Energy Conservation Policies of Japan November 7, 2011 Agency of Natural Resources and Energy Enegy Conservation and Renewable Energy Department Contents 1. Conditions surrounding energy …Page 2 2. Energy conservation policies of Japan …Page 6 (1) Industrial sector …Page 10 (2) Consumer sector (including Top Runner Program) …Page 19 (3) Transportation sector …Page 39 3. Budgetary provisions …Page 42 1. Conditions surrounding energy 2. Energy conservation policies of Japan (1) Industrial sector (2) Consumer sector (including Top Runner Program) (3) Transportation sector 3. Budgetary provisions Current global conditions surrounding energy and energy supply structure of Japan ØPrincipally in Asia, but the energy demands of the world are expected to rise rapidly to about 1.3 times the current amounts by 2030. The energy supply structure will be hard pressed, due to the intensification of the competition to acquire resources among the countries of consumption, such as China. Ø Japan has the lowest self sufficiency rate among the major industrialized nations. (Petroleum equivalent in million tons) 18,000 16,000 Outlook of global energy Overall Approx. 1.3 times 14,000 12,000 International comparison of energy self sufficiency rates (FY2009) その他 Others 100% アフリカ Africa India Approx. 1.9 times 中東 Middle East 80% * The self sufficiency rate is for instances where atomic power is imported. (Figures inside brackets are for instances where atomic power is considered to be produced domestically.) (53%) 中南米 Central and South America インド India 10,000 60% (70%) 中国 China 8,000 China Approx. 1.7 times 6,000 4,000 アジア(日中印韓除く) Asia (excluding Japan, China, India and Korea) ロシア Russia 東欧・中央アジア Eastern Europe and Central Asia 日本 Japan 2,000 ドイツ 8% フランス イギリス アメリカ China 日本 61% USA 4% UK 2030 16,014 イタリア 25% France 2008 12,271 14% Germany 2030 47% (19%) 20% 0% 85% (35%) Japan 2008 米国 USA OECD(日米除く) OECD (excluding Japan and USA) (44%) 40% Italy 0 (85%) 中国 Source: Calculated from statistics published by IEA. Source: World Energy Outlook 2010. 3 Transition of Final Energy Consumption in Japan Ø The final energy consumption of Japan has basically consistently increased, except for periods immediately following the two oil crises and the economic downturn in recent years. Ø The GDP kept on increasing to about 2.3 times from 1973 to 2009 and the consumption of energy for individual sectors significantly increased with the consumer sector increasing to about 2.4 times, while the transportation sector increased to about 1.9 times, whereas the industrial sector increased about 0.85 times. (Petroleum equivalent in million tons) Real GDP 400 (JPY trillion) Final energy consumption 600 1973→2009 2.3 times 350 Transportation sector 1.3 times 500 23.7% 300 Consumer sector 300 200 33.6% 200 42.7% Industrial sector Consumer 150 Transportation 400 250 100 1973→2009 1973→2009 1.9 times 1973→2009 2.4 times 100 50 Industry 産業 Consumer 民生 Transporta 運輸 tion GDP 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 1989 1988 1987 1986 1985 1984 1983 1982 1981 1980 1979 1978 1977 1976 1975 1974 1973 Source: Comprehensive Energy Statistics and Annual Report on National Accounts. Industrial 0 0 1973→2009 0.85 times 4 Energy Conservation Efforts in Japan Since Oil Crisis Ø Since the Oil Crisis in the 1970s, Japan has been conducting energetic activities involving both the public and private sectors, resulting in improvements in energy efficiency by about 33% in the 30 years from 1979 to 2009. Ø Through various energy conservation strategies the highest energy efficiency in the world was realized. Since the latter part of the 1980s, however, the efficiency per GDP has been sluggish in performance, requiring the implementation of further strategies. Primary energy consumption per real GDP in Japan Comparison of primary energy supply per unit GDP of respective countries (2009) (Petroleum equivalent in tons / US$100, at 2000 price) (Petroleum equivalent in tons /JPY trillion) 1.8 18 Approx. 33% improvement 1.6 16.3 16 14 1.4 12 1.2 10 1.0 8 0.8 5.9 6 0.6 4 2009 2006 2003 2000 1997 1994 1991 1988 1985 1982 1979 1976 1973 世 界 World ロ シア Russia イ ンド India 中 国 China イ ンドネシア Indonesia 中 東 East Middle タ イ Thailand Source: "Comprehensive Energy Statistics" of EDMC/Agency for Natural Resources and Energy, estimates of EDMC and the "Annual Report on National Accounts" of the Cabinet. 韓 国 Korea GDPあたり一次エネルギー供給量 Primary energy supply per GDP 3.1 3.0 3.0 カ ナダ Canada 0.0 2.4 豪 州 Australia 0 Eu27 EU27 0.2 1.0 USA 米 国 2 Japan 日 本 0.4 1.9 1.7 7.5 7.8 7.2 7.7 Source: Calculated from statistics published by IEA. 5 1. Conditions surrounding energy 2. Energy conservation policies of Japan (1) Industrial sector (2) Consumer sector (including Top Runner Program) (3) Transportation sector 3. Budgetary provisions Overall Image for Energy Conservation Policies of Japan Ø Programs for energy conservation policies in Japan are classified roughly into categories of "industrial sector", "consumer sector (commercial and household)" and "transportation sector". Ø Strategies implemented from both aspects of regulation and support (budget, tax programs, etc.) in the respective sectors are according to the Energy Conservation Law. Ø Development of energy conserving technologies and nationwide activities intended to improve energy awareness have been implemented as support across fields. Industrial sector Consumer sector Commercial sector Household sector Regulatory measures (Energy Conservation Law) Support measures (Budget and tax system, etc.) Business operators (energy consumption of at least 1,500kl): Energy conservation measures (periodical reports) and reduction efforts of 1% per year. Transportation sector Cargo owners and carriers (of specific minimum size): Energy conservation measures (periodical reports), etc. Residential buildings and structures (at least 300m2): Observation of Energy Conservation Standards at the time of construction (submission of notification). Automobiles and household electrical appliances: Regulation by Top Runner Program, etc. Household electrical appliances: Display of energy conservation performance, etc. Provision of subsidies and supplement of interests, etc., for implementation of energy conserving facilities. Tax system (accelerated depreciation) for implementation of energy conserving facilities or construction of energy conserving buildings. Residential Eco Points, etc. Residential rennovation tax reductions, etc. Provision of subsidies for implementation of Clean Energy cars, etc. Eco Car tax reductions, etc. Provision of subsidies for development of energy conserving technologies (high performance heat pumps, high performance thremal insulation materials, etc.) Provision of information and promotion of nationwide activities (such as forum activities) intended to improve energy conservation awareness, etc. 7 Fields Subject to Regulations Under Energy Conservation Law Ø The Energy Conservation Law is the basis of all energy conservation policies in Japan. It was established in 1979, triggered by the Oil Crisis. (1) Manufacturing plants & business stablishments (2) Transportation ◆ Business operators with an annual energy consumption of at least 1,500kl (equivalent crude oil) at manufacturing plants and business establishments. ◆ Freight carriers with a transportation capacity of a minimum certain scale, such as 200 trucks or 300 railway cars for railroads, etc., (currently 637 companies). ◆ Cargo owners with an annual freight transport order of at least 30 million tons (currently 874 companies). (3) Residential buildings and structures ◆ Structures on a large scale with a total floor areas of at least 2000m2. ◆ Small to mid size structures with a total floor area of at least 300m2. ◆ Business operators who build and sell residential buildings (annually supplying at least 150 units). (4) Machinery and equipment ◆ Passenger cars, air conditioners, television sets, etc., 23 items. (Comprises about 70% of household energy consumption.) 8 Summary of Energy Conservation Law Manufacturing plants & business locations Obligation for business operators to make an effort and public disclosure of judgment standards ○ Specified business operators and specified chain business operators (Energy consumption of 1,500kl per year) ・ Obligation to appoint Energy Managers, etc. ・ Obligation to periodically report on energy consumption status. ・ Obligation to submit medium and long term plans. Residential buildings and structures Transportation Obligation for business operators to make an effort and public disclosure of judgment standards Obligation for construction clients and owners to make an effort and public disclosure of judgment standards ○ Specified carriers (freight and passengers) (Fleet of vehicles: At least 200 trucks or at least 300 railway cars for railroads, etc.) ・ Obligation to submit medium and long term plans. ・ Obligation to periodically report energy consumption status. ○ Specified consigners (Annual transport volume of at least 30 million ton-km.) ・ Obligation to submit plans. ・ Obligation to periodically report consumption of energy related to consigned transportation. Provisions relating to machinery and equipment ○ Specified buildings (Total floor area of at least 300m2.) ・ Obligations relating to the submission of notifications pertaining to energy conserving measures implemented by construction clients in relation to large scale modifications and obligations relating to reporting the status of overall maintenance. ○ Housing providers (Annual supply of at least 150 units.) ・ Obligation to observe targets for improving energy conservation performance of supplied ready built residential housing. Provision of information Obligation for manufacturers and import business operators of energy consuming equipment to make an effort Obligation to make effort in providing information to general consumers Top Runner Standards (23 units) ・ Standards for energy conservation of passenger cars, air conditioners, television sets, etc. To exceed the performance of most superior products that have been commercialized at the present time is required of each type of unit. ・ Provision of information on energy conservation (annual electric power consumption, fuel economy, etc.) that is easy to understand at storefronts of retailers who sell household electrical appliances, etc. ・ Popularization of energy conserving equipment and the provision of information, etc., by electric power and gas companies. 