Japan’s strategies and Challenges～Renewable Energy and Energy Efficiency～

Nov 14th, 2018
Agency for Natural Resources and Energy
Ministry of Economy, Trade and Industry, Japan

Japan’s Energy Balance in History• Japan has changed energy mix to balance energy supply and demand each time we faced challenges.
➢ 60’s：national coal to oil, 70’s：Oil crisis, 90’s：Liberalization and global warming, in 2011：the Great East
Earthquake and Fukushima Accident
6%*

100%

Primary Energy Balance

Renewables etc
Hydro

90%

4%

Nuclear80%

0%Natural Gas

70%
24%

First Oil Shock60%

Coal76 %

50%

26%

Coal

40%

Oil

40 %

30%

20%

Post war reconstruction(1950s)Rapid economicgrowth(1960-)

From domestic coalto petroleum (1960s)

Two oil crises

2013

2009

2005

2001

1997

1993

1989

1985

1981

1977

1973

1969

1965

1961

1957

1953

0%

2015

10%

（FY）

Liberalization of markets
and global warming (1990s-)

Great East Japan Earthquake(1970s)and 1F accidents (2011-)
・the world’s high level of energy efficiency
・From oil to gas and nuclear
・Focus of Nuclear ・Focus of Renewable* “Renewables etc.” consists of solar power (1.5%), wind power (0.2%), geothermal heat (0.1%),
and biomass (1.9%), effective recovery use of wasted energy(2.2%).

Source: Prepared based on “Comprehensive Energy Statistics 2016” issued by the Agency for Natural Resources and Energy.

1Challenges to overcome the high cost structure
Photovoltaic power
FY2010FY2016

FY2030

Photovoltaic

0%

＋5 %

5%

7%

Wind

0%

＋1 %

1%

2%

Biomass

1%＋ 1%

2%

4~5 %Geothermal

0%

0%

1%

Hydro

7%

7%

9%

The path to the major power source<Rectifying high cost><Enhancing competitiveness of industries>

Comparison of the price of renewable energy between Japan and Germany(change from 2012 to 2016) [Yen/kWh]

Comparison of the scale of leading companies
between other countries and Japan (2016)

PhotovoltaicWindJapan

40 yen ⇒ 24 yen

22 yen ⇒ 22 yenGermany

22 yen ⇒ 9 yen

11 yen ⇒ 9 yen

Scale of manufacturers inthe field of photovoltaic
power generation

Scale of manufacturers
in the field of wind
power generation

Scale of business involving
power generation by
renewable energy

Trina Solar (China)/ Company A (Japan)

Vestas (Denmark)/ Company B (Japan)

Iberdrola (Spain)/ Company B (Japan)

80 timeslarger

5 timeslarger

5 timeslargerMeasures needed to increase renewable sources dramatically<Securing adjustment of electricity supply and demand>Due to the intermittency of renewables,
mitigation of changes is indispensable.
Innovation for adjustment measures,e.g., storage batteries<Securing power grids>
Distribution of renewable energy power sources is different fromthat of the conventional large-scale power sources[i] Improving and developing the operation of power grids[ii] Promoting dispersed power systems
combined with storage batteries

2Energy Supply/Demand Structure toward CO2
Emissions Reduction Target in 2030
○ While energy demand growth isprojected in line with economic growth(an average 1.7%), energy efficiency is
expected to improve as much as after
the oil crises thorough energy
conservation (35% in 20 years).

Final Energy DemandGDP
1.7％/year

Sweeping Energy
Savings
50 mllion kl（▲13% w.r.t.
reference case）

３６１million ｋｌ

Electricity○ Energy supply/demand structure
improvement (energy self-sufficiency
rate: 6% in 2014 ⇒24.3% in 2030）

２５％４８９ million ｋｌSelf-sufficiency
Renewables１３～１４％ ２４．３％
Nuclear１１～１０％
Natural Gas １８％

Electricity

２８％Coal ２５％
HeatGasoline
City gas
７５％○ Japan’s CO2 emissions reduction target(26% CO2 emissions reduction in 2030
compared with 2013 level)

３２６million kl

Primary Energy Supply

HeatGasoline
City gas
７２％

ＬＰＧ ３％

FY ２０１３

FY ２０３０（Actual）（After EnergySavings）

FY ２０３０

Oil ３０％(Source) METI “Long-term Energy Supply/Demand Outlook” p.5 (July 16, 2015)3Measures and Energy Saving Potential by Sector
Industry <▲10.42 million kl>• Energy-intensive industry (iron/steel,chemical, cement, paper/pulp)• Voluntary agreement•Energy management• IT technology and energy management•Innovative technology• COURSE50 (Co2 Ultimate Reduction inSteelmaking process by Innovativetechnology for cool Earth 50)• Use of CO2 as feedstock•Advanced EE technology• boiler, cogeneration

