A Comparative Analysis on Three
Different Supporting Methods
to Expand Renewable Energies in Japan
Yoshiki Ogawa
Toyo University
The 40th IAEE Annual Conference
June 20, 2017, Singapore
1
Contents of presentation
1. Backgrounds and measures to expand REN
2. Expansion by the RPS system
3. Expansion by the Green E certificate system
4. Expansion by the FIT system
5. Comparison among three different system
6. Concluding remarks
2
Backgrounds and measures to
expand renewable energies
The target for the introduction of renewable energies
1997 Kyoto Protocol adopted
2001 Maraquesh Agreement adopted
The introduction target of renewable energies in 2010: 19.1 Mkl-coe
Share of REN in primary energy about 3% (2010) from 1% (1999)
Three measures introduced in Japan since 2000
 The green electricity certificate system
from 2001 (Opposing to the discussions on RPS introduction)
 The RPS system from 2003 to 2012
 The full-scale FIT system from 2012
(The partial FIT system to surplus solar for houses was introduced from
2009 and then integrated.)
3
Mechanism of RPS system and obligators
Retail suppliers invite REN electricity.
possessing power plant
more than 2miilions kW
Called as an independent
power producer (IPP)
Large-scale Power
Companies
Wholesale supplier
Nuclear,
Thermal-fired,
Renewable
Wholesale power producer
Companies
supplying
electricity to
electricity
Renewable etc. power
producer
Selling to power
compnies
Mini Hydro
Geothermal
Biomass
Thermal-fired,
Renewable etc.
Grid Networks
Power compnies
possess the grid
Solar
Wind
Specified-scale Power
Companies
Regulated charge
Distributng Distributng
Free charge
Electricity Demand
Regulated sector
Home
Specified
Power Supplier
Convenience
store, row
stores etc.
Leberalized sector
Small
factroy etc.
Large or
Department store,
medium
office, building etc.
factory etc.
Thermal-fired, Specified district
Renewable etc.
Newcomers, so-called
PPP. Supply to electricity demand in
liberalized sector
Sending and
distributng
Finite district
separated from
general electrity
demand
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Increases in renewable electricity
by the RPS system
0
Changes in power supply from approved plants by the RPS Law (B kWh)
2
4
6
8
10
12
14
the RPS system started
2003
2004
2005
2006
2007
2008
the surplus FIT system
for houses started
2009
2010
2011
Wind
Mini-hydro
Biomass
Solar
Specified
Solar
5
Players’ structure in the RPS system
(Note)
: Role,
: Participate,
: Not participate.
6
Mechanism of Green Electricity Certificate System
Approve organization of green
certificates
Approve
or
Home use
Green electricity
production request
Green electricity
value transfer
Sell electricity to
power company etc.
Green electricity producer
Purchase electricity from
power company etc.
Power company in the
producing area
Green electricity certificate
issuing (Transfer of green value)
Power company in the
purchasing area
Environmental value puchaser
Green electricity certificate
purchase applicant
Applier and
certificate issuer
Apply
Value of
environment
Value of
electricity
or
Home use
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Changes in Green Electricity Approved by
the Certificate System
Power generated (100 GWh)
Number of Approve
Geothermal
Mini-hydro
Solar
Biomass
Wind
Number
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
(Fiscal Year)
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Various Uses of Environmental Values by
the Certificate Purchasers
Music ON! TV
Hall Network
Supply wind electricity to all of
5 live houses "Zepp" in the
whole country
Satellite music channel
introduces green electricity
Koshigaya City Government
(Saitama)
Car Sharing Network (Fukuoka)
Achieve 60% CO2 reduction target
Supply clean electricity
for the use in electric cars
Asahi Beer Kanagawa Factory
20% of used electricity is supplied
Ikeuchi Towel (Imabari)
From the factory using 100%
wind power, the original towel
Sonny Tower (Osaka)
100% wind power building, the first
(Source) Document by Nippon Natural Energy Co.
9
Players’ structure in the certificate system
(Note)
: Role,
: Participate,
: Not participate.
