the standard achievement status, Top Runner Program can encourage energy efficient products to increase the number of shipment volume while keeping the diversity of product models in the market.

Shipment volume weighted average energy consumption efficiency

of Case 2=SUM { (2 * ECE of ) + (3 * ECE of ) + (1 * ECE of ) + (2 * ECE of )}

(2 + 3 + 1 + 2)

EE Standards for Machineries and Equipment (Top Runner Program)

Target Product(Designated machineries & equipment) (Designated construction materials)

<Addition in 1999>1. Passenger Vehicles2. Freight Vehicles3. Air Conditioners4. TV sets5. Video Tape Recorders6. Lighting Equipment (using

Fluorescent Lamps)7. Copying Machines8. Computers & Servers9. Magnetic Disk Units10. Electric Refrigerators11. Electric Freezers

<Addition in 2002>12. Space Heaters (using Gas or

Oil)13. Gas Cooking Appliances14. Gas Water Heaters15. Oil Water Heaters16. Electric Toilet Seats17. Vending Machines18. Transformers

<Addition in 2006>19. Electric Rice Cookers20. Microwave Ovens21. DVD Recorders

<Addition in 2009>22. Routers 23. Switching Units

<Addition in 2013>24. Multifunction Devices25. Printers26. Electric Water Heaters (Heat

Pump Type)27. AC Motors28. LED Lamps29. Insulation Materials

<Addition in 2004>30. Sashes31. Double-glazed Glass

<Addition in 2017>32. Showcase (for Cold or Frozen

Food)

26

Target products have been gradually expanded since 1999. As of July 2017, 32 target products (29 for machineries & equipment and 3 for construction materials) are covered under Top Runner Program.

EE Standards for Machineries and Equipment (Top Runner Program)

27

Appliances & Equipment covered by the Top Runner Program

*1. Estimated by the Institute of Energy Economics, Japan (IEEJ), based on the Agency for Natural Resources and Energy's FY2009 Residential and Commercial Sector Energy Data Survey (10,040 valid responses) and Supplementary Survey concerning Appliance Use(?) (1448 valid responses)

*2. This survey is based on tabulation and analysis of each energy source, with values unified and converted on megajoule (MJ) basis. Electric power in secondary conversion value.

70% is coveredby the program

2009, Energy consumption level per household34,905MJ/Year

“Top Runner Program” is implemented in about 70% of the energy consumption in households.

Improvements in Energy-Efficiency with Top Runner Program

28

Electric power consumption for period

1174

1220

1241

1212

1157

1048

1028

1028 997

966

924

884

860

896 872

862

700

800

900

1000

1100

1200

1300

1998 2000 2002 2004 2006 2008 2010 2012 2014

12,3

12,1

12,4 12,9

13,2 13,5

14,0 14,6

14,7 15,0

15,1 15,5

15,7

16,5 17,8

18,3 19,5

21,1

22,5

23,8

8

10

12

14

16

18

20

22

24

26

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

ＦＹ

30.7%

improvement

Fuel economy (km/L)

(Note) Fuel economy values for the 10-15 mode. (Note) Wall mounted cooling and heating units with cooling capacity of 2.8kW-class model; simple average values for a representative model of energy conserving-type products.

ＦＹ

Electric power consumption for period (kWh)

96.7%

improvement

[Passenger vehicles] [Air conditioners]

Transition in fuel economy of average new cars

Target buildings and procedures

Others: Detached residences constructed by large residence supply companies (150 residences or more/year) must satisfy the top runner standards.

Non-residences, 2,000 m2 or larger

New

construction

Energy efficiency standards

Buildings,

300 m2 or more

Extensions

renovations

New

construct

ion

Extensions

renovations

Evaluation for

complianceFinal

inspection

Building

confirmation

Certification

(building

standards)Certification (energy

efficiency standards)

Certification

(inspection)

Use of

building

begins

Compli-

ance

Residence Non-residence

Administrative agencies

with jurisdictionNotification

(Inspection also for energy

efficiency standards)

(Up to 21 days before

construction begins)

Construction

begins

Construction

begins

29

Overview of the Energy Conservation Law and the Related Regulations on Buildings

Buildings having total floor area 300 m2 or larger

Compliance to the EC standard (guideline) specified in the EC law (2000m2 and more)

Notification of energy saving measures to the competent authority (local government)

After operation start

Submission of periodical maintenance report to the competent authority (local government)

Design Construction Operation Renovation

Compliance to the EC standard (guideline) specified in the EC law (2000m2 and more)

Notification of energy saving measures to the competent authority (local government)

Specified Business Operator Classified by annual energy consumption

1500kL or more (oil)

Energy management control officer is selected from executives. Energy management planning promoter to support energy management

control officer is selected. Energy managers are selected for each designated energy management factory.

