Miyakojima City

Miyakojima City
Island-and-Islets Type Smart Community Verification Project- Activities to Make Islands Sustainable -Eco-Island Promotion Section
Department of Planning and Policies
Miyakojima City

Miyakojima City

• Overview of Miyakojima City
• Policy background• Sustainability and local energy policy- Views toward energy policies- Examples of activities• Island-and-islets type smart community verification project- Overview- Structure of energy costs on isolated islands- Characteristics of renewable energy and electricity- Securing an inexpensive adjustment capability- Future direction2General Situations of Miyakojima City

Miyakojima City

Miyakojima is an island approximately 2,000 km distant from Tokyo and approximately 300 km
distant from Naha. It is located in the middle of Naha and Taiwan.

Approximately 2,000 km

Approximately 300 km
3General Situations of Miyakojima City

Miyakojima City

Miyakojima is a flat island that is surrounded by the sea and formed with raised coral reefs. It is in a severe
natural environment without any large rivers and vulnerable to typhoons and droughts.

Ikemajima

Population: Approximately 55,000
Area: Approximately 205 km2

Ohgamijima(Miyakojima accounts for 80% of
this area.)

Irabujima

Climate: Subtropical climate
Annual average temperature:
23.3 C
Annual average precipitation:
2,000 mmAnnual average humidity: 79%

Miyakojima

Shimojijima
Kurimajima
Profile of Miyakojima(Overview)Landscape of Miyakojima City
Higashihennazaki

Sansui Yusui

Maehama Beach

Sugar cane field(State-designated placeof scenic beauty)4Industries of Miyakojima City (1)Miyakojima City

Agriculture, forestry, fisheries, and tourism are Miyakojima's major industries. Agriculture in Miyakojima
cultivates not only sugar canes, which are staple crops, but also leaf tobacco, mango and other fruit trees, andvegetables such as goya (bitter gourds), pumpkins, and wax gourds on a large scale. Miyakojima is one of the
major producing areas of sugar canes and leaf tobacco in Japan.
Production(t)Sugar cane production and sales amounts

Output(million yen)

450,000

Agriculture in Miyakojima

12,000400,000

10,000350,000
300,000

8,000

250,000

6,000

200,000
150,000

4,000

100,000

2,000

50,0000

Sugar cane

Brown sugar

Goya

Wax gourd

Mango, etc.

Miyako beef

02007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Production (t)2012
Production (t)Output (million yen)

2013

304,083 305,199
6,723
6,682

Output (million yen)

2014

2015

2016

2017

301,268
6,845

324,3887,125

410,165
9,673

296,482
6,522

Source: Statistics on Miyakojima* The poor harvest in 2011 was due to a lack of sunshine(February to March), typhoon (May), and drought trend.
* Prefecture total of 938,000 t (2016) includes 410,000 t (44%)
from Miyakojima City

5

Industries of Miyakojima City (2)Miyakojima City

Miyakojima is rich in natural landscape resources for tourism, such as the beautiful coral reefs in thesurrounding ocean and the cape of Higashihennazaki. Also, various sporting events associated with the"Sport Island Miyakojima" concept, music events, and other events held on the island account for an
increasing number of tourists visiting the city.
Following the opening of the Irabu Great Bridge, the start of new direct flights to the mainland, and increased
port calls by cruise ships in recent years, about 1.14 million tourists visit Miyakojima annually. The berthdevelopment currently in progress at Hirara Port and the opening of the Shimojishima Airport Terminal in
March 2019 are expected to spark further increases in the number of tourists.

Major tourist events, etc.

Changes in the number of tourists to Miyakojima City
Yearly changes in the number of arriving tourists and tourism revenue

Number of tourists

Tourism revenue (Unit: Million yen)

1,400,000

80,0001,200,000

70,000800,000
600,000
400,000

Number of tourists
Number of cruise shippassengers
Tourism revenue

50,000

Number of cruise
ship passengers

40,000

Number of tourists

30,000Tourism revenue

20,000200,000
0

All Japan Triathlon Miyakojima

60,0001,000,000

10,0002009 10

11

2009

2010

12

13

2011

14
2012

15

16
2013

17

18

2014

Tourism in YabijiRock Festival

Irabu Great Bridge

Shimojishima Airport

0
2015

2016

2017

2018

337,356 404,144 332,473 413,654 400,391 430,550 513,602 703,054 988,343

1,143,031

10,984 125,786 363,968

454,157

17,489 20,900 17,206 18,940 18,333 19,714 39,717 50,312 63,876

72,658Created by Miyakojima City

6

Underground-Dam Irrigation Development Project

Miyakojima City

In a harsh natural environment, Miyakojima has suffered from heavy damage due to droughts, etc. To breakaway from waterless agriculture by using abundant groundwater, Miyakojima City developed a water resourceby constructing an underground core-wall storage dam in highly water permeable Ryukyu limestone rock.
(Project period: FY 1987 to FY 2000. Total project cost: 64 billion yen. Storage capacity: Sunagawa, 9.5 million m2; Fukuzato, 10.5 million m2)

