The role of EV · PHV
for the realization of the smart community
Satoshi Inoue
METI, Japan
January 8, 2013*This material may contain personal opinions. It may contain confidential
information. It should not be copied, disclosed to, retained or used by anyother party.

１．Background and Current situation1

Automobile Industry in Japan
Shipments by the automobile industry accounts for 15% of the total for all industries. Its
production volume amounted to 40 trillion yen. Automobile and related industries areproducing 10% of the entire working population.
1.Shipment value (manufacturing)

Automobile accounts
for 15.3%¥100 million

transportation equipment

15% of the total for all industries

471866, 18%

general machinery

894503, 34%

chemical products◆Shipment value (all manufacturing)
265 trillion yen◆Automobile Industry:
40 trillion yen

electrical equipment

400593, 15%

steel products
metal products

69400, 2%124267, 5%

２．Employment

159884, 6%

242757,9%289320,11%

nonferrous metals
other products(H21 industrial statistics)

10 % of the entire working
population◆entire working population :62.8 million◆manufacturing: 10 million◆automobile related: 5.32 million

2Automobile domestic production
Automobile domestic production level had been maintained over 10 –11 million.
 After Lehman's fall in 2009, the production level in 2010 was below
10 million.
In the situation of slumping trend of domestic market and prolonged
strong yen, it is very hard to keep domestic production level.
（X 10,000）

21.4%

unit

1,200

3.0%

1,000 1,349
800
600

6.1%
-1.5%

1.5%

-5.6%
-6.0%
1,325 -1.8% -10.2%
1,250
1,123
1,0551,020

2.5%

4.9%

6.3%
0.7%
0%

2.2% 2.7% 0.1%
0.3%
-8.5%
1,080
-3.6%
1,051 1,148 1,158
1,098
1,029
963
1,004 1,0149781,026
1,157

-3.4%

1,035

989

20%

Pct y/y-12.8%-31.5%
840
793

-20%

-40%

400
-60%
200
0

-80%
Source: JAMA

3

Automobile domestic sales
domestic automobile sales have been on the decline. In 1990 domestic sales
reached 8 million, meanwhile these days the sales level have been under 5million.
If domestic market continue to shrink, Japan will lose the attractiveness as
production base.
Monthly new vehicle sales

Yearly new vehicle sales(X 10,000)(X 10,000)

900
800
700

販売台数
unit

7.2%

778 3.0%
690

600

0.8%

0.4%
-1.1%

500
-2.6%

前年同月比

unit

586
582

582
589

3.3%

Pct y/y

94%

5.0%

60

0.7%

562
586
532

0.0%

470

488

-5.3%
-4.1%

300

460

475
-5.0%

-5.7%

200

0

120%
販売台数

3.8%

597

100

80
70

1.6%

400

10.0%

対前年比
Pct y/y

50

55

67

10

-17%

-23%
-23% -35%
-26%

-25%

-11.6%

72%

80%

36%52
22% 29%
46
25%
21%

49 47
22% 46
44
24%
45
48
40
44
22% 4217%18%22%
42
38
40
40
40
38
37
43 4% 3737 24%36
35 13% -1%
35 -2% 35-0.5% 0.2%
30
33
20%
32
38 31
31-12%
30
-5%
2829
30 29

-10.0%

100%

60%

38%

-20% -19%
20 -24%-23% -14%

75

-22%
24

19

40%

36

20%
0%

-22%

-23%
-33%

-20%
-40%

-47%
-15.0%

0（２００９年）-60%（２０１０年）（２０１１年）

Source: JAMA

（２０１２年）

4

２．Basic strategy

5

CO2 Emissions in the Worldand Future Forecasts
Global CO2 emissions need drastic cutting. The transportation sector accounts for around 20% of CO2
emissions and reduction efforts are needed from this sector as it is a major source of emissions. Developed
countries should of course push ahead with reductions, but under the principle of differences in common
responsibilities, there are growing global expectations that developing countries should also press ahead withefforts to reduce emissions.

Sector-wise percentages of CO2
emissions (global basis) (2005)
Automobiles: 16%
Other transportation: 3%

Publicwelfare11%

Future CO2 emission forecasts

15

Conversion
sector 46%

10

開発途上国
Developing countries

5

Industry

Steel: 7%
23%
Cement: 4%
Paper / pulp: 1%
Chemicals: 3 %Other industries: 8 %CO2 emissions (carbon conversion 1 billion tons)

20

Transportation
sector 19%
Homes: 6%
Business / Public:
4%
Other: 2%25

先進国
Developed
countries0Power generation: 42%
Other conversions: 4%[Source] Institute of Energy Economics, Japan
based on IEA statistics

2000 2010 2020 2030 2040 2050 2060 2070 2080 2090 2100
(Year)

Source: Kainuma, et al., 2002: Climate Policy Assessment,
Springer, p. 64
6

Next-Generation Vehicles

EV

PHV

FCV

Electric Vehicles

Plug-inHybrid Vehicles

Fuel Cell Vehicles

HV
Hybrid Vehicles

CD

Clean Diesel
vehiclesCNG

Compressed
Natural Gas
vehicles7

Next-Generation Vehicle Plan 2010 (Outline)
Structural change in the auto market

External factors affecting the auto industry- Rapid growth of emerging markets and trends toward green vehicles in developed
markets(Number of vehicles in 10,000s)
（万台）

