Dec presentation Japan FFM webinar final
Helping Utilities Make Smart Solar Decisions
SEPA Fact Finding Mission to g Japan J l 25 30, 2010 July 25 – 30 2010
SEPA’ss Fact Finding Missions SEPA Fact Finding Missions • First mission in 2008 – First mission in 2008 – Germany – Focus on rooftop PV, with some utility‐scale PV
• Second mission in 2009 – Second mission in 2009 Spain – Focus on utility‐scale PV and CSP
• Third mission in 2010 – Third mission in 2010 Japan – Focus on rooftop PV and grid integration
• Future F t – Italy: May 8 ‐ 14, 2011 – Focus on utility‐scale solar and Italy’s p yg g rapidly growing solar market – US/California: TBD Helping Utilities Make Smart Solar Decisions
2
Trip Objectives Trip Objectives • Learn Learn about the experience of Japanese utilities in about the experience of Japanese utilities in integrating large amounts of distributed photovoltaics (PV) into their grid • Explore the solar research initiatives being undertaken by the Japanese government and its research bodies • Investigate Japan’s solar policies, and the effect of those policies on the commercialization of solar h l h l f l technologies • Network with peer utilities N t k ith tiliti Helping Utilities Make Smart Solar Decisions
3
Participating Organizations Participating Organizations • • • • • • • • • • • • • • • •
Arizona Electric Power Cooperative Arizona Public Service Barbados Light & Power Cagayan Electric Power & Light Co City of Lake Worth City of Lake Worth EPRI Gainesville Regional Utilities Hawaii Electric Light Company g p y Hawaiian Electric Company, Inc. Kennebunk Light & Power District Pacific Gas & Electric Pasadena Water and Power Salt River Project San Diego Gas & Electric Springer Electric Cooperative Springer Electric Cooperative U.S. Department of Energy
ME
CA CA
AZ CA
AZ AZ
HI
NM
FL HI
FL
‐ Barbados ‐ Philippines
Helping Utilities Make Smart Solar Decisions
4
SEPA Fact Finding Mission J Japan 2010 2010 Agenda g July, 26
Workshop with NEDO (New Energy and Industrial Technology Development Organization, Japan’s equivalent of NREL), and METI (Ministry of Trade and Industry, Energy Conservation and Renewable Energy Department)
July, 26
Technical visit with Sekisui Heim (Housing Division of Sekisui Chemical Company) Factory in Hasuda city, Saitama ‐ Prefabricated modular houses and PV System for houses
July, 27
Tour of Pal Town Jyosai‐no‐Mori, Ota City PV Demonstration Project ‐ 2.13 MW roof mounted systems aggregated on 553 houses and deployed on a single feeder
July, 27
Technical visit with Akagi Research Center of CRIEPI (Central Research Institute of Electric Power Industry)
July, 28
Technical visit with AIST Tsukuba Research Center for Photovoltaics, Ibaraki
July, 28
Tour of AEON Lake Town Koshigaya, Saitama ‐ The largest PV system for Shopping Malls in Japan (total generation capacity: 487kW)
J l 29 July,
Workshop with Federation of Electric Power Companies (FEPC), and Japan Electrical Manufacturers’ W kh ith F d ti f El t i P C i (FEPC) d J El t i l M f t ’ Association (JEMA)
July, 29
Workshop with Japan Photovoltaic Energy Association (JPEA)
July, 30
Technical visit to Green Front Sakai of Sharp, Osaka Manufacturing complex of 10th‐generation generation glass substrates LCD panels and glass substrates LCD panels and ‐ Manufacturing complex of 10th thin‐film solar panels
Helping Utilities Make Smart Solar Decisions
5
SEPA Fact Finding Mission J Japan 2010 2010
Helping Utilities Make Smart Solar Decisions
6
Solar Resource Comparison Solar Resource Comparison
U.S.: 2009 PV Installations 433 MW ~1.64 GW Total ~5.3 W/capita
Japan: 2009 Japa 009 PV Installations s a a o s 479 9 MW ~2.63 GW Total ~20.7 W/capita
Source:
Helping Utilities Make Smart Solar Decisions
7
Utility Service Territories Utility Service Territories United States
Japan
Source: www.platts.com
Area = 8,080,464 km2 (contiguous 48 states) Population = 305 Million 239 Investor Owned utilities 2,009 publicly owned electric utilities 912 consumer‐owned 912 consumer owned rural co rural co‐ops ops 10 Federal electric utilities Source: http://www.eia.doe.gov/cneaf/electricity/page/prim2/toc2.html
Area = 380,728 km2 (slightly larger than the state of New Mexico (314,939 km2)
Population 128 Million 10 Electric Utilities Source: RTS Corporation and Japan Electric Power Information Center (JEPIC)
Helping Utilities Make Smart Solar Decisions
8
Energy Consumption Comparison Energy Consumption Comparison
Canada USA Japan Korea France Germany
kWh/person /year
Source: Japan Electric Power Information Center (JEPIC)
Helping Utilities Make Smart Solar Decisions
9
T&D Loss Rate Comparison T&D Loss Rate Comparison T&D Loss R ate 8.0
% USA JA P A N
7.0 60 6. 5.0 4.0
2000 2001 2002 2003 2004 2005 2006 Source: Japan Electric Power Information Center (JEPIC)
Helping Utilities Make Smart Solar Decisions
10
Outage Period Comparison Outage Period Comparison Annual OUTAGE Time (SAIDI ‐ System Average Interruption Duration Index)
Japan
UK
US
France
(2006)
(2006)
(2006)
(2006)
Source: the Federation of Electric Power Companies of Japan According to IEEE Standard 1366‐1998 the median value for North American utilities is approximately 1.50 hours.
