Japanese Ministry of the Environment’s
Joint Crediting Mechanism (JCM) Project Funding Program“CVS Energy Saving Project in Indonesia”

12-July-2017 Lawson, Inc.

1. Project Overview (1/3)■ObjectWe will promote the spread of energy-saving low carbon technology equipmentof Japan.
・ For the purpose of reducing CO2 emissions by reducing power consumption,
introduction of the latest high efficiency equipment to overseas stores, anddemonstration of energy saving effect.
■Content of implementation items
At the international consortium, we aim to acquire credits using the JCM system.
・Panasonic’s high efficiency invertor air-conditioner, energy saving CO2 chiller
and freezer system, and dimming LED lighting are introduced.
■Operational situation
We accept adoption of a project equipment subsidiary business by utilizing
the JCM system of Ministry of the Environment in FY2010, the “CVS Energy
Saving Project in Indonesia” started. （December 2013）
・In March 2015, we completed introduction of energy-saving equipment to
12 mini supermarket "Alfamidi" in Jakarta.
・In June 2016 "Project Registration“, in September submitted a monitoring
report under the certification of a third-party organization.
Ｐ01

1. Project Overview (2/3)
Several energy saving equipment(1) Inverter-type air conditioning system

Methodology: ID_AM004(The most performance )(2) LED lighting

Methodology: ID_AM005(Automatically control type)(3) Separate type CO2 refrigeration system

Methodology: ID_AM008(first installation of CVS in South East Asia)

Import from Japan

LED Lighting

Inverter-type
Air Conditioning System

All devices by Panasonic©Copyright Lawson, Inc. 2016

StoresImport from Japan

Separate type
CO2 Refrigeration SystemＰ02

1. Project Overview (3/3)＜Project implementation structure＞(1)(2)- Project management

PT. Midi Utama
Indonesia Tbk

Myclimate JapanCo., Ltd.

Lawson, Inc.

- Assistance

PanasonicCorporation- Owner of project installationsites (Alfamidi stores)

・Methodology and PDD development
・JCM project application and registration
・Drafting of monitoring report- Equipment supply

Japan Quality Assurance
Organization- Third party entity(3)
Support:Communication with each actor(1) Project Participants(2) Contracting Parties for‘Methodology Development’, ‘PDD
Development’, ‘JCM Project
Registration’(3) Contracting Parties for‘Validation’©Copyright Lawson, Inc. 2016

Global Environment Centre Foundation (GEC)
Joint Committee
Indonesian side

Japanese side

- Approval of JCM projectＰ03

2. Project implementation (1/4)
The project covers a total of 12 grocery stores owned by PT. MIDIUTAMA INDONESIA Tbk located in Jakarta capital and its surrounding
districts.
Location of target store

Alfamidi RADEN SALEH

・Reach-in freezer (2door) x1
・Multi deck case (6ft) x 3
・Walk-in (6door) x1©Copyright Lawson, Inc. 2016Ｐ04

2. Project implementation (2/4)＜Monitoring Method＞
Electricity consumption data is monitoredfor each installed technology.
To Japan to be checked for precision before
reporting.

Japan

Lawson, Inc.
(Check and Report)

Monitored Data
RemoteMonitoring ServerInternet(Technology Supply
including Monitoring
System)Constantly
connectedIndonesia

Monitored Data andAlarm History Data

Alarm

MIDI (Counterpart)

Central Monitoring Device
RS485

MaintenanceSupportAlarm
MaintenanceAlfamidi Stores
Operation ofinstalled
technologies

Panasonic
Corporation

Air
Conditioner

Showcase

Outdoor Unit

Refrigeration
SystemLED
Lighting

ElectricMeter& Other
Devices

Maintenance Companies
・SIGMA (CO2Refrigeration System)
・GDN (Air Conditioner)
・PESGSID (Lighting andElectric Meter)

Monitoring of Electricity Consumption©Copyright Lawson, Inc. 2016Ｐ05

2. Project implementation (3/4)＜Challenges＞(1) Accounting of JCM Funding and Asset Registration
・ Designated Account for Fund Payment: Project focal point (Japanese company)⇒ Allocation to local counterpart(2) Training of Installation Technician

・ CO2 Refrigeration System: Difference in materials and installation method due tohigh Pressure(10MPa) ⇒ Training session on installation (invitation to Japan)(3) Installation Cost

・ Adjustment of cost covered by local counterpart: Difference in currency value⇒ Presently based on capital investment amount(4) Procurement of Target Equipment

・ Local procurement unavailable because target equipment is under demonstration
test phase ⇒ Export from Japan is necessary* Expensive cost, difficulty in quality assurance, uncertainties in delivery time(5) Others
・ Adverse effects on equipment due to voltage instability (Wattmeter, VPN router, Modem)
・ Trouble of monitoring data collection due to Internet line instability (3imes/month)・ Increase cost by installing a generator against power failure （US$ 20,000/1 store）