9 1. Conditions surrounding energy 2. Energy conservation policies of Japan (1) Industrial sector (2) Consumer sector (including Top Runner Program) (3) Transportation sector 3. Budgetary provisions Current Status and Countermeasures for Energy Consumption in Industrial Sector Ø Iron and steel, as well as chemical industries, comprise 60% of energy consumption in the overall industrial sector. Ø Energy unit consumption rapidly improved since the Oil Crisis and until the middle of 1980s, however, it has been in a levelled off trend since the 1990s. Energy consumption amounts and proportions in manufacturing industry (FY2009) Transition of energy unit consumption per mining and manufacturing production indices in manufacturing industry 120 Index (FY1973 = 100) 100 Metal working machinery 金属機械 7% 7% 非鉄金属 Non-ferrous metals 2% 2% 繊維 その他 Others Iron鉄鋼 and 26% steel 14% 14% 26% Textile 1% 1% Food and tobacco 4% 食品・煙草 5% Ceramic products and earthenware 窯業土石 61.4 60 40 4%and pulp Paper 5% 紙・パルプ 80 Chemicals 化学 35% 35% 20 6% 6% 0 Source: "Comprehensive Energy Statistics" of EDMC/Agency for Natural Resources and Energy and estimates of EDMC. 73 75 Current measures 80 85 90 95 2000 2005 2009 (Fiscal year) (Note 1) Added value weighting is used for mining and manufacturing production indices (standards for 2000). (Note 2) It is necessary to consider that the mining and manufacturing indices are impacted by sales prices and therefore reductions can be greater than the reductions of the production volume when the sales prices are sinking. ●Regulation: Thorough implementation of energy conservation activities by individual businesses and the formulation of benchmarks for each sector, etc. ●Support: Support for the implemenation of highly efficient energy conserving facilities, support for the development of innovative technologies, the provision of lowinterest loans, etc. 11 Current Regulatory Scheme at Manufacturing Plants, etc. Ø Business operators with overall annual energy consumption (head office, manufacturing plants, branch offices, sales offices, etc.) of at least 1,500kl in crude oil equivalent are subject to regulations. Ø Business modes, such as franchized chain of stores, are also considered single business operators and those consuming at least 1,500kl for the whole chain are subject to regulations. On the basis of energy consumption, about 90% of the industrial sector and about 50% (estimated) of the commercial sector are covered, as they are subject to regulations. ○ Numerical targets: Reduction of annual average by at least 1%. ○Obligation to report periodically ① Transition of energy unit consumption ② Status of activities relating to energy conserving measures ③ Obligation to annually report on status of benchmark indices (for subject business lines only), etc. Measures, such as instructions, public disclosures and orders (fines in case of violation against orders) implemented when energy conservation activities of a business operator is significantly inadequate. Rationalization plan instruction Evaluation on details of reports and investigations. Guidance Onsite inspections Implementation of onsite investigations. Ministry of Economy, Trade and Industry (Note) Business operator Submission of periodical reports. When activities are significantly inadequate. Public disclosures and issuance of orders (Flow of measure implementation) When instructions are not followed. * Fines imposed for instances when orders are not followed. ○ Guidelines pertaining to energy conservation measures: Stipulation of judgment standards (guidelines) based on the Energy Conservation Law as observance items for energy management. Ø Energy conservation measures for business operators overall ・ Maintenance of energy management organization. ・ Allocation of persons in charge. ・ Formulation of policies for activities pertaining to energy conservation targets, etc. Ø Energy conservation measures at individual manufacturing plants and business establishments (Example: Air conditioning systems.) Preparation and implementation of management standards (manuals) pertaining to the following measures: ・ Operational management (operating time, set temperature, etc.). ・ Periodical measurement and recording of temperature, humidity, etc. ・ Periodical maintenance and inspection of facilities. ○ New numerical targets to include in addition to existing targets Benchmark indices and standards to be targeted Currently set business lines: Iron and steel, electric power, cement, paper manufacturing, petroleum refining and chemical. Standards to be aimed for: Levels satisfied by most superior business operators in respective industries (10 to 20%). 12 Measures Pertaining to Manufacturing Plants According to Energy Conservation Law 1. Business operators overall Annual energy consumption (crude oil converted amount kl) Classification of business operator Specified business operator or specified chain business operator − Judgment standards for manufacturing plants, etc. (standards components) ・ Set management standards, operational standards based on management standards, measurement records, maintenance inspections, etc. Items to be observed Judgment standards for manufacturing plants, etc. (target components) ・ Reduce energy unit consumption by 1% or more in the medium to long term ・ Attain benchmark indices (only for applicable business lines), etc. Target Obligations Under 1,500kl At least 1,500kl Person to be appointed Energy Management Control Officer and Energy Management Planning Promoter Documents to be submitted Medium to long term plans, periodical reports and notification on appointment of energy management control officers, etc. − Guidance and advice, collection of reports and onsite inspections. Administrative checks Instructions for preparation of rationalization plan (failure to follow such instruction resulting in public disclosure or issuance of an order), etc. − 2. For each manufacturing plant of installation Annual energy consumption (crude oil converted amount kl) At least 3,000kl At least 1,500kl to under 3,000kl Type designation Type 1 Designated Energy Management Factory, etc. Type 2 Designated Energy Management Factory, etc. Obligations and persons to be appointed Manufacturing business, mining business, as well as electric power supply, gas supply and heat supply businesses Energy Manager Other than those described on the left (hotels, schools, etc.) All business lines Energy Management Officer 13 Energy Unit Consumption Ø Business operators must manage the energy unit consumption at manufacturing plants, as well as other installations and they must set targets to reduce the unit consumption, from a medium to long term perspective, with an annual average of at least 1% (judgment standards). Energy unit consumption = (A - B) / C A = Energy consumption (consumption of fuel, consumption of heat supplied by others, as well as the consumption of electric power supplied by others) B = Amount of energy sold externally C = Value that is closely related to the consumption of energy * "A" and "B" are calculated in crude oil equivalent kiloliters. Status on setting "Value that is closely related to the consumption of energy" (C). ① Manufacturing sector (subject sites: 9,597 business establishments) Unit Number of business establishments ② Commercial sector (subject sites: 5,186 business establishments) Unit Number of business establishments Weight 4,146 Area 2,435 Amount 2,139 Area × time 1,054 Count 1,540 Volume 508 Area 728 Weight 377 Volume 424 Number of people 182 Source: FY2009 periodical reports 14 Implementation of Benchmarks by Sectors ØBackground for implementation of benchmarks: ØMore specifically, for each specific business line (sector): u Indices that can be used to compare the energy conservation status of business operators in each business line. u The spread of information pertaining to the practice of the sectoral approach to the world. Determine benchmark indices and set standards to be attained in the medium to long term. 101 Target u More impartial evaluations on the efforts of business operators under the Energy Conservation Law. u Supportive efforts by business operators through the visualization of energy conservation efforts. u The spread of information pertaining to the practice of the sectoral approach to the world. Image of benchmark 100 99 98 97 96 0.5 l The achievement of numerical targets (reducing energy unit consumption by an annual average of at least 1%), as set under the Energy Conservation Law, had been difficult to sustain for business operators who already had progressed with considerable energy conservation activities. l For this reason, a more impartial evaluation on the efforts of business operators is made possible by establishing an index (benchmark index), which can be used to compare the energy conservation status of business operators, so that business operators lagging behind in taking action are promted to put in more effort. l Standards to be targeted are to be levels satisfied by most superior business operators in their respective industries (10 to 20%). [Concept for setting business lines subject to benchmarks] Ø Three business lines of iron and steel, cement and electric power were set in FY2008. These were set with a consideration for the amount of energy used and the progress of international debates in the respective business lines. Ø The setting was further expanded to include paper manufacturing, petroleum refining and chemical industries in FY2009. The coverage rate of energy consumption in the industrial sector: About 40% for the three business lines set in FY2008, which increased to about 60% with the addition of three more business lines considered in FY2009. Expansion to include the commercial sector, such as offices and retailers, is also being considered. 