Japanese Policy on New Energy

Yoji Matsui

Topics

• Necessity of Renewable Energy

• Japanese Policy on Renewable Energy

– Support to local governments

– R&D Projects

– Measures for Deployment

• Policy on New Usage of Energy & New Technology

– Energy Management System

– Storage Battery

2

Necessity of Renewable Energy

4

Primary Energy Supply in Japan

一次エネルギー構成比

46

11 14 15

10 13 12

3 3 3

4956

75

211917

17

21 3344 1

1973 1990 2000 2005

新エネルギー等

水力

原子力

天然ガス

石炭

石油（ＬＰＧを含む）

PV, Wind, etc.

HydraulicNuclear

LNG

CoalPetroleum (incl. LPG)

Proportion of Each Energy to the Primary Energy Supply in Japan

The proportion of petroleum to the primary energy supply has come down, while that of fossil fuels have not decreased.

Price of Fossil FuelsThe prices of fossil fuels will continue to go up.

Pric

e of

Fos

sil F

uels

(U

S$/1

,000

kcal

)

Petroleum Coking Coal Energetic CoalLNG

1st Oil Shock

2nd Oil Shock The Gulf War

5

2009.2.17 American Recovery and Reinvestment Act - $ 584 billion investment in two years ($ 787 billion until 2019), create 0.6 - 1.8 million new employment by the forth quarter 2011

- $ 83 billion tax reductions and bond, etc. in the area of clean energy & renewable energy,$ 11 billion investment for the reinforcement of electric distribution networks

2010.6.18 2010.6.18 2010.6.18 2010.6.18 Economic Growth StrategyEconomic Growth StrategyEconomic Growth StrategyEconomic Growth Strategy---- create 1.4 million employment until 2020 in the area of environcreate 1.4 million employment until 2020 in the area of environcreate 1.4 million employment until 2020 in the area of environcreate 1.4 million employment until 2020 in the area of environment and energyment and energyment and energyment and energy---- 10 10 10 10 trillion yen market for renewable energy by 2020 trillion yen market for renewable energy by 2020 trillion yen market for renewable energy by 2020 trillion yen market for renewable energy by 2020

2007.1.19 Chairman for European Renewable Energy Policy Conference- 2 million new employment by 2020 in EU 15 countries

2008.9.24 Report at UNEP concerning with “Green Industry” （referred to the draft of “Clean Energy New Deal Policy”, IEA）- 2.3 million has been already employed in the renewable energy sector- 2.1 million employment in the area of wind power and 6.3 million in photovoltaic until 2030

2006.9.12 Report by Ministry for Environment- employment in the industry related renewable energy will become 300 thousand until 2020, will exceed 330 thousand

2008.11.17 Minister for Ecology, Energy and Sustainable Development of Country- create 100 thousand employment until 2020 by supplying renewable energy more than 23% of energy consumption

Employments created by Renewables

6

Necessity of Renewable Energy

• Renewable Energy such as Photovoltaic, Wind Power, Hydraulic, Geothermal are expected as low CO2 energy.

• Without CO2 emission issue (Global Warming Protection), Renewable Energy is important for Japan to reduce the dependence on limited resources and energy imports.

• Renewable Energy will contribute to create markets and employments.

7

Cumulative Installation (Photovoltaic)Japan ranks at 3rd in the world.

出典: T R E N D S IN P H O T O V O LT A IC A P P LIC A T IO N S S urvey report of selected IE A countries betw een 1992 and 2007及びＥＰＩＡデータ

0000

1 ,0 0 01 ,0 0 01 ,0 0 01 ,0 0 0

2 ,0 0 02 ,0 0 02 ,0 0 02 ,0 0 0

3 ,0 0 03 ,0 0 03 ,0 0 03 ,0 0 0

4 ,0 0 04 ,0 0 04 ,0 0 04 ,0 0 0

5 ,0 0 05 ,0 0 05 ,0 0 05 ,0 0 0

6 ,0 0 06 ,0 0 06 ,0 0 06 ,0 0 0

1 9 9 91 9 9 91 9 9 91 9 9 9 2 0 0 02 0 0 02 0 0 02 0 0 0 2 0 0 12 0 0 12 0 0 12 0 0 1 2 0 0 22 0 0 22 0 0 22 0 0 2 2 0 0 32 0 0 32 0 0 32 0 0 3 2 0 0 42 0 0 42 0 0 42 0 0 4 2 0 0 52 0 0 52 0 0 52 0 0 5 2 0 0 62 0 0 62 0 0 62 0 0 6 2 0 0 72 0 0 72 0 0 72 0 0 7 2 0 0 82 0 0 82 0 0 82 0 0 8