［Plan settlement and report］ Submission of medium and long-term plan and periodical report by each

company.

Implemented by METI

Implemented by Ministry of Land, Infrastructure, Transportation& Tourism (MLIT) and the Local Government

Obligation of the Building Owners under the Energy Conservation Law

30

For Design and Maintenance

For Operation

Three Factors and the Standards of the EE&C in Buildings

Outdoor climate

Condition

Equipment

DesignArchitectural

Design

Control &

Management

Energy

Saving

Factors related to the characteristics

and performances of the system

components such as efficiency of

various machines that constitute the

building equipment system

Factors related to architectural

planning, construction methods and

materials, such as shape of the

building, layout of rooms, materials and

structures of parts facing exterior space

(e.g. external walls, roofs and windows)

Factors related to how to operate, control and

manage the building equipment system

Equipment efficiency Standards

(no more)Performance Standards

(PAL*)

Evaluation Criteria

Fixed an architecture for a sustainable future（ IBEC)

PAL: Perimeter Annual Load

31

Primary Energy Consumption Standard

○ Of extension or renovation of non-residential buildings, those which satisfy the following conditions become the target of compliance obligation.

(1) “Total area after extension or renovation” is 2,000 m2 or larger.

(2) Ratio of “area of extension or renovation” against “total area after extension or renovation” exceeds 1/2.

* Area (1) excludes “portion with high openness”.

Total area after extension or renovation [B]

Area of extended or renovated portion [A]

[C] Ratio of extension or renovation = Area of extended or renovated portion [A] / Total area after extension or renovation [B]

Scale of extension or renovation of non-residential buildings as target of regulatory measures

[A] Area of extended or renovated portion

[B] Total area after extension or

renovation

[C] Ratio of extension or

renovation

Regulatory measures under Building Energy Efficiency Act

300 m2 or larger

2,000 m2 or larger

Exceeding 1/2 Mandatory compliance

Below 1/2 (Specified extension or renovation)

Mandatory notification

Less than 2,000 m2 Mandatory notification

Less than 300 m2 Out of regulation

Existing portion

Extended or renovated

portion

32

Target buildings

Large-scale

buildings

Non-Residence

Residence

Medium-scale

buildingsNon-Residence

Residence

Small-scale

buildings

2,000 m2 or

larger

300 m2 or larger

and less than

2,000 m2

Less than

300 m2

Residence business construction client

(Housing top runner)

150 residences or more a year

Building Energy Efficiency ActAct on the Improvement of Energy Consumption

Performance of Buildings

Mandatory compliance

[Linked to building confirmation procedures]


[When the standards are not complied with, give

instructions, orders, etc. when necessary]


[When the standards are not complied with, give

instructions, orders, etc. when necessary]

Mandatory efforts

Specified Buildings

Mandatory efforts

[Recommendation, orders,

etc. if deemed necessary]

33

Source: Ministry of Economy, Trade and Industry

The 1st expansion of application (6 industries) realizes the coverage rate of 65% and the 2nd expansion (schools, hospitals, etc.) will increase it up to 75%.

→ Expand from the applicable fields as soon as possible to aim at 70%.

Currently 59.4% is covered.Aim to target 70% of all

the industries.

34

Expansion of application of the benchmark system in the commercial sector

Steel 22%

Chemical24%

Ceramic 4%

Paper and pulp 3%

Wholesalers/retailers, department

stores & supermarkets

4%Hotels and inns

2%

Offices and buildings

5%Other 35％

Blast and electric furnaces

Ethylene, soda, etc.

Cement Convenience stores

Department stores HotelsPaper and

paperboard

Supermarkets

Shopping centers

Rental office business

Consideration will be made for Introduction

Introduced in April, 2016

Industrial Sector: Review of Target Level Business Sector: Expansion of Target Industries

Introduced in April, 2017

35

Class AGeneral business operators 3,378 companies (29.6%)*1

Class SBusiness operators with superior

energy conservation performance6,657 companies (58.3%)*1

Class BBusiness operators that are

inactive in energy conservation 1,386 companies (12.1%)*1

Class CBusiness operators to be required

cautious attitude

*1 FY2016 periodical reporting (Actual results from FY2015) Calculated from the total number of 11,421 business operator companies. *2 The target of utmost efforts: There should be a reduction of 1% or more per year in the five-year annual intensities. *3 Benchmark targets: Standards that should be aimed at by business operator in the subject sector in the medium to long term .