8,000

67.96
million vehicles(2008)
6,796万台（2008年）

7,000(2)Emerging markets②新興市場- ・Increasein
経済発展に伴
the vehicle-buying
い自動車購買Emerging新興市場
markets 3100万台
31 mil.
population, along
人口が増加with economic
development
Japan
日本

6,000
5,000
4,000

Emergenceof
超低価格車
ultra-low-priceの出現
vehicles

5.08 mil. (1) Developed
508万台①先進国市場

3,000

Europe
欧州

2,000
1,000

15.6 mil.
1560万台North 北米
America 1620万台
16.2 mil.

toward greater・markets
成熟した安定 Trends
更なる燃費志向fuelefficiency- Mature,
市場 stable
市場ごとに異なる
Potential
need to use
markets
・ 多様化する
パワートレインのtrains- Diversifying users different-power
ユーザーや
可能性
for
different
marketsand social needs
社会ニーズ

0
（年）
1930 1960 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008 (Year)

Great changes in
the competition
environment•Alliance based on
environmental
technology

Global warming
prevention•Target of
reducing GHG by
25% from the1990 level by
2020

Energyconstraints•High oil prices
in the mediumto- long term

New industry•Making EVs andbatteries thegrowth driver

Action plan

Targets

Six Plans
Overall plan

Batteries

Rare metals

Infrastructure

Systems

International standards

next-gen. vehicle
development andproduction

Secure battery R&D andtechnology

Secure rare metals andbuild resource recycling
systems

Install 2 mil. normal
chargers &5,000 quick chargers

vehicles with systems(smart grid, etc.)

strategicinternational
standardization• Set diffusion targets (for2020/2030)- Next-generation vehicles
account for up to 50% in
2020- Advanced eco-friendly vehicles (next-generation
vehicles + eco-friendly
conventional vehicles)
account for up to 80% in
2020• Diversify fuels• Higher-value-added parts• Promote the siting of lowcarbon industries• Improve performance oflithium-ion batteries• Develop post-lithium-ion
batteries• Achieve economies of mass
production by promoting EVs• Create an environment forsecondary use of batteries

Battery R&D Target(set in 2006)(Upstream)• Strategically secure rare
metals(Middle course)• Develop batteries andmotors free of rare metals(Downstream)• Establish battery recycling
systems

Resource Strategy
Roadmap• Build infrastructure
intensively andsystematically during themarket preparation phase- Mainly in EV/PHV towns• Pave the way for full-scalediffusion- Compile EV/PHV town bestpractice handbook- Collaborate with theprivate sector (CHAdeMO
Association)

Infrastructure Development
Roadmap• Create new business models
in EV/PHV towns.
• Verify systems through the
Next-Generation Energy andSocial System Demonstration
program.
• Promote international
standardization and businessdevelopment based on theverification results• Establish international
standards for battery
performance and safety
evaluation methods.
• Establish international
standards for charging
connectors/systems.
• Enhance public-privateorganization forstandardization.
• Develop human resources forstandardization

International Standardization
Roadmap8

Next-Generation Vehicle Plan 2010 (Diffusion Projections for 2020 and 2030; Government Targets)
Diffusion projections by type of vehicle (with private-sector efforts)

Diffusion projections assuming private-sector efforts (scenario
where auto makers make the utmost efforts to improve fuelefficiency and develop next-generation vehicles) were made.
Next-generation vehicles will account for less than 20% of newvehicle sales in 2020 and 30-40% in 2030.

Conventional vehicles
Next-generation vehicles
Hybrid vehicles
Electric vehicles
Plug-in hybrid vehicles
Fuel-cell vehicles
Clean diesel vehicles

2020
80% or more
Less than 20%
10 - 15%2030
60 - 70%
30 - 40%
20 - 30%

5 - 10%

10 - 20%

Miniscule
Miniscule1%- 5%

Diffusion targets by type of vehicle (government targets)

The government has set diffusion targets to pursue for eachtype of vehicle for accelerating the spread of next-generation
vehicles.
Next-generation vehicles should account for up to 50% of newvehicle sales in 2020.
To achieve this target, the government should provide effective
incentives.
2020
2030
Conventional vehicles
50 - 80%
30 - 50%
20 - 50%
50 - 70%
Next-generation vehicles
20 - 30%
30 - 40%
Hybrid vehicles
Electric vehicles
15 - 20%
20 - 30%
Plug-in hybrid vehicles
Fuel-cell vehicles
- 1%
- 3%
Clean diesel vehicles- 5%
5 - 10%

Necessity of advanced eco-friendly
friendly vehicles
Expected modelchanges•Only 1-2 changes expected by 2020

Secure international
competitiveness•Continued dominance of conventional vehicles
in international, especially emerging, markets.