[[[[年年年年 ]]]]

[M W ][M W ][M W ][M W ]

ドイツドイツドイツドイツ

スペインスペインスペインスペイン

日 本日 本日 本日 本

U S AU S AU S AU S A

イタリアイタリアイタリアイタリア

韓 国韓 国韓 国韓 国

フランスフランスフランスフランス

ポル トガルポル トガルポル トガルポル トガル

合計約合計約合計約合計約１２１２１２１２．．．．８８８８ＧＷＧＷＧＷＧＷ

約5.4G W

約3.2G W

約2.1G W

約1.2G W

Total

GermanySpainJapanUSAItalyKoreaFrancePortugal

Data : , IEA

Cumulative Installation of Photovoltaic

8

World Market Share (Photovoltaic)Japan ranks at 2nd.

Am ount of Products in Each C ountry（２００７）

Taiwan10%

Japan26%

C hina23%G erm any

22%

USA8%

Philippin4%

O thers4%

Spain3%

Am ount of Products in Each C ountry（2009, estim ated）

Taiwan13%

M alaysia7%

USA6%

O thers7%Philippine

4%

C hina35%

Japan14%

G erm any14%

9

(Data) NEDO, GWEC

Cumulative Installation (Wind Power)Installation pace has come down in Japan.

Cumulative Installation of Wind Turbine

0

20

40

60

80

100

120

140

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

ＧＷ（W orld）

0

50

100

150

200

250

300

10M Ｗ（Japan）

W orld(G W )

Japan(10M W )

10

Cumulative Installation (Country)Japan ranks at 13th in the world.

C um ulative Istallation

0

5

10

15

20

25

30

35

40USA

China

Germany

Spain

India

Italy

France

UK

Portugal

Denmark

Canada

Netherlands

Japan

GW

(2009)

11

Cumulative Installation (Producer)The share of Japanese leading company MHI is 2% in the world.

Cumulative Installation Share of Wind Turbine

6%

26%

12%

13%

13%

3%

7%

4%

2%

7%1%2%

2%2%

Vestas

G E W ind

G am esa

Enercon

Siem ens

Suzlon

Nordex

Repower

Acciona

M HI

G old W ind

Sinovel

Dongfang

O thers

(2008)

12

Potential of Bio Energy

主なバババババの未未未未（バイオマス・ニッポン総合戦略（平成１８年３月３１日）をもとに作成）

0 1000 2000 3000 4000 5000 6000 7000 8000 9000

家家家せせ物

下下下下

食食食食物

農農物農食未農

製製製製製製製

建建建建建製

林林製製

（万トン）

未未未

未未

unutilizedutilized

Animal WasteSewage

Waste FoodsAgricultural Waste

Waste from SawmillsScrapped Houses

Woods Left in Forests

unit : 10,000 ton

主なバババババの未未未未（バイオマス・ニッポン総合戦略（平成１８年３月３１日）をもとに作成）

0 1000 2000 3000 4000 5000 6000 7000 8000 9000

家家家せせ物

下下下下

食食食食物

農農物農食未農

製製製製製製製

建建建建建製

林林製製

（万トン）

未未未

未未

unutilizedutilized

Animal WasteSewage

Waste FoodsAgricultural Waste

Waste from SawmillsScrapped Houses

Woods Left in Forests

unit : 10,000 ton

Unutilized Biomass Energies

Data from Biomass Japan Comprehensive Strategy (March, 2006)

13

Bio Fuel• Bio Fuel has been already in use in USA and Brazil.• EU and USA have high numerical target.