[Standards]Business operators that do notcorrespond to the Class S orClass B

[Response]No particular response

[Standards](1) The target of utmost efforts*2

are achieved.or(2) The benchmark targets*3 are achieved.

[Response]As superior business operators, the business operator’s name and the number of successive years that the targets were achieved are displayed on the Ministry of Economy, Trade and Industry website.

[Standards](1) The target of utmost efforts*2

are not achieved, and theintensities of the most recenttwo years in succession haveincreased compared to theprevious fiscal year,

or(2) The five-year average

intensity shows an increase of more than 5% per year.

[Response]Caution documents are sent,and local investigations, etc. areimplemented with high priority.

[Standards]Among the Class B business operators, these are operators whose compliance with Energy Conservation Guideline is particularly insufficient.

[Response]Guidance based on Article 6 oftheAct of Ratinal use of Energy is

implemented.

This system classifies all the business operators, who submit the periodical report stipulated by theEnergy Conservation Act, into 4 classes of S, A, B and C to take explicit responses according to theclasses.

They make public and praise the business operators with superior energy conservation in each industry,on the other hand examine those with inactive energy conservation in a stricter manner.

The business operator can compare himself with others to understand his own position. The system will start from 2016.

Overview of the Business Operator Classification Assessment System

36

- Contents -






The other types of approach in recent Japan Setsu-den Concept after the Great East Japan Earthquake

Third party business operator to cover small size entities

Renewable Energy

Policy Development After the Earthquake

37

Standard energy conservation

Energy consumption

Last year This year Next year

Peak Demand Management

Improve Energy efficiency ofhouses and buildings

Promote Energy Management Systems

Power demand(kW)

Power supply

Demand curve

Peak hours

morning daytime night

Use of Energy Management System

38

Main Service Contents

Visualization serviceGive electricity consumption in real time(at 30minutes interval)

Demand Response serviceReduce the load on power grids

Diagnostic serviceProvide continuous energy-saving advice and make a proposal about renewal of facilities and systems.

Energy-saving serviceProvide Energy-saving service such as energy-saving advice, tuning and ESCO

Introduction of energy-saving facilities

Management by EMS

Information of energy use

Energy Management Business

Energy Management Business, such as ESCO, is becoming more common. This business provides various service as follows;

advice about replacement of facilityvisualization of electricity consumptioncontrol of connected devices and comparison to the past results, etc.

ConsumerEnergy

Management Service Provider

Next Step in Energy Management

39

Handle electricity supply-demand problem with promotion of introduction of HEMS / BEMS, high efficient air conditioners, lighting and hot-water supply.

Pursue energy efficiency of entire systems by managing entire houses and buildings.

In addition, more efficient energy management can be realized by cross-management of houses and buildings, or regional management.

GEGE

ZEH- Net zero energy

house

ZEB- Net zero energy

building

Smart community

HEMSBEMS

GEGE

Cooperate by buying equipment such as efficient air conditioners and lighting, and controlling them with HEMS or BEMS.

Installation of energy management equipment

Optimize houses and buildings

“Net zero energy” means that net annual primary energy consumption is approximately zero.

Regional or cross-regional optimization

http://kaden.watch.impress.co.jp/cda/parts/image_for_link/11605-804-7-1.html




40

- Contents -







Renewable Energy

41

Ratio of Electricity Generation by Renewable Energy

Renewables; 24,5 Renewables; 26,1

Renewables; 18,5

Renewables; 5,6 Renewables; 7,3 Renewables; 6

Hydro; 3,1

Hydro; 14,2

Hydro; 1,8

Hydro; 11,3 Hydro; 6,1 Hydro; 8,6

Coal; 45,8 Coal; 16,5

Coal; 30,4

Coal; 2,2

Coal; 39,7

Coal; 31,9

Oil; 0,9

Oil; 5,1

Oil; 0,5

Oil; 0,3

Oil; 0,9 Oil; 12,2

Gas; 10,0

Gas; 17,2

Gas; 30,0

Gas; 2,3

Gas; 26,9

Gas; 40,5

Nuclear; 15,6

Nuclear; 20,8 Nuclear; 19,0

Nuclear; 78,4

Nuclear; 19,2

Nuclear, 0.9

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Renewable

Energy

27.6%

Renewable

Energy

40.3%

Renewable

Energy

20.3% Renewable

Energy

16.9%Renewable

Energy

13.4%

Renewable

Energy

14.6%

Nuclear, 04

Gas, 54

Oil, 14

Coal, 2

Hydro, 22

Renewables, 2

Renewable

Energy

24%

Ratio of Electricity Generation by Renewable Energy in Japan is 14.6 % (in FY 2015).