Risk for auto makers•High risk involved in focusing on specifictechnologies, due to variations in diffusion
projections

Higher costs arising•Even if green vehicles are available, whether tofrom the use of
buy them depends on users.
advanced technologies
Apr. 2009: Eco-vehicles account for 42.5% (nextEffects of eco-friendly- •generation
vehicles 5.7%)
vehicles subsidies and •Feb. 2010: Eco-vehicles account for 73.1% (nexttax breaks
generation vehicles 9.3%)

The government seeks to make advanced eco-friendly
vehicles account for 80% of new vehicle sales in 2020,
provided that effective policy support is offered.
Advanced eco-vehicles(“post-eco-vehicles”)
Next-generation
vehiclesHV, EV, PHV, FCV, CDV,
CNG, etc.

+

Future conventional
vehicles whose ecofriendly features are
excellent in light of thetechnical standards ofthe time

9

Next-Generation Vehicle Plan 2010 (Roadmap)
Battery R&D Targets (set in 2006)
2006

Improved battery(2010)

Performance1

Commuter EVs forlimited use
High-performance
HVs
1

Cost

1

1/2

Small EVs for
power companies

Development
structure

Led by private
sector

Led by private
sectorAdvancedbattery(2015)EVs
CommuterInternational Standardization Roadmap
Innovative
battery(2030)

for general use
Fuel-cell vehicles
Plug-in HVs

Full-fledged EVs

1.5-fold

7-fold

1/7
Governmentindustry-academia
collaboration

1/40
Universities &research institutes(1) Development of advanced lithium-ion batteries (FY 2007-2011)· Aim to improve the performance, and reduce the cost, of lithium -ion storage batteries as thepowersource of hybrid and electric vehicles.
· FY 2010 budget: ¥2.48 billion (FY 2009 budget: ¥2.61 billion)(2) Development of innovative batteries (post-lithium-ion batteries)(FY 2009-2015)· Aim to elucidate the reaction mechanism of the storage battery through comprehensive joint
studies by government, industry and academia ,and become the front -runner in post-lithium-ion
battery development.
· FY 2010 budget: ¥3 billion (FY 2009 budget: ¥3 billion)* Need for flexible actions according to international trends and technicaldevelopment

Resource Strategy Roadmap

Infrastructure Development Roadmap

Rare Metal Forum for parties concerned to share information

Secure rare metals by forming a mutually beneficial relationship(infrastructure building, regional development, industrial promotion, humanresource development, etc.) with resource-producing countries through anationwide effort
Installation
targets2
millionnormalchargers
5,000
quick
chargers

10Outline of the Interim Report of the Strategy Study Group on the Automobiles contributing
to the renaissance of Japan’s economy
１．Show new roles and agendas of vehicles and automobile industry under new environmentof Japanese society after the quake for the recovery of Japan’s economy
２．Show lessons from interruption in the supply chain and show agendas towards resilient supply chain
which are coincident with risk reduction and cost control
３．Show agendas for maintaining and vitalizing the domestic production damaged by muchof impediments including electric shortage after the quake
Discussing in the Study Group, consisted of executives of the automobile industry, the materials and parts industries,
academic experts, the public & private sector share of perception and agendas.

1

Correspond with the new social challenges after the disasterincluding energy constraints

2

Rebuild a resilient supply chain
which are coincident with risk reduction and cost control

3

Revitalize Japan’s auto market and domestic production
11

1. Coping with new social issues such as energy constraint in post-earthquake Japan
New role as coordinator off energy supply and demand for electricvehicles (EV), plug-in hybrid vehicles, and fuel cell vehicles due to theearthquake and energy constraints

Coping with new social issues such as integration with smart grid
Upper system
Solar battery

1st Step

Securing power supply function

NaS battery

2nd Step

Establishment of decentralized, independent bases(enhancement of ability to cope with disaster)
Combination of next-generation automobiles andpublic facilities equipped with decentralized
power sources such as solar power generation

3rd Step(Introduction of renewable energy,
enhancement of supply coordination function)

New ranking of next-generation automobiles equipped with large
capacity storage batteries for urban renewal with built-in, full-fledged
smart grids

Existence of project leader to assemble
players

Wind power
generation

Realization of power supply function in case of
emergency by equipping with AC converter

Linkage with smart grid

Construction of power supply
system consisting of electric
power system and energy
system that complement eachother

Establishment oftechnology to manage
electricity and heat
together
BiogasVerification of location ofstorage battery (power
substation or residence
unit)
Storagebattery
Storage battery

Energy management system
Construction ofregional energy
management system

Solar power / wind power
generation

Cogeneration

Waste heat

Solar power
generation

Preparation ofrecharging
infrastructure

Demand control, making
power consumption
visible by smart meter,
etc.)

NextNext-generation
generation automobile
service station
Peak cut by IT
utilization (oil-fired
thermal power)

Establishment of lithium
storage battery installation
standards by verificationdata

Smart house

Proceed as follows to cope with new social issues in post-earthquake Japan:
Next-generation
automobile strategy
thorough investigationof 2010
 Active implementation of clean
energy motor vehicle subsidy
 Consider extension of
ecologically-friendly car tax breakscheduled to end in April 2012
Government targets of nextgeneration automobile strategy
2020

2030

Conventional vehicle

50 ~ 80%30 ~ 50%

Next-generation motor vehicle

20 ~ 50%

50 ~ 70%

Hybrid automobile

20 ~ 30%30 ~ 40%EV
Plug-in hybrid vehicle

15 ~ 20%20 ~ 30%

Fuel cell automobile

~ 1%

~ 3%

Green diesel vehicle~ 5%

5 ~ 10%Popularization of
next-generation automobilesand ecologically-friendly car
required