Pinfudake FP

Milk-mine FP

Nakaomine FP

Agariyama FP

Nobarudake FP

Kurimajima FP

Farm Pond：FP- FP: Farm pond7

Miyakojima City

• Overview of Miyakojima City
• Policy background• Sustainability and local energy policy- Views toward energy policies- Examples of activities• Island-and-islets type smart community verification project- Overview- Structure of energy costs on isolated islands- Characteristics of renewable energy and electricity- Securing an inexpensive adjustment capability- Future direction
8

Events Related to Sustainability of the Islands

Miyakojima City

1963: Terrible drought
1966: Typhoon Cora, start of electricity service to all Miyakojima islands<Key issues related to sustainability>
1968: Typhoon Della[Issue (1)]1971: Terrible drought
In the past, the population decreased
1989: Elevated nitrate nitrogen concentration
due to large-scale disasters,(from 1.92 mg/L in 1963 to 8.9 mg/L)
droughts, etc.
=> Infrastructure development andcountermeasures have curbed theimpact of disasters and droughts on
population decreases.

Typhoon Della
Terrible drought

Infrastructure development:
hospitals, water, fishing ports

Terrible drought

Groundwater quality
deterioration

Electricity service startand typhoon Cora
Start of undergrounddam development
Reversion to Japaneseadministration[Issue (2)]As the population increased,groundwater quality deteriorated to a
critical condition.
=> The quality is presently stable due toa groundwater conservation
ordinance and countermeasures by
the agriculture and livestockindustries.
What barriers to sustainability will arisein the future?

9Basic Issues With This City

Miyakojima City

Requirements for making "islands where people can continue living" a reality
Lifestyle changes and active industrial and economic activities have placed an increased
burden on the natural environment, which provides life-supporting water and resources fortourism. Preservation of the natural environment is needed.
=> Preservation of water for life=> Toward sustainable tourism by enhancing the value of the islands through naturepreservation
Okinawa is a prefecture with remote islands. The Miyakojima islands in Okinawa are isolated
and depend on food and energy resources supplied from the outside. Resource circulation
based on local production for local consumption is needed.
=> Local economic circulation (Suppression of outflow from the region)=> Mitigation of the effect of external factors (Security)
Local communities are on the decline due to population decreases. Job creation by promoting
local industries is needed.
=> Attractive jobs

"Eco Island Miyakojima" means:

Affluent islands where people can indefinitely continue tolive = Making islands sustainable10Declaration of Eco Island Miyakojima 2.0

Miyakojima City

Declaration of Eco Island Miyakojima 2.0- Toward the Future 1,000 Years From Now Ten years have passed since the Declaration of Eco Island Miyakojima in March 2008.
The Declaration of Eco Island Miyakojima 2.0 was announced to redefine "eco island" and clarify the vision.
The slogan "Toward the Future 1,000 Years From Now" was devised (in March 2018).
Five goals that should be achieved by 2030 and 2050 were set (in March 2019).
The Declaration of Eco Island Miyakojima is positioned as Miyakojima City's version of SDGs, and the city hasa policy to add related measures to the eco island promotion plan in the future.
Declaration of Eco Island Miyakojima (March 30, 2018)- As residents of the city, we will protect our precious groundwater which supports the island's life.
- As residents of the city, we will protect our beautiful coral reefs and the sea.
- As residents of the city, we will conserve our limited resources and energy by using our wisdom and creativity.
- As residents of the city, we will act individually, aiming to make Miyakojima beautiful, tidy, and earth-friendly.
- As residents of the city, we will protect our forests, sea, and air and act to make an environment in which allliving things can co-exist.
- As residents of the city, we think and act together with the peoples of the world to preserve and protect ourenvironment and pass it on to future generations.

