US Japan Energy Opportunities May 15, 2013 NEDO Silicon Valley Office Osamu Onodera
Strategic Energy Plan of Japan (before Tohoku) Renewable and Nuclear were to be increased to reduce Co2 emissions but is under review. Aprrox. 40% Zero emission power source 34% Aprrox. 20% Aprrox. 20% Aprrox. 20% Zero emission power source approx. 70% Aprrox. 50% Aprrox. 10% Aprrox. 10% Aprrox. 10% Aprrox. 10% 1 [Source] METI
After 3.11: Nuclear Power Plants Suspended Only two out of 50 commercial nuclear power plants are currently in operation Lost approximately 26% out of 1000TWh and 15% out of 280GW TEPCO Kashiwazaki-Kariwa NPS 1 2 3 4 5 6 7 Hokuriku EPCO Shiga NPS Tohoku EPCO Higashidori NPS Hokkaido EPCO Tomari NPS 1 1 2 3 1 2 Tohoku EPCO Onagawa NPS JAPC Tsuruga Power Station 1 2 3 1 2 KEPCO Mihama Power Station 1 2 3 KEPCO Ohi Power Station 1 2 3 4 TEPCO Fukushima Daiichi NPS 5 6 KEPCO Takahama Power Station TEPCO Fukushima Daini NPS 1 2 3 4 1 2 3 4 Chugoku EPCO Shimane NPS 1 2 JAPC Tokai No. 2 NPS Chubu EPCO Hamaoka NPS Kyushu EPCO Genkai NPS 3 4 5 1 2 3 4 Kyushu EPCO Sendai NPS 1 2 Shikoku EPCO Ikata Power Station 1 2 3 Output <0.5 million kw <1 million kw 1 million kw NPS in operation NPS not in operation 2
Current Energy Mix in Japan Energy conservation and LNG / oil mainly compensated for the decline of nuclear power. Renewable etc. Oil LNG Coal Nuclear 1
Japan s innovative energy and environmental strategy In September 2012, the Japanese government drew up the innovative energy and environmental strategy, a long term energy strategy, with the aim of devoting all political resources to ending the operation of nuclear plants in the 2030s. The strategy aims to generate at least 300 billion kwh by 2030 compared to the 110 billion kwh for 2010 (3 times larger) and 190 billion kwh by 2030 compared to the 25 billion kwh for 2010 (8 times larger) of renewable energy for scenarios excluding hydraulic power. Amount of power generation with renewable energy (billion kwh )Renewable energy deployment When hydraulic power generation is excluded, the 2030 target is at least 8 times higher (25 billion kwh > 190 billion kwh) 300 or more Total: 226.3 Renewable energy excluding hydraulic power Total: 110 Hydraulic power 2010 Expected result of the innovative energy and environmental strategy in 2030 Current basic energy plan [Source] METI
Feed In Tariff System: Procurement cost and time Procurement cost and time <Unless otherwise specified, cost includes consumption tax> Solar 10kW or more Less than 10kW Cost 42 JPY 42JPY (before tax) (*) Time 20 years 10 years Wind 20kW or more Less than 20kW Cost 23.1 JPY 57.75 JPY Time 20 years 20 years (*) Equivalent to 48 yen when subsidy is included Revised to 36 yen/kwh for larger systems and 38 yen/kwh for smaller systems Hydraulic From 1,000kW to 30,000 kw From 200kW to 1,000 kw Less than 200kW Cost 25.2 JPY 30.45 JPY 35.7JPY Time 20 years 20 years 20 years Geothermal 15,000kw or more Less than 15,000 kw Cost 27.3 JPY 42 JPY Time 15 years 15 years Biomass Power generation with methane fermentation gas Power generation by burning unused timber Power generation by burning general timber Power generation by burning waste Power generation by burning recycled timber Cost 40.95 JPY 33.6 JPY 25.2 JPY 17.85 JPY 13.65 JPY Time 20 years 20 years 20 years 20 years 20 years 5 [Source] METI