15 Public Disclosure of Results from Benchmark Reports Ø With regards to benchmarks, it has been determined that "In order to support voluntary efforts by business operators, the average values and standard deviations for the business operators of reported benchmark indices are publicly disclosed by the Government. Furthermore, the names of the business operators whose energy conservation efforts have been particularly advanced, are publicly disclosed by the Government." (Summary of Manufacturing Plant Judgment Standards Subcommission, Energy Efficiency Standards Subcommittee, Advisory Committee on Energy and Natural Resource (March 31, 2009)) Ø Periodical reports from last fiscal year provided reports on the results for FY2009 from formulations of the stipulations in FY2008 regarding five business industries, steel manufacturing with blast furnaces, ordinary steel manufacturing with electric furnaces, special steel manufacturing with electric furnaces, electric powr supplies and cement manufacturing. The results are shown below: <Public disclosure of results from benchmark reports> (1) Steel manufacturer using blast furnaces (4) Electric power supplier Average: 0.597kl/t Standard deviation: 0.044kl/t Attaining business operators: None. Average: 99.2% Standard deviation: 1.1% Attaining business operators: Kansai Electric Power Co., Inc. Electric Power Development Co., Ltd. Tohoku Electric Power Co., Inc. (2) Ordinary steel manufacturer using electric furnaces Average: 0.184kl/t Standard deviation: 0.032kl/t Attaining business operators: Jonan Steel Corporation Tokai Steel Corporation Tohoku Steel Corporation Yamaguchi Kogyo Co., Ltd. (3) Special steel manufacturer using electric furnaces Average: 0.58kl/t Standard deviation: 0.31kl/t Attaining business operators: Sintokogio, Ltd. KYB Cadac Co., Ltd. (5) Cement manufacturer Average: 4089MJ/t Standard deviation: 250MJ/t Attaining business operators: DC Co., Ltd. Sumitomo Osaka Cement Co., Ltd. Taiheiyo Cement Corporation Chichibu Taiheiyo Cement Corporation Denki Kagaku Kogyo Kabushiki Kaisha Myojo Cement Corporation * Business operators who succeeded in achieving their targets and who agreed to be listed on a public disclosure are listed in phonetic order. 16 Promotion of Joint Energy Conservation Project Ø The amendment of the law in 2007 stipulated that the Government will make appropriate considerations in order to promote activities relating to joint energy conservation projects (project for contributions towards the support of rationalization for the energy used by other parties). Ø Business operators implementing joint energy conservation projects may report the relevant activity status to the Government and the Government will take that into consideration when evaluating the business operator. Specified business operators Specified chain business operators Periodical reports Attached documents Other parties Provision of technology and advice, as well as collaboration of projects, etc. Amount of energy jointly conserved Status of joint energy conservation project attached Submission Central Government Status of joint energy conservation projects taken into consideration for evaluation. Amount necessary to achieve target (reduction of unit consumption by 1%) can be evaluated in a comprehensive manner, if a report on the amount of energy jointly conserved is reported. Activities that realize further energy conservation are supported through a collaboration of multiple business operators. 17 Flow of Necessary Procedures According to the Energy Conservation Law Minister of Economy, Trade and Industry Business operator Notification on Status of Energy Consumption Grant of opportunity for providing explanations Submission Notification Business operator receives designation of specified business, specified chain business operator, designated energy management factory, etc. Acceptance Explanation demand notice Acceptance and individually dealt In case particular explanations are to be offered (explanation document) In case no explanations are to be offered (no procedure necessary) Competent minister project Designation notification issued after a certain period Designation Appointment of energy management control officers and energy management planning promoters, energy managers and energy management officers. Energy management control officer and energy management planning promoter, energy manager and energy management officer appointment notification Submission Report Periodical reports Submission Medium- to long-term plan Acceptance Acceptance Acceptance Acceptance Acceptance 18 18 1. Conditions surrounding energy 2. Energy conservation policies of Japan (1) Industrial sector (2) Consumer sector (including Top Runner Program) (3) Transportation sector 3. Budgetary provisions Current Status and Countermeasures for Energy Consumption in Consumer Sector (commercial and households) Ø Looking at the transition of the final energy consumption in Japan reveals that in comparison with the industrial or transport sectors, the consumer sector (commercial and households), which comprise 30% of the overall energy consumption, had a notable increase and this sector requires enhancements to energy conservation strategies more than others. Transition of final energy consumption and real GDP Real GDP 1990→2009 (Petroleum equivalent in GDP(JPY trillion) 600 1.16 times 400 million tons) 350 Final energy consumption Proportion of energy consumptions according to applications in household sector (FY2009) 1990→2009 1.04 times Gas stove, etc. External walls, windows, air conditioners, etc. 500 250 Consumer (commercial) sector 200 150 400 19.4% 14.2% 33.6% 200 Industrial sector 100 42.7% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 産業 Industry 民生 Consumer 運輸 Transportation GDP Industrial 0 0 1.06 times 1.38 times Household 1990→2009 1.23 times 100 50 1990→2009 Kitchens 厨房用 8%8% Lighting, computers, refrigerators, etc. Heating 暖房用 25% 25% Commercial 1990→2009 300 Consumer Consumer (household) sector 23.7% Transpor tation Transportation sector 300 Motive Cooling 冷房用 2%2% 動力他 energy, etc. 36% 36% Approx. 30% Hot water supply 29% 給湯用 29% Hot water dispensers, etc. 1990→2009 0.88 times Source: EDMC estimates Source: Comprehensive Energy Statistics and Annual Report on National Accounts. ●Regulation: Thorough implementation of energy management by individual businesses, TR programs, etc., (comprising about 70% of household energy consumption). ●Support: Implementation of "visualization" equipment, Tax Program for Promotion of Residential Building Refurbishments, household electrical appliance labeling, etc. 20 Transition of Energy Consumption in Commercial and Household Sectors Ø The consumer sector, which is comprised of commercial and household consumers, has the highest growth in energy consumption of all sectors. Ø Since entering into the 2000s, however, the trend has practically flattened out. This occurred because on one hand areas and business hours increased for the commercial sector and the number of households, as well as the use of electrical appliances for the household sector increased, whereas on the other hand the efficiency of household electrical appliances also improved, due to the impact of the Top Runner Program under the Energy Conservation Law, etc. Transition of total floor area and energy consumption in commercial sector Transition of energy consumption and number of households in household sector 1.6 1.5 1.35 Energy consumption エネルギー消費量 エネルギー消費量 Energy consumption 床面積 Floor area 世帯数 Number of households Floor area 床面積 エネルギー消費量/床面積 Energy consumption / floor area 1.4 Energy consumption エネルギー消費量 エネルギー消費量 Energy consumption 1.3 Energy consumption / エネルギー消費量/世帯数 1.25 number of households 1.2 1.3 Number of households 世帯数 1.15 1.2 1.1 1.05 2008 2007 2006 2005 2004 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 0.95 1992 0.9 1991 1 1990 1 エネルギー消費量/世帯数 Energy consumption / number of households 2003 1.1 2002 Energy consumption / floor area エネルギー消費量/床面積 (Vertical axis represents indices with FY1990 set to 1.) Source: Prepared by the Agency of Natural Resources and Energy based on the Energy Supply and Demand Records of FY2008. 21 Energy Conservation Standards for Building Structures Ø Energy conservation standards for building structures are comprised of the standards relating to the thermal insulation performance of such items as the external wall design (specifications of glass, thickness of the thermal insulation materials, etc.), "Perimeter Annual Load" (PAL) and Standards of Judgement for Energy Conservation of Buildings, "Coefficient of Energy Consumption" (CEC). Ø The "CEC" stipulates standards for each building facility. [CEC/AC (air conditioning facilities), CEC/V (mechanical ventilation facilities), CEC/L (lighting facilities), CEC/HW (hot water supply equipment) and CEC/E (elevators)] Ø Energy conservation standards of "PAL" and "CEC" are stipuated for specific building uses. Ø [Clerical offices, hotels, hospitals, sales outlets, dining and drinking establishments, schools, assembly halls and manufacturing plants.] Ø The Energy Conservation Standards were established in 1980 (Year of Showa 55) and sequentially enhanced in 1993 (Year of Heisei 5) and 1999 (Year of Heisei 11). Comparison of energy consumption by building structures covered by respective Energy Conservation Standards Image of energy conservation strategies for building structures ◇ Air conditioning ・Air flow controls, etc. 1 1 0.925 0.9 0.8 ◇ Lighting ・ fReduction in lighting energy using brightness of daylight. ・ Adoption of highly efficient lighting. 