Introduction of the Energy Conservation Act in Japan
Outline of the Energy Conservation Act (EC Act)

1

Outline of the Energy Conservation Act (EC Act)
Japan intensively introduced Energy Management System based on Energy Conservation Act (theformal name: Act on Rationalizing Energy use and Shifting to Non-fossil Energy), then achieved the lowest
level of energy consumption performance (evaluated by the index, primary energy supply per GDP) in theworld.
The Energy Conservation Act (hereinafter referred as EC Act) is Japanese domestic law enacted in
1979. This act provides measures for the rational use of energy in factories, buildings, transportation andmachinery and equipment, etc. aiming to ensure the effective utilization of fossil fuel resources.

1.1

History of the EC Act

Since the enactment in 1979, the Act has undergone six major revisions up to the present dateaccording to the social, economic and environmental requirement. Table 1-1 shows the changes in theEC Act since its establishment.

Table 1-1 Changes in the EC ActYear

Major Revisions in the Energy Conservation Act

Background1951 Enforcement of Heat Management Law● Effective use of fuel in industrial sector
1979 Energy Conservation Act establishment● Establishment of designated energy (heat and electricity) management
factories● Establishment of EC Guideline in the residence and building fields,

1st Oil Crisis in1973
2nd Oil Crisis in1978

and in the machinery and equipment fields

1983 Energy Conservation Act revision● Introduction of examination for a qualified energy manager’s license
1993 Energy Conservation Act revision● Establishment of Basic Policy● Periodical reporting system introduced

1998 Energy Conservation Act revision● Expansion of designated energy management factories (newintroduction of type-2)● Introduction of Top Runner Program to machinery and equipment andCOP(KyotoProtocol) in 1993

automobiles

2005 Energy Conservation Act revision● Introduction of unified management of heat and electricity

Kyoto Protocol
put into effect● Expansion of stipulation courses to cover transportation sector

2008 Energy Conservation Act revision● Introduction of business operator units including franchise chainstipulations● Introduction of benchmark system in each industrial sub-sector

2013 Energy Conservation Act revision● User electricity peak demand measures● Introduction of Top Runner Program to building materials

2008-2012:
1st committedterm of Kyoto
ProtocolElectricityshortage due toBig Quake in2011

2018 Energy Conservation Act revision● Establishment of a certification system for collaborative energyefficiency plan
● Establishment of a certification system for certified energy
management control business operators

2023 Energy Conservation Act revision● Rationalization of energy use (expansion of the scope for rationalizing

Achieve carbon
neutrality by 2050,energy use)
● Shifting to non-fossil energy● Optimization of electricity demand

Japan, which relies most part of the energy supply on abroad, has implemented the EC measures that
contribute both to securing of stable energy supply and prevention of the global warming as well as
economic development.

1.2

Structure of the EC Act

The EC Act is composed of the Objective, Definition and the Basic Policies, followed by the measures forindustries, transportation, buildings, machinery & equipment, etc. and electricity utility, and the miscellaneousprovisions and penal provisions.
The EC Act stipulates the following key measures;(1) The framework which requires the specified business operators, whose energy consumption of 1,500 kl
COE/y or more, to appoint the qualified energy management persons (including the qualified energymanager) and execute daily energy management, annual report on their energy consumption to theGovernment, and annual submission of the mid to long term plan which is applied to the type-1 designatedcompany.
(2) The energy conservation guideline (hereinafter referred as EC guideline) for factories or workplaces(3) The EC guideline for buildings and houses, and(4) The EC guideline for machinery and equipment called as Top Runner system which is applied to thehousehold appliances, automobiles, equipment and materials.
Supplemental explanation will be made by the section 2 “Designated energy consumers and qualified
energy managers under EC Act” for the above item (1), and by the section1 for the above (2) & (3)respectively.
Table 1-2 shows the key regulatory measures for industrial, commercial, residential and transportation
sector.
Table 1 -2 Key regulatory measures stipulated in the EC Act

1 .3

Meaning of Energy Conservation stated in the EC Act

Energy Conservation (Rationalizing Energy use and Shifting to Non-fossil Energy ) defined by the EC Act
means the following two actions:(1) Reduce energy consumption by means of improvement and refinement of both equipment/machinery(hardware) and operational management (software).
(2) Reduce the energy intensity (improve energy consumption efficiency)
Definition of energy intensity is shown in the Fig 1-1.

Energy Intensity=Energy Consumption Volume (coe kl,Production Volume, etc.

Figure 1-1 Definition of energy intensity

The denominator of the energy consumption intensity stated in the EC Act is “the value that has a close
relation with the energy consumption such as the production quantity, or the total floor area of a building, etc.”
The details of the values are allowed to determine by self-decision of individual cases.

22.1

Designated energy consumers and qualified energy managers under EC Act

Designation of Specified Business Operator, etc.

Designation of Specified Business Operator, etc. is stipulated by the EC Act and specified by theCabinet Order as shown in Figure 2-1.

Figure 2-1 Legislation Hierarchy of the EC Act System

The “values specified by a Cabinet Order” are specifically given in the table 2-1 below. If the energy
consumption in the previous year reaches or exceeds a certain value in a company as a whole, thecompany submits the notification on the status of energy use on its own to the government and isdesignated as the specified business operator or chain business operator. Likewise, the designation isstipulated for a designated energy management factory on a workplace basis.
The key point is that the Act provides a mechanism by which the workplaces, etc., undergo the concrete
regulations as shown above in the case where their energy consumption exceeds a certain level.

Table 2-1 Designation of a factory and company as a whole

A Type 1 specified business operator shall appoint a Type 1 energy manager for each of its Type 1
designated energy management factories, etc., from among persons who have a qualified energy
manager’s license. Likewise, a Type 2 specified business operator shall appoint a Type 2 energy manager.
The qualification method for a Type 1 energy manager is described hereunder. However, that of a Type 2energy manager is omitted due to a simple requirement for the qualification, receiving the designated oneday seminar.

(1) Energy manager’s license
A qualified energy manager's license shall be issued by the Minister of Economy, Trade and Industry
to persons who fall under any of the following items:① A person who has passed an examination for a qualified energy manager's license; or② A person who has been recognized by the Minister of Economy, Trade and Industry as having equal
or greater knowledge and experience than the person listed in the preceding item.
(2) Examination for qualified energy manager’s license① An examination for a qualified energy manager's license shall be conducted by the Minister ofEconomy, Trade and Industry.
② The Minister of Economy, Trade and Industry may designate a "designated examining body" andcause such a body to administer the affairs concerning an examination for a qualified energy
manager's license③ The courses of an examination for a qualified energy manager's license, procedure for participatingin the examination and other details concerning the examination for a qualified energy manager's
license shall be specified by a Regulation of the Ministry of Economy, Trade and Industry.
(3) Duty of energy managers
Energy managers shall, with regard to the rational use of energy in Type 1 designated energy
management factories, manage the maintenance of energy-consuming facilities, the improvement andsupervision of methods for using energy, and other affairs specified by a Regulation of the Ministry ofEconomy, Trade and Industry.
(4) Appointment of energy management persons
A specified business operator shall appoint qualified energy management persons according to theTable 2-2 below. The appointment number of Type 1 energy manager differs from 1 to 4 based on typeand energy consumption of a factory.

Table 2-2 Appointment of energy management persons