Status after the start of the Feed in Tariff Between April and December 2012, about 1.2 GW of renewable energy was installed, of which solar energy accounts for more than 90%. Since several mega solar power plants will start operation in the latter half of FY2012, the share of solar power for the non residential housing sector is expected to increase. New facilities approval by METI after the Feed in Tariff started has let to approved output of 5.3 GW as of end of December 2012. Many large capacity facilities require longer construction times are not expected to start operation until after FY2012 and therefore some newly approved facilities may not be included in this year s results. The FIT has led to an RE surcharge of average 120 yen per household (300kwh X 0,35yen/kwh plus 300kwh X 0.02 0.09yen/kwh) <Deployment of renewable energy for FY2012 (as of the end of December) > Solar power (residential) Solar power (non residential) Amount deployed as of FY2011 Capacity of facilities that started operation between Apr. and Dec. Capacity of facilities that were approved by the end of Dec. for the fixed price purchase system Approx. 4,000MW 911MW 847MW Approx. 800MW 208MW 3857MW Wind Approx. 2,500MW 34MW 456MW Mid to small sized hydraulic (1000kW or more) Mid to small sized hydraulic (Less than 1000kW) Approx. 9,350MW 1MW Less than 10MW Approx. 200MW 2MW 3MW Biomass Approx. 2,100MW 22MW 72MW Geothermal Approx. 500MW Less than 10MW Less than 10MW Total Approx. 19,450MW 1178MW 5,280MW *Capacity figures include facilities that started operation between April to the end of September and therefore include facilities that started operation under the old system from April to the end of June. As a result, some capacity values may be bigger than the values approved by the end of September based on the fixed price purchase system enacted in July [Source] METI 6
Peak Demand and Tie Line capacity in Japan EPC 5.57GW Chugoku [2010] 12.01 GW [2011] 10.83 GW Kyushu [2010] 17.50 GW [2011] 15.44GW Maximum NPP Site Total Capacity 16.66GW 2.4GW Site Name Hokkaido Total 2.07 GW Tomari NPP, 3 units Tohoku Total 2.174 GW Onagawa NPP, 3 units Tokyo Total 8.212 GW Kashiwazaki Kariwa NPP, 7 units Chubu Total 3.504 GW Hamaoka NPP, 5 units Hokuriku Total 1.898 GW Shika NPP, 2 units Kansai Total 4.71 GW Ohi NPP, 4 units Chugoku Total 1.28 GW Shimane NPP, 2 units Shikoku Total 2.022 GW Ikata NPP, 3 units Kyushu Total 3.478 GW Genkai NPP, 4 units Kansai [2010] 30.95 GW [2011] 27.84 GW Shikoku [2010] 5.97 GW [2011] 5.44 GW 5.57GW DC Tie line 1.4GW BTB 5.57GW Hokuriku [2010] 5.73 GW [2011] 5.33 GW 0.3GW Chubu [2010] 27.09 GW [2011] 25.20 GW 60Hz FC 1.035GW 50Hz Kitahon DC Tie line Hokkaido [2010] 5.79 GW [2011] 5.68 GW 0.6GW Tohoku [2010] 15.57 GW [2011] 13.62 GW 6.31GW Tokyo [2010] 59.99 GW [2011] 49.22 GW 7 [Source] METI
METI s planned actions on Electricity System Reform Nation wide transmission operation Full retail competition More active wholesale market competition Unbundling of transmission/distribution sector (ISO style or TSO style)
- As of March 2013, there are now over 1650 fast chargers in Japan, and 4800 normal chargers available to the public - A FY 2012 supplementary budget of approx 1 billion USD was passed to support installation of additional charging infrastructure (1/2-2/3 subsidy of equipment and installation cost) (Location) Fast charger growth 9
Various configurations of cooperation Large / Large Company Large / Small Company Strategic Collaboration, IP Collaboration, JV, Buy out Technology / Finance Targeting US / JP / Global Market Examples GE Fuji Electric Panasonic Itron Panasonic Power One Toshiba Landis& Gyr Toshiba Sunpower Hitachi Silver Spring Networks Eaton Takaoka Daikin Goodman Tesla Toyota Ford Toyota NRG Group Eurus Energy Smart meters Smart meters Energy storage and PV Smart Grid PV Smart meters DC Quick Charger Air Conditioning Electric Vehicles Hybrid Systems for Trucks 45 MW PV plant