11

- Toward the Future 1,000 Years From Now Five Goals of Eco Island Miyakojima
Groundwater quality & nitrogenconcentration (Tap water sources)
Endemic species conservation

Goal 6: Ensure access towater andsanitation for all(Alien species measures)

2030

Eradicate peacock populationfrom Irabu + northern Miyako

2050

Eradicate peacock populationfrom entire city

Goal 15: Sustainably manage forests,
combat desertification,and halt and reverse landdegradation and halt
biodiversity loss

Indicator (5)Endemic
speciesconservation

Coral coverage
Poritidae

Staghornas dominant corals as dominant corals
in community
in community

2016 (present) 20 to 30% 5 to 10%
2030
2050

Indicator (1)Groundwater

quality & nitrogenconcentration

Indicator (4)Coralcoverage

Indicator (2)Householdwaste
discharge

Indicator (3)Energy selfsufficiency
rate

Goal 13: Take urgent action tocombat climate change
and its impacts

2030

4.64 mg/L

2050

2.17 mg/L
Daily per capita

household waste discharge

2016 (present) 542 g
2030

488 g

2050

434 g

Goal 11: Make cities inclusive,
safe, resilient andsustainable

Energy self-sufficiency rate

2016 (present) 2.9%

40% or higher 70% or higher

Goal 14: Conserve and sustainably
use the oceans, seas andmarine resources

2016 (present) 5.05 mg/L

Goal 7: Ensure access to affordable,
reliable, sustainable andmodern energy

2030

22.1%

2050

48.9%
12

Miyakojima City

Overall Picture of Eco Island Miyakojima- Toward the Future 1,000 Years From Now Declaration of Eco
Island Miyakojima 2.0

Indicator (1)Indicator (3)Indicator (2)Groundwater
Energyself-sufficiency
quality & nitrogen Waste discharge
rate
concentration

Indicator (5)Endemic species
conservation

Indicator (4)Coral coverage

Vision[Environmental preservation]

Sewerage connection
Sewage measures

Septic tank installation- Water quality and water conservation measures- Red soil runoff

Compost (soil fertility)
Chemical fertilizer reduction- Waste measures- Coral reef conservation in oceans
Agricultural land measures
Forest conservation

Organic fertilizer- Establishing rules of ocean use

Delayed release fertilizer- Global warming countermeasures

Livestock waste countermeasures

Compost- Waste reduction- Illegal dumping countermeasures- Cleanup activities

Energy conservation/renewable energy- Groundwater quality conservation measures- Biodiversity- Habitat conservation

Alien species measures
Forest conservation[Resource circulation]- Energy self-sufficiency rate/CO2/energy cost measures

Energy-saving measures

Citizen actions
Widespread use of electric vehicles

Expansion of energy conservation- Local food production for local consumption

Locally produced energy

Smart community

Environmental
model city
action plan

Eco Island Miyakojima
promotion plan

- Groundwater conservation

Natural gas resource utilization

CO2 emission
reduction[Industrial promotion]- Sustainable tourism

Tourism protecting and harnessing nature
Provision of local farm and marine products, etc.

Establishment of the Eco Island Miyakojima brand- Resident-led promotion of activities- Sparking awareness/action, and running communication platforms
Website: Eco activity publication and information exchange
Yukuriba (a place for chatting about ecology): Small group communication
Eco Island Contest: Participation in eco activities- Acceptance of inspection tours

Eco festival: Making new friends
Virtual currency: Promoting citizen actions
Corporate version of an eco certification institution- Human resource development(learning and education)- Delivery of courses (elementary/middle school)- Summer eco tours (elementary/middle school)- Staff training, etc.
- Courses, etc. for residents- High school student WS (JSAP Energy System Group)- Tokai University environmental classes

13

Activities as an "Environmental Model City"

Miyakojima City

(Designated by the Prime Minister in January 2009)

Miyakojima City has been designated as Japan's only island-and-islets typeenvironmental model city by the government of Japan, setting the following CO2
reduction targets in its environmental model city action plan.
Expected reductions in emissions(t-CO2)400,000

321,000

343,000

313,000

333,000 291,000

201,000

99,000

9.5%
37%
69%
reduction reduction reduction

350,000
300,000
250,000
200,000

Proportion ofemissions bysector

Implement a reduction
plan that mainly
specifies energy
policies targeted at thetransportation andhousehold sectors,
which are relatively
high in the proportionof emissions

150,000
100,000
50,0000

2003
Industry

Business

2010

2014

Household2016

Transportation

2023

2030

2050

Energy conversion

14

OthersMiyakojima City

• Overview of Miyakojima City
• Policy background• Sustainability and local energy policy- Views toward energy policies- Examples of activities• Island-and-islets type smart community verification project- Overview- Structure of energy costs on isolated islands- Characteristics of renewable energy and electricity- Securing an inexpensive adjustment capability- Future direction
15

Basic Energy-Related Issues

Miyakojima City

[Basic views]
Issues along the way to creating a framework for sustainable energy use(1) High costs(Cause)•Transportation costs•

Inefficient due to small scale of demand(Problem)•Burden on life(2) Outflow from local economy(Cause)(Problem)••

About 97% dependence onon energy from outside of island

Outflow from local economy(3) Future risks(Cause)(Problem)•

About 97% dependence onenergy from outside of island•

Fossil fuel prices may rise steeply•

Preferential treatment of remote islands *•Costs may increase due to institutional changes

