PROMEEC (Industry) for 2006-2007

Seminar-Workshop< Initiatives and Programs of ECCJ on
EE&C in Industry in Japan >2006

Hideyuki TANAKA
Technical Expert, International Engineering Dept.
The Energy Conservation Center, Japan
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Contents< Initiatives and Programs of ECCJ
on EE&C in Industry in Japan >1. Status of Energy Consumption in Japan
2. Energy Conservation Law
3. ECCJ Activities & Programs for Industrial Sector

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1. Status of Energy Consumption
in Japan

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(1) Transition of Final Energy Consumption & GDP(million kL crude oil equivalent)

GDP (trillion yen, 1995 values)

450

Gulf War

1st Oil Crisis

600

404.5MkL

400

2nd Oil Crisis

GDP

500
24.7%

350

Transportation Sector
400

300
27.5%

16.4%

250

Residential & Commercial Sector

Struggling

300

18.1%
200
150

200
46.3%
65.5%

Industrial Sector

100

Success
100

50

73

74

75

76

77

78

79

80

81

82

EC Law

83

84

85

86

87

88

89

90

91

92

93

94

95

96

97

98

99 2000 01

02

03

04

Source: General Energy Statistics•

Japan’s final energy consumption has consistently increased since themid 1980s.
• Energy manager system has contributed greatly to carry out theenergy conservation in industrial sector.
• Recently, the government policy is focused in 3 Sectors, not only
ECCJ Industry Sector.

4(2) Manufacturing Sector- Trend of Energy Consumption Intensity by Sub-Sector Foods
Metals & Machinery
Cement & Ceramic
Iron & SteelPaper & Pulp
ChemicalManufacturing Industries (Total incl. others)(FY’73=100)

120

100
90
80
70
60
50

Fiscal Year
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(Source: EDMC Handbook of Energy & Economic Statistics in Japan 2006)

'04

'03

'02

'01

'99
'00

'97
'98

'95
'96

'93
'94

'91
'92

'89
'90

'87
'88

'86

'84
'85

'82
'83

'80
'81

'78
'79

'76
'77

'75

40
'73
'74

Index

110

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2. Energy Conservation Law

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(1) Outline of the Energy Conservation Law
1947 : Heat Management Regulation Enacted
1951 : Heat Management Law Enacted
1979 : Law Concerning the Rational Use of Energy Enacted(1983,1993,1998, 2002, 2004 amended and reinforced)<Basic Objective>
Enhancing energy efficiency in order to achieve 3E’s harmonization.

• Regulations regarding Industries

Economic
growth• Regulations regarding Buildings

3‘E’
harmonization• Energy efficiency standard forEnvironment
protection

Energysecurity

Appliances and Automobiles (Top runner program)
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(2) Regulations for Industries【Target】 Reduction in Energy Consumption by 1%/year[Obligations of Factories & Buildings]
1. To make efforts to rationalize their energy use
according to the judgment standards
2. To appoint energy manager(s) (Type-1 factories),
To appoint energy management officer, and to send
officer for training seminar every 3 years(Type-1 Buildings and Type-2 Factories)
3. Report the status of energy consumption every year
4. Submission of medium-to-long term improving plan (Type-1)<Roles of Energy Managers under the Law>
1. To maintain energy-using facilities in sound conditions
following the Guidance (Judgment Standards) by the Law
2. To recommend energy efficiency improvement of the facilities(The management must give consideration to therecommendations in high regard)
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(3) Designated Energy Management Factoryunder the Energy Conservation Law
EnergyConsumption

Crude Oil [HeatandElectricity]

Classification
Following
Industries- Manufacturing- Mining- Electricity
Supply- Gas Supply- Heat Supply- All industries other thanthose listed at left,(e.g. office buildings,
department stores, hotels,
schools, hospitals,
government offices,
and amusement parks)- Head office/office bldg. of
the industries listed at left

[Regulatory obligations]- Appointment of energy
management officer- Regular reporting of energy

utilization- Preparation & Submission of

mid- & long- term EC plan
Type-1
Designated Energy Management Factory(Participation of Qualified Person
for Energy Management is neededat the time of this plan preparation.)