Helping Utilities Make Smart Solar Decisions
11
Annual Installed Solar Capacity Annual Installed Solar Capacity 1995 ‐ 2009 600.00
500.00
M MW
400.00
300.00
Japan US
200.00
100.00
0.00 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: IEA‐PVPS Trends Preliminary data for 2009
Helping Utilities Make Smart Solar Decisions
12
Key Takeaways Key Takeaways • •
• •
•
The over‐arching role of policy in shaping the size and nature of the solar market in Japan. The motivations behind Japan’s renewed emphasis on aggressive solar development, including economic, environmental, energy security and resource diversity concerns. The unique emphasis on distributed PV, with a particular focus on residential rooftop deployments. The critical role for electric utilities in the successful implementation of federal policy and commercialization goals, which somewhat surprisingly includes relatively few utility‐scale installations. The research underway on the technical impacts of concentrations of residential PV on the distribution grid.
Helping Utilities Make Smart Solar Decisions
13
Coordinated Policies in Japan Coordinated Policies in Japan Of particular note was the Of particular note was the number of number of coordinated government policies enacted to drive PV adoption, including: p , g
• National solar goals Revised under the J‐Recovery Plan.
• Residential PV subsidy program id i l b id Re‐started in January 2009.
• Solar feed‐in tariff (FIT) ( ) Started under the law for advanced supply of energy in November 2009.
Helping Utilities Make Smart Solar Decisions
14
Coordinated Policies in Japan Coordinated Policies in Japan Japan’s National Solar Goals: 28 GW by 2020 and 53 GW by 2030
Source: METI, J‐Recovery Plan, April 2009, arranged by RTS Corporation
Helping Utilities Make Smart Solar Decisions
15
sb42
Coordinated Policies in Japan Coordinated Policies in Japan Motivations behind Solar Goals: Motivations behind Solar Goals: • Regaining world market leadership. Increasing energy independence • Increasing energy independence. • Addressing global environmental goals of reducing greenhouse gas emissions. greenhouse gas emissions. • Considerable emphasis on solar to fill a prominent role as a renewable energy resource, given limits gy ,g on other forms of renewables such as wind and hydropower due to Japan’s climate and geography. Helping Utilities Make Smart Solar Decisions
16
Slide 16 sb42
Photovoltaic does not have the V capped unless that was part of their original title. One of the leading services we offer is peer exchanges/networking opportunities. It would be good to mention that here. Sandra Burton, 8/9/2010
Solar feed‐in Solar feed in tariff (FIT) tariff (FIT) Utilities are required to buy the surplus solar energy
Generation
Consumption
Surplus
Target: Residential market segment (systems of less than 10 kW of total output) Price : 48 JPY/kWh (double as the current residential retail rate: 24 JPY/kWh) Price : 48 JPY/kWh (double as the current residential retail rate: 24 JPY/kWh) Term : 10 years (Installer can recover the initial cost) Helping Utilities Make Smart Solar Decisions Source: Japan Electric Power Information Center (JEPIC)
17
Solar feed‐in Solar feed in tariff (FIT) tariff (FIT) Net Export FIT: Purchase scheme for surplus PV energy Legislation Financial Resources
Net billing New scheme ‐ No ‐ Yes y y ‐ Voluntary scheme by utilities g ‐ Obligation to utilities ‐ Utilities
‐ All the electric consumers
Purchase price
‐ Same as the electricity rate ex. Residential : 24 JPY/kWh (0.26 USD /kWh)
‐ Twice the electricity rate with yearly degression ih l d i ‐ Residential: 48 JPY/kWh (0.53 USD/kWh) ‐ Non Residential：24 JPY/kWh Non Residential：24 JPY/kWh (0.26 USD/kWh)
Term
‐ Not defined
‐ 10 years
Enforcement
‐ 1994 to Oct. 31, 2009 1994 to Oct 31 2009
‐ From Nov. 1, 2009 From Nov 1 2009
Source: RTS Corporation, PV Market in Japan 2009/2010, Sept. 2009
Helping Utilities Make Smart Solar Decisions
18
FIT Options in Japan FIT Options in Japan Under discussion • Eligible energy – All the RE or REs in practical use? p
• Residential PV – Gross FIT or Net FIT?
