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International Workshopfor challenge to use ISO 50001 Energy management system

An initiative of:

Recent Topics:Energy Conservation Policies in Japan

Tadashi MogiDirector of Energy Efficiency and Conservation Division, METI

February 25, 2013Iino Hall, Tokyo, Japan

International Workshopfor challenge to use ISO 50001 Energy management system 11

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産業民生運輸実質GDPSource: Comprehensive Energy Statistics and Annual Report National Accounts Industrial Consumer Transporta‐tion

Final energyconsumption

1973→20101.4 times

1973→20101.9 times

1973→20102.5 times

1973→20100.9 times

（Petroleum equivalent in millions of tons）（JPY: trillions）Real GDP

1973→2010

2.3倍

Energy-consumption structure trends in Japan

TransportationC

onsumer

Industrial

Final energy consumption has increased about 1.4 times since 1973, whereas the Real GDP increased about 2.3 times in the same period.

Energy consumption of industrial sector has leveled off, but a significant increase of energy consumption has been observed in the consumer sector (commercial & residential sectors).

Transportation sector

Consumer sector

Industrial sector

22.9%

33.2%

43.9%


Energy Conservation Efforts of Japan after Oil Crises

Japan has improved its energy efficiency by about 40% since the 1970s through continued efforts forenergy conservation by the both public and private sectors.

“The Energy Conservation Law” was introduced in 1979, and “The Top Runner Program” started in1999 under this law.

0.600

0.700

0.800

0.900

1.000

1.100

1.200

1.300

1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009

(Source: Total Energy Statistics by ANRE/METI)

Primary energy use per real GDP of Japan（Oil converted Mt /1 trillion yen）

about 40%improvement

Energy Conservation Law Top Runner Program


Energy Conservation Law

The Energy Conservation Law covers usage in industrial, commercial, residential and transportation sectors.

The Law has1) a framework which requires business operators to annually measure and report their

energy usage to the government,2) energy efficiency standards for buildings and housing, and 3) the “The Top Runner” program, which is applied to household appliances and equipment

to automobiles.


“The Top Runner Program” is a mandatory program that encourages competition among companiesby setting efficiency targets 3 to 10 years in advance.Companies make efforts toward these goals; the program has contributed to improvement of energy

efficiency of consumer electronics and automobiles in Japan.

Improvement of energy efficiency

Fuel Efficiency(km/L)

At the time of standard setting

Target Fiscal Year

19km/L

18km/L

17km/L

15km/L15km/L

14km/L

13km/L

12km/L

16

Achievement is judged by weighted average per product-category

Example of Top Runner Program

Gasoline‐passenger vehicles

48.8％ (FY1995→FY2010)

Air‐conditioners(For those of 4.0kW or less in cooling capacity)

16.3％ (FY2005→FY2010)

Refrigerators

43.0％ (FY2005→FY2010)

TV sets (LCD and PDP TV)

29.6％ (FY2004→FY2008)etc.

Top Runner Program


Electricity- saving after the earthquakeAfter the 2011 earthquake, Japan was facing a shortage of electric power, so the government asked

the public to make energy-saving efforts by various tools.

Large customers(500kW or more)

Small customers (50kW ~ 500 kW)

Households(<50kW)

Voluntary plans for minimizing power consumption during peak times

Restrictions on use of electricity

Provided suggestions for electricity-saving measures Voluntary electricity-saving action plans Visits from electricity-saving supporters

Provided suggestions for electricity-saving measures Request for electricity saving through the media Policy of “Home Electricity-saving Declaration”

Electricity-saving campaign through various media

Electricity forecast Alert of tight supply-

demand balance

Approaches across several fields

Request of concrete measure for electricity saving

Last summer, almost all regions achieved their electricity-saving targets.(Ratio of the maximum demand compared to 2010 was from -2.5% to -10.2%.)


Normal energy conservation

Energy consumption

Last year This year Next year

Improve energy efficiency ofhouses and buildings

Promote demand side management

Policy development after the earthquake

Our challenge is how to maintain consumer efforts for energy conservation into the future.


Enhancement of Building Material Performance

In order to reduce energy use at home and in buildings, METI decided to set energy saving standards for building materials, such as insulation and windows by using “the top runner” program.

METI will submit a bill in the coming Diet session to partially amend the The Top Runner regulation in the Energy Conservation Law.


Appliances & Equipment covered by the Top Runner Program

“The Top Runner” standard is associated with about 70% of the energy consumption ofhouseholds.

70% is coveredby the the Top Runner program

Gas water heaters, 23.7%

Gas cooking appliances, 8.3%

Refrigerators,6.8%

Lighting equipment, 6.4%

Gas heating stoves, 5.4%TV sets, 4.3%

Oil water-heaters, 4.1%

Air conditioning units, 3.5%Electric toilet

seats, 1.8%

Computers, 1.2%

Rice cookers, 1.1%Microwave ovens,

0.9%

Network devices, 0.5%

DVD recorders, 0.4%

Gas heating stoves, 0.3%

Videotape recorders, 0.3% Oil fan heaters, 6.2%

Electric water heaters, 2.6%

Ecocute, 1.8%Dishwashers/dryers,

1.8%

Washing machines/dryers, 1%

Electric carpet, 1%

Electric cooking appliances (IH), 0.7%

Solar heating, 0.2%

Other electric appliances,

11.7%

Other heating equipment ,

4.2%


The Top Runner Program is being expanded to include equipment for commercial use, such as commercial refrigerators, heat-pump type hot-water boilers and LED lighting.