Demand & Supply of Bio Ethanol (2006)(Total Product in the World：around 51 million kl)

0

1000

2000

万ｋｌ

アメリカ　　ブラジル　　中国　　　EU　　　　インド　　　韓国　　　日本0

1000

2000

万ｋｌ

アメリカ　　ブラジル　　中国　　　EU　　　　インド　　　韓国　　　日本

生産（国内消費）

生産（輸出）

輸入

生産（国内消費）

生産（輸出）

輸入

Produce(domestic consumption)produce (export)

import

USA Brazil China EU India Korea Japan

10,000 kl

0

1000

2000

万ｋｌ

アメリカ　　ブラジル　　中国　　　EU　　　　インド　　　韓国　　　日本0

1000

2000

万ｋｌ

アメリカ　　ブラジル　　中国　　　EU　　　　インド　　　韓国　　　日本

生産（国内消費）

生産（輸出）

輸入

生産（国内消費）

生産（輸出）

輸入

Produce(domestic consumption)produce (export)

import

USA Brazil China EU India Korea Japan

10,000 kl

×10,000ｋｌ

14

Target of Renewable Energy10% of Primary Energy Supply is the target by Economic Growth Strategy.

4.7%

7.4%

10%

15

Predict of Renewable Energy Installation

6 7

32

17

19

2

7

22

0.80.7

0.7

0.5

0

10

20

30

40

50

60

2007 2020

Oil

Equ

ival

ent

mill

ion k

L

Photovoltaic

Wind Power

Hydraulic

Geothermal

Biomass Electricity

Biomass Heat

Other Heat

Installation of Renewable Energy

Renewable Energy / Prim ary Energy Supply (2007)

3.2

7.9

6.8 6.7 6.9

2.1

4.7

0.6

0

2

4

6

8

10

Japan G enm any Italy France Spain UK USA Korea

（％）

(Data) IEA 2007

16

Installation of Renewable Energy

(Data) IEA 2007

Renewable Electricity / Total Electricity G eneration (2007)

8.8

14.215.5

11.8

19.5

5.0

8.3

1.1

0

5

10

15

20

Japan G enm any Italy France Spain UK USA Korea

（％）

17

Policies on Renewables

Subjects and Measures on Renewables

• Climate condition, Geometrical restriction→ best practice for each area

• High cost→ R&D, Demand expansion

• Instability, Influence on distribution systems→ Energy management to stabilize the networks

• Global competition→ R&D, Standardization, develop new market

19

Geometrical RestrictionRenewable Energy suitable for each area should be concerned.METI has supported many towns to make plans for new energies.

(kWh/kW)

1,000以上 1,100未満900以上 1,000未満900未満

1,100以上

(kWh/kW)

1,000以上 1,100未満900以上 1,000未満900未満

1,100以上

(Source) New Energy Foundation

Wind Velocity Output by photovoltaic system

(Source) NEDO

1,100～1,000～1,100900～1,000～900

20

100 Advanced & Excellent Local New & Renewable Sigh ts

21

★★★★Maniwa CityIzumo City

★★★★Kitakyushu City

Genkai Town

Nagasaki Pref.

Sapporo City

Yamanashi Pref.

★★★★Rokkasho Vil.

Ohta City

★★★★Ibaraki Pref.

★★★★Aichi Pref.

★★★★Goboh City

Anan City

Ohmuta City

Miyagi Pref.

Sumoto City

Kitahiroshima Town

Itoman City

Miyakojima City

Tonosho TownKumamoto Pref.

Gifu Pref.

Mie Pref.

Ohita Pref.

Higashiohmi City

Osaka Pref.Fukushima Pref.

Niigata Pref.

Next Generation Energy Park

certified by 2008certified in 2009planning

22

Cost for Renewable EnergiesRenewable Energies are expensive (especially, Photovoltaic).

C om parison of the C ost (Exam ple)

0

10

20

30

40

50

PV W indPower

Hydraulic Biom ass LNGTherm al

Nuclear

yen／

ｋWh

23

太陽光発電システムの累積導入量と価格の推移

617170686667697175

8493

107106120

170

200

370

137.4

155.4

262.8

214.4

191.9

170.9

142.2

113.2

86.0

63.7

45.233.0

20.913.3

9.16.04.33.12.4

217.1

174.2

112.0

85.9

62.1

43.028.0

18.911.55.73.31.30.60.20

50

100

150

200

250

300

350

400

1993 1995 1997 1999 2001 2003 2005 2007 2009

万円／ｋW

0

50

100

150

200

250

300

万ｋW

１ｋＷ当たりの導入価格（小数点以下切り捨て）

全導入量（累計）

住宅用太陽光発電導入量（累計）

Is the Cost Reduced ?The cost for PV system is not easily reduced recently.