• Purchase rate? • Purchase term – 15 or 20 years? 15 or 20 years?
Helping Utilities Make Smart Solar Decisions
19
sb38
Key Takeaways Key Takeaways •
According to government figures, nearly 90% of the grid‐connected PV is residential (this is expected to drop to about 70% by 2020). Due to the nation’s high retail residential electricity prices (24 JPY/kWh or 0.26 USD/kWh), and with the aggressive new subsidies in place, solar grid parity is expected to be reached in as little as seven years. d b h d l l
•
Utilities will play a major role in grid integrating customer PV systems, but in contrast to the situation in the U.S., utility‐owned solar generation capacity is not a focus of Japanese utilities. As of today, they are planning to build just 140 MW of utility‐scale solar by 2020 ( 2020 (out of the goal of a total of 28 GW of new solar capacity). f h l f l f 28 GW f l i )
Helping Utilities Make Smart Solar Decisions
20
Slide 20 sb38
Photovoltaic does not have the V capped unless that was part of their original title. One of the leading services we offer is peer exchanges/networking opportunities. It would be good to mention that here. Sandra Burton, 8/9/2010
New Efforts by Electric Utilities New Efforts by Electric Utilities Large scale projects by utilities 140 MW on 30 sites by 2020 g p j y y Federation of Electric Power Companies of Japan: announced large scale PV power plants: 140 MW in 30 places by 2020
1 MW in Date, 2011
‐ 1 MW in Toyama, 2011 1 MW in Toyama, 2011 ‐ 1 MW in Ishikawa, 2011 ‐ 2 MW in Miyagi 2012 ‐ 2 MW in Aomori 2012
‐ 18 MW in Sakai, 2011 with Sharp ‐ 10 MW in Sakai, 2011 10 MW in Sakai 2011
3 MW in, Hiroshima
3 MW in Omuta 2010
4 MW in Ehime, 2011
Source: RTS Corporation, PV Activities in Japan and Global PV Highlights
7 MW in Aichi, 2011
‐ 2 MW in Tokyo, 2010 with Mitsui & Co. ‐ 7 MW in Kawasaki, 2011 with Kawasaki City ‐ 13 MW in Kawasaki, 2011 with Kawasaki City ‐ 10 MW in Kofu 2011 10 MW i K f 2011 with Yamanashi Pref.
Helping Utilities Make Smart Solar Decisions 21
sb39
Key Takeaways Key Takeaways • 90% 90% of the solar technology installed in Japan is of the solar technology installed in Japan is manufactured in Japan, leading to a new and growing sector of the economy that Japan hopes will create thousands of well‐paying jobs. • However, by severely limiting the imports of less‐ expensive foreign technology, the relative cost of solar remains higher than it might otherwise.