Enhancedcompetitiveness ofbattery industry
 Promotion of research anddevelopment of on-board lithium ion
batteries for motor vehicles
 Fostering of a competitive on-board
vehicle battery by standardizationof specifications
 Training and education of
personnel and investment of
resources to enhance international
standardization strategy
 Preparation of rules for reuse oflithium ion batteries

Exhibition of role ofsupply and demand
adjustment function forelectric power system
 Step 1: Secure power supply
function Step 2: Prepare decentralized
independent bases
 Step 3: Linkage with “smart grid”

Support for diverse
energy sources
 Preparation of hydrogen stations
for introduction of fuel cellvehiclesCoping with aging
population andknowledge-oriented
economy Development and popularizationof secure mobility for elderly
drivers
 Creation of new services byconnecting motor vehicles by
network, acceleration of studies
of interface for it
Example of commercialized advanced
safety vehicle technology

Next-generation automobiles
with storage battery function
support electric powersystem* Advanced safety vehicle (ASV):
Automobile with advanced safety function thatuses information communication technology
Collision damage reduction brake

Winning overglobal completion

In time!

SystemDriver applies brakes
by warning

Preparation of infrastructure
for FCV introduction
around 2015

Watch out infront!

MinimaldamageincurredAutomaticbrake
When the alarm is
not noticed

Brake control

12

2. Reconstruction of robust supply chain and enhancement of competition in the parts and materials industry
Problem 1: Streamlining the entire supply chain invited centralization ofcore parts and materials.

Pyramid configuration

Diamond configuration

Subcontractor structure streamlined forhigher efficiency and lower cost
Finished car
manufacturer

Finished car
manufacturer

Disasteror lower

Finished car
manufacturer

Finished car
manufacturer

Disasteror lower

Problem 2: Excessive pursuit of unique specifications
invited centralization of production bases andreduction of new investment.
Because specifications differ for each model and for eachmanufacturer, along with further centralizing suppliers inorder to support small lot production while reducing cost,encouraged the centralized suppliers to centralize
production bases and reduce new investment.

Disaster

Existing equipment concentrated
at once location

Proceed as follows to enhance ability to handle risk while not sacrificing ability to compete globally:
Enhancement of
suppliers’ economic infrastructure

Balanced specifications,part organization and sharing

 Observation of future recovery trends, end of support suchas 2-step loans Importance of investing in decentralization of productionbases Joint construction of capital-based funding for parts andmaterials manufacturers by government and private sector
Scheme for providing supplierswith capital-based funding (example)

Downstream
manufacturers

Out-lay

Government
financial institution

Supplier
support fund….

Capital-based
funding

Also work on decentralizing
bases, corporate reorganization,
process innovation and R&D

 Construction of platform to study specifications / part
organization and sharing after confirming current stateand preparing an opportunity for discussion thattranscends industry segments by the automobile / partsand materials industries.

Review of specifications
preconditioned upon enhanced
competitiveness

Development and introduction of
new parts and materials bylinking upstream and downstream operations
 Promotion of research and development oriented toward
introduction of new parts and materials such as carbon
fibers and dysprosium-free magnets to mass-produced
vehicles whereby upstream (parts/materials), middlestream (production/machining) and downstream(completed parts) are combined into a single entity.

Improved ability to conduct researchand development that can makeattractive proposals for downstream
manufacturers

Supplier(primarily
assumedto be Tier2 – 3)

Priority acquisition
Capital-based subordinated loan

13

3. Maintenance and enhancement of domestic production systemof the working population.

20%

10%

 Manufacturing industry shipment value:¥336 trillion

Of which automobiles
account for¥57 trillion (17%)

Unit: Trillion yen

Metallic
product
15 (5%)

63.76 million

Automobile industry

5.15 million

Transportationequipment
64
(19%)

Other
102
(30%)

Nonferrous
metal
10 (3%)

Working population

Electricalequipment
52(15%)

ManufacturingsectorUsage

0.87 million

Related0.31 million

Materials

0.23 million

Sales

1.01 million

2.73 million

Maximum production ripple effectIron/steel
24(7%)

Generalequipment
40
Chemical (12%)28(8%)

Passenger
vehiclesIndustrial statistics for 2008

Iron/steel

Synthetic
resin

Electronic/
electrical
eqpt. forcommercials

Basic Inter-industry relations table, 2008

Complicated and excessive tax burden at acquisition,
retention and traveling stages. Factor behindstagnation of new vehicle sales.
Total
Consumption tax

Automobile
tax

Japan

UK

Value added
tax

Automobile
tax

Registrationtax

Germany

FranceApprox. 49 time that of US

Value added
tax

Approx. 16 times that of France

Approx. 3 times that of Germany

Automobiletax

Approx. 2.4 times that of UK

Body
tax

Value added
tax

Other
9%

Not much concern
for supply chain
relocating
overseas. 18%
Emergency questionnaire survey
concerning state of supply chain
restoration or hollowing out following theGreat East Japan Earthquake.