It is necessary to solve various problems in order to continue
and spread the JCM business. First of all, we aim to issue
credits, which is the objective of this project.
©Copyright Lawson, Inc. 2016Ｐ06

2. Project implementation (4/4)＜Expansion spread＞· LED lighting , Air conditioning -> Expansion spreading is possible· CO2 refrigerant equipment-> Economic rationality can not be expected now
Cost reduction of equipment is an important factor in solution.
Energy Saving Estimation《Separate type CO2 refrigeration system》

Lighting Control《LED lighting》
Panasonic iD LED

Fluorescent lamp

Total

51% save

27％

32％

savesave
FL36X1 Conventional
44W, 2500lm,57lm/W

35,461kWh/year

XL953AFVK
32W, 3200lm, 100lm/W

25,789kWh/year

Average 63% Dimming
17,537kWh/year

Efficient LED equipment and dimming controller
can save up to 32% compared with general LED《Inverter-type air conditioning system 》
Total
50% save

Inverter drive saves 25%“Eco Navi” and appropriate
setting (25 degC) saveanother 25%
50% saving is estimated intotal

As the case capacity increases(about 3 times), the result thatthe annual electricity usage isalmost equal is the result.
Ｐ07

3.GHG emission reductions and MRV(1/3)＜Process towards JCM Credits Issuance and Activities<Process><Status of the Project><Main Actors>
FY2014

Methodologies
submitted and approved(ID_AM004,ID_AM005,ID_AM008)

FY2015Development of PDD(in Jun – Aug 2015)

Validation(in Aug – Dec 2015)

Application of JCM projectregistration (in Jan 2016)
FY2016

Registration of proposed
JCM project (in Jun 2016)
Verification(in Aug – Sep 2016)

Creation of monitoring report(in Sep 2016)

FY2017

Credit issuance prospect(Source: “Recent Development of the Joint Crediting Mechanism (JCM)”,
Government of Japan, 2015)©Copyright Lawson, Inc. 2016Ｐ08

3.GHG emission reductions and MRV(2/3)
We made a monitoring report by 12 store’s measuring data from March 2014 toMay 2016. And Emission reduction amount totaling 195 t-CO2 has been
approved by validity examination of a third party organization.
Currently JCM procedure suspends. After instructed, we schedules to submit aapplication for credit issuance.
GHG Emissions Calculation for Applied Methodology ID_AM004 (12 stores total)
Year (Monitoring Period)
2014 (1 March 2014 - 31 December 2014)2015 (1 January 2015 - 31 December 2015)2016 (1 January 2016 - 31 May 2016)
Total

Reference emissions during theperiod p (tCO2/p)

41290
164495※Inverter-type air conditioning system

Project emissions during theperiod p (tCO2/p)

36259
146441

Emissions reductions during theperiod p (tCO2/p)

431
1752

GHG Emissions Calculation for Applied Methodology ID_AM005 (12 Store total) ※LED lighting
Year (Monitoring Period)
2014 (1 March 2014 - 31 December 2014)2015 (1 January 2015 - 31 December 2015)2016 (1 January 2016 - 31 May 2016)
Total

Reference emissions during theperiod p (tCO2/p)

15.0
75.9
45.0
136.0

Project emissions during theperiod p (tCO2/p)

12.4
61.1
36.1109.6

Emissions reductions during theperiod p (tCO2/p)

214824

GHG Emissions Calculation for Applied Methodology ID_AM008 (12 stores total) ※ Separate type CO2 refrigeration system
Year (Monitoring Period)
2014 (1 March 2014 - 31 December 2014)2015 (1 January 2015 - 31 December 2015)2016 (1 January 2016 - 31 May 2016)
Total

Reference emissions during theperiod p (tCO2/p)

101.7
525.1
313.4
940.2

Project emissions during theperiod p (tCO2/p)

88.6
456.5
272.9
818.0

Emissions reductions during theperiod p (tCO2/p)126740119

GHG Emissions Calculation (3 applied methodologies, 12 stores total)
Year (Monitoring Period)
2014 (1 March 2014 - 31 December 2014)2015 (1 January 2015 - 31 December 2015)2016 (1 January 2016 - 31 May 2016)
Total

Reference emissions during theperiod p (tCO2/p)

157.3
891.3
522.5
1,571.1

Project emissions during theperiod p (tCO2/p)

137.1
776.0
455.1
1,368.2

Emissions reductions during theperiod p (tCO2/p)

18112
65

195 Ｐ09

3.GHG emission reductions and MRV(3/3)■ Awareness Regarding the MRV activities of the Project
To ensure sustainable monitoring, report andverification (MRV) activities at the stores,
capacity building on the understanding of JCM
and installed technologies are conducted
through trial monitoring, and awareness-raising
activities.
<Details>(1) Preparing teaching materials
on monitoring and organizing
seminars.
(2) Awareness-raising throughapplication of stickers andposters by local counterpart.
≪JCM Project Sticker Design≫≪Application of Stickers≫©Copyright Lawson, Inc. 2016

≪Application of Posters≫≪Awareness-raising Poster (English)≫Ｐ10