Toshio KOSUGE

Energy Conservation & Renewable Energy Department

Agency for Natural Resources and Energy(ANRE)

Ministry of Economy, Trade and Industry(METI)

February, 2012

Principally 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.

Japan has the lowest self sufficiency rate among the major industrialized nations.

2

Outlook of global energy

IndiaApprox.

1.9 times

China Approx.

1.7 times

Source: World Energy Outlook 2010.

International comparison of energy self sufficiency rates (FY2009)

(19%)(35%)

(44%)(70%)

(53%)

(85%)* 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.)

OverallApprox.

1.3 times

200812,271

203016,014

Current global conditions surrounding energy and energy supply structure of Japan Current global conditions surrounding energy and energy supply structure of Japan

(Petroleum equivalent in million tons)

Others

Africa

Middle East

Central and South America

India

China

Asia (excluding Japan, China, India and Korea)Russia

Eastern Europe and Central AsiaJapan

USA

OECD (excluding Japan and USA)

China

USA

UK　France

Germ

any

Japan

Italy

Source: Calculated from statistics published by IEA.

Energy Efficiency in Japan Primary energy supply per GDP unit of each country

(2007)

Japan = 1

(Source) “ Calculated according to IEA Energy Balances of OECD/Non-OECD Countries(2009edition) “　

1.3

2.1

5.1

5.76.0

7.5

2.8

Source: Nippon-Keidanren International Cooperation Center Excerpt from Outline of Follow-up Result, 2007 (dated November 14, 2007) (http://www.meti.go.jp/committee/materials/downloadfiles/g70216a04j.pdf)

80

100

120

150

Japan　 Germany　 US France　 China　

80

　90

100

110

120

Japan Asian industrial countries　

West Europe　

US and Canada　

　60

　80

100

120

140

　160

Japan Sweden　 Canada　 US

50

100

　150

200

Japan West Europe　

Korea Latin America　

China US Russia　

80

100

110

120

130

Japan Korea EU China US Russia

80

100

120

140

Japan Korea China US East Europe　

West Europe　

50

100

150

200

250

Japan Europe　 Asia　 North America　

Latin America

80

100

120

140

Japan World　

Comparison of energy indices necessary for making 1kWh electricity by thermal power generation (FY2004)

Comparison of energy indices necessary for making 1ton of iron (FY2003)

Comparison of energy indices necessary for making 1kl of petroleum product (FY2002)

Comparison of energy indices necessary for making 1ton of electrolytic caustic soda (FY2003)

Comparison of energy indices necessary for making 1ton of paper and paper board (FY2003)

Comparison of energy indices necessary for refining copper

Comparison of energy indices necessary for the rolling process of aluminum board

Comparison of energy indices necessary for making 1ton of cement intermediate product (clinker) (FY2003)

(Source: ECOFYS (Netherlands))

(Source: Solomon Associates)

(Source: ANRE, Statistics Annual Report (UK), Environmental Report (Canada), etc.)

(Source: Battelle Research Center)

(Source: Japan Iron Steel Federation)

(Source: Chemical Economic Handbook, etc.)

(Source: Japan Mining Association)

(Source: International Aluminum Association, etc.)

100

111114

137145

100101 102

113

100

123134

144

100

130 131145 152

177 178

100105

110

120 120125

100 100104

110115 119

100

133143 154

202

100

127

Energy Consumption Efficiency of Each SectorEnergy Consumption Efficiency of Each Sector

Japan’s Energy Efficiency Policy

1. Regulation　 Energy Efficiency Law : Enacted 1979

2. Promotion - Tax incentive - Subsidies (including for R&D) - Preferential interest rate, etc.

3. Voluntary Action

Industrial　sector

Commercial

Transportation　sector

Energy　 management　 obligation　 by　 Energy　Conservation　 Law　 (by　 an　 unit　 of　 a　company　)

residential　

Energy　 management　obligation　 by　 Energy　Conservation　Law(Carrier,　Consignor)Enhancement　 of　 energy　 efficiency　 of　 buildings　 and　

residences　by　Energy　Conservation　Law

Subsidies　 for　 promoting　 energy　efficient　 facilities　 (high-efficient　building　,　high-performance　industrial　furnace　　etc.)

Housing　Eco-points　System

Top　Runner　Program

Tax　incentive　for　energy　efficient　reform　of　residence,　

Promotion　of　high　fuel　economy　vehicles(clean　energy　vehicles)

Tax　incentive　/　Low-interest　loan

Regulation

Energy-saving　labeling

Energy　Conservation　Law

Budget　and　Tax

Voluntary　action

Commercial/residential　sector

Overview　of　Japan’s　energy　efficiency　policy

Promotion

Voluntary

6

Subsidies　for　promoting　energy　efficiency　technological　development

Japan’s Energy Efficiency Policy

<Regulations> in each factories/offices - Energy Management System - Energy Managers saving-energy experts assigned mandatory - Reporting of Energy Consumption to the Gov.

* Chain-Stores included → expansion of coverage

① 　 Factories/Offices *

Encouraging Energy Management System

Energy managers must be assigned in every factory/in every factory/

office office with a certain quantity of energy consumption.