Syst

em P

rice

(incl

. BO

S co

st) (

10,0

00 y

en/k

W)

Cum

ulat

ive

Inst

alla

tion

Volu

me

(10

MW

)

Cumulative Installation and System Price

System Price (10 thousand yen per kW) Installation (residence)Installation (total)

24

• Concerning with the wind, hydraulic and geothermal power plants, low cost locations are developed in advance. The construction cost will become higher in future.

• The cost for local environmental protections is also increasing recently.

→ The cost reduction by R&D and the demand expansion is expected.

Is the Cost Reduced ?

25

PV Cost Reduction Scenario by R&D

26

R&D• Methods to estimate the performance and the safety of small sized

wind turbines• Wind velocity measurement (remote sensing technology) and

technologies against lightning to improve the efficiency• Noise reduction technology for social acceptances

27

Development of OffshoreThe offshore wind turbine has been developed since 2009.

Image

28

R&D on Biomass Energy

• Bio-ethanol Production from Celluloses

• Biomass to Gas/Liquid

• Combustion of Unutilized Biomass in Coal Thermal Power Plant

29

for Residencefor Residence for Institutionfor Institution

Subsidies

Photovoltaic70,000 yen/kW(system under 650,000 yen/kW)

Fuel Cell1.3 million yen for 1 unit

All the New Energiesnon profit bodies etc.

half of installation costcompanies

1/3 of installation cost

Taxations

Photovoltaic・Tax Reduction for Home・Loan and for Reform to

save the energy

All the New Energies7% Tax Reduction(Small & Medium Entities)

or Special Depreciation

Incentives (Subsidies and Taxations)

Measures for Deployment

30

Results of RPS Act

0

10

20

30

40

50

60

70

80

90

2003 2004 2005 2006 2007 2008

（fiscal year）（100GhW／year）

W ind PV M icro Hydro Biom ass O thers

Renewables Portfolio Standards ActG oal & Target of Renewable Electricity

60

80

100

120

140

160

180

2004 2006 2008 2010 2012 2014

（fiscal year）

(100GWh／year）

G oal

Target

Measures for Demand ExpansionElectric utilities have to use renewable electricity by RPS Act.

31

Measures for DeploymentExcess Electricity Purchasing Scheme for PV started last November.Enlargement of the scheme is under consideration.

Installer : Electricity User

Government

LocalGovernment

ElectricPower

Company

ElectricityUser

Cost forPurchasing

(PV Surcharge)

about double of current electricity

selling price

Purchasing Fee

Excess Electricity Electricity

SubsidyTax Incentive

32

.

Enlargement of the Scheme

Ideas (Optional Cases) by METI

• Enlargement of the scheme to every renewable electricity is under consideration at METI’s task force.

• Ideas in which every renewable electricity (except PV) is purchased at 15～20 yen/kWh for 15～20 years are submitted by METI.

• The outline of the reformation will be published this summer.

CaseCaseA.A.

Range of Range of R.E.R.E.

B.B.Purchasing of Purchasing of

Electricity by PVElectricity by PV

C.C.Purchasing Purchasing

from Old from Old FacilityFacility

D.D.Purchasing RatePurchasing Rate

(yen/kWh)(yen/kWh)

E.E.Length of Length of

PurchasingPurchasing(years)(years)

Cumulative Cumulative InstallationInstallation

(GW)(GW)

Electric Electric generationgeneration(TWh/year)(TWh/year)

COCO２２ReductionReduction

(million ton)(million ton)

Cost for COCost for CO22ReductionReduction(yen/ton)(yen/ton)

Cost for Cost for PurchasingPurchasing

(billion (billion yen/year)yen/year)

11 A1every R.E. B1

every electricity

C1every facility

D1 one price for every R.E.

E320 years 38～ 51～ 31～ ～52,297 1608～

33A2

every available

R.E.

C2restricted to

newly constructed

facilities

20

E3/E2

20 years32～38 40～51 24～31 25,743～

28,854613～88715 15 years

44B2

excess electricity in

case of residences

20 20 years32～35 40～48 24～29 19,407～

21,798462～62915 15 years

55 D2individually

E215 years 31 40 24 20,596 491

33

～～～～～～～～1010kWkW 1010～～～～～～～～500500kWkW 500500kWkW～～～～～～～～

Residenceexcess ratio : 60% in ave.

purchasing excess electricity at 48 yen per kWh +

Non-residenceexcess ratio : 10 ～～～～20%

For Business

Enlargement of the Scheme (for PV)Enlargement for the business utilities or large size plants ?Revision for the non-residential PV ?→ expand the installation by non-residence and the thin film solar market

out of the obligation

purchasing excess electricity at 24 yen per kWh+

Current Scheme for PV Excess Electricity Purchasing

+ in case of using gas generators, the purchasing price is in principle 39 yen/kWh for the system under 10kW, 20 yen/kWh for the system over 10kW.