Energy self-sufficiency rates
Miyakojima City

2010
2016
2030

1.5%
2.9%
22.1%

Primary energy basis* Estimates by Miyakojima City

Japan (Source: ANRE webpage)

20.2%
8.3%
24.3%

EnergysavingLoad leveling

Locally
producedenergyEnergysaving

Locally
producedenergyEnergysaving* Preferential treatment of remote islands
The price of energy used on remote islands is cheaper
than the actual price because they get assistance forgasoline, etc.) and electricity is a universal service.
The measure may change due to institutional reforms,
such as electric utility deregulation.
16

Vision of the Ideal Energy Supply for Miyakojima City

Miyakojima City

[Energy supply vision: Environment model city = CO2 reduction]
To make islands sustainable, the city seeks to provide a more stable and more continuous supply of energy at a lower cost.
For local communities, energy supply is the foundation that supports civic life and business activities.
Through economic circulation within the islands, the city seeks to improve the energy self-sufficiency rate by producing andconsuming energy locally. In turn, this makes a robust social system that is not susceptible to the effects of external factors.
However, it is assumed that social costs will not increase.
[Measures to realize the vision]
The energy self-sufficiency rate is about 3% at present.
Power-saving measures and expanded renewable energy adoption are
essential.
Local business operators will drive the renewable energy business.
(Continuous)
Promotion of power-saving actions by residents
Very widespread use of electric vehicles(In about 5 years, for the time being)
Significant expansion in photovoltaic power generation adoption, leading
to prices dropping at a rapid pace
Technical issues with balancing electricity supply and demand=> Securing an inexpensive adjustment capability(5 years or later)
Examination of wind power generation, biomass, etc.

2016

2030

2050

Power savings (electricity) (%)

-

20.6

24.0

Power savings (fuel) (%)

-

17.5

20.8

EV (10,000 vehicles)

0

1.3

3.0

Photovoltaic power (MW)

22

128

208

Wind power (MW)

4.8

6.9

36.9

2016
CO2 emission (10,000 t-CO2)

2030

2050

33.3

20.1

9.9

-

37.3%

69.1%

Renewable energy electricity rate (%)

12.0%

55.1%

91.9%

Energy self-sufficiency rate (%)

2.9%

22.1%

48.9%

CO2 reduction rate (%) *<Proportion of primary energy>
Fuel LPG
Gasoline
Gasoline Renewableoil C
Fuel LPG
Fuelenergyoil C
56% Fuel oil C
oil A
LPG
Fuel
oil
A
2030
2050 Renewable2016 Electricity
energyFuel oil A(fuel oil)Electricity
Light oilLight oil(fuel oil)Light oil<Amount of primary energy>
33%

2016

2030

RenewableenergyGasoline

2050

Kerosene

Kerosene

Kerosene

Electricity (fuel oil)17

Miyakojima City

• Overview of Miyakojima City
• Policy background• Sustainability and local energy policy- Views toward energy policies- Examples of activities• Island-and-islets type smart community verification project- Overview- Structure of energy costs on isolated islands- Characteristics of renewable energy and electricity- Securing an inexpensive adjustment capability- Future direction18

Project to Promote Widespread Use of Electric Vehicles
Project overview
The city has problems such as CO2 emissions fromthe transportation sector, high vehicle fuel costs,
and power outages due to typhoons and otherdisasters. Since the use of electric vehicles (EVs)is an effective measure against these problems,
the city promotes widespread use of EVs.
The challenges include promoting a greater
understanding of EVs, clarifying cost-effectivenessand developing measures for improvement,
developing charging facilities and establishingeffective ways to operate them, and building an EV
maintenance system.
Implemented items
Trial use (2W): To promote a correctunderstanding
Dissemination activities: Events, brochures, etc.
Charging facilities: Development andeffectiveness verification
Quick billing: To reduce congestion
Expansion of normal charging: To improve
convenience
Examination of measures for apartment homes
Maintenance system
Installation assistance: Initial cost measures

Locally
producedenergyEnergysaving[Conceptual image of the project]
Problems specific to remote islands in Okinawa
CO2 emissions from the transportation sector
High vehicle fuel costs
High risk of power outages due to typhoons, etc.

