Toru Usami
18
Economy Specific Research and Introduction of Successful Results of New / Renewable Energy Technology Development and Demonstration Toru Usami International Projects Department The 23 rd Meeting of the Expert Group on New and Renewable Energy Technologies 10-13 November 2004 Christchurch, New Zealand
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Economy Specific Research and Introduction of Successful Results of New / Renewable Energy Technology Development and Demonstration. The 23 rd Meeting of the Expert Group on New and Renewable Energy Technologies 10-13 November 2004 Christchurch, New Zealand. Toru Usami. - PowerPoint PPT Presentation
Transcript of Toru Usami
Economy Specific Research and Introduction of
Successful Results of New / Renewable Energy
Technology Development and Demonstration
Toru UsamiInternational Projects Department
The 23rd Meeting of the Expert Group on
New and Renewable Energy Technologies
10-13 November 2004Christchurch, New Zealand
2
Outline of NEDOHistor
y1980 ： Established for new energy/energy conservation technology development under
1988 ： Commenced R&D on industrial technologies (nanotechnology/biotechnology)
1990 ： Commenced R&D on environmental technologies (recycling technology)
Present ： A core organization of Japan’s R&D
1992 ： Commenced installation support activities for new energy/energy conservation
FY2004 budget
Industrial/environment technology development ：
New energy/energy conservation technology development ： New energy/energy conservation installation support ：
Alcohol manufacturing/sales ：
Others ：
12.4
5.6
5.3
2.2
2.9
Industrial/environment technology developmentNew
energy/energy conservation technology development
New energy/energy conservation installation
support
Alcohol manufacturi
ng/sales
Others
Total ： 2.83billion US$
1.24billion US$ （ 44% ）
290million US$(10%)
560million US$(20%)
530million US$(19%)
220million US$(8%)
jurisdiction of the Ministry of Economy, Trade and Industry
technologies
3
Outline
1 ． Significance of Renewable Energy Introduction in Japan2 ． Outline of Government Policies and Measures
3 ． Research and Development Activities
4 ． Installation Support Activities
5 ． Results of R&D/installation support activities
6 ． Lessons Learned
4
Further introduction of renewable energies is a high priority in Japan
Significance of Renewable Energy Introduction in Japan
・ Population increase
Current global scenario
Current scenario in Japan
・ Economic growth
Increase of fossil fuel consumption
・ Depletion of fossil fuel・ Global warming
・ Almost 80% of Japan’s energy supply is imported
・ Commitment to reducing GHG to 6% below the 1990 level
Successful results ： systematic promotion of the introduction and
・ Solar cell production / cumulative installed
dissemination of PV power generation systems
capacity in 2003 ： ranked first in the world
5
NEDOEstablished
Outline of Government Policies and Measures
1975 1980 1985 1990 1995 2000 2005
Sunshine Program New Sunshine Program1974 1993
1990
R&D
Installation support
The Renewable Portfolio Standard
Long-term Energy
PV installation subsidy system
The Law concerning Promotion of
The Electricity Utilities Industry Law revised
1992Purchase of surplus PV generated power by
19921993
1994
2003
PV installation subsidy system for public utilities
PV installation subsidy system for
1994The Basic Guidelines for New Energy
1997
1998
1998
The Grid Connection Guidelines including
R&DCost reduction
Creation and expansion of initial market
Increase of production level
Focus on two aspects: R&D and installation support activities
Commenced based on the fruitful results of the Sunshine Project
Installation
support
electric companies
adverse currents
residential consumers
Introduction
the Use of New Energy
for industrial facilities
Supply/Demand Outlook
6
0
50
100
150
200
250
300
350
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002
Installation support (public facilities ）
R&D
Installation support （ industrial facilities ）
Installation support （ residential ）
METI bu
dget
（US$/y
）Started in 1992 ：
Started in 1997 ：
Started in 1993 ：
（ StageⅠ first-half ）
（ StageⅠ second-half ）
The New Sunshine ProjectThe Sunshine Project
（ 1974 ～）
METI’s budget for R&D and PV power generation systems installation support activities ・ R&D ： approx. 60 million US$ allocated since the
1980s・ Installation support ： focused since the 1990s on initial market creation
Source ： NEDO document※1US$=107JPY
Outline of Government Policies and Measures
7
Targets ： ・ Crystalline silicon solar cells
Solar cell manufacturing technology development
System technology development
Items for development ： ・ Low cost manufacturing process technologies
Targets ： inverters, peripheral equipment such as storage batteries
Significant reduction of solar cell module manufacturing cost
Significant reduction of peripheral equipment installation price
NEDO ： Central role in development of PV cell manufacturing technology and
・ Greater manufacturing efficiency・ Stable material supply