0.6 25%点灯 50%点灯 70%点灯 750lx 0.5 Prior to 1980 standards 1980 standards ◇ Control of solar radiation amount ◇ Thermal insulation of external walls, etc. Louvers (sun shades) 0.75 0.7 昼光 750lx 750lx 750lx 0.85 ◇ Elevators ・ Adoption of energy conserving type equipment ◇ Hot water dispensers ・ Adoption of energy conserving type equipment (heat pumps, etc.). ・ Thermal insulation of piping. 1993 standards 1999 standards * Amount of energy consumption (energy consumption index) necessary to achieve the same levels of indoor environments, when the energy consumption for building structures, prior to the 1980 standards (conventional types), is set to 1. 22 Energy Conservation Standards for Residential Buildings Ø Japan was sectioned into six regions and the standards pertaining to the thermal insulation, air tightness and sunlight shielding were stipulated for each region. Ø Established in 1980 (Year of Showa 55). Enhanced in 1992 (Year of Heisei 4) and 1999 (Year of Heisei 11). Ø Items pertaining to common building facilities in 2006. Image of thermal insulation for residential buildings of timber construction Ceiling thermal insulation 180mm Provisional calculation for annual energy consumption* (GJ/year-unit) Continuous ventilation system 60 56 50 External wall thermal insulation 100mm Heating and cooling by air conditioners Sun shades for windows facing east and west Continuous damp-proofing air-tight layers Floor thermal insulation 100mm Specification standards 32 30 double glazed glass windows (thermal insulating sash also, if possible) 22 20 10 Ⅳ Regional specifications 0 Non-thermally insulated 1980 standards Comparison of thermal insulation specifications by standards 1992 standards 1999 standards Pre-1980 standards 1980 standards 1992 standards 1999 standards (current standards) − Up to 5.2 W/(㎡K) Up to 4.2 W / (㎡K) Up to 2.7 W / (㎡K) Thermal insulation materials (external walls) None Glass wool 30㎜ Glass wool 55㎜ Glass wool 100㎜ Thermal insulation materials (ceilings) None Glass wool 40㎜ Glass wool 85㎜ Glass wool 180㎜ Aluminum sash + single pane Aluminum sash + single pane Aluminum sash + single pane Aluminum double sash or aluminum single sash + multi-layered glass Approx. 133,000 yen / year Approx. 92,000 yen / year Approx. 75,000 yen / year Approx. 5,000 yen / year Approx. 56GJ Approx. 39GJ Approx. 32GJ Approx. 22GJ Item Performance standards 39 40 Louvers on southside window eaves Heat loss coefficient Openings (windows) Annual heating and cooling costs* Annual heating and cooling energy consumption* * Provisional calculation based on certain assumptions by the Ministry of Land, Infrastructure and Transportation. 23 Top Runner Standards (Standards for Judgment by Construction Clients of Residential Housing Businesses) Ø Top Runner Standards (standards for judgment by construction clients of residential housing businesses). Ø Targets for improving energy conservation performance of ready built residential housing supplied by building owners (construction clients of residential housing businesses) engaged in the business of building residential housing in order to induce further improvements to energy conservation performances through such means as securing thermal insulation or implementing highly efficient building facilities. Ø In cases where substantial improvements in the energy conservation performance are considered necessary, such as a status of insufficient attainment of targets by the targeted fiscal year (five years (FY2013) set as the target year), the Minister of Land, Infrastructure and Tranposrtation issues a recommendation to the applicable construction client of the residential housing business to improve their performance by showing the targets and if such a recommendation is not adhered to, then public disclosures are made or orders (with penal provisions) are issued. Energy Conservation Standards (judgment standards for construction owners and owners of specified building structures pertaining to the rationalization of the use of energy for residential housing (announced in 1999)). Standard heating and coolig facilities Evaluation of thermal insulation performance for externall walls, windows, etc. Standard ventilatin g facilities Standard lighting facilities Standard hot water supply equipme nt No evaluation for energy conservation performance of facilities Top Runner Standards (standards for judgments by construction clients of residential housing businesses (announced in 2009)). Heating and cooling facilities Ventilatin g facilities Lighting facilities Hot water supply facility Activities for a total reduction of 10% for energy consumption in comparison with installing standard facilities. Solar power generatin g facilities The thermal insulation performance of external walls and windows were evaluated in a comprehensive manner, based on energy consumption (facilities with a high energy conservation performance were evaluated positively, whereas facilities with a low energy conservation performance were evaluated negatively.) 24 Transition of Compliance Rates of Energy Conservation Standards for Residential Housing and Building Structures ØThe compliance rate for the Energy Conservation Standards of new buildings is about 90%, which is quite high, but the compliance rate of newly built residential housing is only about 40%. (The reason for the rise in the compliance rate for residential housing from 2009 to 2010 was due to the impact of the Residential Eco Point program.) Transition of compliance rate* with Energy Conservation Judgment Standards for newly constructed building structures (1999 standards) (Unit: %) 100 85 90 80 70 87 85 83 85 88 74 (1999 standards) (Unit: %) 100 90 80 70 70 60 60 50 50 50 40 Transition of compliance rate* with Energy Conservation Judgment Standards for newly constructed residential housing 34 34 35 39 40 30 30 20 20 10 10 0 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Submission of notice for energy conservation measures made obligatory from April 2003. Coverage of energy conservation measures subject to submission of notices expanded from April 2010. * Proportion of floor areas in building structures, which complied with the Energy Conservation Standards (1999 standards), for building structures (at least 2,000㎡) constructed and verified in the applicable year . 26 3 7 9 12 15 15 15 16 18 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Submission of notice for energy conservation measures made obligatory from April 2006. Coverage of energy conservation measures subject to submission of notices expanded from April 2010. * Estimated values, based on a survey for the distribution of residential housing units according to the levels of thermal insulation, were used as the figures up to FY2009 and estimated values (tentative values), based on the number of units for which residential housing Eco Points were issued (single dwelling residential housing) and the number of notifications submitted (for multiple dwelling residential buildings, etc.) under the Energy Conservation Law, were used as the figures for FY2010. 25 ZEB (Net Zero Energy Building) Ø The increase in the commercial sector (office buildings, retail stores, hospitals and schools, etc.) , which comprises the majority of the consumer sector, has been more significant than the household sector and it is the sector that most needs the enhancement of energy conservation strategies. Ø Activities for ZEB (Net Zero Energy Building), which carry forward fundamental energy conservation in this field, are necessary. [Definition of ZEB] Building structures that have an annual primary energy consumption of net zero or almost zero through a reduction in the consumption of primary energy in building structures with improvements to the energy conservation performance of building structures and facilities, as well as by utilizing renewable energy on site. Light duct system (Natural lighting) Solar power generating system Variable flow rate and varible air flow rate control systems Automatic ventilation control system that responds to concentrations of carbon dioxide LED lighting Motion sensor control Initial light intensity compensation Day light linkage control Blind control Natural ventilation and night purge (external air intake during night time) Hybrid air conditioning control technology Highly efficient air conditioner heat source equipment Integrated control system Utilization of unused energy in urban areas (such as river heat and ground heat) 26 Development of Technologies Intended for ZEB and ZEH in Progress of Respective Nations and Regions Samsung constructed the first zero energy residential building (Green Tomorrow) in Korea in 2009 and opened its showroom to the public. Green Tomorrow (total floor area: 420㎡) [Case examples of constituent technologies for ZEB] Double skin Natural flow of air is used during the intermediate period and features high thermal insulation characteristics, even during summer or winter, without the use of air conditioning energy, saving energy and reducing carbon dioxide emissions. Direction of most wind Induction based on direction of most wind Solar radiation External blinds Salt damage New Toshima City Government Building (planned) Over drafting Ascending current Energy conservation and creation is realized through solar power generation, as well as through the installation of planting panels and Eco wood louvers on external walls. Intelligent lighting system using LEDs Source: Nihon Sekkei (design collaborator: Kengo Kuma) Double sash and double glazed windows 27 Circumstances Surrounding ZEB in Respective Countries Policy targets intended for ZEB UK An ambitious target for making "all newly constructed non-residential building structures zero carbon by the year 2019" was announced by the Finance minister in March 2008. All newly constructed residential housing and schools to become zero carbon Timeline for ZEH and ZEB 2016 Newly constructed public facilities to become zero carbon All newly constructed non-residential building structures to become zero carbon 2018 2019 USA Energy Independence and Security Act of 2007 (EISA) stipulates the "Net-Zero Energy Commercial Buildings Initiative", which is intended for the following purposes: • All newly constructed commercial buildings in the United States by the year 2030 • 50% of all existing commercial buildings in the United States by the year 2040 • All commercial buildings in the United States by the year 2050 are to be made ZEB though the development and popularization of technologies, practices and policies. ● Policy target of Japan (Cabinet Decision in June 2010, the "Basic Energy Plan") ○ Realize ZEB for newly constructed public buildings, etc., by the year 2020. ○ Realize ZEB for an average of newly constructed buildings by the year 2030. 