Sharing experiences and lessons learned from JCM project implementation

Engineering Business UnitEnergy Solutions BUSharp Corporation

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Agenda

１．Introduction of Sharp Solar２．JCM – Project reference in Mongolia３．Measurement & Monitoring of CO2

reduction based on JCM Methodology４．Process for issuance of Credits

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1. Introduction of Sharp SolarDNA OF “ONE-OF-A-KIND”

Mechanical Pencil

Crystal Radio Japan’s First TV Set

Belt Buckles

Camera-equipped Mobile Phone

19121915 1925 1953

2000

Sharp’s founder

Make products that other companies want to imitate

LCD Calculator

1992

LCDViewcam

~ World’s first and Japan’s first~

All-transistor Calculator

2004 2008 2014

Superheated Steam Oven

108-Inch LCD Monitor

RoBoHoN2016

19731964

Healsio Ocha-Presso

For 105 years

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Source：JAXA

2012

58 years of Experience

1980 1998 2005 ～20152008

* As of Apr 2010

1963 1967 20171959 19811970 2008 2012

IEEE milestone recognition

History more than 50years

Start salesof Black Solar

Development compound cell with 31.17% efficiency

Start mass production of Crystalline PV cells

Start R&D of Crystalline PV cells

Start R&D of Space-use PV cells

Start operationin Katsuragifactory

Start mass production of Space-use PV cells

Sharp’s1st Solar

Source : JAPAN COAST GUARD

More than 2,800Light house

installations in Japan*

Equipped withmore than

160 satellites*

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Sharp PV Production History

0.0GW

2.0GW

4.0GW

6.0GW

8.0GW

10.0GW

12.0GW

14.0GW19

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1966

1970

1993

1994

1995

1996

1997

1998

1999

2000

2001

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2003

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2005

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2008

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2011

2012

2013

2014

2015

2016

2017

1959

(GW

)

～ ～

2000: No.1 PV manufacturer in the world

1963: Started mass production of PV cells

1967: development of space-use c-Si PV cells

（1953: Si PV invented by Bell Laboratory)

2012: Completion of 73MW Solar plant in Thailand

2013: Start IPP business in Japan

2015: Establish Sharp Solar Solution Asia

Total installation, more than400MW as EPC in Japan, 450MW in Asia

Lighthouses: 50 years experience, over 2,800 sites (as of March 2013)

Satellites: 46 years experience, installed 160 satellites：JAXA Houses: No,1 share in Japan

83MW NED Plant in Thailand

First IPP Plantby SHARP

(Amount until 2017)

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釧路市

24.7MW

富岡町

２.２MW

いなべ市

２.４MW

御所市

１.２MW

福知山市

１.８MW

国東市

０.８MW

京都府

加茂市

２.４MW

岐阜県

Ultra high voltage

苫小牧市

45.6MW

松山市

１０.３MW

愛媛県

Completed(and under construction) Plants…179 plantsInstalled Capacity…Approx. 565MWdcSharp Assents…Approx. 145MWdc

Since July 2012 till end March 2017

Project reference of EPC/IPP in Japan

約42.9MWＳＢエネジー株式会社様Sharp Miyoshino Solar plant

Softbank Yonago Solar plant

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Project reference of EPC（Thailand）

Bangkok

LopburiSurin

Khon Kaen

Udon Thani

Total Plants in ThailandMore than 140MW

Capacity：73.2MWdc ＋10.3MWdcCOD：Mar 2012 / May 2013

Capacity:52MWdc/COD:Jan 2015

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Project reference of EPC（Vietnam）

★

Site Location : My Hoa Village,Dien Loc Commune, Phong Dien District, ThuaThien Hue Province, Vietnam Contract Ceremony

Project Phong Dien Solar Power Plant

Capacity 48MWdc / 35MWac

Expected power generation Approx. 61,570MWh/Year

Expected CO2 reduction(0.333t-CO2 /MWh)

Approx.20,503tCO2/Year

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Expanding Solar project globally（especially developing countries for Solar）

Sharp Global Activity

Mongolia

Thailand

Kazakhstan

Philippine

Mexico

Myanmar

IndonesiaVietnam

20MW10MW30MW50MWothersTotal 181MW

50MW150MW5MWTotal 205MW

5MWTotal 5MW

20MWTotal 20MW

3x5MW3x2MW2x3MWOthersTotal 70MW

48MW65MW30MWOthersTotal 593MW(7projects)

30MW30MW10MWOthersTotal 220MW0.4MW

0.3MWTotal 0.7MW

Palao

5MWTotal 5MW

Laos

４MW５MWTotal 10MW

This region is handled by European subsidiary as PV module business

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・Available Remote monitoring center at Sharp Katsuragi factory・365 days monitoring & checking operation of Solar plant

Maintenance – Remote Monitoring -

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2. JCM Projects

Contribution of CO2 reduction by Energy Solution

12Source: Google, INEGI

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Mongolia Dalkhn Solar10MW Solar Power Plant

Thailand SNC Roof Top Solar Project3.4MW Rooftop Solar Power System

Indonesia Jakavaring Sports City Solar1.6MW Solar PV Power Plant Project in Palembang, South Sumatra

