meti - minister of economy, trade and industry energy to be purchased source: “japan’s energy...
TRANSCRIPT
October 2011
Agency for
Natural Resources and Energy
1
Renewable Energy Fostered by All
Understand the feed-in tariff scheme and cooperate with us
METI Agency for Natural Resources and Energy
2
Summary of the Feed-in Tariff Scheme for Renewable Energy
Electric utility etc.
Electricity customers (Costs to purchase the electricity generated from renewable energy shall be shared
by all electricity customers in the form of a surcharge.)
Electricity generated from
renewable energy sources
shall be connected to and sent
via the power transmission line
of the electric utility.
The electric utility shall pay a
fixed price corresponding to
the amount of electricity sent.
This is a scheme to foster renewable energy in Japan with the help of all electricity customers. Electric utilities will be obliged to purchase electricity generated from renewable energy sources such as solar PV
and wind power on a fixed-period contract at a fixed price. This will promote the introduction of renewable energy. Costs of purchased electricity generated from renewable energy shall be transferred to electricity customers all over
Japan in the form of a nationwide equal surcharge. They shall pay the surcharge for renewable energy proportional to electricity usage.
Surcharge
METI Agency for Natural Resources and Energy
Electricity usage: 300 kWh Electricity charge: 7,000 yen
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Household with a solar PV panel installed (example)
Home appliances etc.
Inverter Distribution
panel
Conventional
meter
Electricity
purchase
meter
Power
generation
with solar
PV panel
All electricity customers
shall bear the surcharge
proportional to electricity
usage whether or not they
have solar panels installed
at their houses.
Electricity usage and
electricity charge will be
reduced for the amount of
electricity generated
privately.
In case of typical household with a 4-kw solar PV panel (that costs about ¥2 million at present) installed, the monthly electricity charge will be reduced from about ¥7,000 to ¥3,660 by using the electricity generated by the solar PV panel for the household.
In addition, by selling the excess electricity generated by the panel, the household will be able to earn about ¥9,000.
If more electricity than the
power used in the house is
generated, the excess can
be sold under the feed-in
tariff scheme.
Electricity usage: 157 kWh Electricity charge: 3,660 yen
(including surcharge of 80 yen) Income obtained by selling electricity:
9,000 yen
(Note) The above calculation is based on the assumption that the use ratio of solar PV power generation facilities is 12%, the price/kWh of the electricity sold is
42 yen/kWh, redundancy ratio is 60%, electricity usage per month is 3,000 kW and costs 7,000 yen, and the electricity usage of 300 kWh is kept unchanged
in the house even after introduction of solar PV generation.
The surcharge/kWh used here is the price after the renewable energy becomes quite popular (0.5 yen/kWh).
METI Agency for Natural Resources and Energy
Mechanism of Feed-in Tariff Scheme for Renewable Energy
Electric utility
Cost bearing adjustment organization (Organization to collect and
distribute the surcharge)
Purchase of electricity at a fixed price
for a government specified period
Sale of electricity from renewable energy sources
Specification of
purchase price and
purchase period Decision of
Surcharge unit price
per kWh
Electricity supply
Collection of surcharge together with
the electricity charge Submission of
collected surcharge
Deliver of
purchase cost
Approval of
facilities Procurement price calculation committee
(appointment of five committee members
requires consent by the Diet)
Electricity
customers
Those who generate power at home
Government
Those engaged in the power generation business using renewable energy sources
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Genki-kun No. 1, symbol of
“Tsuru City, Town of Water”
METI Agency for Natural Resources and Energy
Progress of examination
From November 2009 A project team on Japan’s Feed-in Tariff Scheme (five meetings and six hearings were held)
March 2010 Options for the scheme were presented and opinions were invited on the website (318 opinions were received until May 2010)
From April 2010 Regional forums were held (Explanatory meetings were held at 21 places throughout Japan and opinions were invited)
July 2010 “The framework of the system” was announced From October 2010 Examination of detailed design was started at the council
(Advisory Committee for Natural Resources and Energy)
From November 2011 Renewable energy symposium was held (at nine places throughout Japan)
December 2010 “Report on the Detailed Design (Draft)” was presented and public comments were called for (8840 comments were received until January 2011)
February 2011 Compilation of “Report of Feed-in Tariff Scheme Subcommittee” March 2011 Cabinet decision of the bill August 2011 Passing and approval of the bill (August 26)
Feed-in tariff scheme for renewable energy has been examined as follows:
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METI Agency for Natural Resources and Energy
Renewable energy to be purchased
Source: “Japan’s Energy 2007” by the Agency for Natural Resources and Agency
“The 11th New Energy Award” by New Energy Foundation etc.