Helping Utilities Make Smart Solar Decisions
22
Slide 22 sb39
Photovoltaic does not have the V capped unless that was part of their original title. One of the leading services we offer is peer exchanges/networking opportunities. It would be good to mention that here. Sandra Burton, 8/9/2010
sb48
Domestic shipment of PV cells and modules (2009) d l (2009) Other 0.3% Public facilities 2.8%
Consumeruse 0.2%
Small PV system 0.6%
Industrial and business facilities 7.3%
Domestic Shipment 483,960kW （2009）
Residential 88.7%
Source: Japan Photovoltaic Energy Association (JPEA) / Optoelectronic Industry and Technology Development Association (OITDA)
Helping Utilities Make Smart Solar Decisions
23
Slide 23 sb48
Photovoltaic does not have the V capped unless that was part of their original title. One of the leading services we offer is peer exchanges/networking opportunities. It would be good to mention that here. Sandra Burton, 8/9/2010
PV System Price (2009) PV System Price (2009) 5,000
Residential PV System PV system for public & industrial facilities
4,500 4,300
Average price of PV V systems (Yen/W)
4,000
3,500
3,000
3,500
3,400 2,800 2,400
2,500
2,000 1,920
1,500 1,300
1,500 1,510
1,190 1,040
1,010 850
1,000 1,090
1,062
939
500
840
1,074 844
758
710
770
690
770
675
731
661
802
683
696
640
715
534
613
547
0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Year
Source：IEA PVPS Task 1, National Surrey Report Japan 2009 1 JPY = 0.01101 USD, as of June 20th 2010 Helping Utilities Make Smart Solar Decisions 24
PV System Price and Government I Incentives i
Source: Japan Photovoltaic Energy Association (JPEA)
Helping Utilities Make Smart Solar Decisions
25
sb19
System Installed Capacity System Installed Capacity 600 2.6 10.7 92 483
Off-Grid domestic Grid-connected centralized 2,500
Off-grid non-domestic
Cum urative installe ed capacity (M W) -
Grid-connected decentralized Annual installed capacity 2,000
1,500
184
1,000 122 75
500
5
0
7
12
16
29
36 21
32 45 43
42 52 78
123 0.6 2.9 66
63 56 149
264
1.0 2.9 72
272 223 1.1 2.9 83 1.1 2.9 78
1.1 2.9 290 86
1.2 2.9 87 287
1.9 5.5 88
500
1.9 1 9 9.3 89
400
300 210
225 2,522 2,044
200
1,823 1,617
Annual installed d capacity (MW)
3,000
1,332 1,045
100
778 561
383
0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Year
Source: IEA PVPS Task 1, National Survey Report Japan 2009
Helping Utilities Make Smart Solar Decisions
26
Slide 26 sb19
Graphs, perhaps pie charts would look better. Sandra Burton, 8/9/2010
Research Initiatives Research Initiatives Japanese PV R&D Roadmap (PV2030 +)
Source: NEDO
Helping Utilities Make Smart Solar Decisions
27
Research Initiatives Research Initiatives Pal Town Jyosai‐no‐Mori, Ota City • 553 houses, Total: 2,130 kW • Various types of PV modules (Sharp, Kyocera, Mitsubishi, Sanyo) • Systems from 2.6 to 5 kW in size • All the homes were fully occupied, All the homes were fully occupied have PV data monitoring capability and are connected to a g , single, radial distribution feeder. • Some homes had 9.6 kWh lead‐acid batteries with controllers
Helping Utilities Make Smart Solar Decisions
28
Research Initiatives Research Initiatives Pal Town Jyosai‐no‐Mori, Ota City Demonstration research from 2002‐2008 • Avoid restriction of PV output to maintain voltage limits using batteries • Measure and minimize harmonics • Develop new anti‐islanding protection Develop new anti islanding protection • Applied simulations
Helping Utilities Make Smart Solar Decisions
29
Outlook 2009
2010
2012
483 MW
700 - 800 MW
BAU：1～1.2 GW Support enhanced：～ 2 GW
M j application Major li ti in i Japan
Residential R id ti l PV and d school h l and d other public facilities
Residential PV and school and other public facilities
Residential PV, PV for public, commercial industrial facilities (roads, railway, agriculture, complex housings)
Supplier in Japan
Domestic manufacturer + entries from overseas
Domestic manufacturer + entries from overseas
Domestic manufacturer + overseas manufacturers
PV production in Japan
1.5 GW
1.8 GW±200 MW
3 ~ 4 GW
Global production
10 GW
~ 12 GW
~ 16 GW
Price of residential PV system in Japan
650,000 JPY/kW
580,000 ～ 600,000 JPY/kW
350,000 ～ 500,000 JPY/kW
Global PV Industry
Restructuring & consolidation started
Restructuring & consolidation continue
Restructuring & consolidation advance
Market size
Japan
Source: RTS Corporation
Helping Utilities Make Smart Solar Decisions
30
SEPA Fact Finding Mission J Japan 2010 2010
Helping Utilities Make Smart Solar Decisions
31
Report: Solar Insights from Japan Report: Solar Insights from Japan