Use indisasters
Utilize as powersource vehicle- Efficient use of renewable energy through EV operation- Maximization of the utility value of electric vehicles

Reduced living costs- Reduced running costs- Reduced electricity
consumption costs

Living a safe and rich life
- Prepared for power outages- Relief from concerns about steep
rises in gasoline prices

Expected effects- Reduced living costs- Improved QOL (security and safety)- New lifestyle established- Low-carbon society realized- Eco Island Miyakojima brand established19

EnergysavingProject to Raise Eco House Awareness and Popularity
Project overview
The project provides opportunities to visit and trial stayat eco houses in hot and humid regions whereenvironmental technologies, such as solar heating andheat barrier paint, are combined with traditional
housing techniques born from the climate and naturalfeatures of Okinawa.
Widespread use of architectural technologies
introduced in model houses to promote energy
conservation in individual houses can make lives more
comfortable with minimum use of energy.
Characteristics
Points about energy saving in Okinawa
Heat insulation: To block direct sunlight and preventthe entry of heat, use breeze blocks and heat barrier
paint.
Ventilation: To ensure good ventilation, install
windows at floor level.
Humidity control: To reduce humidity, which increases
discomfort, use wood.
Houses in Okinawa need to take in a lot of naturalventilation at normal times and serve the role of shelter
during typhoons.

[Conceptual image of the project][Urban type][Suburban type]

Expected effects- Technologies developed for use in eco houses- Energy savings in individual houses- Reduced living costs- Low-carbon society realized

20

Project to Promote Utilization of Natural Gas
Project overview
Natural gas drilling exploration by the prefecture has found natural
gas and the accompanying water (hot spring water) in undergroundpockets at Miyakojima. The city conducted component analysis,
production tests, environmental impact studies, etc., and formulated
utilization and implementation plans.
Based on these activities, the city is doing other work, including
feasibility studies and marketing research, to establish businesses
that use natural gas and the accompanying water (hot spring water)as part of Miyakojima's underground resources.

Locally
producedenergy[Conceptual image of the project]

Implementation scheme
Budget: Okinawa promotion special promotion delivered fund(municipalities)
Government agency concerned: Cabinet Office
Project period: FY 2016 to FY 2019
Expected effects- Energy security ensured through resource development- Industries and tourism developed through the use of natural gas andthe accompanying water- Other
Project in FY 2019
Verification related to the utilization of natural gas resources
Improvement of the utilization plan
Acquisition of a mining license and agricultural verification (leaflettuce)21

Verification Project on the Microgrid System for Isolated Islands

Locally
producedenergyStabilizing measures against fluctuations in renewable energy were verified at a 4-MW photovoltaic power
plant installed with 4-MW batteries by the Okinawa Electric Power Company.

Verification Project on the Microgrid System for Isolated Islands
Accumulating knowledge of the necessary system-stabilizing measures by grasping and analyzing theinfluence of photovoltaic generation facilities, etc. introduced on a large scale into the independent systemof an island

Transmitting information on technologies of the independent-type low-carbon society system within
and outside the island
Vitalizing the tourism industry by providing eco-tours using the verification and study facilities

Source: Okinawa Electric Power
Company website

22

Project to Promote Eco Island Miyakojima Branding
Project overview
The eco island-related activities by the city are
becoming better known within and outside the islands
as features of the city, but they have not yet become
widespread activities in the local economy. To connect
the Eco Island Miyakojima activities to local economic
revitalization, the city seeks to establish them as abrand to achieve high added value for tourism andother related industries.
udget, etc.
Budget: Okinawa promotion special promotiondelivered fund (municipalities)
Government agency concerned: Cabinet Office
Project period: FY 2016 to FY 2019
Project schedule
FY 2016: Research for branding
Action plan development
FY 2017: Communication platform (Web, events, etc.)
construction
FY 2018: Website and event administration
Trial implementation of a virtual currency
system, etc.
FY 2019: Verification for running the platform
continuously, and more

Miyakojima city

[Conceptual image of the project][Industrial tourism]= Services with high satisfaction-> Economic and employment effects
Transmission of information to list candidate
locations (targets and means)
Simplified approach (simple procedures)
Grasp of wants (purpose and service level)
Acceptance system[General tourism]= Branding within the islands-> Empathy -> Repeat business and support
Common understanding and recognition
Awareness and participation
Motivation
Network
Financial support

Expected effects- Increase in inspection visitors- Increase in fans, repeaters, and supporters- Revitalization of the local economy
and more23

Miyakojima City

• Overview of Miyakojima City
• Policy background• Sustainability and local energy policy- Views toward energy policies- Examples of activities• Island-and-islets type smart community verification project- Overview- Structure of energy costs on isolated islands- Characteristics of renewable energy and electricity- Securing an inexpensive adjustment capability- Future direction
24

Locally
producedenergyEnergysavingIsland-and-Islets Type Smart Community Verification Project

Load leveling[Project overview]
To form a smart community in Miyakojima City, the city is taking advantage of IT technologies in a massive
renewable energy installation, seeking to optimize power supply and demand on the islands, improve theenergy self-sufficiency rate, and implement a new energy supply and demand system as a social system.
With these aims, the city is committed to local economy revitalization and job creation by implementing the
projects shown below.
Budget scheme: Okinawa Prefecture => (outsourcing) => Miyakojima City
Project period: FY 2011 to FY 2020<100% self-support
verification of Kurimajima's RE><Miyakojima City's whole-island
EMS verification>

Until 2016

The project has built a self-supported modelfor 100% renewable energy on an isolatedisland by installing photovoltaic power
generation and local battery systems in
Kurimajima.