28 Comparison of Energy Conservation Related Regulations for Residential Housing and Building Structures with Regulations Overseas ØSome industrialized nations already have legal obligations to comply with energy conservation standards. ØJapan, on the other hand, does not necessarily require compliance with standards but obligates the submission of notifications pertaining to building constructions that outline possible strategies for construction. Country / region Legal system Scope Legally binding authority Japan ○ Law Concerning the Rational Use of Energy (Energy Conservation Law) ・ Residential and non-residential buildings ・ New constructions and extension or renovation work ・ Lower limit exists (at least 300㎡) ○ Obligation to submit notifications * Instructions, public disclosure, orders or penalties (for floor areas of 2,000㎡ or more) or recommendations (for floor areas of at least 300 ㎡ but under 2,000㎡) issued in cases where implementations are significantly insufficient. UK ○ Building Act ・ Residential and non-residential buildings ・ New constructions and extension or renovation work ・ Lower limit exists for extensions and renovations (in excess of 1,000㎡) ○ Obligation to comply with standards Germany ○ Energy Conservation ・ Residential and non-residential buildings ・ New constructions and extension or renovation work ・ No lower limits ○ Obligation to comply with standards USA (State of California) ○ California state law ・ Residential and non-residential buildings ・ New constructions and extensions or renovation work ・ No lower limits ○ Obligation to comply with standards (State level) Korea ○ Energy Conservation ・ Residential and non-residential buildings ・ New constructions, extension work or changes of use ・ Lower limits exist (commercial buildings with a total floor area of at least 3,000m2 and accommodation facilities with a total floor area of at least 2,000m2) * All residential housing and non-residential buildings with a total floor area of at least 500m2 from 2012. ○ Obligation to comply with standards 29 Energy Conservation Effects by Thermal Insulation Materials and Windows in Households and Buildings Ø In order to promote energy conservation in households and commercial areas, it is essential for the energy conservation performance of building materials (such as thermal insulation materials and windows) to be improved, along with improvements to the energy conservation performance of facilities and equipment. Ø Complying with the Energy Conservation Standards for residential housing and building structures can be effective for new constructions, but directly improving the energy conservation performance of building materials and the like can promote measures to deal with existing stock in an effective manner. Residential housing Deciding factors for energy conservation performance of residential housing and building structures Energy conservation performance of building materials (thermal insulation materials and windows, etc.) Energy conservation performance of facilities and equipment (heating and cooling, ventilation, lighting and hot water supply, etc.) Motive 動力他 energy, 36% etc. Stipulated according to the Energy Conservation Standards for residential housing and building structures (primarily for new constructions) → Measures to deal with existing stock can be made possible through stipulations of the Top Runner Program. Stipulated by the Top Runner Standards → A certain level of results already attained. Heating 暖房用 25% 25% Heating and cooling 27% Hot water supply 29% Cooling 冷房用 2% 2% 36% Hot water 給湯用 supply 29% 29% 厨房用 Kitchens 8% 8% Building structures 暖房用 Heating 16% 16% Motive 動力他 energy, 49% etc. 49% Source: EDMC estimates 冷房用 Cooling 11% 11% 給湯用 Hot water supply 15% 15% 厨房用 Kitchens 9%9% Contributing to reducing the energy consumption for heating, cooling and hot water supply, which comprise approximately 60% in residential housing and 40% in building structures, by improving the energy conservation performance of building materials. Heating and cooling 27% Hot water supply 15% 30 Necessity of Top Runner Standards Pertaining to Construction Materials Ø Under the current Energy Conservation Law, new constructions and extension constructions and renovations are not subject to submission of notification for residential housing with total floor area of under 300㎡ and are therefore presumed to have low standard compliance rate. Ø In order to further promote energy conservation in the consumer sector, it is necessary to implement provisions that cover such residential housing (65% of new constructions and existing stock). Ø Improvement of energy conservation with residential housing can be expected by popularizing high performance construction materials by implementing a contruction material TR system. <Existing stock> <Newly constructed residential housing> Approx. 50 million units. Approx. 800,000 units annually. About 65% of newly constructed residential housing (based on floor area) are not subject to submission of notification. Not subject to submission of notification Subject to submission of notification From Annual Report of FY2008 Building Construction. * Although major repair work such as work done on roofs or walls of large size residential housing is subject to submission of notification, not many construction work that are by themselves subject to submission of notification are speculated to exist. From FY2008 Housing and Land Survey. 31 Regulations in Machinery and Equipment Sector (Top Runner Program) Ø Energy conservation standards according to the Top Runner Program have been implemented for automobiles and household electrical appliances according to the Energy Conservation Law as amended in 1998. As of 2011, 23 equipment are subject to these standards. <Equipment subject to Top Runner Program according to Energy Conservation law> (1)Promotion for further improvment on energy consumption efficiency of machinery and equipment is conducted, by stipulating performance of currently commercialized products with most superior energy consumption efficiencies (Top Runner products) with considerations for future prospects of their perofrmances and technical developments, as fuel economy standards for automobiles and judgment standards (hereinafter referred to as Energy Conservation Standards) of manufacturers for improving performance of specific equipment such as electrical equipment (household electrical appliances and OA equipment). (2) Furthermore, specific equipment that are subject to stipulations of the Top Runner Program are to be machinery and equipment that consume energy and satisfy three of following requirements (Article 78 of Energy Conservation law): ① Machinery and equipment that are used in large quantities in Japan. ② Machinery and equipment that consume significant amount of energy when used. ③ Machinery and equipment for which improvement of energy consumption efficiency is particularly important (those that have room for improving efficiency). Fuel economy (km/L) 19km/L 18km/L 16 Specified equipment (23 equipment) Example of Top Runner Program 17km/L 15km/L 15km/L 14km/L 13km/L 12km/L When standards are set Judgment made with weighted average for each product category. Target fiscal year Energy Conservation Standards according to Top Runner Program 1. Passenger cars 9. Magnetic disk devices 17. Vending machines 2. Trucks 10. Electrical refrigerators 18. Power tansformers 3. Air conditioners 11. Electrical freezers 19. Jar rice cookers 4. Television receivers 12. Heaters 20. Microwave ovens 5. Video tape recorders 13. Gas cooking appliances 21. DVD recorders 6. Lighting apparatuses 14. Gas water heating appliances 7. Copying machines 8. Computers 15. Oil water heaters 22. Routing equipment 23. Switching equipment 16. Electric toilet seats 32 Requirements of Top Runner Program and Surety Provisions Ø Business operators who failed to meet the standards by the targeted fiscal year are required to submit reports indicating reasons why they failed to achieve the targtets and their intended future actions towards improvement of efficiency under the Energy Conservation Law and if improvement of efficiency is still insufficient after implementing applicable actions, then the Minister of Economy, Trade and Industry issues recommendations and if business operators fail to adhere with such recommendation, then provisions, such as public disclosure of such business operators and issuance of orders are conducted. Furthermore, a failure to abide by an order results in the execution of penalty not exceeding one million yen. Ø The Energy Conservation Law obligates all manufacturers to improve energy consumption efficiencies in order to achieve standards by the targeted fiscal year, but since funding