Type-2
Designated Energy Management Factory[Regulatory obligations]

3,000kL/y

1,500kL/y
0kL/y[Regulatory obligations]- Appointment of energy
management officer- Regular reporting of energy
utilization- Appointment of energy manager(s)- Regular reporting of energy utilization
ECCJ- Preparation and submission of mid- & long- term
EC plan9Reinforcement of Energy Conservation Measures for Factories and Business
Establishments through the Integration of Heat and Electricity Control
New system (from FY2006)

Old system (to FY2005)

Designated heat management factory
Type 1: 3,000kL/y or moreType 2: 1,500kL/y or more

[2,858 Factories][2,129 Factories]

Integrated
heat-and electricity

Designated electricity management factory
Type 1: 12million kWh/y or more [4,534 Factories]
Type 2: 6million kWh/y or more [5,087 Factories]

Type 1 Electricity
(1-E)

1-E

Designated energy management
factory

Old designatedfor Electricity

1-E
2-H

2-E
2-H

2-H

0kWh/yECCJ

2-E[Electricity: 1MWh = 9.76GJ (Normal case)
Crude oil: 1kL= 38.76GJ or 1GJ = 0.0258kL]

Total designated factories: 10,000

1-E
1-H

12million kWh/yType 2
Electricity (2-E)
6million kWh/yType 1: 3,000kL/y or moreType 2: 1,500kL/y or more

2-E
1-H

13,000Type 1 designated energy
management factories
Newly designatedtype 1 factories(1,800 factories)
Type 2 designated energy
management factories

1-H

3,000KL/y1,500KL/y0kL/yOld designatedfor HeatType 2 Heat (2-H) Type 1 Heat (1-H)

Newly designatedtype 2 factories(2,800 factories)10(4) Number of Energy Managers Requiredby the Law
Type-1 Designated Energy Management Factories
Mining, Electricity/Gas/Heat supply factories
Fuel consumption, annually
3,000 or less than 100,000kL-oe
100,000kL-oe or more

Number Required
12Type-1 Designated Energy Management Factories
Manufacturing factories other than those listed
above
Fuel consumption, annually
3.000 or less than 20,000kL-oe
20,000 or less than 50,000kL-oe
50,000 or less than 100,000kL-oe
100,000kL-oe or more

Number Required
12
3
4Energy managers should be selected from licensed persons.
The License to be acquired through the state examination.
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(5) Supportive measures
1. Low-interest loan
Project plan should be approved by the ministry based on the Law

Approval condition:(1) To be satisfied with “Judgment Standards (guidance for introductionof high energy efficiency equipments)” in Energy Conservation Law.
(2) Total energy saving in the plant is 100kL or more per year.
Preferential interest rate loan: (for example)
Interest rate: 2.2%, loan period: 1~30years, loan coverage: 50%
through Development Bank of Japan, or through Japan Finance Corporation for
Small and Medium Enterprise, etc.

2. Tax Incentives for Investment of Energy Conservation Facilities( 74 facilities only for S&M enterprises as of June 2005)"Tax Incentive System for Promotion of Investment in Reformation of Energy
Supply and Demand Structure" was established in 1978.