Commercial refrigerators Heat-pump type hot-water boilers

3-phase induction motors

Future development of the Top Runner Program

Printers

LED lighting

Multi-function Printers


METI provided 30 billion yen for introduction of BEMS （for small- and medium-size buildings）and HEMS. （April 2012 – March 2014）

Purposes of this subsidy・Spread use of BEMS to small- and medium-size building.・Develop energy management services, such as “Aggregators”・Develop Demand Response services.

Introduction of BEMS and HEMS

“BEMS” means Energy Management System for Buildings. “HEMS” means Energy Management System for Homes.

•Equipment such as smart meters, storage batteries•After-sales services, such as energy conservationconsulting

Smaller high‐voltage consumers

Powercompany

DemandResponse

service

BEMS“Aggregator”

Target of the subsidy

Provide BEMS with reasonable price and energy conservation consulting service

METI

Subsidies


Promotion of Demand Response (１)： Demonstration of Smart Communities in Japan

Yokohama City

Large metropolisIntroduction of an energy management

system for an existing large metropolis. As the sample number is high (4,000 households), demonstration using a variety of hypotheses is possible.

Toyota City Detached housingAutomatic control of home appliances in 67

homes. Secondary cells equipped in vehicles are used to supply energy to households. Approaches for drivers to alleviate congestion.

Keihanna Housing developmentDemand‐response demonstration based on a

point system is being implemented for general households (approximately 700 households) where PV or HEMS automatic control has not been introduced.

Kitakyushu City

Designated supply areaIn an area where power is supplied by Nippon

Steel Corporation, a pricing system where the power price fluctuates for 2 hours afterwards, in accordance with the state of supply and demand of energy on that day; applicable to 50 business establishments and 230 households, and is being implemented.

Starting in FY2011, large‐scale smart‐community demonstration projects began in 4 regions across Japan, which constitute representative examples of various patterns, based on participation by many residents, local governments and corporations.


Promotion of Demand Response (２)： Incentive Program for Demonstration in Kitakyushu City

Category Season Time period Level 1 Level 2 Level 3 Level 4 Level 5

Peak periodsMay to Oct. 1 P.M. to 5 P.M. 15.18 50.22 75 100 150

Nov. to Apr. 8 A.M. to 10 A.M.6 P.M. to 8 P.M. 15.09 50.02 75 100 150

Daytime

May to Oct. 10 A.M. to 1 P.M. 15.18 15.18 15.18 15.18 15.18

Nov. to Apr. 10 A.M. to 6 P.M. 15.09to 15.18

15.09to 15.18

15.09to 15.18

15.09to 15.18

15.09to 15.18

“Living” timeMay to Oct.

8 A.M. to 10 A.M.5 P.M. to 10 P.M. 10 10 10 10 10

Nov. to Apr. 8 P.M. to 10 P.M.

Nighttime Year‐round 10 P.M. to 8 A.M. 5.94 5.94 5.94 5.94 5.94

Pricing table (yen/kWh)

Depending on the extent of the power crunch for the day, this chart indicates where pricing fluctuated based on 5 patterns, implemented from “Level 1 (15 yen/kWh)” to “Level 5 (150 yen/kWh)”.


Promotion of Demand Response (3)：Results of Demand Response Demonstration

From the results of the demand response demonstration, peak cut effects of 20% and energy‐saving effects have been statistically confirmed. A review is ongoing regarding reflection of these results in the reform of power regulations.

Peak cut effects (1 to 5 P.M.)(Base price = 15 yen)

Effect (%) Statistical significance

CPP=50 yen —18.0% 5% level

CPP=75 yen —21.8% 1% level

Energy‐saving effects Effect (%) Statistical significance

November 2011 (Visualization) ‐15.5% 5% level

December 2011 (Visualization + fluctuating prices) ‐35.4% 1% level

January to August 2012 (Visualization + fluctuating prices + Recommendations)

‐22.9% 5% level

Peak cut effects from demonstration in Kitakyushu City

Energy‐saving effects from demonstration in Toyota City

Peak cut effects (1 to 5 P.M.) Effect (%) Statistical significance

November 2011 (Visualization) ‐15.9% 10% level

December 2011 (Visualization + fluctuating prices) ‐30.1% 5% level

January to August 2012 (Visualization + fluctuating prices +

Recommendations)‐20.9% 10% level

Peak cut effects from demonstration in Toyota City

Data from July 2012. Sample number = 180

Data from November 2011 to August 2012. Sample number = 11Data from November 2011 to August 2012. Sample number = 11

Source: Results of statistical demonstration by Professor Yoda of the Graduate School at the University of Kyoto, Associate Professor Tanaka of theNational Graduate Institute for Policy Studies, and researcher, Mr. Ito of the Stanford Institute for Economic Policy Research at Stanford University

Documents

Recent Topics: Energy Conservation Policies in Japans3-eu-west-1.amazonaws.com/ieasbc/rX2IU1vbTrGFbkkLVDn0_Rece… · for challenge to use ISO 50001 Energy management system 2 Energy