May accelerate allor some of supply
chain overseas.
69%

Proceed as follows to maintain domestic production and employment:
Revitalization of domestic market by reducing
vehicle body tax
 Discontinuation of automobile acquisition tax
 Simplification and reduction of automobile weight tax
and motor vehicle tax (light motor vehicle tax)
 Consider extension of ecologically-friendly car tax
break scheduled to end in April 2012

Automobile
acquisition tax
Automobile weight
tax

Total
production
avg.

No response
4%

Retail sales
tax
15.5
Automobile
tax, etc.

US

Preconditions: (1) displacement: 1800 cc, (2) weight: less than 1.5 t (1320 kg), (3) JC08 fuelconsumption: 13.4km/L (CO2 emission: 173 g/km), (4) body price: ¥1.8 million, (5)Paris in the case of France; New York City in the case of US, (6) tax HP 8 for France,(7) 11 years of usage (avg. life), (8) exchange rate: 1 euro = ¥115, £1 = ¥137, $1 =
¥87 (avg. of April 2010 – March 2011)*Special measures such as eco-car tax break in Japan not taken into account.

Sub-prime recessionof the shipment value of the
manufacturing industry.

Question: Will the earthquake accelerate relocation
Transition of domestic new vehicle registrations(10,000 units)(by calendar year)of the supply chain overseas?

IT recession

Automobile industry accounts for

The domestic new automobile sales market
has been shrinking year by year. If the trend
continues, it will become more difficult tomaintain domestic production andemployment.

Consumption tax
recession

Automobile industry accounts for

Accounts for 70% of “may accelerate relocation
overseas” responses.

Bubble burst

The automobile industry accounts for 20% of the shipment
value of the nation’s manufacturing industry and 10% of theworking population. The production ripple effect of theindustry is also significant. Maintaining the scale ofproduction is important for maintaining employment.

Enhanced cost-competitivenessby production revolution
Initiatives for reducing cost of domestic production
Example: Central automobile “horizontal line”
By lowering some vehicles bottom from the ceiling sothey flow in the line horizontally, equipment
investment can be reduced by 40%; work time canbe also be reduced and the line can be shortened
as well.

Equal footing in terms ofcompetition conditions
 Promotion of “Japanese domestic investment promotion
program” to improve the working environment such as
rising value of the yen, corporation tax, labor environment,
environmental problems, EPA, etc.
 High-level economic cooperation based on “basic policy
toward comprehensive economic cooperation”

14Japan‘s revival strategy （Cabinet decision）

 The highest priority, the recovery from the earthquake
and Fukushima playback At an average of fiscal 2020, we aim to about 2% real
growth rate and the nominal growth rate of about 3%
 Basic philosophy is "opening up the frontier, to thecountry of co-creation“ Preferentially performed three areas Green (Energy
and Environment), life (health), agriculture, forestry
and fishery (6th industrialization). Actors SMEs
 Clarified growth strategies (11) and key initiatives (38)15Key Measures of green growth strategy

 Realization of the green material that will support
green growth Win in the global market for next-generation vehicles
 Safely in the construction of society and the creationof new markets by promoting the introduction of
emergency storage battery
 Strategic development and use of the ocean by theGreen Innovation
 Overseas expansion and construction of smart
communities to achieve local production for local
consumption of energy

16Win in the global market for next-generation vehicles
 Accelerated spread utilizing support the introduction of next-generation vehicles
 Promotion of technology development and infrastructure of next-generation
vehicles Market creation of very small mobility
 Creation of a new function in fusion with information technology
 Development of international regulations and promotion of international
standardization

Performance targets to be achieved by 2020
 Up to 50% the proportion of next-generation vehicles
accounted for sales of new cars
 Normal charger → 2 million
 Quick charger → 5000
17

３． The role of EV · PHV
for the realization of the smart community（１） Background and Current situation

18

Competition to Create Smart Cities Around the World
 Progress is being made on plans for competition to create smart cities around the world, including
Japan.
 The market for smart cities around the world is expected to reach 200 trillion yen in 2020, and 230
trillion yen in 2030. (Source: Results of estimations by Nikkei BP Clean Tech Institute)Sino-Singapore Tianjin Eco-city (Tianjin)
Period: 2008 to 2020
Budget: 2.4 trillion yen
Participating companies: Keppel fromSingapore, TEDA from Tianjin,
Hitachi Ltd., etc.

Zero energy building
constructed in the Lyon
urban development area
(ZEB).

Masdar City (Abu Dhabi)
Period: 2006 to 2020
Budget: 1.8 trillion yen
Participating companies: Siemens from
Germany, GE from the US,
Mitsubishi Heavy Industries, etc.
Nissan Motor is developing asystem where energy can besupplied to households (V2H)
from lithium ion batteries
equipped in Leaf. This system
has been publicized through“KANKANKYO,” which aredemonstration houses by
Sekisui House. (August 2011)19

Energy Situation and Smart Communities After the Disaster As output of renewable energy such as sunlight fluctuates greatly, issues such as insufficient wavelength
adjusting power and an increase in voltage of the power network due to large influxes arise.
 After the earthquake disaster, saving energy and cutting back during peak hours became an urgent issue
for power networks, and ensuring supply of energy during disasters also became a challenge.
 The solution to these kinds of problems is an efficient system for energy, including electricity, heat, andtransportation, otherwise known as a “smart community.”
1. Due to large-scale induction of renewable energy,
ensuring the quality of electricity, such as voltage andfrequency, becomes a problem
Output ratio (Generated
output/Rated output)◆Example of output fluctuation of solar power
generation(summer)
70
（％）
60
50
40
30
Rai
Cloudy20n10
0