House

HEMS

Until 2020

For the purpose of effectively using renewable energy
and reducing energy supply costs, the project installs
an energy management system (EMS), makes use of
IT/IoT to control power consumption by area in thewhole region, and generates economic advantages.
The city seeks to implement the system as asustainable social system.

EV
Thermalpower plant
Enlarged view of Kurimajima

HousesPublicfacility

Whole-island EMS

Small EV

<Small-scale EV
manufacturing verification>
The small-scale EV
Until 2014
manufacturing suitable forisland/islet type of locations willcontribute to the accumulation of
EV technologies and thecreation of related industries.

BEMS

Businessbuilding
BEMS

Kurimajima
HotelBattery

Mega solar

Wind power

25

What is a Smart Community in the First Place?

Energysaving

Locally
producedenergyLoad leveling

Concept of sustainable energy[Low cost]=> Since energy costs are structurally high in isolated islands, amechanism that structurally reduces costs has to be prepared.
[Continuous and stable]=> Since fossil resources are limited, a mechanism to introduce
renewable energy has to be prepared.
=> A smart community is a social system that makes use of IT technologies tosuccessfully increase use of renewable energy and reduce energy supply costs.
Social infrastructure cost reductions can stabilize civic life and business activities,
and lead to increased profitability and revitalization of the regional economy.
Civic life

Business
activities

Energy supply as social
infrastructure- Greater disposable
income- Higher profitability

Structurally transform
social system
Smart community- Cheaper- More stable- More continuous
26

Miyakojima City

• Overview of Miyakojima City
• Policy background• Sustainability and local energy policy- Views toward energy policies- Examples of activities• Island-and-islets type smart community verification project- Overview- Structure of energy costs on isolated islands- Characteristics of renewable energy and electricity- Securing an inexpensive adjustment capability- Future direction
27

Structure of Energy Costs on Isolated Islands
Gasoline

Approximately 140 yen/L x 50 L/month=>

LP gasApproximately 1,700 yen + approximately 570 yen/m3 x 10 m3/month=>
7,400 yen

Electricity

Approximately 26 yen/kWh x 300 kWh/month =>7,800 yen

Total

Monthly utility cost:

22,000 yen[Structure of social costs for electricity]- The sales price of electricity is the same ason the Okinawa main island, but supply costs
are higher.
How can we
reduce fixed
costs?
Fixed
cost
yen/kWh
Fuel
cost
yen/kWh

Supply costyen/kWh
Costs fluctuate
but nothing canbe done about it.

Averagesales priceyen/kWh in
Miyakojima

7,000 yen

EnergysavingLoad leveling[Living costs]
EnergysavingReducing energy costs
through energy savings

All 11 systems on the isolated islands are in
the red (7 billion yen/year), accounting forabout 4% of sales of the Okinawa ElectricPower Company.
If these deficits on the islands are eliminated,the electricity rate may decrease by 4%.
Electric power companies are obligated under theElectricity Business Act to supply electricity at thesame rate*.
Despite the increasing relaxation of regulations in
response to Japan's deregulation policy, the above
regulation will continue exceptionally for the isolatedislands until 2020. No policy has been seen for theyears after 2020.
If the regulation is eliminated, the electricity rate may
possibly rise to 1.5 times today's rate or higher,
which would have a significant impact on residents'
lives and business activities.

* Universal service
28

Structure of Energy Costs on Isolated Islands

Load leveling

Structure of power supply facility costs
Supply capacity

Reserve power

Peak

Peak shaving

AveragePeak shift[Without load leveling]

24:00

6:00

12:00

18:00

Power generation facility[Reserve power]
Small-scale demand
Large fluctuations
Difficult to predict peaks
Reserve power gets large

24:00

The supply facilities are large for a small amount of electricity use.

