Current Situation of Geothermal
Power Generation in Japan

JOGMEC’s Mission and Activities

1Mission

Secure constant and stable supplies of oil, natural gas and mineral
resources to support industries and citizens in Japan through various
activities relating these resources. In 2012 Geothermal function wasadded to the role of JOGMEC.

Activities
Metals Strategy &Oil & Gas
Exploration, andUpstream
Technology
Investment andDevelopment
Research &Development

Stockpiling

Mine Pollution
Control

Coal Strategy &Exploration, andTechnological
Support

Geothermal
ResourcesDevelopment

Geothermal Power Plants in Japan
Main geothermal power plants in Japanin Operation★ for Private Use

2

Installed Capacity

Mori 25,000kW★Ohnuma
9,500kWSumikawa
50,000kW

Matsukawa 23,500kW

Uenotai
28,800kW

Kakkonda

80,000kW

Onikoube

15,000kW

Ohtake 12,500kW
Sugawara 5,000kW

Yanaizu Nishiyama
65,000kW

Ohgiri30,000kW★Suginoi

1,900kWElectricity Generated

Decreasing graduallyfor the past dozen years or so

Hachijojima 3,300kW

Takigami 27,500kW★Kirishima 100kW★Kuju 990kW
Yamakawa
30,000kW

Hacchoubaru 110,000kW, 2,000kW★Kirishima
100kW

Total Installed Capacity: 525MW
Source: TENPES,JOGMEC

Reserve of Geothermal Resources

3 Japan has the world’s third largest reserve of geothermal
resources(23,400MW), however has only 520MW(2.2%) to havebeen developed.
35000
30000
25000
20000

15000
10000
50000Resource
Installed Capacity(2015)

Geothermal Potential Area in Japan4

 Approximately 80% of energy potential of geothermal is located within theareas of Natural Parks stipulated by Natural Parks Act.
 Consequently, Geothermal Power Plants have been developed mainly
outside of these natural parks.
 However, after the accident at nuclear power plants in Fukushima, Ministryof Environment issued the guideline which lifted restrictions on drilling at
national parks.
Category of Natural Parks

Potential (MW)Special Protection Zone

7,000MW(29.9%)

Special Zone I

2,600MW

(11.1%)

Special Zone (II & III)7,700MW(32.9%)

Ordinary Zone

1,100MW

(4.7%)

Outside of Natural Parks

5,000MW(21.4%)

Total

23,400MW(100%)

Japan’s Feed-In-Tariff

5

 Japanese government initiated Japan’s Feed-In-Tariff(FIT) in 2012
to accelerate the introduction of renewable energy.

Energy source
Procurement
category

Solar PV
10 kW ormore

Less than
10 kW(purchase ofexcesselectricity)

Wind power

Geothermal power

Small- and medium-scale hydraulicpower

20 kW ormore

Less than
20 kW

15,000 kWor more

Less than
15,000kW1,000 kW or
more but lessthan 30,000 kW

200 kW or more
but less than 1,000
kW

Less than
200 kW

280,000 yen/kW

427,000 yen/kW

300,000 yen/kW

1,250,000yen/kW

790,000yen/kW

1,230,000yen/kW

850,000 yen/kW

800,000 yen/kW

1,000,000yen/kW

Operating andmaintenancecosts (per year)

9,000 yen/kW

4,300 yen/kW

6,000 yen/kW－33,000 yen/kW

48,000yen/kW

9,500 yen/kW

69,000 yen/kW

75,000 yen/kW

6%

3.2%(*1)8%

1.8%Tax
inclusive

38.88 yen

41.04 yen

23.76 yen

59.4 yen

28.08 yen

43.2 yen

25.92yen31.32 yen

36.72 yenTax
exclusive

36 yen38 yen22 yen55 yen26 yen40 yen24 yen29 yen34 yen20 years

10 years

20 years

20 years

15 years

15 years

Cost

Installation cost

Procurement
price per kWh

Pre-tax IRR

Procurement
period13%(*2)

7%7%

20 years

Strategic Energy Plan in Japan

6

Ministry of Economy, Trade and Industry, METI, announced “Long-term Energy
Supply and Demand Outlook” pursuant to the policies of the Strategic Energy Plan,
what mentioned Geothermal energy would be increased to 1.0-1.1% of Primaryenergy by FY 2030.
+1,000MW
Geothermal
0.3%

25Geothermal
1%

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

20

15HydroSolar

10

Renewable
Nuclear
Oil
LNG

2013

2030

Coal

Wind

5

Baio0Geothermal

JOGMEC’s Mission

7■Our Big Goal
Promote the activation of domestic geothermal development.