(1) Deduction for corporate tax or income tax
7% of acquisition cost of equipment(Upper limit: 20% of corporate tax or income tax)or(2) Special depreciation
Up to 30% of acquisition cost of equipment in addition to ordinary
depreciation
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(6) Energy Conservation Programs towards
2010 in the Industrial Sector
1. Thorough implementation of energy efficiency required by theregulations in all designated factories & workplaces throughenergy audit & Follow up under severer administrative set-up
2. Tighter regulations for expanding the number of designatedfactories & workplaces
3. Higher efficient energy utilization in a coordinated manner inmultiple factories & workplaces
4. Voluntary Environmental Action Plan of KEIDANREN(KEIDANREN = Japan Federation of Economic Organization)

5. Supportive measures (Tax, Loan, Subsidy) for introducing
energy efficient equipment and facilities
6. Capacity building (Energy Manager)
7. Commendation of excellent energy managing factories
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Self–help efforts in Enterprises
E

n

e

r

g

y

Observation (fact finding)

M

a

n

a

Control

g

e

e

n

Task force

a largeamount ofinvestment

Large
effectHigh level(Investment level)<Top management>
Middle level

Project(Technological level)

Technological improvement ,Adoption of high efficiency equipmenta small amount

Kaizen by Sho-shudanof investment

keeping the operation standard, small maintenance,tuning up the operational conditions,<Engineers>
Low (easy) level(operational & facility
management level)<Workers>< Minimum requirement: observation system or
measuring tools of energy consumption >Every departments / Every parsons should be participating to the activities.

<TQM>

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t

improvement

Introduction of newest technology & facilities< TQM >mSmall
effect14

3. ECCJ Activities & ProgramsforIndustrial Sector

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(1) Profile of ECCJ
Legal status:

Establishment:
Purpose of
establishment:
Office location:
Supporting member:
Staff:
Budget:* NPO
Incorporated foundation under thesupervision of METI
* 1978 (just after the 2nd oil crisis)* Core organization responsible forpromotion of energy conservation* Tokyo Head office & 8 branches* 2,834 companies (as of April 2005)* 128 persons (as of April 2005)* 41.2 million US$ in 2005FY (＠120¥/$)Subsidies (69%), State Examination (9%),
Assignments (7%), Membership Fee (4%),
Others (11%)

Fields of activity:
ECCJ* Industrial, Residential/Commercial,
Transportation and Cross sectors
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(2) Roles of ECCJ
ECCJ is the core organization responsible for promotion of energy conservation.
Its activities were authorized by the Diet when the Energy Conservation Law was enacted.

< Energy Conservation Law >Enterprises* Self-help efforts
Energy management(TQM, Kaizen sho-shudan)
R&D and Investment

Government(METI)

Order
Supervise
Supportive
measures* Regulation & Support

Periodical
reportService offering* Information(Technology, Law/Regulation)
Support* Training* Dissemination

Information
offering
Support

ECCJ

Supportive
measures

Supervise

ECCJ* The bridge over both sides for
implementing energy conservation
measures

Information

Information
Dissemination

Civil
sector17

(3) Main Activities of ECCJ
for
Industrial
Sectorfor
Residential,
Commercial &Transportation
Sectorsfor
Dissemination etc.
(cross sector)
ECCJ① Energy conservation audit services for factories② Education & training on energy conservation③ State examination for energy managers (assigned by the Gov.)④ Dissemination (conference for successful cases of EC activities,
excellent energy conserving equipment, etc.)⑤ Technological development and spillover① Energy conservation audit services for buildings② Ranking catalogue for energy efficient appliances(dissemination of Top Runner Program )③ Promotion of Energy labeling system④ Energy efficiency products retailer assessment system⑤ International energy star program implementation⑥ Dissemination of Energy conservation indicator “E-Co Navigator”⑦ Energy education at elementary and middle schools⑧ ESCO research and development① Energy conservation campaign & exhibition (ENEX)② Commendation (Grand energy conservation prize)③ Information & data base, Publicity and publishing④ Survey and monitoring⑤ International cooperation & Communications18

(4) Energy Audit Implemented by ECCJ (on Request)- Basic Scheme and Program Program
EnergyConservation
Auditing for
Buildings(Free-ofcharge)

EnergyConservation
Auditing for
Factories(Free-ofcharge)

Applicablefactory

Overview- Report offindings

Buildings- On-site
discussions
1 day- Document review- On-site
inspections
350 buildings/year