and technical capabilities are necessary to attain such standards, requirements based on annual production or importation volume (only shipments intended for Japan)are stipulated and those manufacturers who do not satisfy such requirements are not subjected to provisions such as recommendations. Requirements (production or importation volumes) of business operators subject to recommendations and orders ○ Passenger cars 2,000 units (350 units for those vehicles with capacity of 11 people) ○ Trucks 2,000 units ○ Air conditioners 500 units ○ Lighting apparatuses 30,000 units ○ Television receivers 10,000 units ○ Copying machines 500 units ○ Computers 200 units ○ Magnetic disk devices 5,000 units ○ Video tape recorders 5,000 units ○ Electric refrigerators 2,000 units ○ Electric freezers 300 units ○ Heaters ○ Gas cooking appliances ○ Gas water heaters ○ Oil water heaters ○ Electric toilet seats ○ Vending machines ○ Power transformers ○ Jar rice cookers ○ Microwave ovens ○ DVD recorders ○ Routing equipment ○ Switching equipment 300 units 5,000 units 3,000 units 600 units 2,000 units 300 units 100 units 6,000 units 3,000 units 4,000 units 2,500 units 1,500 units 33 Formulation, Operation and Flow of Top Runner Standards <Formulation, operation and flow of Top Runner Standards> Decision made to start formulating standards of new equipment that satisfy TR applicable requirements (implementation of advance investigations). Start formulating standards (subcommittee established by Standards Committee) Considered by committee (interim summaries prepared by respective subcommittees) ・ Review of standards as targeted fiscal year arrives Report collection conducted year after targeted fiscal year (verification on attainment of standards and issuance of recommendations as required, etc.) Enforcement of judgment standards Summary of standards (final summary prepared by Standards Subcommittee) Maintaining laws and regulations (establishment and amendment of cabinet ordinances, ministerial ordinances and notifications) Issuance of public comments and TBT notifications 34 Improvement of Efficiencies by Top Runner Program Ø Manufacturers are required to calculate energy consumption efficiencies and weighted average values of shipment volume of products shipped during targeted fiscal year, which are set for each individual equipment and must exceed standard values set for each individual product category. Image diagram Classification ③ ↑Good Energy consumption efficiency ↓Bad Classification ② Targeted standard value Classification ① Targeted standard value Even if products that underrun the standards are shipped, it is acceptable as long as the standards are surpassed based on calculation of energy consumption efficiency that involves weighted average for the shipment volume of products within the same category. Targeted standard value Energy consumption efficiency of individual products 35 List of Efficiency Improvement Status Due To Top Runner Program Equipment name Improvement of energy consumption efficiency (actual performance) Air conditioners (room air conditioners) * 67.8% (FY1997 → FY2004 for freezers) COP (3.01 → 5.05) Electric refrigerators 55.2% (FY1998 → FY2004) Annual electric power consumption (647.3kW/ year → 290.3kW/year) Electric freezers 29.6% (FY1998 → FY2004) Annual electric power consumption (524.8kW/ year → 369.7kW/year) Gasoline powered passenger cars * 22.8% (FY1995 → FY2005) Fuel consumption (12.3km/l → 15.1km/l) Diesel powered trucks * 21.7% (FY1995 → FY2005) Fuel consumption (13.8km/l → 16.8km/l) Automatic vending machines 37.3% (FY2000 → FY2005) Annual electric power consumption (2,617kW/ year → 1,642kW/year) Fluorescent lighting apparatus * 35.7% (FY1997 → FY2005) Lumen/Watt (63.1lm/W → 85.6lm/W) Computers 99.1% (FY1997 → FY2005) Watt/mega operation (0.17 → 0.0015) Magnetic disk devices 98.2% (FY1997 → FY2005) Watt/gigabyte (1.4 → 0.0255) Copying machines 72.5% (FY1997 → FY2006) Electric power consumption (155Wh → 42.7Wh) Electric toilet seats 14.6% (FY2000 → FY2006) Annual electric power consumption (281kW/ year → 240kW/year) Gas water heaters (gas instantaneous water heaters and gas bath heaters) 5.5% (FY2000 → FY2006) Thermal efficiency (77.7% → 82.0%) Gas cooking appliances (burner section) 15.7% (FY2000 → FY2006) Thermal efficiency (48.3% → 55.9%) Gas heaters 1.9% (FY2000 → FY2006) Thermal efficiency (80.9% → 82.4%) Kerosene heaters 5.4% (FY2000 → FY2006) Thermal efficiency (78.5% → 82.7%) Television receivers (LCD and plasma television sets) 29.6% (FY2004 → FY2008) Annual electric power consumption (179.7kW/ year → 126.5kW/year) DVD recorder (landbased digital broadcasting non-supported) 40.9% (FY2004 → FY2008) Annual electric power consumption (66.0kW/ year → 39.0kW/year) Microwave ovens 10.5% (FY2004 → FY2008) Annual electric power consumption (77.2kW/ year → 69.1kW/year) Jar rice cookers 16.7% (FY2003 → FY2008) Annual electric power consumption (119.2kW/ year → 99.3kW/year) Details Energy conservation standard for energy consumption efficiency per unit (example: km/l) is stipulated for those quipment that are marked with an asterisk (*), while energy consumption (example: kWh/year) is stipulated for those equipment that are not marked with an asterisk (*). The "improvement of energy consumption efficiency" described in the table above represent improvement rates according to respective standards (example: When 10km/l becomes 15km/l, then it is considered to be an improvement by 50% (it is not considered 33% improvement because the fuel consumption for driving 100km has improved from 10 liters to 6.7 liters) and if 10kWh/year becomes 5kWh/year then it is considered to be an improvement by 50%). 37 Summary of Labelling Programs Ø "Energy Conservation Label": Stipulated by JIS standards for 18 equpiment, primarily household equiment with a large amount of general consumer usage in particular, among equipment that are subject to Top Runner Standards. Ø "Unified Energy Conservation Label": A unified energy conservation label that coers air conditioners (for household use), television receivers, electric refrigerators, electric toilet seats and fluorescent lighting apparatuses (for household use) to facilitate recognition and comparison of energy conserving performance by consumers when products are purchased and displayed by retailers in five stage ranking from five stars down to one star (multistage evaluation). Examples of energy conservation labels (primarily displayed by manufacturers) Examples of unified energy conservation label and simplified version label (primarily displayed by retailers) (simplified version label) (Unified energy conservation label) 38 Provision of Information Stipulated by Energy Conservation Law Ø Article 86 (provision of information to general consumers) of the Energy Conservation Law stipulates that energy supplyers must strive to provide information that contribute to energy conservation conducted by general consumers. Ø As specific energy conservation information, five items have been stipulated by notifications of the Ministry of Economy, trade and Industry. Information that contribute to rationalization of energy use conducted by general consumers. Remarks (1) Provision of information pertaining to values representing energy consumption from the previous month to general consumers. This is currently already provided on meter reading slips. (2) Provision of information pertaining to consumption amount and utility charges for energy on a monthly basis for the past year to general consumers. Some of electric power companies are providing informatin provision service on their web sites. (3) Provision of information pertaining to rough estimates for reductions in energy consumption and utility charge that have been accomplished through devised usage methods for machinery and equipment that consume energy. Energy conservation advice is currently already provided on meter reading slips, etc. Provision of more quantitative and detailed advice is considered possible along with information on electric power consumption for individual household electrical appliances by the home energy management system (HEMS). (4) Provision of information pertaining to performance of applicable machinery and equipment with comparison against energy consumption, as well as subsidy programs provided to promote popularization of such machinery and equipment Information is currently already provided on web pages of respective electric power companies. Provision of more information is considered possible through energy management service made possible by implementing HEMS. (5) Other than those already cited in preceding sections, provision of information pertaining to rough estimate of energy consumption by contracts or residential housing modes, as well as those that contribute to rationalization of energy use by general consumers, through creative actions implemented by energy suppliers. Qualitative energy conservation advice is currently already provided on meter reading slips, etc. Provision of qualitative and more detailed information is considered possible through implementation of Smart Meters. Source: Prepared from Ministry of Economy, Trade and Industry Notification No. 235, "Guidelines to be implemented by business operators engaged in supplying of energy to general consumers". 