(Height)(Area)
The cost to produce one unit of electricity is high.
=> Load leveling can reduce the cost.
Capability for load leveling = Adjustment capability
29

[Reference] Electricity Situation of Miyakojima City
[Situation of demand (as of June 2018)]
Peak of electric power demand: Approximately 60 MW (Summer)
Peak of electric power demand (daytime): Approximately 22 MW(Winter)* 30-day rule applied -> 25.6 MW
Annual total electric power consumption: 262,419 MWh (in 2011)* Reached a peak at about 10 o'clock at night (Consumer demand)[Situation of power generating facilities (as of June 2018)]
DEG power generation (Fuel oil C): 60.5 MW (7 units)
GT power generation (Fuel oil A): 15 MW (3 units)- Total thermal power generated: 75.5 MW
Wind power generation: 4.2 MW
Photovoltaic generation: 4 MW (Mega solar power plant)
Demand-side photovoltaic generation: 24.1 MW (tentative)- Total power generated by renewable energy facilities: Approximately
32.3 MW[Miyakojima electricity and climate summary]
Demand peaks in summer and bottoms out in winter.
Summer has many fine days and mild winds (excluding
typhoon days).
Winter has many cloudy days and strong winds.

Estimation of the RE ratio* Estimate based on only thetypical utilization factor[Photovoltaic generation: 12%]28.1 x 8,760 h x 12%= Approximately 29,500 MWh[Wind power generation: 25%]
4.8 x 8,760 x 25%= Approximately 9,200 MWh[Bagasse]
10,000 MWh[Total of RE]/[Total
consumption]
Approximately 48,700/
approximately 272,500 MWh[RE ratio] 17.9%30

Miyakojima City

• Overview of Miyakojima City
• Policy background• Sustainability and local energy policy- Views toward energy policies- Examples of activities• Island-and-islets type smart community verification project- Overview- Structure of energy costs on isolated islands- Characteristics of renewable energy and electricity- Securing an inexpensive adjustment capability- Future direction
31

Locally
producedenergyCharacteristics of Renewable Energy and Electricity

Characteristics of electricity
Supply and demand must match at all times.
Consumption
50 MW

>
<

Supply
45 MW

=>

Power
outageConsumption
50 MW

Supply
55 MW

=>

Power
outage=Supply50 MW=>

Supplied

Consumption
50 MW

Capability to always keep supply and demand balanced likea scale = Adjustment capability
32

Locally
producedenergyCharacteristics of Renewable Energy and Electricity
Restrictions of photovoltaic generation installations
Winter = Less electricity demand
Sunny during the day = Increased
photovoltaic generation
Narrow output from the thermal power
generator to maintain a balance

24:00

6:00

12:00

18:00

24:00

Cannot stop the generator because thermal output must increase if it suddenly
becomes cloudy
Excessive photovoltaic generation may lead to too much power generated,causing power outages on all the islands

If demand can be adjusted according to theweather, even more photovoltaic generation
installations are feasible.

Adjustment
capability
33

Sustainability and Energy (Review)

Locally
producedenergyLoad leveling[Low cost]=> Mechanism that structurally reduces costs[Continuous and stable]=> Mechanism for adding renewable energy

Inexpensive adjustment capability
Energy mechanism required formaking islands sustainable34

Miyakojima City

• Overview of Miyakojima City
• Policy background• Sustainability and local energy policy- Views toward energy policies- Examples of activities• Island-and-islets type smart community verification project- Overview- Structure of energy costs on isolated islands- Characteristics of renewable energy and electricity- Securing an inexpensive adjustment capability- Future direction
35

Securing an Inexpensive Adjustment Capability(Making Use of Energy Storage Facilities)

Miyakojima City

Points to securing an adjustment capability
Guaranteed certainty of adjustment => Human intervention eliminated (Past verification results)
Secured amount of adjustment => Time slot of electricity use is adjusted (shifted) without affecting lives
Target facilities can store energy (energy that will be used at some point in the future)

Underground dam

Battery

Waterstorage

F.P.

Electricity
storage

Pump up water

Charge Consume electricity

Discharge

Consume water

Consume electricity

Purpose of battery?
Underground dam pump

EQ

Hot water tank

Hot water
storage

HP unitConsumehot water

EV

ChargeConsumeelectricity

Cannot store
Electricity
storage

Consume electricity

Run = Electricity

Boil water

Point for inexpensiveness: "dual purpose"36

Securing an Inexpensive Adjustment Capability(Making Use of Energy Storage Facilities and IoT)

Miyakojima City

How is energy adjusted?
[Agriculture](Summer)

Supply capacity(Winter)

Reserve power

AveragePeak shift

24:00

6:00

12:00

[Households, etc.]
Cloud
cost

18:00

Power generation facility

Peak

24:00

[SAAS][IoT communication]

Single-system,
multi-tenantCommunication cost

Corresponding
to sunlight

24:00

6:00

12:00

18:00
PV

Facility cost

HEMS
Controller[Multi-vendor]

EQ

EV
Linked serverHigher-level server(Time slot specified)

24:00

Hardnessmeasurescost

Installation
cost

Internet
Securitycertificate cost

Households, etc.