Full report available on SEPA’s website: http://www solarelectricpower org/resources/reports aspx http://www.solarelectricpower.org/resources/reports.aspx Helping Utilities Make Smart Solar Decisions
32
SEPA Fact Finding Mission to g Japan J l 25 30, 2010 July 25 – 30 2010
SEPA’ss Fact Finding Missions SEPA Fact Finding Missions • First mission in 2008 – First mission in 2008 – Germany – Focus on rooftop PV, with some utility‐scale PV
• Second mission in 2009 – Second mission in 2009 Spain – Focus on utility‐scale PV and CSP
• Third mission in 2010 – Third mission in 2010 Japan – Focus on rooftop PV and grid integration
• Future F t – Italy: May 8 ‐ 14, 2011 – Focus on utility‐scale solar and Italy’s p yg g rapidly growing solar market – US/California: TBD Helping Utilities Make Smart Solar Decisions
2
Trip Objectives Trip Objectives • Learn Learn about the experience of Japanese utilities in about the experience of Japanese utilities in integrating large amounts of distributed photovoltaics (PV) into their grid • Explore the solar research initiatives being undertaken by the Japanese government and its research bodies • Investigate Japan’s solar policies, and the effect of those policies on the commercialization of solar h l h l f l technologies • Network with peer utilities N t k ith tiliti Helping Utilities Make Smart Solar Decisions
3
Participating Organizations Participating Organizations • • • • • • • • • • • • • • • •
Arizona Electric Power Cooperative Arizona Public Service Barbados Light & Power Cagayan Electric Power & Light Co City of Lake Worth City of Lake Worth EPRI Gainesville Regional Utilities Hawaii Electric Light Company g p y Hawaiian Electric Company, Inc. Kennebunk Light & Power District Pacific Gas & Electric Pasadena Water and Power Salt River Project San Diego Gas & Electric Springer Electric Cooperative Springer Electric Cooperative U.S. Department of Energy
ME
CA CA
AZ CA
AZ AZ
HI
NM
FL HI
FL
‐ Barbados ‐ Philippines
Helping Utilities Make Smart Solar Decisions
4
SEPA Fact Finding Mission J Japan 2010 2010 Agenda g July, 26
Workshop with NEDO (New Energy and Industrial Technology Development Organization, Japan’s equivalent of NREL), and METI (Ministry of Trade and Industry, Energy Conservation and Renewable Energy Department)
July, 26
Technical visit with Sekisui Heim (Housing Division of Sekisui Chemical Company) Factory in Hasuda city, Saitama ‐ Prefabricated modular houses and PV System for houses
July, 27
Tour of Pal Town Jyosai‐no‐Mori, Ota City PV Demonstration Project ‐ 2.13 MW roof mounted systems aggregated on 553 houses and deployed on a single feeder
July, 27
Technical visit with Akagi Research Center of CRIEPI (Central Research Institute of Electric Power Industry)
July, 28
Technical visit with AIST Tsukuba Research Center for Photovoltaics, Ibaraki
July, 28
Tour of AEON Lake Town Koshigaya, Saitama ‐ The largest PV system for Shopping Malls in Japan (total generation capacity: 487kW)
J l 29 July,
Workshop with Federation of Electric Power Companies (FEPC), and Japan Electrical Manufacturers’ W kh ith F d ti f El t i P C i (FEPC) d J El t i l M f t ’ Association (JEMA)
July, 29
Workshop with Japan Photovoltaic Energy Association (JPEA)
July, 30
Technical visit to Green Front Sakai of Sharp, Osaka Manufacturing complex of 10th‐generation generation glass substrates LCD panels and glass substrates LCD panels and ‐ Manufacturing complex of 10th thin‐film solar panels
Helping Utilities Make Smart Solar Decisions
5
SEPA Fact Finding Mission J Japan 2010 2010
Helping Utilities Make Smart Solar Decisions
6
Solar Resource Comparison Solar Resource Comparison
U.S.: 2009 PV Installations 433 MW ~1.64 GW Total ~5.3 W/capita
Japan: 2009 Japa 009 PV Installations s a a o s 479 9 MW ~2.63 GW Total ~20.7 W/capita
Source:
Helping Utilities Make Smart Solar Decisions
7
Utility Service Territories Utility Service Territories United States
Japan
Source: www.platts.com
Area = 8,080,464 km2 (contiguous 48 states) Population = 305 Million 239 Investor Owned utilities 2,009 publicly owned electric utilities 912 consumer‐owned 912 consumer owned rural co rural co‐ops ops 10 Federal electric utilities Source: http://www.eia.doe.gov/cneaf/electricity/page/prim2/toc2.html
Area = 380,728 km2 (slightly larger than the state of New Mexico (314,939 km2)
Population 128 Million 10 Electric Utilities Source: RTS Corporation and Japan Electric Power Information Center (JEPIC)
Helping Utilities Make Smart Solar Decisions
8
Energy Consumption Comparison Energy Consumption Comparison
Canada USA Japan Korea France Germany
kWh/person /year
Source: Japan Electric Power Information Center (JEPIC)
Helping Utilities Make Smart Solar Decisions
9
T&D Loss Rate Comparison T&D Loss Rate Comparison T&D Loss R ate 8.0