JCM projects executed by Sharp

Mongolia Khushik Khuntii Solar15MW Solar Power Plant

Mexico San Luis Potosi Solar20MW Solar Power Plant

Thailand Big C Solar Projects27MW Rooftop Solar Power System

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CO2 Reduction by SolarPower Generation

by Renewable Energy

Power Generationwithout CO2 Emission

Power generation by fossil fuel goes down thanks to Solar in the country

＝Contribution of CO2 reduction

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Project in Mongolia － Needs①Increase of Electrification

⇒Reduction of imported electricity

②Improve of Environment⇒Reduction of dependency by coal fire

③Technology of stable operation under tough condition in Mongolia

⇒Technology under low temperature

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Gas emission by coal fire / heat power plant at Ulaanbaatar

Exhaust from Ger

Environmental Concern in Mongolia

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Project in Mongolia － OverviewThe project aims to reduce CO2 emissions by constructing a 10MW Solar Power Generation Plant in Darkhan City and can reduce fossil fuel by supplying the generated electricity through the power transmission network.

Capacity： 10MWdc

Location： Darkhan city（Locates approximately 230 km Northof the capital city Ulaanbaatar）

Completion：Dec 2016

Project Life: 17 yearsFrom Jan 2017～

CO2 reduction：14,746tCO2/Year

10MW Solar Plant

110kV power transmission

Approx. 10km south from Darkhan city

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International Consortium

CO2 Issuance of Credits（for 17years）

Contract of International Consortium

Investment

National Dispatching Center

Power Purchase Agreement

Subsidy

Project Participants（Mongolia）

Solar PowerInternational LLC

Global Environment Centre Foundation

(GEC)（Entrustment by MOE）

Partner from Mongolia

Project Participants(Representative)

Sharp Corp.

Shigemitsu Shoji Co.,Ltd.

Overall Project StructureProject in Mongolia － SchemeMinistry of the Environment

Government of Japan

Investment

Investment

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Construction (in October, 2016)

Finished PV module installation・Completion before

winter season（as of end of Oct 2016）

Completion on Dec 2016, and started operation since 1st Jan 2017

Project in Mongolia

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3. Measurement & Monitoring of CO2

reduction based on JCM Methodology

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Measurement of CO2 Credit To measure, record and verification for

amount of CO2 reduction based on JCM methodology

To monitor, record for power generation, which will be converted into CO2 reduction amounts

Power Meter at Plant

Power Meter at Sub station

Multi Meter at Plant

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Monitoring

Sharp and Solar Power International LLC will provide monitoring services for 17years.

Example）①Check for Measurement meter②Record every power plant

parameters③Prepare reports

Guideline of Monitoring

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Monitoring Sheet

←Amount ofCO2 reduction

Power generation×Emission factor =11,227MWh/p×0.797= 8947.64643 tCO2

Emission factorSolar power generation

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４．Process for issuance of Credits

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Process for issuance of Credits１．Approval of MRV methodologyIGES(Institute for Global Environmental Strategies) who is entrusted by MOE fixed formula such as measurement points, emission factor and so on, then confirmed MRV Methodology.

２．Local Stakeholder ConsultationConsultation meeting with Mongolian local stakeholders was executed . Any opinions, views and Q&A raised at the meeting were reported into the Validation report.

⇒ Darkhan：Revised MRV approved on Feb 2017

＜Photo : Local Stakeholder Consultation＞

⇒ Darkhan：Executed on Dec 2016

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３．ValidationJQA (JAPAN QUALITY ASSURANCE) visited the site and checked for measurement points of power generation, method, calibration of tools. After the site visit, PDD(Project Design Document) was completed.

４．VerificationExecuted at the site on Sep 2017. Checked for the contentsaccording to Validation report and LRQA (Lloyd's Register) publishedVerification report.

＜Photo : Verification at the Site＞＜Photo : Validation at the Site＞

Process for issuance of Credits

⇒ Darkhan：PDD was published on Mar 2017

⇒ Darkhan：Executed on Jul 2017Published on Oct 2017

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Issuance of Credits

Source : Ministry of the Environment of Japan

⇒ Darkhan:Issued on Oct 2017

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Issuance of Credits・Allocation

Joint Committee by Japan and Mongolia approved 8,947t CO2 credits realized from Jan 2017 to Jul 2017 at the JCM committee on 24th Oct 2017.

Allocation of 8,947t CO2 Credit:Japanese government 70%Mongolian government 20%Sharp 10%.

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Report of CO2 reduction amount①Issuance of CO2 Credits Three (3) times

1st time ：Within 1 year after project registration <finished>2nd time：20213rd tie：2033 （JCM Guideline : Article No.18）

②Report to MOE

Necessary to report 1 time per year, about the result of CO2 reduction during past fiscal year

（JCM Guideline : Article No.16）

Source : Ministry of the Environment of Japan

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Sharp Activities – JCM Projects１．On-Going ProjectsSharp executes the JCM projects in Mongolia, Thailand, Indonesia and Mexico as well as stable operation, monitoring of CO2 reduction and issuance of CO2 credits.

２．Next ProjectsSharp will continue projects with JCM program together with Partner countries from next fiscal year onward.

３．Future TechnologiesSharp will develop new system which can contribute further CO2 reduction besides Solar system such as Battery management system and Diesel hybrid system.

Thank you very muchfor your attention !