39 1. Conditions surrounding energy 2. Energy conservation policies of Japan (1) Industrial sector (2) Consumer sector (including Top Runner Program) (3) Transportation Sector 3. Budgetary provisions Current Status and Countermeasures for Energy Consumption in Transportation Sector Ø Energy consumption for the transportation sector in 2008, in comparison with 1990, increased by 8%. It has been generally transitioning into a declining trend (Table 1). Ø The energy unit consumption for freight consigners, to whom the Energy Conservation Law applies, has been in an improving trend for the past three years. (Table 1) Transition of energy consumption in transport sector (Petroleum equivalent in million tons) 100.0 90.0 80.0 37.7 37.4 70.0 60.0 50.0 40.0 30.0 56.0 57.1 20.0 10.0 0.0 2000 2001 (Table 2) Transition of unit consumption by business lines Unit consumption by business lines 30.0 25.0 35.7 35.1 35.1 34.6 34.5 33.5 32.0 20.0 30.4 15.0 10,000 tons-km] / 10.0 56.8 56.6 56.4 55.0 53.9 52.8 50.8 Unit consumption 5.0 [GJ 50.5 0.0 2002 2003 2004 旅客部門 Passenger transport sector 2005 2006 2007 2008 2009 貨物部門 Freight transport sector Source: Comprehensive Energy Statistics. Business type FY2007 Current measures FY2008 FY2009 Fy2010 Source: Calculated based on periodical reports submitted according to the Energy Conservation Law. ● Regulations: Automobile fuel consumption standards and a thorough implementation of energy managment by freight carriers and consigners ● Support: Implementation of highly efficient facilities and promotion for the popularization of the Eco Drive. 41 Regulations in Transport Sector [Coverge] Ø Freight carriers with a transportation capacity of a certain minimum scale, such as 200 trucks or 300 railway cars for railroads, etc. Ø Freight consigners with annual freight transport order of at least 30 million tons. Judgment standards for freight carriers Judgment standards for freight consigners ○ Numerical target: Reduction of energy unit consumption by an annual average of at least 1%. ○ Energy conservation measures • Implementation of low fuel consuming vehicles. ・ Promotion of Eco Drive. ・ Improvement of cargo loading efficiency. ・ Reducton of air freight transport, etc. Freight carriers with a transport capacity of a certain minimum size ○ Energy conservation measures ・Appointment of persons responsible for energy conservation ・ Modal shifting. ・ Activities for joint orders ・ Implementation of corporate internal training, etc. Freight consigners with freight transport orders of a certain minimum size Reports to the competent minister (once a year). Reports to the Minister of Land, Transport and Tourism (Minister of Economy, Trade and Industry, as well as (once a year). competent minister for the business establishment) ○ Business operators have an obligation to report: ① Transition of energy unit consumption and ② Status on activities of energy conservation measures. Measures, such as recommendations, public disclosures and orders, as well as fines are implemented when energy conservation activities of a business operator are significantly inadequate. 42 1. Conditions surrounding energy 2. Energy conservation policies of Japan (1) Industrial sector (2) Consumer sector (including Top Runner Program) (3) Transportation sector 3. Budgetary provisions Energy Countermeasures Section at Agency of Natural Resources and Energy Information Economy Division Commerce and Information Policy Bureau Environmental Economy Office Industrial Science and technology Policy and Environment Bureau 03-3501-9726 (Energy Conservation Section) Energy Management System (BEMS & HEMS) Implementation Promotion Project Subsidy Proposed amount for the third revised budget of FY2011 30 billion yen. Image of business operations Line of business: [Support for implementation of BEMS] Summary and purposes of project [BEMS (Building Energy Management System*) implementation support] ○ A subsidy is provided for the implementation of BEMS to smaller high voltage conumers, such as small to medium size businesses, in order to promote activities to inhibit electric power demand by linking up with the implementation of Smart Meters. ○ The following effects are realized by facilitating concentrated support for implementation through this program: ① Fundamental electric power saving is realized with small to medium size buildings, which are falling behind in their electric power conserving measures because they are operated by small to medium size businesses, even though there is a significant amount of electric power consumption per account. ② In addition, a system that makes it possible for information management service business operators, who use energy to trigger emeregency requests in cases where there are shortages in electric power demand, will be built. ③ Significant reductions in the price of BEMS and the expansion of voluntary implementations following completion of the project.. [Support for implementation of HEMS (Home Energy Management System*)] ○ A subsidy is provided for the implementation of HEMS, which raises the effects of implementation for Smart Meters in households, in rder to promote electric power savings and peak-cut electric power generation in the consumer sector, as aspects for electric power demand and supply measures. ○ Support is provided for products with potential expandability, such as connectivity with storage batteries, provided that the interface that makes it possible to connect products of various manufacturers is disclosed. ○Efficient and effective support is provided by managing the effects of cut backs during implementation, giving assistance and after implementation, via “energy use information management and operation service providers” (about ten companies; BEMS system companies, volume household electrical appliance retailers and ESCO business operators are expected to participate). Implementation of BEMS (commitment to conserve electric power by 15%) Smart Meter Small account consumers (mid range, small to medium size enterprises) Energy use information Provision of BEMS system Subsidy (half if 15% of electric power saving is achieved, etc.) [General corporations, etc.] Control of equipment Private organizations, etc. Subsidy (1/3, 1/2, fixed amount) Private organizations, etc., installers [Central Government] "Visualization" by HEMS terminal Measurement of demand with Smart Meter Conditions (eligible entities, eligible activities, subsidy rates, etc.) Subsidy (preparation of funds) Preparation of funds [Support for implementing HEMS] * EMS (Energy Management System) Products that offer solutions for energy use by consumers in a smart manner, by advantage is taken of sensors and information technologies. This is not merely about single units of individual equipment, but also includes system linkups with multiple equipment to manage and control energy in an efficient and smart manner. Central Government Energy use information management and operation service provider Electric power supplied to household from storage batteries Electric power supplied to household from solar panels Subsidy for Expenses Relating to Refurbishment of Building Structures for Conservation of Electric Power Proposed amount for the third revised budget of FY2011 15 billion yen 03-3501-9726 Image of business operations Line of business: ○ Image of facilities eligible for subsidy Summary and purposes of project ○ A subsidy is provided for expenses relating to the implementation of facilities in existing building structures that offer a certain level of electric power saving effects, in order to promote electric power savings in the consumer sector, as part of electric power demand and supply measures. ○ More specifically: ① Entities eligible for the subsidy must consider the effects of reducing their electric power consumption, with the application limited to air conditioning and hot water supply equipment, lighting facilities, thermal insulations, etc., (implementation in terms of single units is also permitted). ② A subsidy is provided even for the implementation of single unit facilities, as long as the results are for the "replacement of more than half of the applicable facility for the entire buidling structure" and "there is electric power savings of at least 10%". Conditions (eligible entities, eligible activities, subsidy rates, etc.) Private organizations, etc. Subsidy (preparation of funds) Example: Highly efficient air conditioner ○ Subsidy rate 1/3 (1/2 for small to medium businesses) Example: Multi-layered and highly functional glass Cross sectional diagram of building structure Lighting facilities Installers Subsidy (1/3、1/2) Thermal insulation, etc. Air conditioning ○ The refurbishment of existing building structures in terms of single unit facilities, which had in the past not been eligible under the subsidy program, are promoted to inhibit electric power demand in the consumer sector starting from the approaching summer. Central Government Energy Countermeasures Section at Agency of Natural Resources and Energy Example: Highly efficient lighting (including LEDs), Light intensity sensors Hot waer supply (highly efficient heat source) Example: Highly efficient heat pump Highly efficient boiler Cogeneration systems Subsidy for support of business operators for rational use of energy Estimated amount from requests for the budget of FY2012 30 billion yen (40.01billion yen) Image of business operations Line of business: Summary and purposes of project ○ Subsidies are provided for facility implementation costs (replacement costs only) for energy conservation activities, which are considered to be highly politically significant with consideration for the “potential for advanceness of technology”, “energy conservation effects” and “cost effectiveness” planned by business operators. New turbo chillers ○ Furthermore, an emphasis is placed on subsidizing the implementation of “advanced facilities and technologies”, etc. ○ Support is provided with an empahsis on energy intensive-type small to medium business enterprises for the purpose of further promoting investments on energy conservation. ○ Support is provided with an emphasis on projects with large electric power saving effects, as electric power demand and supply measures. Conditions (eligible entities, eligible activities, subsidy rates, etc.) Ministry of Economy, Trade and Industry Public offering & subsidy Private organizations, etc. Subsidy Business operator