2. After the disaster, saving energy andcutting back during peak periods
became issues.
(2) Peak shift(1)
EnergysavingEnergy saving as awhole throughout theday

Secondarycell

EV

Fuel cells

Capacity

Price

1kWh

¥870,000

2.5kWh¥1,890,000

Yamada Denki(Edison power)

Efficient use of electricity
based on IT technology andsecondary cells

Smartcommunities
Co-generation

System where
electricity can besupplied to residencesfrom lithium ion batters
equipped in Leaf

Shift daytime
demand to thenighttime

Maximum power used is controlled
based on the effects of both energy
saving and peak shift

Smart grids
HEMS

V2H

Combination of “energy saving” and “peak shift”
effects

5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 (Time)

Smart meters

3. Sales of products that promote safety.

Car sharing

Efficient use of energy that
includes electricity, heat, andtransportation

20

３． The role of EV · PHV
for the realization of the smart community（２）Efforts in Japan21

Demonstration of Smart Communities in Japan■ Starting in FY2011, large-scale smart community demonstration projects have beenongoing in 4 regions across Japan that constitute representative examples of various
patterns, based on participation by many residents, local governments, and corporations.
YokohamaCity

Wide-area metropolis
Introduction of an energy management
system for an existing wide-area metropolis.
As the sample number is high (4,000
households), demonstration using a variety
of hypotheses is possible.

Toyota City

Separated housing
Automatic control of home appliances in
67 homes. Secondary cells equipped in
vehicles are used to supply energy tohouseholds. Approaches for drivers toalleviate congestion.

Keihanna

Housing development
Demand response demonstration basedon a point system is being implemented forgeneral households (approximately 700
households) where PV or HEMS automatic
control has not been introduced.

Kitakyushu
City

Designated supply area
In an area where power is supplied by
Nippon Steel Corporation, a pricing system
where the power price fluctuates for 2 hours
afterwards in accordance with the state ofsupply and demand of energy for the day,applicable to 50 business establishments and230 households, is being implemented.
22

Kitakyushu City
Keihanna Science City
Yokohama City

Toyota City

Demonstration in Yokohama City
MEMS
 Solar power generation, fuel cells, solar heat, EV, etc. have been introduced into housing complexes, and demonstration whereinterchange of power and heat within residential buildings is carried out was initiated in April of this year.
 Aim for a reduction of approximately 40% in energy usage through introduction of renewable energy and distributed energy,
interchange of electrical heat/integrated control, and introduction of HEMS (Tokyo Gas company housing).
 Aim for a self-sufficiency rate of 80% or higher for electrical power energy (JX Nippon Oil & Energy company housing).
Isogo Tokyo Gas
company
housing

Solar
panel

JX Nippon Oil & Energy
company housing

Fuel cell

Fuel cell

Integrated BEMS

CEMS

 “Integrated BEMS” where multiple buildings are managed in an integrated
manner was developed, and connection will be initiated sequentially this FY.
 Aim for approximately 10% more energy-saving than regular energy-savingbuildings
Taisei Technology Center(Higashi-Totsuka/5 buildings)(Taisei Corporation, Toshiba)

Housing complex HEMS

Condominium HEMS
(Toshiba,
Mitsui Fudosan, JX-E）(Tokyo Gas, NTT-F, NTT DoCoMo)

Integrated BEMS
(Toshiba)

 Launched starting in the summer of this year,
connection to various customers planned on
being implemented sequentially.
 Large-scale demand response demonstration
targeting 4,000 households, etc. planned on
being initiated next FY.
 Aim to control use of energy and a peak cut
of approximately 20%.

Landmark Tower(Mitsubishi Estate, Toshiba)

Ito-Yokado(JGC Corporation)
Yokohama Mitsui Building(Mitsubishi Estate, Toshiba)

Minato Mirai Grand
Central Tower

World Porters(Marubeni, Toshiba)（Meidensha, NEC）

MM34 Square(Commercial facilities)(Mitsubishi Estate, Toshiba)23

Details of Demonstration in Toyota City
Energy management in smart houses

One-mile mobility
Efficient sharing system

Homeappliance
controller

Automatic control
of home appliances

FC bus that can
supply power toevacuation sites

Presentation of optimal
driving routes, awardingof pointsHome
appliances

EDMS(Energy data
management system)

Solar panel

SecondarycellDemonstrationhome○ 67 homes equipped with solar panels, household fuelcells, Eco Cute, secondary cells, plug-in hybrid
vehicles, electric vehicles, etc. were constructed in
the Higashiyama district of Toyota City. Currently,
there are residents living in 55 homes.
○ From the perspectives of local production for local
consumption and cutting back during peak hours,
pseudo-dynamic pricing is implemented by awarding
Edy (electronic money) points through smartphones,
etc. Also linked to EDMS (energy data management
system), which manages energy for the entire region.
Expanded to automatic control of home appliances(FY2012).
○ Plug-in hybrid vehicles (PHV) and electric vehicles(EV) used as secondary cells (V2H) (Autumn 2012).