% USA JA P A N
7.0 60 6. 5.0 4.0
2000 2001 2002 2003 2004 2005 2006 Source: Japan Electric Power Information Center (JEPIC)
Helping Utilities Make Smart Solar Decisions
10
Outage Period Comparison Outage Period Comparison Annual OUTAGE Time (SAIDI ‐ System Average Interruption Duration Index)
Japan
UK
US
France
(2006)
(2006)
(2006)
(2006)
Source: the Federation of Electric Power Companies of Japan According to IEEE Standard 1366‐1998 the median value for North American utilities is approximately 1.50 hours.
Helping Utilities Make Smart Solar Decisions
11
Annual Installed Solar Capacity Annual Installed Solar Capacity 1995 ‐ 2009 600.00
500.00
M MW
400.00
300.00
Japan US
200.00
100.00
0.00 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: IEA‐PVPS Trends Preliminary data for 2009
Helping Utilities Make Smart Solar Decisions
12
Key Takeaways Key Takeaways • •
• •
•
The over‐arching role of policy in shaping the size and nature of the solar market in Japan. The motivations behind Japan’s renewed emphasis on aggressive solar development, including economic, environmental, energy security and resource diversity concerns. The unique emphasis on distributed PV, with a particular focus on residential rooftop deployments. The critical role for electric utilities in the successful implementation of federal policy and commercialization goals, which somewhat surprisingly includes relatively few utility‐scale installations. The research underway on the technical impacts of concentrations of residential PV on the distribution grid.
Helping Utilities Make Smart Solar Decisions
13
Coordinated Policies in Japan Coordinated Policies in Japan Of particular note was the Of particular note was the number of number of coordinated government policies enacted to drive PV adoption, including: p , g
• National solar goals Revised under the J‐Recovery Plan.
• Residential PV subsidy program id i l b id Re‐started in January 2009.
• Solar feed‐in tariff (FIT) ( ) Started under the law for advanced supply of energy in November 2009.
Helping Utilities Make Smart Solar Decisions
14
Coordinated Policies in Japan Coordinated Policies in Japan Japan’s National Solar Goals: 28 GW by 2020 and 53 GW by 2030
Source: METI, J‐Recovery Plan, April 2009, arranged by RTS Corporation
Helping Utilities Make Smart Solar Decisions
15
sb42
Coordinated Policies in Japan Coordinated Policies in Japan Motivations behind Solar Goals: Motivations behind Solar Goals: • Regaining world market leadership. Increasing energy independence • Increasing energy independence. • Addressing global environmental goals of reducing greenhouse gas emissions. greenhouse gas emissions. • Considerable emphasis on solar to fill a prominent role as a renewable energy resource, given limits gy ,g on other forms of renewables such as wind and hydropower due to Japan’s climate and geography. Helping Utilities Make Smart Solar Decisions
16
Slide 16 sb42
Photovoltaic does not have the V capped unless that was part of their original title. One of the leading services we offer is peer exchanges/networking opportunities. It would be good to mention that here. Sandra Burton, 8/9/2010
Solar feed‐in Solar feed in tariff (FIT) tariff (FIT) Utilities are required to buy the surplus solar energy
Generation
Consumption
Surplus
Target: Residential market segment (systems of less than 10 kW of total output) Price : 48 JPY/kWh (double as the current residential retail rate: 24 JPY/kWh) Price : 48 JPY/kWh (double as the current residential retail rate: 24 JPY/kWh) Term : 10 years (Installer can recover the initial cost) Helping Utilities Make Smart Solar Decisions Source: Japan Electric Power Information Center (JEPIC)
17
Solar feed‐in Solar feed in tariff (FIT) tariff (FIT) Net Export FIT: Purchase scheme for surplus PV energy Legislation Financial Resources
Net billing New scheme ‐ No ‐ Yes y y ‐ Voluntary scheme by utilities g ‐ Obligation to utilities ‐ Utilities
‐ All the electric consumers
Purchase price
‐ Same as the electricity rate ex. Residential : 24 JPY/kWh (0.26 USD /kWh)
‐ Twice the electricity rate with yearly degression ih l d i ‐ Residential: 48 JPY/kWh (0.53 USD/kWh) ‐ Non Residential：24 JPY/kWh Non Residential：24 JPY/kWh (0.26 USD/kWh)
Term
‐ Not defined
‐ 10 years
Enforcement
‐ 1994 to Oct. 31, 2009 1994 to Oct 31 2009
‐ From Nov. 1, 2009 From Nov 1 2009
Source: RTS Corporation, PV Market in Japan 2009/2010, Sept. 2009
Helping Utilities Make Smart Solar Decisions
18
FIT Options in Japan FIT Options in Japan Under discussion • Eligible energy – All the RE or REs in practical use? p
• Residential PV – Gross FIT or Net FIT?