Transport <▲16.07 million kl>• Next generation vehicles, fuel economy
improvement• next generation vehicles to represent 1unit/2units• more than 100,000 fuel cell vehicles to besold annually• Traffic stream management

Commercial <▲12.26 million kl>• Building EE improvement• Large-scale buildings’ compliance on EEstandards•LED and OEL diffusion•BEMS and energy management• half of buildings to install BEMS
•Awareness promotion
Residential <▲11.60 million kl>• Building EE improvement•Residential buildings’ compliance on EE
standards after 2020
LED and OEL diffusion• HEMS and Energy management• all residential households to introduce
the system•Awareness promotion
4

Overview of Act on the Rational Use of Energy⚫ The Law provides guidelines for factories, commercial business entities and transport business
entities and owners to follow and requires them to report their energy efficiency activities, middleand long-term plans. If their activities are not sufficient, necessary instructions and guidance will bemade.
⚫ For manufactures of appliances and automobiles are required to meet the respective targets.
Necessary recommendations will be made if not sufficient actions are taken.
Transport

Factory・Business
Aspirational Target

Direct Regulation

Factories/commercial businesses
・Aspirational target
Reporting Obligation

Special business entities（Annual energy consumption over1,500kl/year）
・Designation of energy manager
・Reporting obligation of middle, long-term plan・Reporting obligation of annual energy consumption

In-direct Regulation

Top Runner Program
Manufactures（At above certain level）
・32 products are under the energy efficiency
improvement target

Freight/passenger
transport businesses
・Aspirational target

Special business entities

Freight owner・Aspirational target

Special business entities（Owning trucks of more than （freight transport goods ofmore than 30 million ton km200 units）
per year）

・Reporting obligation of middle,long-term plan・Reporting obligation of annual
energy consumption

・Reporting obligation of middle,long-term plan・Reporting obligation of annual
energy consumption

Information
Retailers of appliances and energy
・Information provision to consumers（Aspirational goal）※Building energy efficiency is regulated under the building energy conservation law since 2019.

5

Benchmark System➢ 6 industry sub-sectors for 10 categories are under the benchmark system.
Benchmark system allows the comparison of EE&C among the same typeindustry category.
➢ Those industries that belong to top 10-20% of each industry sub-sector
are better rated in the annual reporting system.
Industry Sub-sector Covered byBenchmark System;
1. Iron and Steel (Blast Furnace)
2. Iron and Steel (EAF,Ordinary Steel)
3. Iron and Steel (EAE,Special Steel)
4. Electric Suppliers
5. Cement
6. Paper7. Pulp
8. Refinery
9. Chemical
10. Chlorine production
６

Widening the Coverage of Benchmark System
Dialogue between Public and Private Sector (26 Nov, 2015)
Prime Minister’s Statement
We plan to expanding the benchmark system to the service industry
with the coverage becoming 70% of total energy consumption ofindustry/commercial sectors.
Dialogue between public and private sectors

Based on the Japan Revitalization strategy 2015(Cabinet decision on June 30,2015), the dialogue between the publicand private sectors for future investment is held for the two sectors to clarify the path the Japanese economy should
follow in the age of uncertainties growing through the intensification of global competition and the rapid technologicalinnovation and to share the government’s desirable environment development course and the direction of private
sector investment. The third dialogue dealt with energy-related investment and challenges.

７Hydrogen Energy Ministerial Meeting【Purpose】◼ Realize hydrogen as key technology and to be a new energy
alternative for de-carbonization by connecting resources such as
fossil fuel and Carbon Capture, Utilization and Storage(CCUS), orrenewable energy◼ Harmonize and cooperate for enhancing utilization of hydrogen ata global scale◼ Verify and Discuss on✓ Innovative challenges and latest knowledge✓ Possibility of international cooperation✓ Future direction
for formulating global initiative on hydrogen●Date: 23 rd October 2018
●Venue: DAI-ICHI HOTEL TOKYO, Japan●Host: Ministry of Economy, Trade and Industry, Japan●Attendees : Ministers, Government officials, Private Sectors●Participating Countries: Australia, Austria, Brunei, Canada, China, Germany, Iceland,Indonesia, Italy, Japan, Netherlands, New Zealand, Norway, Poland,Qatar, South Africa, South Korea, Spain, United Arab Emirates,
United Kingdom, United States of America, EC, IEA(21 countries, 1 region, and 1 organization)
８

“Tokyo Statement”
Collaboration on Technologies and Coordination on Harmonization ofRegulation, Codes and Standards

Promote Information Sharing, International Joint Research and Developmentemphasizing Hydrogen Safety and Infrastructure Supply Chain
Study and Evaluate Hydrogen’s Potential across Sectors including its Potentialfor Reducing both CO2 Emissions and Other Pollutants
Communication, Education and Outreach9