■ Action assignments
 Financial supports for cost issue
 Reduce exploration risk (Geological aspect)■ JOGMEC implements three approaches
 Financial supports(Subsidy, Equity Capital, Finance, Liability Guarantees) Technology development
 Regional air-borne geophysical survey

Outlines of Financial Assistance
Potential Survey

ExplorationRegionalSurvey- Geological Survey

Air-BorneGeophysics
By JOGMEC

Exploration- Drilling ofInvestigation
Well- Geophysical

8Development

Operation- Environmental - Drilling ofProduction Well &Impact
Reinjection Well
Assessment- Commercial

EIA- Discharge Test

- Structural Boring- Construction, Start-up& Commissioning ofPower Plant

Resource Risk

Financial Assistance provided by JOGMEC
Subsidy

Equity Capital

Liability Guarantees- Up to 50%~100%*ofnecessary funds- Up to 50% of equity capital- Up to 80% of loan
provided byfinancial institutions(JOGMEC is not allowed tobe the largest shareholder.)Operation

Adopted Projects form FY2012 to FY2015

9

Currently, more than 40 exploration projects are on the road by electric companies,oil companies, mining companies, local government and other entities.
Amemasu-Dake

Subsidized projects (47)

Sobetsu/Bankei

Equity Capital projects (1)Lake Toya

ToyohaKamikawa
Biei

Musa-Dake

Liability Guarantee projects (3)Esan

Yakumo/namarikawa

ShimofuroOkushiri

Minamikayabe

Mutsu/Hiuchi

Iwakisan-Dake

IwakisanHakkouda-Seibu/Jyogakura
Hakkouda-Hokusei

Kijiyama-Shitanotai
Itoigawa/oono

Hosenjionsen

Kaikeonsen

Noyahorita

Arifukuonsen

Iwatechinetsu

Wasabizawa-Akinomiya

Matsuo-Hachimantai

UnazukiHigashihachimantai

Tateyama
Oyasu

Hiiji-DakeAmihari

Isimatsunoen/Oguni

Narukoonsen

Houreinoyu/Oguni
Noya

Yunotani
Asosanseibu

AshoroBandai
Sakamakionsen

Ohiradani
Obeno

Sugawara-Binary

Ibusuki/healthy-land
Ibusuki/Higashikata

Shimogamo
Tanabeshihongu

Tsunagionsen

Tsuchiyuonsen-BinaryHigashiizuchoatagawaonsen

Wasabizawa Geothermal Power Plant

10

 Wasabizawa geothermal power plant ( in Yuzawa city, Akita prefecture ) underconstruction and will be commenced to operate with a capacity of 42MW in 2019.
 This is the first large-scale project in about twenty years for constructing such aplant with a capacity of 10,000 kW or more.
 JOGMEC provide a liability guarantee for 80% (about 21 billion yen) of the totalloan.

Regional Air-Borne Geophysical Survey
JOGMEC conducts heli-borne geophysicalsurvey that aims to acquire basic data for theevaluation of geothermal resources in order topromote geothermal development start-up.
Time Domain
Electromagnetic Survey(HTEM)

11No
limitationin nationalparks!

Air-borne Gravity Gradiometer(AGG)

Kamikawa
NisekoMusadake

Hachimantai
Yuzawa・
Kurikoma

Active volcano

Kujyu

CompletedKirishima

On going orPlaned

Research & Development

12➢ Artificial recharge by river water(EGStechnology)
The research and development to stabilize the geothermal
production by improving evaluation accuracy of fluid flow,and optimizing artificial recharge techniqueThis project is carried out under a collaborative researchwith EPRI (Electric Power Research Institute in USA) Technology for Exploration of Geothermal
Reservoirs
Improvement of exploration accuracy will be expected byapplying the seismic method to image the geothermal
reservoir structure by solving these issues.

➢ Drilling Technology
Develop the PDC* bit cutter and body for geothermal welldrilling and conduct verification test in order to reduce adrilling cost.
*PDC : Polycrystalline Diamond Compact

Yanaizu-nishiyama power plant

Conclusion

13 Japanese Government has been trying to expand
the developable area, reduce investment risk andpromote understanding of local people.
 JOGMEC has a important role to achieve abovemission.
 These measures is expected to bring new interest
and new investment in geothermal development in
the future.

14

Thank you for your attention!