Ene Farm

Point incentives(smartphones) ）V2H

Participants

Transportation system

HEMS
Eco Cute

Charging stand(supports V2H)

○ The driving conditions of PHVs and EVs are managed
through EDMS. An optimal driving route to thedestination is presented for each vehicle inaccordance with road conditions, and point
incentives for resolving traffic are awarded.
○ Demonstration of power supply from fuel cell buses
to schools, etc. during disasters will be carried out(next FY).
24

Details of Demonstration in Kitakyushu
Compact wind –power
generator

Hospital

Commercial
facilities(Two 3kW
generators)

Higashida
Cogeneration

6.6kV

Local energy management○ Nippon Steel Corporation possesses distribution lines,
and has been implementing flexible electricity pricing
menus since April 2012 for 230 households and 50
business establishments (office buildings, commercial
facilities, hospitals, factories, etc.) in the Higashidadistrict of Kitakyushu, which is a designated supply area
where electricity is supplied from cogenerationequipment within factories.

Energy management for households and buildings
Local
energysaving plant
Office building

Factory

Pipeline

Smart
meter

V2B
Condominium

Hydrogen town

Hydrogen station Fuel cell

Participants○ For business establishments, the world’s first realtime pricing based on notifications 2 hours
beforehand was implemented.
○ At a hospital that specializes in “dialysis” and uses
high-temperature disinfected water, etc., heatutilization where the majority of demand for heat iscovered by solar heat panels was demonstrated.

Use of hydrogen and fuel cells○ By-product hydrogen that is generated in the
production process at factories is sent to residential
areas, etc. through pipelines and used by household
fuel cells. In addition, they are filled into fuel cellvehicles at hydrogen stations.
○ Surplus electricity is stored as hydrogen, andadjustment of energy supply and demand is carried
25
out by using fuel cells.

Next-generation Energy Technology Demonstration Projects (Budget for FY2012: 2.78 billion yen)
 Demonstration of smart communities that is rooted in the region, such as regarding utilization of local energy and establishment of highly
advanced and versatile technology that complements demonstration in 4 areas (Yokohama City, Toyota City, Keihanna, Kitakyushu City),
has been carried out.
7 projects were adopted in FY2011 and 1 project was adopted in FY2012.
Adopted in FY2011

1

5 Hitachi City (Hitachi, Hino Motors, etc.)

Tottori City (Tottori City, Chuden Engineering Consultants, etc.)“Energy interchange system model for factories and homes”“Model for optimal operation of EV bus batteries”
・Based on operational demonstration of EV buses, construction of abus charging and operation management system that controls thedeterioration of secondary cells, which will serve as the coreof commercialization of EV buses, will be constructed.
・Based on the results of demonstration, commercialization of
EV buses and an added service for chargers is planned starting in
FY2013.

・ A secondary cell is shared among 2 smart houses, a plant factory, and aconfectionery factory. By sharing a secondary cell, costs for thecommunity as a whole are lowered, and power interchange is also
realized by control using CEMS. Demonstration was initiated in autumnof this year.

2

Fukuyama City (Tsuneishi Holdings, etc.) Adopted in FY2011“Coastal/disaster prevention type EMS model utilizing vessels”

6・Construction of a system where electricity is supplied from the diesel power
generator in vessels, used as an emergency power supply during
emergencies, to an EV and power is supplied to customers via the EV.
・Construction of a model where power is supplied to EVs using solar power generation
at a factory. For the future, a business model consisting of a package combined withloaning of an EV will be provided to employees as a benefit.

3・The costs of cultivating Dekopon oranges will be reduced
by introducing natural energy to greenhouse cultivation. At the sametime, feeding and water quality monitoring will be automated by equipping rafts
for oyster farming with solar power generationand secondary cells.
・ In addition to starting Dekopon cultivation and oyster
１
farming this summer, management will be carriedout by constructing an EMS for farms and fishing villages.

７

Adopted in FY2011

4“Development of open source software for analyzing energy usage patterns”
・ Information on the state of energy use in workplaces, etc. will be collecting using
sensors, wastefulness will be analyzed based on the behavioral patterns of users,
and software for proposing improvements will be constructed. In addition toinitiating demonstration of developed software in December, an aim will be made toturn this into a business.

Mie University (Mie University, Fuji Electric, etc.)
Adopted in FY2011“DC power supply model”

・A system where DC power sources such as sunlight supply
power to convenience stores in the university as DC
will be demonstrated starting this winter.
・Demonstration of a desiccant-type air conditioning system where
temperature and humidity are controlled separately.

7 Osaka City (Kawasaki Heavy Industries, Osaka Gas, etc.)

Minamata City (Fuji Electric, Taylors Kumamoto, etc.) Adopted in FY2011“EMS model for farms and fishing villages”

Huis Ten Bosch in Sasebo City (Sojitz, etc.)

Adopted in FY2011“Model for optimal use of waste disposal heat” Adopted in FY2011
・Heat waste from waste incineration sites is transported to customers
through vehicles with heat storage tanks, rather than using a pipeline. An
optimal transport management system will be constructed.
・By November of５this year, demonstration where heattransportation for buildings, factories, and hot-bathfacilities is conducted will be initiated.