Battery37

What is the Structural Transformation of a Social System?

Miyakojima City

Traditionally, electric power companies:- supply electricity in tune with consumer demand, and- are responsible for adjusting the supply-demand balance.

••

High cost structure
Inadequate
adjustment capability

By adjusting how they use electricity, electricity consumers will:- incorporate renewable energy in their usage while- employing a continuous, low-cost mechanism.
38

Miyakojima City

• Overview of Miyakojima City
• Policy background• Sustainability and local energy policy- Views toward energy policies- Examples of activities• Island-and-islets type smart community verification project- Overview- Structure of energy costs on isolated islands- Characteristics of renewable energy and electricity- Securing an inexpensive adjustment capability- Future direction
39

Future Direction

Miyakojima City

1. Outcomes and challenges in social implementation[Adjustment capability verification]
Technically, adjustments can be made through IoT. This would require
verification of certainty, examination of operational issues, and more.
[Cost simulation]
Devices, construction, communication, etc. are now sufficiently
inexpensive, which makes it possible to secure an adjustment capability
while producing benefits for residents. However, this would requirewidespread use of the devices, communication, etc.
[Effect simulation]
If an inexpensive adjustment capability is secured, it is possible toexpand renewable energy installations and reduce social costs. However,this has been shown only in a simulation, so it is necessary to actually
prove the effect in the field.
[Market providing an adjustment capability]
A market with electric power companies as a system is at theexamination stage as part of the reform of the electrical power system. It
is important to show the actual effects.
40

Future Direction

Miyakojima City

2. Approach to solving issues
There is a chicken-and-egg relationship between the ability to
attract more users and cost reductions.
To get widespread use, first consider a scheme that maximizes
benefits for residents.
In addition, the amount of widespread use is important to
reducing device costs. The city seeks cooperation with otherregions by using a successful case example as a model that is
widely applicable to similar cases across Japan.
In terms of institutions too, cooperation with other regions is also
important for sharing and grouping issues with business
operators in other regions in order to plan and propose solutions.
For wider use of renewable energy, move forward withpreparations to advance activities to form a single region.

41

Stakeholder Relationships

Miyakojima City

Facility installation (heat supply)
business operator

Verification project
Okinawa Prefecture(Miyakojima City)(Local business operator)
Fossil fuel supply -> Renewable energy supply

FY 2016 to FY 2017
Operation verification, low-costverification, and effect simulation
FY 2018 to FY 2020
Remote control verification andeffect verification of supplydemand balance adjustment
capability for all of Miyakojima

Verification project

Implementation andwidespread use

Remote control verification

Facility installation= Widespread publicuse

Effect verification of supplydemand balanceadjustment capability

Okinawa ElectricPower Company

Outcome

Aggregator

Consumer

Local business
operator

Verifyadjustment
capability

Reduce living costs
and use renewableenergySell surplus PV electricity
from small-scale heat (hotwater) supply

Secure adjustment
capability and reduce costs
Establish supply-demand
adjustment capability businessSupply energy stably/
continuously/inexpensively
Develop new renewableenergy projectLow-carbon society realized
Energy self-sufficiency rate improved42

Activities for Widespread Use of Renewable Energy for Third-Party Ownership

Apartment home

Miyakojima City

* WH = HP or electric water heater

Solar batteries

1EQ: 1 household
Okinawa ElectricPower Company

Occupied household

Buy electricity Sell electricity(Surplus) Solar battery(Shortage)

KitchenBathElectricity meter

MeteredgaschargePower controller

Gas-powered
water heater

Metered gas
chargeWater
supplierWH

WH

Hot water
chargeM

Basic gaschargeBasic gaschargeWater
chargeBasic gaschargeElectricity
chargeElectricity
chargeDetached home
Living costs[Characteristics of third-party ownership model]- Consumers reduce living costs without incurring costs (risks).
- Business operators achieve low costs through massive bulk
procurement.
- The failure risk is distributed.
- Profitability is secured through collaboration with a gas supplier.
- B-to-B facilitates demand control.

43

Future Direction

Miyakojima City

3. Vision of the future
In the future, fossil resource reserves will certainly decrease andextraction will become impossible at some point (before which
prices will surge).
Energy supply from renewable energy sources will become
mainstream.
Renewable energy (photovoltaic, wind, ocean waves, etc.) isunlimited but dependent on nature. Therefore, the challenge is
how to maintain a balance between supply and demand.
In the future, nature will generate electricity, and adjustments will
be made on the consumer side.
Now, such a smart community will soon be realized. The city will
share the vision and philosophy with the parties concerned in theregion and move ahead with making a locally rooted social
system.
44

Miyakojima City

Thank you very much for your attention.