34

20202009Non-residence

20%Non-residence

20%

28 GW

3 GW

Grid ParityGrid Parity

Newly Starting Purchasing Scheme

Newly Starting Purchasing SchemeResidence

80%(450 thousand)

Residence 80%

(450 thousand)

Non-residence20%

Non-residence20%

Residence 70%

Residence 70%

Goal of PV Installation

35

Type of Products in JapanDemand for Thin Film Type (A-Silicon, CIS) should be increased.

Products in JapanOthersAmorphous SiliconMono CrystalPolycrystalline

10MW

(Data) JPEA

1985 1990 1995 2000 2005

36

Energy Management

Policies on Energy Management

• In the wide spread of renewable energies, the network stability control is necessary.

• Energy Management by the combination of conventional energies (electricity, gas, oil), new energies and energy saving technologies is important to cut the CO2 emission.

• Similar ideas are seen in many countries and areas.

→→→→ R&D, Verification research, Standardization,Demand expansion, Overseas expansion

38

Influence on Grids• By the deployment of PV, unstable outputs may affect the grids.• Energy Management Systems using storage batteries will be important

to stabilize the grids.

20202010

28 GW

3 GW

10 GW

Deployment of PV will affect the gridsDeployment of PV will affect the grids

Goal of PV Deployment

39

Influence on GridsVoltage of the distribution lines will go up by the residential PVs.

Substation

voltage

Distance from Substation

Influence byInverse Flow

Normal Flow

Load LoadLoad Load Load

voltage

Output Control

Normal FlowElectric Power Company → Consumer

Inverse FlowElectric Power Company ← Consumer

Transformer

Residence

Substation

voltage

Distance from Substation

Influence byInverse Flow

Normal Flow

Load LoadLoad Load Load

voltage

Output Control

Normal FlowElectric Power Company → Consumer

Inverse FlowElectric Power Company ← Consumer

Transformer

Residence

40

0%

10%

20%

30%

40%

50%

60%

70%

80%

0時 6時 12時 18時

晴れ

晴れ→曇り

雨

太陽光発電の出力変動

6 a.m. noon 6 p.m.

sunnycloudyrain

0%

10%

20%

30%

40%

50%

60%

70%

80%

0時 6時 12時 18時

晴れ

晴れ→曇り

雨

太陽光発電の出力変動

6 a.m. noon 6 p.m.

sunnycloudyrain

Measures for the output fluctuation and the surplus electricity caused by the residential PV systems will be also required.

Surplus ElectricityPV Output Fluctuation

Influence on Grids

midnight

Nuclear

Hydraulic Power

Wind Power

Photovolataic

Thermal PowerHydro

0 noon 6 p.m.6 a.m.

需要火力最低出力

Hydro

Surplus ElectricitySurplus ElectricityDemmandMinimum Output of Thermal

midnight

Nuclear

Hydraulic Power

Wind Power

Photovolataic

Thermal PowerHydro

0 noon 6 p.m.6 a.m.

需要火力最低出力

Hydro

Surplus ElectricitySurplus ElectricityDemmandMinimum Output of Thermal

41

The cost to stabilize grids are estimated 0.14～5.7 billion yen by 2020.PV Output Control, EV Charge and Heat Pumps will be able to reduce the cost (= the volume of storage batteries).

Generationby PV

StorageStorageBatteriesBatteries

Generationby PV

StorageStorageBatteriesBatteries

Generationby PV

StorageStorageBatteriesBatteries

PV OutputRestraint

SurplusElectricity

PV OutputRestraint

EV Charge

Output Control Pattern on Specific Day

Measures for Grid Stabilization

cut the costcut the cost

42

Ohta City, Gunma （553 houses）

Measures for Grid StabilizationConcentrated installations on residential roof tops has been tested.

43

The stability control by storage batteries attached to the wind power plant has been verified. Efficiency of the plant has been improved.

t

kWh StableStable

kWh

t

UnstableUnstable

Measures for Grid Stabilization

44

Measures for Grid StabilizationLarge scale PV plants connected to electricity distribution systems are demonstrated.