Application ○ Entities eligible for receiving subsidy Business operators (must be a corporate entities) from all business lines, installing or owners of the facilities. ○ Subsidy rate ① Individual projects: Up to 1/3. ② Associated projects (*) Up to 1/2. (*) Associated implementation of entities with different capital relations, such as businesses located within an industrial complex, etc. Next-generation coke oven Energy Countermeasures Section at Agency of Natural Resources and Energy 03-3501-9726 Subsidy for Expenses of Implementation Promotion Project for Specific Facilities with Rational Use of Energy Estimated amount from requests for the budget of FY2012 3 billion yen (new) Energy Countermeasures Section at Agency of Natural Resources and Energy 03-3501-9726 Image of business operations Line of business: Summary and purposes of project ○ Subsidy for Expenses of Implementation Promotion Project for Specific Facilities with Rational Use of Energy (1) Eligible projects A subsidy is provided towards the interest payments for loans taken out from private financial institutions by business operators who implement energy conserving facilities or install Top Runner equipment through private organizations to ensure that their interest payments remain low, since increased investments for energy conserving facilities are anticipated, due to heightened needs for energy conservation and electric power savings in the industrial sector, arising from the Great East Japan Earthquake. (2) Entities eligible for receiving a subsidy and subsidy rate Private financial institutions, fixed amount (interest subsidy 1.0%) Conditions (eligible entities, eligible activities, subsidy rates, etc.) Highly efficient turbo chillers Central Government Subsidy (fixed amount (10/10)) Private organizations, etc. Business operator Fixed amount (interest subsidy 1.0%) Loan Repayment Private sector business operator, etc. Top Runner equipment Project for Promotion of Net Zero Energy Conversion of Residential Housing and Building Structures Estimated amount from requests for the budget of FY2012 14 billion yen (new) Summary and purposes of project ○ In order to realize ZEB (*) with newly constructed public building structures in 2020, subsidies amounting to a maximum of one-third of the project expenditure are provided to projects anticipated to cause certain ripple effects by transforming single buildings into ZEBs and also by multifaceted utilization of energy. ○ Furthermore, in order to promote the popularization of ZEH (*), as an energy conservation strategy for the household sector, subsidies amounting to half of the project expenditure are provided to projects to modify existing residential housing into ZEH and subsidies that amount to one-third of the project expenditure are provided to projects to newly construct ZEH residential housing. * ZEB: Net Zero Energy Building * ZEH: Net Zero Energy House Light duct system External air conditioning and carbon dioxide control Variable flow rate and varible air flow rate control systems Solar power generating system Private organizations, etc. Desiccant system (a cooling system that utilizes dehumidification) Hybrid air conditioning control technology HI lighting and LED lighting Motion sensor control Initial light intensity lighting Daylight linkage control [ZEB validation project] Subsidy (fixed amount (10/10)) ZEB Automatic ventilation control system Conditions (eligible entities, eligible activities, subsidy rates, etc.) Installers ZEH Subsidy (max. 2/3) Integrated control system Energy conservation ventilation system [ZEH modification support project ] Central Government 03-3501-9726 Image of business operations Line of business: Central Government Energy Countermeasures Section at Agency of Natural Resources and Energy Private organizations, etc. Subsidy (fixed amount (10/10)) Installers Subsidy (max. 1/2) High efficiency lighting Highly thermally insulated Highly efficient hot water dispenser Highly efficient air conditioner High performance glass Energy Countermeasures Section at Agency of Natural Resources and Energy Subsidy for Programs to Promote Implementation of Energy Conservation Measures Estimated amount from requests for the budget of FY2012 600 million yen (880 million yen) 03-3501-9726 Image of business operations Line of business: Summary and purposes of project Project for providing guidance on implementation of energy conservation measures ○ Projects effected for providing business operators a diagnosis on the potential of implementing energy conserving technologies. Energy conservation at manufacturing plants and business establishments are promoted through this effort. Conditions (eligible entities, eligible activities, subsidy rates, etc.) l Setting objectives and targets l Preparation of management standards l Improvement plan program Implementation of improvements ○ Eligible entities Plan Business operators who conduct diagnostic business operations, which include consideration for the potential for implementing energy conserving technologies, at manufacturing plants and office buildings, etc. Energy Conservation Diagnosis * In consideration for changes in the conditions following the earthquake disaster, the scope of eligible business operators that conduct diagnosis is increased from FY2012, along with the acceptance of applications for diagnosis pertaining to electric power savings. (understanding current status) l Mangement of unit consumption l Understanding consumption by application l Understanding maintenance efficiency Review Central Government Private organizations, etc. Subsidy (fixed amount (10/10)) Manufacturing plant Business establishment Dispatch of personnel Verification of effects l Review of management standards l Review of plan program l Extraction and elimination of waste l Implementation of plan program l Public relations, educationandtraining l Progress management l Gaining understanding about improvement effects l Measuring and recording Energy Countermeasures Section at Agency of Natural Resources and Energy Stretegic Energy Conserving Technology Innovation Program (Formerly Project for development of innovative technologies for energy conservation) Estimated amount from requests for the budget of FY2012 12 03-3501-9726 billion yen (10.2 billion yen) Image of business operations Line of business: Image of project for "Stretegic Energy Conserving Technology Innovation Program" Summary and purposes of project ○ Publicly offered proposal-type research and development, for providing consistent support from the discovery of seeds to commercialization for new and innovative energy conserving technologies, will be carried out in a strategic manner. Reflection ZEB Human factors for comfort and energy conservation Next generation-type heat pump systems 1 year (2/3 subsidy) Within 1 year Research and development (2/3 subsidy) Within 2 years Commercialization Power electronics Incubation research Screening Establishment of consortium for individual technical domains Validation development (1/2 subsidy) Screening Discovery of seeds and commericalization strategies 【Support for research and development of energy conserving technologies] ○ Managementr of research and development ○ Accesptance screening and stage gate screening Acceptance screening ○ Consortiums comprised of relevant research and development organizations, as well as users for individual technical domains, are established to set issues for developments pertaining to specific technologies and formulate energy conserving technology strategies, in order to promote technology innovations, efficient technology developments and secure effectiveness of business operations. [Investigative research on energy conserving technologies] ○ Formulation of technological strategies ○ Setting of development issues NEDO Collaboration, etc. Screening ○ In order to review the current projects for innovative energy conserving technology developments will be reviewed and further research and development promoted through the collaboration of the industry, academia and government, which are focused on results, the attainment of targets will be thorooughly enforced through the implementation of the stage gate screenings and support for promising topics with the sights trained on commercialization will be promoted in a powerful manner. Energy Conserving Technology Initiative (tentative name) Within 2 years Seamlessly nurturing support from discovery of promising technologies to their commercialization Incubation research Research and development Validation development Summary Advance research and formulation of development and implementation s c e n a r io s in o r d e r to a s s e s s development investments for promising energy conserving technologies. Research and development for p r a c t ic a l i m p l e me n t a t io n a r e conducted. Target attainment is thoroughly implemented through appropriate management of research and development through advice provided by external experts, etc. Further technology developments and validations are conducted in order to overcome inhibiting factors for technologies that have undergone practical implementation, but for which drawing in of business opportunities is difficult. Eligible entities Enterprises, universities and research institutions Enterprises, universities and research institutions Enterprises, etc. Upper limit amount Approx. 20 million yen per case Approx. 300 million yen per case Approx. 1 billion yen per case Subsidy rate 2/3※ 2/3※ 1/2 Implementation period Within 1 year Within 2 years Within 2 years Conditions (eligible entities, eligible activities, subsidy rates, etc.) Central Government Enterprises Universities, etc. NEDO Subsidy fund Subsidy (2/3, 1/2) * For industry, academia and government collaborations only; 100% subsidy for public research institutions.
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