• Purchase rate? • Purchase term – 15 or 20 years? 15 or 20 years?
Helping Utilities Make Smart Solar Decisions
19
sb38
Key Takeaways Key Takeaways •
According to government figures, nearly 90% of the grid‐connected PV is residential (this is expected to drop to about 70% by 2020). Due to the nation’s high retail residential electricity prices (24 JPY/kWh or 0.26 USD/kWh), and with the aggressive new subsidies in place, solar grid parity is expected to be reached in as little as seven years. d b h d l l
•
Utilities will play a major role in grid integrating customer PV systems, but in contrast to the situation in the U.S., utility‐owned solar generation capacity is not a focus of Japanese utilities. As of today, they are planning to build just 140 MW of utility‐scale solar by 2020 ( 2020 (out of the goal of a total of 28 GW of new solar capacity). f h l f l f 28 GW f l i )
Helping Utilities Make Smart Solar Decisions
20
Slide 20 sb38
Photovoltaic does not have the V capped unless that was part of their original title. One of the leading services we offer is peer exchanges/networking opportunities. It would be good to mention that here. Sandra Burton, 8/9/2010
New Efforts by Electric Utilities New Efforts by Electric Utilities Large scale projects by utilities 140 MW on 30 sites by 2020 g p j y y Federation of Electric Power Companies of Japan: announced large scale PV power plants: 140 MW in 30 places by 2020
1 MW in Date, 2011
‐ 1 MW in Toyama, 2011 1 MW in Toyama, 2011 ‐ 1 MW in Ishikawa, 2011 ‐ 2 MW in Miyagi 2012 ‐ 2 MW in Aomori 2012
‐ 18 MW in Sakai, 2011 with Sharp ‐ 10 MW in Sakai, 2011 10 MW in Sakai 2011
3 MW in, Hiroshima
3 MW in Omuta 2010
4 MW in Ehime, 2011
Source: RTS Corporation, PV Activities in Japan and Global PV Highlights
7 MW in Aichi, 2011
‐ 2 MW in Tokyo, 2010 with Mitsui & Co. ‐ 7 MW in Kawasaki, 2011 with Kawasaki City ‐ 13 MW in Kawasaki, 2011 with Kawasaki City ‐ 10 MW in Kofu 2011 10 MW i K f 2011 with Yamanashi Pref.
Helping Utilities Make Smart Solar Decisions 21
sb39
Key Takeaways Key Takeaways • 90% 90% of the solar technology installed in Japan is of the solar technology installed in Japan is manufactured in Japan, leading to a new and growing sector of the economy that Japan hopes will create thousands of well‐paying jobs. • However, by severely limiting the imports of less‐ expensive foreign technology, the relative cost of solar remains higher than it might otherwise.