Wakkanai Site, Hokkaido （5MW） Hokuto Site, Yamanashi （2MW）

45

Energy Management System

PV Output ControlPV Output ControlPV Output ControlPV Output Control

Batteries for CommunitiesBatteries for CommunitiesBatteries for CommunitiesBatteries for Communities Batteries for Networks Batteries for Networks Batteries for Networks Batteries for Networks

Storage BatteriesStorage BatteriesStorage BatteriesStorage Batteries

Fuel CellCo-generation Battery

Solar Heat

Photovoltaic

Wind Power Large Scale Solar

storage by midnight electricitystorage by midnight electricitystorage by midnight electricitystorage by midnight electricity

TroublesTroublesTroublesTroublesTroublesTroublesTroublesTroublesTroublesTroublesTroublesTroubles

SurplusSurplusSurplusSurplusSurplusSurplusSurplusSurplusSurplusSurplusSurplusSurplus

FluctuationFluctuationFluctuationFluctuationFluctuationFluctuationFluctuationFluctuationFluctuationFluctuationFluctuationFluctuation

PhotovoltaicEV

Energy SavingEnergy SavingEnergy SavingEnergy SavingPeak SiftPeak SiftPeak SiftPeak Sift

Energy SavingEnergy SavingEnergy SavingEnergy SavingEnergy SavingEnergy SavingEnergy SavingEnergy SavingPeak SiftPeak SiftPeak SiftPeak SiftPeak SiftPeak SiftPeak SiftPeak Sift

Stabilization of NetworksStabilization of NetworksStabilization of NetworksStabilization of Networks

Reinforcement ofReinforcement ofReinforcement ofReinforcement ofDistribution SystemsDistribution SystemsDistribution SystemsDistribution Systems

Renewable & BatteryRenewable & BatteryRenewable & BatteryRenewable & Battery(weather forecast is important)(weather forecast is important)(weather forecast is important)(weather forecast is important)

Renewable Energy, Energy Saving Technology, Storage Battery and Information & Communication Technology will play important rolls.

Battery

46

Energy Management SystemEnergy managements in houses and buildings are possible.

ElectricAppliances

A.C 100V,200V

reverse stream（（（（restrain the stream ））））

D.C

photovoltaicphotovoltaic

forecast the demands,storage by night electricity

（（（（peak shift ））））Electric Vehicle

small sized wind turbinesolar thermal

Heat

ICT Device

D.C (ex. 6V,12V,24V)

Fuel Cell

D.C 100V,200VBattery

Energy Management System

remove AC/DC Converter（（（（energy saving ））））

47

Standalone Type

• from “selling to grids” to “minimum influence on grids” by energy management technologies

• for example, the commercialization of “standalone type PV system with storage battery” will be expected by many areas

48

Storage Battery

Importance of Storage Battery

• Storage batteries are key components for Energy Management Systems. (essential for the deployment of renewable energies, effective for peak shift)

• Storage batteries are key devices for electric appliances and next generation vehicles, etc.

• The related industry has a chance to become one of the major industries.

50

Policies on Storage Batteries

• International Competition and Collaboration

• Cost Reduction

• Performance Improvement

→→→→ R&D, Standardization, Demand Expansion

51

Market Share of Storage BatteriesJapanese manufactures have high market share in various batteries.

（Source） ITI, METI

W orld M arket Share of Storage Batteries

100

74

51 57

22

4113

17

4 8 13

NAS NiH NiC d Li-ion

O thers

Korea

C hina

Japan

52

Market Share of Materials for BatteriesJapanese companies also have high market share in materials for hybrid vehicle batteries.

M aterials for Hybrid Vehicle BatteryShare by Japanese M anufactures

0%

20%

40%

60%

80%

100%

Positive

Electrode

Negative

Electrode

Electrolyte

Separater

Positive

Electrode

Active

Material

Negative

Electrode

Li-ion NiH

53

Global CompetitionKorean and Chinese manufactures increase their sales volume.