Mediumsized
factories- On-site
discussions
1 day- Document review- On-site
inspections
100 factories/year- Report offindings

Large
Sized
factories- Document review- On-site
inspections withmeasuring devices

3 days70 factories/year
ECCJ

Funded by

METI- Proposals on
improvement

METI- Proposals on
improvement- Report offindings- Proposals on
improvement &introduction of
new technologies

Number of factories audited: 2,044 (Fiscal years 1997–2005)

METI/NEDO

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(5) Improvement Items Proposed by Auditors
Items of frequency appeared in advice, Total proposed items = 16,052[ECCJ publishes the proposed measures & expected effects for the other factories’ reference]
Energy management system
Implementation of measurement& recording
Quantity management of used energy
Energy intensity management ofmajor products
Maintenance management of equip.

7.0
6.1
5.8
5.2

Load leveling measures
Improvement of processes

3.2
1.9

Energy Conservation measures
Operation management of airconditioning & freezing equip.
Operation management ofcooling equip.
Operation management ofauxiliary equip.
Cold storage & Freezing equip.

5.2
5.0
1.6

Air-conditioners,
Air-conditioners,
freezing
freezing equipment
equipment(2,200(2,200 items)
items)

1.4
0.5

Operation management ofpneumatic equip.
Operation management ofpumps & fans
Introduction plans of co-generation
etc.

8.1
Pumps,
Pumps, compressors,compressors,fans,
fans, co-generation,
co-generation, etc.
etc.
(2,249(2,249 items)
items)

4.1
1.8
0

ECCJ

GeneralGeneral management
management
items
items (5,393(5,393 items)
items)

4.4

1

2

3

4

5

6

7

Ratio to Total Proposed Items (%)

8

20

9

(Continued)
Combustion management ofboilers & industrial furnaces
Thermal insulation & prevention ofheat dissipation
Operation & efficiency managementof boilers & industrial furnaces
Exhaust gas temperature management& waste heat recovery
Recovery & utilization of steam drain
Management of steam leakage& heat insulation
Operation management of steam
Reduction in waste heat & water
Optimization of steam piping system
Operation management ofheat exchangers
Load leveling of steam system
Operation management oflight fixtures
Management of power receiving equip.

3.4
2.4
2.4
1.9
1.8
1.1
1.0
0.6
0.5
0.2
6.8
5.5

Management of transformers
Motor capacity & operation
management
Operation management ofelectric heating equip.

3.0

Power
Power receiving,receiving,transformers,
transformers, motors,
motors,electric
electric heating
heating equip.
equip.
Lighting(3,213
items)
Lighting (3,213 items)

4.2

1.6
0

ECCJ

Industrial
Industrial furnaces,
furnaces,boilersboilers && steamsteam systems,
systems,heat
heat exchangers,
exchangers,
waste
waste heat,
heat,
waste
water,
waste water, etc.
etc.
(2,682(2,682 items)
items)

2.3

1

2

3

4

5

6

7

Ratio to Total Proposed Items (%)

8

9

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(6) Training/Education Course by ECCJ
Education/Training Course
1. State Examination(1/y, 1d, 10areas)
2. Training for Qualification(1/y, 7d, 6areas)
3. Training Course for Energy
Management Officer(Qualification Acquirement)(1~/y, 1d, 10areas)
4. Training Course for Energy
Management Officer(Improvement inknowledge and skills)(1/y, 1d, 10areas)
5. Energy Management
Symposium for
manufacturing Industry(1/y, 1d, 10areas)
6. Energy Management
Symposium for Building(1~3/y, 1d, 10areas)
ECCJ

Training Object
Training for Energy
management(Acquisition ofqualification)

Target Applicant
Person who wants to
get the qualification of
QPEM

Education/Training fora. Energy management(Grading-up ofquality & skills)
b. Improvement ofawareness onenergy conservation- Energy Management
Officer of type 1 or 2
Designated Energy
Management Factory- Industry engineer