On the other hands, ratio of Electricity Generation by Renewable Energy except Hydro is only 6.0%

42

Current State of Renewable Energy

Composition of power generation by energy source in Japan (FY 2015)

40.5%

31.9%

12.2%

8.6%6.0%

Oil

Coal

LNG

Hydroelectric Renewable energy (excluding hydroelectric)

・Renewable energy accounted for approximately 14.6% of power generation in 2015.

・More specifically, hydroelectric power generated by large-scale dams, etc., accounted for 8.6%,

with solar PV, wind, geothermal and biomass power accounting for 6.0%.

43

0

1000

2000

3000

4000

5000

6000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Solar PV

Wind power

Biomass

Geothermal

Middle and small

hydropower

ＲＰＳ System

Average annual

growth rate

5%

Average

annual

growth rate

9%

Average annual

growth rate

29％

FIT

system

(FY)

Excess Electricity Purchasing Scheme

(10MW)

History of Introduction of RES

The main driver shifted to RPS in 2003, Residential Surplus Electricity Purchasing Scheme in 2009 and then, to Feed-in Tariff in 2012.

Acceleration of introduction of renewable energy

44

Technology development & corroboration

Demonstration of floating wind power generation station off Fukushima aiming at first actual operation in the world

(7MW and 5MW station were installed 2017: \24 billion)

Blade radius: 80 m

[7MW station, world’s largest in scale]

Construction of transmission and distribution networks

Rationalization of procedure for environmental assessment

Constructing and testing transmission and distribution networks in appropriate places for wind power in Hokkaido and Tohoku

(2017: \3 billion)

Shorten period of procedure for environment assessment

of wind and thermal power generation, which usually takes 3 or 4 years

(2017: \0.6 billion )

Douou – Okhotsk route

[Route scheduled for constructing transmission/distribution network in Hokkaido]

Steps toward problem solution – Technology development & demonstration, transmission & distribution network construction,

rationalization of procedure for environmental assessment

Current Status of Geothermal Power Generation

Global geothermal turbine market share

Japan (70%)

Source: Ruggero Bertani 2010, Geothermal Power Generation in the World, 2005-2010 Update Report (revised)

Source: Reports from JICA(2012) and AIST(2010) and so on.

World geothermal resources

45

CountryGeothermal Resources

（10,000ｋＷ）

Installed capacity（10.000

ｋＷ）

USA ３，０００３４５

Indonesia ２，７７９１３４

Japan ２，３４７５３

Kenya ７００５９

Philippines ６００１８７

Mexico ６００１０２

Iceland ５８０６７

Ethiopia ５００１

New Zealand ３６５１０１

Italy ３２７９２Peru ３０００

Energy source Geothermal power

Procurement category

15,000 kW or more

Less than 15,000 kW

Procurement price per kWhTax exclusive

26 yen 40 yen

Procurement period

15 years 15 years

Feed-in Tariff

Mitsubishi

Hitachi

Power

Systems

24%

Toshiba

23%Fuji Electric

20%

Ansaldo/Tosi

（Italy)

13%

Ormat

(Israel)

10%

others

10%

Total11,682MW

Geothermal power generation, which has a higher operating rate (83%) compared to other renewable energy, is a stable power source

at low power generation cost that can play a role of a base-load power source.

Japan has the world's third largest amount of geothermal energy resources (23,470 MW) but has only 530 MW of installed capacity.

The government has been trying to facilitate the development of geothermal power generation, with appropriate support measures

such as subsidy for geological survey, investment for exploration, loan guarantee for construction of power generation facilities, and

R&D.

Furthermore, Feed-in Tariff Scheme obliges electric utilities to purchase electricity generated from renewable energy sources at the

procurement price and for the procurement period. (started on July 2012)

Three Japanese manufacturers, Mitsubishi Hitachi Power Systems, Toshiba and Fuji Electric, account for 70% of the global market for

geothermal turbines.

The Energy Conservation Center, Japan

Since 1978

For More Information;

The Energy Conservation Center, Japan

http://www.eccj.or.jp <from 1996>

Asia Energy Efficiency and Conservation Collaboration Center

(Established in April 2007)

http://www.asiaeec-col.eccj.or.jp

Japanese Business alliance for Smart Energy-Worldwide

(Established in October 2008)

https://www.jase-w.org/

The Symbol of Energy Conservation Since 2005

ECCJ has been spread the symbol mark with the

visual image of a flour-leaf clover which is thought

to bring happiness named as “SMART CLOVER”,

representing everyone’s energy conservation

activities.

Thank You Very Much

46

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