8Adopted in FY2012
Kashiwa City (Mitsui Fudosan, Hitachi, etc.)“Power interchange model for complex facilities”

・Through power interchange based on self-operated lines among shopping
malls, offices, hotels, and housing complexes, cutbacks during peak
hours and energy-saving are implemented.
・During disasters, power based on solar power
generation and NAS cells in shopping malls areinterchanged to shared areas in housing complexes (elevators, etc.).
26

３． The role of EV · PHV
for the realization of the smart community（３）Efforts Overseas

27

NEDO International Smart Community Projects
NEDO is implementing Smart Community Projects in the world.
Lyon, France

New Mexico, United States(Commenced in December 2012)(Commenced in June 2010)

EuropeGongqingcheng, China（A feasibility study is being
carried out.）

China

Hawaii, United States

Malaga, Spain(Commenced in May 2012)

United States

Southeast Asia

(Commenced in November 2011)28

Project in the United States, New Mexico• Reliable power supply under high penetration of Photovoltaic

by using CEMS, DER, NaS etc,.
• 2009-2013

Partners; The State of New Mexico,
The County of Los Alamos, LANL, Mesa del Sol, PNM, UNM, SNL
Entrusted parties; Toshiba, Kyocera, Shimizu, Itochu, Cyber Defense, etc., 19 companies
as total[Albuquerque][Los Alamos]• Commercial building + DER with BEMS
• Utility-Scale PV + NaS• Absorb fluctuation from Utility Scale PV• Schedule by Predicting PV generation• Optimize by DR and NaS• HEMS demo29

Project in the United States, Hawaii• Reliable power supply under high penetration of Wind Powerby managing EV charging etc.,• 2011-2015

Partners; The State of Hawaii,
HECO, MECO, HNEI, The County of Maui,
The Maui Economic Development Board etc.,
Entrusted parties; Hitachi, Mizuho Corporate Bank, Cyber Defense[Whole Maui island]• Manage EV charge
 Shift to midnight Stop charging when unexpected
down ramp occurs etc.,[Kihei District]• DLC thru μ-DMS• Optimize usage of low Volt transformer• Optimize PV generation by Smart PCS

30

Project in Spain, Malaga• Avoiding congestion of distribution line

under high penetration of EV quick chargers
by navigating EV users to optimal places• 2011-2015• Currently under Feasibility Study

31

Project in France, Lyon
• 3 Tasks are under consideration
Net Positive Energy Building demo
Energy use monitoring and management for PV andEVs
Energy audit program using AMI• 2011-2015• Currently under Feasibility Study32

３． The role of EV · PHV
for the realization of the smart community（４） The role

33

Linkage with smart grid
 There is a possibility that the growing need for renewable energy and disaster response
and an increase in the need for a flexible power supply control measures will accelerate
the introduction of smart grids in the future.
 In terms of Load leveling of the residential and commercial sector and the efficient use ofrenewable energy distributed power, as part of the energy management system, thespread of the next generation car is equipped with a battery the need is growing.
 Establishing an interface to connect to the grid and Placing Power gateway
and metering adapter is a necessary means to realize that.

34

A new role of EV ・ FCV In the future, the growing importance of EV · PHEV · FCV from the perspective of load
leveling energy management of the residential and commercial sector.

Securing power supply function
ＥＶ → 100V・1500W

1st
Step

DC

Development as soon as possible to
AC converter

FCV → 100V・20kW

2nd
Step

3rd
Step

Establishment of decentralized, independent bases(enhancement of ability to cope with disaster)
Linkage with smart grid
New ranking of next-generation automobiles equipped withlarge capacity storage batteries for urban renewal with built-in,
full
full-fledged
smart grids

35

Subsidy for EVSE Development
FY2012 Supplementary Budget US$1.14 billion.
(1 USD = 88.1 JPY equiv.)

Objective
PurposeGovernment will make this subsidy in order toencourage development of charging stations for EV
and PHEV, so as to promote expansion of EV market ,which contribute to further economic growth of Japan.
In particular, by subsidizing a part of expenses forpurchasing and installment, Government will support
further development of EVSEs in areas below:– Mid-route (gas station, convenience sore, roadsiderest area.)– Destination (shopping center, office building,amusement park )– Residential (parking of condominium or apartmentbuilding)

Methods and Criteria
In order to coordinate region-wide development,
encourage efficient deployment and ensure availability
to public, developments based on criteria below will befavored in terms of subsidy rates.
1.

Development based on “Deployment Plans” madeby municipalities or Highway Public Corporations:subsidized 2/3 of purchasing cost andinstallation cost.

2.

Development open to public but not based on“Deployment Plans”: subsidized 1/2 ofpurchasing cost and installation cost.

3.

Installation to parking of multi-unit buildings:
subsidized 1/2 of purchasing cost andinstallation cost.

4.

Other deployment: subsidized 1/2 of purchasingcost.(DC Quick charger)(AC 200V chargers)

SchemeSet up a fund
Subsidize (2/3 or 1/2)
Private sector
PrivateGovt.
institution
companies

Gas station

Convenience store

Amusement park

Parking

Multi-unit building