Helping Utilities Make Smart Solar Decisions
22
Slide 22 sb39
Photovoltaic does not have the V capped unless that was part of their original title. One of the leading services we offer is peer exchanges/networking opportunities. It would be good to mention that here. Sandra Burton, 8/9/2010
sb48
Domestic shipment of PV cells and modules (2009) d l (2009) Other 0.3% Public facilities 2.8%
Consumeruse 0.2%
Small PV system 0.6%
Industrial and business facilities 7.3%
Domestic Shipment 483,960kW （2009）
Residential 88.7%
Source: Japan Photovoltaic Energy Association (JPEA) / Optoelectronic Industry and Technology Development Association (OITDA)
Helping Utilities Make Smart Solar Decisions
23
Slide 23 sb48
Photovoltaic does not have the V capped unless that was part of their original title. One of the leading services we offer is peer exchanges/networking opportunities. It would be good to mention that here. Sandra Burton, 8/9/2010
PV System Price (2009) PV System Price (2009) 5,000
Residential PV System PV system for public & industrial facilities
4,500 4,300
Average price of PV V systems (Yen/W)
4,000
3,500
3,000
3,500
3,400 2,800 2,400
2,500
2,000 1,920
1,500 1,300
1,500 1,510
1,190 1,040
1,010 850
1,000 1,090
1,062
939
500
840
1,074 844
758
710
770
690
770
675
731
661
802
683
696
640
715
534
613
547
0 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Year
Source：IEA PVPS Task 1, National Surrey Report Japan 2009 1 JPY = 0.01101 USD, as of June 20th 2010 Helping Utilities Make Smart Solar Decisions 24
PV System Price and Government I Incentives i
Source: Japan Photovoltaic Energy Association (JPEA)
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sb19
System Installed Capacity System Installed Capacity 600 2.6 10.7 92 483
Off-Grid domestic Grid-connected centralized 2,500
Off-grid non-domestic
Cum urative installe ed capacity (M W) -
Grid-connected decentralized Annual installed capacity 2,000
1,500
184
1,000 122 75
500
5
0
7
12
16
29
36 21
32 45 43
42 52 78
123 0.6 2.9 66
63 56 149
264
1.0 2.9 72
272 223 1.1 2.9 83 1.1 2.9 78
1.1 2.9 290 86
1.2 2.9 87 287
1.9 5.5 88
500
1.9 1 9 9.3 89
400
300 210
225 2,522 2,044
200
1,823 1,617
Annual installed d capacity (MW)
3,000
1,332 1,045
100
778 561
383
0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Year
Source: IEA PVPS Task 1, National Survey Report Japan 2009
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Slide 26 sb19
Graphs, perhaps pie charts would look better. Sandra Burton, 8/9/2010
Research Initiatives Research Initiatives Japanese PV R&D Roadmap (PV2030 +)
Source: NEDO
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Research Initiatives Research Initiatives Pal Town Jyosai‐no‐Mori, Ota City • 553 houses, Total: 2,130 kW • Various types of PV modules (Sharp, Kyocera, Mitsubishi, Sanyo) • Systems from 2.6 to 5 kW in size • All the homes were fully occupied, All the homes were fully occupied have PV data monitoring capability and are connected to a g , single, radial distribution feeder. • Some homes had 9.6 kWh lead‐acid batteries with controllers
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Research Initiatives Research Initiatives Pal Town Jyosai‐no‐Mori, Ota City Demonstration research from 2002‐2008 • Avoid restriction of PV output to maintain voltage limits using batteries • Measure and minimize harmonics • Develop new anti‐islanding protection Develop new anti islanding protection • Applied simulations
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Outlook 2009
2010
2012
483 MW
700 - 800 MW
BAU：1～1.2 GW Support enhanced：～ 2 GW
M j application Major li ti in i Japan
Residential R id ti l PV and d school h l and d other public facilities
Residential PV and school and other public facilities
Residential PV, PV for public, commercial industrial facilities (roads, railway, agriculture, complex housings)
Supplier in Japan
Domestic manufacturer + entries from overseas
Domestic manufacturer + entries from overseas
Domestic manufacturer + overseas manufacturers
PV production in Japan
1.5 GW
1.8 GW±200 MW
3 ~ 4 GW
Global production
10 GW
~ 12 GW
~ 16 GW
Price of residential PV system in Japan
650,000 JPY/kW
580,000 ～ 600,000 JPY/kW
350,000 ～ 500,000 JPY/kW
Global PV Industry
Restructuring & consolidation started
Restructuring & consolidation continue
Restructuring & consolidation advance
Market size
Japan
Source: RTS Corporation
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SEPA Fact Finding Mission J Japan 2010 2010
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Report: Solar Insights from Japan Report: Solar Insights from Japan
Full report available on SEPA’s website: http://www solarelectricpower org/resources/reports aspx http://www.solarelectricpower.org/resources/reports.aspx Helping Utilities Make Smart Solar Decisions
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