10
Mechanism of full-scale FIT system
from July 2012
Renewable Electricity Producers
Sell renewable
electricity
Supply electricity
Electricity Companies
Purchase electricity at
FIT price in the period
decided by government
Grant buying
expences
Pay gathered
surcharges
Gathering surcharge
together with electricity charge
Cost Burden Adjustment Organization
(Organization for gathering and allocating
Set FIT prices and FIT period by
respecting opinions from estimate
committee for pur-chasing price etc. (every
Producers at
Electricity
Users
Determine unit
surchrge per kWh
(every year)
METI Minister
Approve renewable plants
(Government checks whether
the plant can generate stably
and efficiently or not. If the
plant cannot required conditions,
the approval is withdrawn.)
Opinions aboout FIT prices and periods
Estimate Comittee for
purchasing price etc.
Government
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Changes in capacities installed and
approved by full-scale FIT system
Capacity (GW)
30
25
Capacity (GW)
Capacity (GW)
Small-size solar for houses
Wind
30
Approved after FIT
Approved after FIT
25
Introduced after FIT
30
Mini-hydro
25
Approved after FIT
Introduced after FIT
Introduced after FIT
20
20
20
Introduced before FIT
Introduced before FIT
Introduced before FIT
15
15
15
10
10
10
5
5
5
0
Capacity (GW) Large-size solar including
30
Mega-solar
25
0
0
2012/06 2013/03 2014/03 2015/03 2016/03 2016/11 2016/11
75.3
Approved after FIT
Capacity (GW)
Capacity (GW)
30
Geothermal
30
Biomass
25
Approved after FIT
25
Approved after FIT
Introduced after FIT
Introduced after FIT
Introduced after FIT
20
20
20
2012/06 2013/03 2014/03 2015/03 2016/03 2016/11 2016/11
2012/06 2013/03 2014/03 2015/03 2016/03 2016/11 2016/11
Introduced before FIT
Introduced before FIT
Introduced before FIT
15
15
15
10
10
10
5
5
5
0
0
0
2012/06 2013/03 2014/03 2015/03 2016/03 2016/11 2016/11
2012/06 2013/03 2014/03 2015/03 2016/03 2016/11 2016/11
2012/06 2013/03 2014/03 2015/03 2016/03 2016/11 2016/11
The cost burden of surcharge has increased so sharply.
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Players’ structure in the FIT system
(Note)
: Role,
: Participate,
: Not participate.
13
Comparisons among Three Systems (1)
RPS
FIT
Obligation
Exist
Government
Starter
Retail electlici- Renewable
Certificate
ty company
power producer purchaser
Producer
risk
Exist
Renewable E
competition
Retail electlicity company
Extra cost
burden
Exist
Government
Certificate
Not exist
Government
obligation
Surcharge to
End-user
Not exist
Voluntary
Not exist
Purchaser/issuer guarantee
Certificate
purchaser
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Comparisons among Three Systems (2)
RPS
Total size of 2003-2011
10 TWh
electricity
FIT
Certificate
2012-2016
138.43 TWh
2001-2016
0.3 TWh
Complicated
Players related
to certificate
REN Power
producer
Power supplier
Used by various methods
Related
player
Quite simple
Power supplier
REN Power
producer
Simple
REN Power
producer
Power supplier
End-user
Use of Env.
value
Not used
Not used
Home use
Not accepted
Not accepted
Accepted
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Concluding Remarks
 From the viewpoint of rapid and drastic expansion of renewable
electricity, the FIT system would be the most suitable. From the
viewpoint of gradual and systematic expansion of renewable
electricity, the RPS system would be the most preferable.
 On the other hand, from the viewpoint of PPP, the green certificate
system would be the most excellent, because participants is widely
expanded and the advertisement effects is induced largely.
 Three different supporting systems have individual merits and
demerits. We should pursue reasonable and effective improvements
for the future by taking excellent merits of other systems.
 For this purpose, it is important to apply various activities utilizing
the environment value of green electricity observed in the green
certificate to the RPS and FIT. This is also expected to play a crucial
role on the reduction of surcharge burden to people in the FIT.
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Thank you very much
for your kind attentions.
Questions or comments ?
[email protected]
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