Solar PV power generation for residences (below 10 kW)
Those who generate power using approved facilities
Fives types of energies: Solar PV, Wind power, Small and medium scale hydraulic power (generation of power below 30,000 kW),
Geothermal power and Biomass (that does
not affect the existing applications such as paper and pulp)
Those who can newly start power generation using approved facilities
All of the generated power
shall be purchased
Excess electricity shall be purchased
• It is not necessary to change the wiring at present. You can use it as it is.
• The more you save energy, the more you can sell electricity and can obtain more income from sale of electricity.
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Genki-kun No. 1, symbol of
“Tsuru City, Town of Water”
METI Agency for Natural Resources and Energy
Purchase price and purchase period
○ Purchase rate and period shall be decided every year corresponding to the type, form of installation and scale of renewable energy sources.
○ Specifically, the price and the period shall be decided based on the opinion from an independent committee (members shall be appointed after authorization by the Diet) after consultation with the ministers concerned (Minister of Agriculture, Forestry and Fisheries; Minister of Land, Infrastructure, Transport and Tourism; Minister of the Environment; and Minister of State for Consumer Affairs).
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[Reference] Comparison example of current power generation costs
yen/kWh
0
10
20
30
40
50
(Source)
Geothermal: Geothermal Generation Workshop (June 2009)
LNG: Subcommittee to Study Costs and Other Issues, Electricity Industry Committee (January, 2004)
After open examination at the third party committee, the purchase price and the purchase period shall be decided.
Appointment
requires consent by
the Diet
< Points >
• Power generation cost
• Profit to be received by those who
installed facilities
• Service life
• Premium price for three years from
the launch of the scheme etc.
METI Agency for Natural Resources and Energy
Collection and distribution of surcharge
The equal cost (surcharge/kWh) shall be borne all over Japan. The government shall decide the surcharge/kWh based on the results of the previous fiscal year. However, enterprises that consume an extremely large amount of energy (eight times or more the average unit of manufacturers in case of a manufacturer) and customers affected by the Great East Japan Earthquake shall be exempted from the surcharge.
Since it is possible that the introduction speed of the renewable energy would vary depending on the region, an organization to adjust the burden will be established. The surcharge collected by electric utilities shall be first collected by the cost bearing adjustment organization and then delivered to the electric utilities as grants corresponding to the actual purchase costs.
Electric utility A
Electric utility C
Electric utility B
Electric utility D
Customers of
electric utility A
Supply of electricity
(Payment for purchased electricity) Payment of
the purchase cost
(Grant)
Collected
surcharge
amount
Government Designation Enterprises that consume a large amount of
energy
(exempted from payment of 80% or more of the Surcharge)
Those affected by the Great East Japan Earthquake
(exempted from surcharge payment from July 1, 2012
to March 31, 2013)
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Customers of
electric utility D
Customers of
electric utility C
Customers of
electric utility B
Payment of
Surcharge together
with the electricity
charge
Approval
Organization to collect and distribute the surcharge (Cost bearing adjustment organization)
This organization first
collects the surcharge
and, after adjusting the
surcharge/kWh so that
it becomes equal all
over Japan, distributes
the necessary cost to
the electric utilities.
METI Agency for Natural Resources and Energy
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Excess Electricity Purchasing Scheme has been already introduced for solar PV power generation systems. The electricity purchased under this scheme will be continuously purchased under the newly introduced Feed-in Tariff scheme for renewable energy.
Scope of purchased electricity is enlarged to that from
other renewable energy sources; all generated
electricity will be purchased
Relationship with the current Excess Electricity Purchasing Scheme for Solar PV Power
Support of Future Support by All
Understand the Excess Electricity Purchasing Scheme for Solar PV Power
and cooperate with us.