Explanation ofamended law, reportand plan- Energy Manager &person in charge ofenergy management

Explanation ofamended law- Energy management
officer and person in
charge of energy
management22

(Continued)

Education/Training Course
7. Correspondence Course(12/y, 6months)
8. Short-term Training Course(Preceding of examination)(1/y, 4days, 10areas)
9. Practice Training/
Education Course(5courses/y, 6~12days, 3areas)
10. Technical Education Course(1~3/month, 1day, 10areas)
11. Technical seminar/Factory
tour on Energy Conservation(1~3/month, 1day, 10areas)

Training Object

Target Applicant

Training for Energy
management(Acquisition ofqualification)

Industry Engineer
who wants to get
the qualification

Education/Training fora. Energy management(Grading-up ofquality and skills)
b. General public(Improvement ofawareness onenergy conservation)

Industry Engineer
or Manager

12. Top management seminar(By request, 1day at Tokyo)
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(7) Grand prize at the National Convention of
Excellent Successful Cases
In Energy Conservation Activities<2005 FY, Central & 9 Regional Conventions>

1. Grand prize of METI (2)* Rawson, Ltd. (Convenience store)“Active introduction of energy conservation measures for refrigerating
and air conditioning by ESCO method”* Idemitsu Kosan Co., Ltd., Aichi Oil Refinery“Implementation of energy conservation in the oil refinery process: Major
surgery for oil desulphurization equipment”

2. Prize of Director General of Agency for Natural Resources andEnergy (5)3. Prize of Director General of Economy and Industry Bureaus (14)4. Prize of the Chairman of ECCJ (18)
5. Fineness Prize of ECCJ (14)You can see details of these Successful Cases on the ECCJ’s Web-Site.
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Presentation of Successful Cases (Best Practice)
ECCJ organizes and implements every year from 1976
Mass meetings for announcement of excellent cases to disseminate and promote them.
<4,000~5,000 participants at 11 venues every year>

ECCJ

Annual Central Convention in TOKYO 25

Number of successful cases presented

13
0

16
3
16
4

200

77

150

50

100

ECCJ

16
7
14
6
16
16 7
5
16
7
14
7
14
7
15
4
14
1
14
7
15
2
17
3
18
5
18
0
16
1
16
1
15
8
15
１

250

Average of 30 years = 169 cases/y

21
19 2
8

23
7
27
3
25
6
22
6
22
0

300

50

Year (FY)

200
4
200
5

200
2

200
0

199
8

199
6

199
4

199
2

199
0

198
8

198
6

198
4

198
2

198
0

197
8

0
197
6

Number of cases presented

at the National Convention of Excellent Successful Cases in Energy Conservation Activities

26

(7) Award System to Promote Energy Conservation- Grand Prize for Energy Efficient Appliances / Systems -Evaluation Items
1. Specification, etc.
(1) Specifications of Product(Performance / Energy Efficiency)(2) Features of Technology(3) Patent / Published Papers / Actual Sales Amount

2. Effect and Impact(1) Effect of Energy Conservation(2) Effect on Material Preservation / Easiness of Recycle(3) Creativity and State of the Art(4) Product / Marketability / Economy(5) Impact on Environmental Improvement / Safety(6) Overall Evaluation

Number of Winners: 10 – 25 Every Year
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Commendation (2005FY)
1. Grand prize for high energy efficiency appliances &cars for home use & business use＊ 1 Grand prize honored by
Minister of Economy, Trade and Industry- Air conditioning & refrigerating system forconvenience store (Hitachi Air-Con System Ltd.)＊ 2 Grand prizes honored by Director Generalof Agency for Natural Resources and Energy＊10 Grand prizes honored by the Chairman of ECCJ

2. Factories & persons contributed to energy
conservation＊ 64 factories and 85 persons were commended.
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Thank you
More Information
More information could be seen in
ECCJ’s Internet Home Page at :http://www.eccj.or.jp/index_e.html

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