Japan‘s vision and actions on DER
toward Carbon Neutrality

Advanced Energy Systems and Structure Division
Ministry of Economy, Trade and Industry

2050 Carbon-Neutral Declaration and 2030 Climate Goal
 In October 2020, Prime Minister Suga declared that by 2050 Japan will aim toreduce greenhouse gas emissions to net-zero, that is, to realise a carbon-neutral,decarbonised society.
 At Leaders Summit on Climate in April 2021, Prime Minister Suga announced thatJapan aims to reduce its GHG emissions by 46 percent in FY 2030 from its FY
2013 levels.
Prime Minister‘s remarks at Leaders Summit on Climate

Japan aims to reduce its greenhouse gas
emissions by 46 percent in fiscal year 2030 fromits fiscal year 2013 levels, setting an ambitious target
which is aligned with the long-term goal of achieving
net-zero by 2050.
Furthermore, Japan will continue strenuous
efforts in its challenge to meet the lofty goal ofcutting its emission by 50 percent.

1Points of energy supply-demand outlook in 2030

* Figures are all interim and subject to change in the future.

 Focused on FY2030 new GHG emission reduction target, this outlook shows energy supply and demand on theambitious assumption that various challenges in both aspects of supply and demand in promoting thoroughenergy conservation and expansion of non-fossil energy will be overcome.
 In implementing the measures towards this ambitious outlook, strength and implementation timing of themeasures need to be fully considered not to be detrimental to energy security. (e.g. If reduction measures forfossil fuel-fired power sources were immediately taken at a stage prior to full introduction of non-fossil fuelpower sources, stable supply of electricity could be affected.)
2030 energy mix(ambitious outlook)
Approx. 62 billion L(2019 ⇒ current target)

Energyconservation
Power generation
mix

Electricity generated：
1,065 TWh⇒Approx. 930-940
TWh(16.55 billion L ⇒ 50.30 GL)(Final consumption before energy conservation:
approx. 350 GL)

Renewable energy(18% ⇒ 22-24%)

36-38%

Hydrogen/Ammonia(0% ⇒ 0%)1%

Nuclear(6% ⇒ 20-22%)

20-22%

LNG(37% ⇒ 27%)

Coal

(32% ⇒ 26%)

20%
19%

Oil, etc.

(7% ⇒ 3%)2%

( ＋ non-energy related gases/sink
GHG reduction rateincrease equivalent to the above )(14% ⇒ 26%)

46%

Further, 50% target is aimed at.

2

Points of the policy responses towards 2030 [Demand side’s efforts]
 Further pursuit of thorough energy conservation
 Transport sector will address introduction and expansion of electrified cars and infrastructure;enhancement of electrified car related technologies such as batteries and supply chains; and support forintroduction of new technologies such as AI and IoT for optimization of whole freight transport bycollaboration of shippers and carriers.
 Study of responses in terms of systems with a view to amendment of the Energy Conservation Act to encourage
demand side’s energy conversion.
 Review of Energy Conservation Act aimed at rational use of fossil energies will be studied for its transition to
the regulation system to encourage rational use of overall energies and introduction and expansion of nonfossil energies.
→ The framework will be established to appropriately assess improvement in the businesses’ introduction
rate of non-fossil energies and optimization of demands such as demand response according to supply
side’s variation.
 Sophistication of the secondary energy structure including effective use of distributed energy resources such asbatteries
 Aggregation businesses utilizing distributed energy resources such as batteries will be promoted; andefficient energy use, enhanced resilience and activation of the local community by local production for local
consumption will be promoted by microgrid implementation.
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Policies and action toward 2030
present•
Overview

Battery•

Role of DER （adequacy and balancing
supply-demand); limited•

36-38%- renewable energy at 2030•

Design capacity/balancing market to be
DER fairly evaluated•Promote aggregator with R&D/subsidy•

Japan has the largest battery market.

•

Set target prices and volume•

Invalid FIT would promote installing
batteries at home.

•Facilitate EV integrated to grids••

High prices compared with other countries

Subsidies/tax incentive for building
factories•

Batteries need to be classified as generatorin.

•

Amendment Electricity Business Act (EBA)•Technology demonstration•

Balancing/Capacity Market rules will bearranged•

Technology demonstration foraggregate DER in FIP•

Demand response when DER surplus to
avoid curtailment and load congestion.

•Aggregator

DER increases at high speed with lower
pricesdirection

Much potential
 Balancing market: 176 million kW
 Capacity market: 415million kW•

Technologies to be established to control
demand and forecast volatility of DER•

Aggregator get license in EBA in 2022•

Production and consumption of local energy •contribute resilience, grid congestion, vitalize •local economy.

Micro grid•

Lack of economic efficiency

Technology for microgrid.
Improvement economic efficiency
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Battery market in major countries and Japan The amount of batteries in Japan is the highest among major countries.
 Incentive to use electricity from due to expiration of FIT.
Catastrophic natural disasters occur every year.
Number of installed batteries has increased by four times in the past 5 years.
 From next year, FIP would accelerate installing batteries near electricity grids
since it’s imperative for DER business to balance demand and supply.
Batteries in Japan

Batteries in major countries（2010-2019）

2.4
0.2
1.8
0.1
0.4
0.02
00.5

11.5

22.5[GWh]

35

Two projects start in this autumn
 Virtual Power Plant: sell stabilized electricity through the balancing
market with a multi-access edge computing system controlling
enormous batteries
 Aggregate DER: sell stable DER on whole sale market
Expanded DER will need electrolyzers in near future.
Project 1 Virtual Power Plant

5000 batteries(home, building, factory)

7000
fuel cell batteries

Project 2 Aggregate DER

1.5 GW
DER

Electric Vehicle

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Thank you7