Renewable Energy
Fostered by All Understand the feed-in tariff scheme and
cooperate with us
Genki-kun No. 1, symbol of
“Tsuru City, Town of Water”
Solar energy
[Solar PV power generation]
Electricity customers
[Institutions] [Residences] [Offices]
Unused electricity among generated power
Income by sale
(¥42kWh for residences)
(¥40/kWh for non-residences)
Electricity
Surcharge to promote solar PV power generation*
(borne by all electricity customers)
Electric utility
* Cost required for purchase of excess electricity from solar PV power . It is added to the ordinary electricity charge and borne by all electricity customers.
Mechanism of Excess Electricity Purchasing Scheme for Solar PV Power
METI Agency for Natural Resources and Energy
(Reference) Difference from the Excess Electricity Purchasing Scheme for Solar PV Power
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Excess Electricity Purchasing Scheme for solar PV Power
Feed-in Tariff Scheme for Renewable Energy
Excess electricity is purchased
Electricity generated
with solar PV
Electricity consumed
in the residence
Excess
electricity
(purchased)
¥42/kWh
for ten years
Purchase rate and purchase period
Residences
Non-residences
¥40/kWh
for ten years
Electricity customers Electric utility
Surcharge will be collected by each electric utility.
Electricity generated by
solar PV system
Electricity consumed
in the residence
Cost bearing
<Image of excess electricity in case of a residence>
In case of electricity from solar PV system for residences, excess electricity will be
continuously purchased.
Excess
electricity
(purchased)
All generated
electricity
(purchased)
Electricity generated from renewable energy sources
Decided after invitation of opinions from the general public on
the basis of discussion at the governmental council.
* Price is for FY 2011
Purchase rate and purchase period
After consultation with the ministers concerned, the purchase price and
purchase period corresponding to energy source, form of installation and
scale shall be decided based on the opinion from the third-party committee.
The price and period shall be fixed after invitation of public comments.
<Image>
Electricity customers
Adjustment to make the surcharge equal all over Japan
Cost bearing
Electric utility Adjustment organization
Generated electricity is entirely purchased
METI Agency for Natural Resources and Energy
40.6 49.1
55.8 65.1
74.3 79.2 86.1
89.1
32.8 36.0 38.3
44.4
60.7
74.7
91.7
110.3 110.3
0.0
20.0
40.0
60.0
80.0
100.0
120.0
15年度 16年度 17年度 18年度 19年度 20年度 21年度 22年度 23年度 24年度 25年度 26年度
供給実績
各電気事業者に課してきた義務量の合計
Handling of existing renewable energy power generation facilities
11 * Total supply of electricity all over Japan in FY 2009 was 874,100 million kWh
(Electric Power Investigation Statistics, Agency for Natural Resources and Agency)
(100 million kWh)
Image of total obliged amount
imposed on the electric utilities during
the transitional measure period
Industrial power generation facilities using renewable energy sources are already subject to the Renewables Portfolio Standard (RPS) system introduced in 2003. This system obliges electric utilities to procure a certain amount of renewable energy and has largely contributed to increased use of renewable energy in Japan so far.
New Feed-in Tariff Scheme is for the facilities newly installed. About 1,400 existing facilities for power generation can continue their operation under the same environment as before under the RPS Act.
Transfer from RPS system to
Feed-in Tariff Scheme
FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014
Results of supply
Total of obliged amount imposed
on the electric utilities
METI Agency for Natural Resources and Energy
Other important matters
The Act clearly specifies that the scheme should be actively reviewed corresponding to the actual situation.
The scheme shall be reviewed at least every three years. In addition, if the Basic Energy Plan is changed, the scheme shall be reviewed on the basis of the contents of the plan after change.
The scheme shall be drastically reviewed by FY 2020.
The government will further enhance PR activities. Further, it will use all possible measures including research and development promotion and review of various regulations in order to popularize renewable energy.
Electric utilities and renewable energy enterprises are required to make efforts in cost reduction.
Review of the Scheme
Responsibility of the Government
Responsibilities of Electric Utilities and Renewable Energy Enterprises
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METI Agency for Natural Resources and Energy