Encouraging their management by awarding best awarding best practicespractices

<Regulations> - Carriers, Consigners - Setting higher fuel efficiency　 　 standard

<Voluntary Action> - “Eco Drive”, “Idling Stop” method of driving

② 　 Transportation

<Regulations> - Constructors, Retailers

③ 　 Houses/Buildings

<Regulations> - “Top Runner” Program

④ 　 Automobiles/Electronics

Top Runner Program

Passenger vehicles

< Improvement of energy efficiency>< Products>

22.5 ％（ FY1995→FY2005 ）

Air-conditioners67.8 ％

（ FY1997→FY2004 ）

Electric refrigerators

55.2 ％（ FY1998→FY2004 ）

TV sets25.7 ％

（ FY1997→FY2003 ）

Present Energy situation after the Great Earthquake of Japan

Unit

4

Unit

3

Unit

1Unit

2

Unit

5

Unit

6

TEPCO Air Photo Service Inc (Myoko, Niigata Japan)

Before the Earthquake and Tsunamis After the Earthquake and Tsunamis

Nuclear Power Stations

TEPCO Fukushima Dai-ichi Nuclear Power Station

14

Tokyo Electric Power Company supplies electricity to an area with 42 million people and 40% of Japan’s GDP, but lost 40% of its generation capacity after the earthquake and tsunami.

Peak Demand of the Month in 2010

Peak Demand of the Month in 2011

Supply Capacity of TEPCO in 2011

33GW(Apr.15)

49GW(Aug.18)

42GW(Jun.28)

46GW(Jul.15)

Impact on Energy Supply/Demand in Japan

15

Large-volume-electricity customers (enterprises with contract for supply of 500kW or more)

Small-volume-electricity customers (enterprises with contract for supply below 500 kW)

Approaches across several fields(1) Voluntary formulation and implementation of plans for

suppressing the power consumption in the peak time zone(2) Application of Article 27 of the Electricity Business Act

(Restriction on Use of Electricity)

(1) Presentation of examples of electricity-saving measures(2) Encouragement of formulation and announcement of

voluntary electricity-saving action plans(3) Electricity-saving supporters’ visits

(1) Presentation of examples of electricity-saving measures (2) Request for electricity saving through media (3) Distribution of “Electricity-saving education” materials to

elementary and junior high schools

Households (1) Urgent electricity-saving request was made when there was a concern for rolling blackout implementation

(2) Information provision via TV, radio, mobile phones, and disaster-prevention public address system

(1)Development of electricity-saving campaign

(2) Thorough visualization of electricity supply–demand data (“Denki Yoho (Electricity Forecast)”)

(3) “Tight supply-demand balance alert” to notify the tight supply-demand balance

Supply–Demand Measures for last Summer Major measures taken regarding demand to secure the supply-demand balance

during this summer are as follows:

16

The measures taken regarding supply for ensuring a supply-demand balance this summer were mainly as follows: 　 *Service Areas of Tokyo Electric Power Co.(TEPCO) and Tohoku EPCO Power Co.

5.5 million kW

The decrease of electricity supply capacity of TEPCO and Tohoku EPCO due to the effects of earthquake and tsunami ・・▲ 26 million kW

－ ＝The decrease of supply capacity

▲26 million kW

The supplement supply capacity owing mainly to the above supply measures (1) - (5)

＋ 20.5 million kW

[Measures taken by the Government](1) Approach for relaxing some

regulations 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 e.g.; Periodic inspection of thermal power generation stations under the Electricity Business Act shall

be allowed to be postponed for one year at most.(2) Promoting introduction of private power generation plants and decentralized

generation plants　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　 　

　 　 　 　 　 　 　 　[Measures taken by the utilities](3) Restoration of the disaster-affected thermal power stations(4) Restart of thermal power stations that have been stopped for a long time(5) Installation of urgent power supply (gas turbines etc.)

*(4) &(5): on the basis of installed capacity

Supply Measures last Summer

17

1. This winter, we would like to request electricity saving to keep an appropriate supply–demand balance and avoid restriction of electricity use or implementation of rolling blackouts. On the basis of the summary of this summer, we would like to make a request for electricity saving within the scope where enterprises can minimize the impact on production and operation.

2. We are still examining the supply-demand balance for this winter, but it is estimated that the balance will be tight in the Kansai and Kyushu Electric Power Company areas with a high ratio of nuclear power generation.

3. “Electricity Supply-Demand Measures for this winter” is released on 1st of November ,2011.

January

(10,000 kW) Hokkaido

Tohoku Tokyo Chubu Kansai Hokuriku Chugoku

Shikoku Kyushu

-80(-1.1%)

-33(-0.4%)

-113(-0.7%)

Maximum electricity demand 579 1,420 5,150 2,342 2,665 528 1,074 520 1,533

7,069 8,629 15,698

(Reference 1) Forecast of Supply and Demand This Winter Estimated at the Energy and Environment Conference on July 29

(Reference 2) Nuclear Power Generation Ratio of the Electricity Utilities (based on FY 2009 power generation)

Hokkaido Tohoku Tokyo Chubu Kansai Hokuriku Chugoku Shikoku Kyushu

34.1% 21.6% 27.9% 13.3% 45.1% 35.0% 14.6% 40.6% 41.6%

Measures for Balancing Supply and Demand for this Winter

18

Thank you for your attention!