（Source） ITI, NEDO

1 SANYO G roup（Japan） 1 SANYO G roup（Japan）

2 SO NY（Japan） 2 Samsun SDI（Korea）

3 Samsun SDI（Korea） 3 SO NY（Japan）

4 Panasonic（Japan） 4 BYD（China）

4 BYD（China） 5 LG Chemical（Korea）

6 LG Chemical（Korea） 6 BAK（China）

7 天天天天（China） 7 Panasonic（Japan）

8 NEC Tohkin（Japan） 8 Hitachi M axell（Japan）

9 Hitachi M axell（Japan） 9 ATL（Hongkong）

W orld M arket Share of Li-ion Battery

2005 2008

World Market Share of Li-ion Battery

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Current Situation of Storage BatteryThe improvement of the price and the performance is important.

ex. Goal of R&D for EV Battery by 2015Cost : 1/7, Performance : 3/2 (compared to current level)

Characteristics of Various Batteries (sample)

PbPb NASNAS NiNi--HH LiLi--ionion

Energy Density (Wh/kg) 35 110 60 120

Efficiency (%) 86.8 87.4 90 95

Life Cycle 4500 4500 2000 3500

Cost for kW (1,000 yen) 150 240 100 200

Cost for kWh (1,000 yen) 50 25 100 200

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Is the Cost Reduced ?The price of the battery is not easily reduced recently.

Sales Trend of Li-ion Storage Battery

0

2000

4000

6000

8000

10000

12000

14000

1996 98 2000 02 04 06

yen

0

200

400

600

800

1000

1200

Price （yen）<Left Axis>

Sales Volum e（Unit：m illion）<Right Axis>

Sales Am ount（Unit：billion yen）<Right Axis>

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Deploym ent of Hybrid Vehicles(Sales per Year )

0

100

200

300

400

500

600

1999 2001 2003 2005 2007

thousand

EU

Japan

USA

C um ulative Deploym ent of EV(Japan)

0

2

4

6

8

10

12

1993 1998 2003 2008

fiscal year

thousand

Is the Cost Reduced ?Although the sales volume of hybrid vehicles is increasing, the deployment of EV has stopped recently in Japan.

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Budget for Storage Battery

FY2010FY2010 FY2009FY2009

Fundamental R&D 3.0 3.0

R&D on Automotive Batteries 2.5 2.6

Battery for Stabilization of Network 0.8 1.7

Battery for Large Scale Solar Plant 0.2 2.0

Battery with Various Appliances 4.3

Subsidy for Installation of EV,etc. 13.7 4.3

Budget for Storage Batteries

Unit : billion yen

58

Formation for Fundamental Research of Innovative Battery

R&D on Storage BatteryR&D on innovative fundamental technologies has been started under the collaboration between industries and universities since 2009.

59

New EV Boom ?Japan experienced EV booms several times.New boom has come ?

1990 1995 2000 2005 2010

60

One Example …A “Rescue EV” is demonstrated in Niigata Prefecture.

61

Characteristics of EVEV is thought to be used for short mileage & small car.

Size of Vehicle

Mileage

largesmall

short

long

Electric VehicleElectric Vehicle

Hybrid VehicleHybrid Vehicle

Range ExtenderRange Extender Fuel Cell Vehicle

CNG Vehicle

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Conclusion

• Policy on Renewable Energy– Support to local governments– R&D, Standardization– Deployment

• Incentives, FIT

• Energy Management System & Storage Battery– R&D, Standardization– Deployment

• Demonstrations, Incentives

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FY2010FY2010

BudgetBudgetFY2009FY2009

Supplemental BudgetSupplemental Budget

Deployment (Subsidy)

Subsidy for Installation of Residential Photovoltaic System ４０.１ ２２.０

Subsidy for Purchasing of Clean Energy Vehicle １３.７

Subsidy for Installation of Residential Fuel Cell ６.８ ２.０

Subsidy for Installation of New Energy (non-residence) ３４.５ １６.１

Research and Development

Photovoltaic ６６６６.４４４４ ００００.９９９９

Innovative Photovoltaic Cells １.９ ０.９

R&D on Next Generation High Efficiency Solar Cell ４.１

Wind Power ２２２２.６６６６

Off Shore Wind Power Technologies ２.３

Bio Energy ６６６６.２２２２

Bio-ethanol Production System from Celluloses １.９

Storage Battery １０１０１０１０.６６６６

R&D for Scientific Innovation on New Generation Batteries ３.０

Research on Storage Batteries with Various Appliances ４.３

Fuel Cell １０１０１０１０.７７７７ ００００.３３３３

Support for Start-up Business on New Energy １１１１.６６６６

unit : billion yen

Budget for New & Renewable Energy134 billion yen for FY 2010 Budget

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