・ Thin-film solar cells・ Compound semiconductor solar cells
(Particularly during the Sunshine Project)
R&D Activities （ Cell Manufacturing Technology)
development of system technologies
8
0
2
4
6
8
10
12
14
16
18
20
22
1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993
The Electricity Utilities Industry Law revised
Module
manufa
cturi
ng c
ost
（yen/W
）
1990 ：
The Sunshine Project （ 1974-1992 ）
・ More than 90% cost reduction during the Sunshine ProjectBased on this result, installation support activities commenced
for initial demand creation in 1990s
Source ： New Energy Manual （ Agency of Natural Resources and Energy ）
20,000JPY/W （’ 74 ）
5,000yen/W （’ 80 ）
2,000yen/W （’ 82 ） 1,200yen/W （’ 8
5 ）600yen/W （’ 9
2 ）
Solar cell module manufacturing cost reduction （ achieved by the Sunshine Project)
Installation support (public facilities)
1992 ：
1990 ～： Installation support commenced
R&D Activities （ Cell Manufacturing Technology)
9
Targets ： ・ Crystalline silicon solar cells
Solar cell manufacturing technology development
System technology development
Items for development ： ・ Low cost manufacturing process technologies
Targets ： inverters, peripheral equipment such as storage batteries
Significant reduction of solar cell module manufacturing cost
Significant reduction of peripheral equipment installation price
・ Greater manufacturing efficiency・ Stable material supply
・ Thin-film solar cells・ Compound semiconductor solar cells
(Particularly during the Sunshine Project)
R&D Activities （ System Technology)
NEDO ： Central role in development of PV cell manufacturing technology anddevelopment of system technologies
10
12090 80 70 65 65 63 59 52 48
47
2717
13 13 13 13 12 11 11
200
83
4733 25 23 20 17 16 15
0
50
100
150
200
250
300
350
400
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002
Inst
alla
tion
pric
e of
PV
pow
er g
ener
atio
n sy
stem
s fo
r re
side
ntia
l use
（m
ln y
en/k
W）
・ 1993→2002 ： installation cost of inverters and other equipment decreased1993→2002 ： general system installation price decreased more than 80%
Inverters and peripheral equipment
Installation price reduction of PV power generation systems for residential use
Module priceStandard construction
cost
3.67mln yen/kW
1.43mln yen/kW
1.17mln yen/kW1.03mln yen/kW1.02mln/kW0.96mln/kW
0.87mln/kW
2mln yen/kW
0.79mln/kW0.73mln/kW
Source ： Resources Total System Co., Ltd.
R&D Activities （ System Technology)
more than 90%
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IntroductionThe Basic Guidelines for New Energy
PV installation subsidy system for public utilities
The Electricity Utilities Industry Law revised
Long-term EnergySupply/Demand Outlook
PV installation subsidy system
PV installation subsidy system for
Installation Support Activities
1980 1985 1990 1995 2000 2005
1990
Installation support
The Renewable Portfolio Standard
The Law concerning Promotion of
1992Purchase of surplus PV generated power by
19921993
1994
2003
1994
1997
1998
1998
The Grid Connection Guidelines including
electric companies
adverse currents
residential consumers
the Use of New Energy
for industrial facilities
・ Establishing various guidelines, laws and regulations ・ Setting national targets of PV power introduction・ Subsiding PV system installation
Effective installation support activities are a systematic combination of following procedures :
Guidelines, laws and
National targets
Subsidy system
regulations
12
200
170
120104 102 93 84 75 71 69
0
50
100
150
200
250
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
・ Installation price reduced through installation support activities in addition
Source ： METI
Installation Support Activities (Subsidy Systems)Installation price reduction of PV power generation systems for residential use
1993→2002 ： residential use system installation cost decreased more than 80%
Inst
alla
tion
pric
e of
PV
pow
er g
ener
atio
n sy
ste
ms
for r
esid
entia
l use
（m
ln y
en/k
W）
to the favorable results of R&D activities
13
90 85
5034 34 33
20 12 10 9
110
85
70
70 6860
6463 61 60
0
50
100
150
200
250
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
・ Subsidy rate covering up to one-half during initial expensive price phase
Subsidy
Effective installation price
・ As installation cost decreases, subsidy rates are scaled back
Inst
alla
tion
pric
e of
PV
pow
er g
ener
atio
n sy
ste
ms
for r
esid
entia
l use
（m
ln y
en/k
W）
Installation Support Activities (Subsidy Systems)Effective installation price reduction of PV power generation systems for residential use
Source ： METI
→Actively promote creation of initial demand
→Subsidy rates are scaled back, creating a transition to an unsubsidized market
14
0.2 0.4 0.81.9 2.4
5.8
7.4
9.1
0.4 0.4 0.40.7
0.7
1.01.6
1.4
4.32.6
0
2
4
6
8
10
12
14
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Results of R&D/installation support activities （ Annual Installation Volume ）
Annu
al g
row
th o
f PV
pow
er g
ener
atio
n （
mln
kW
/y）
・ Annual installation volume of PV power generation systems, PV power generation system annual installation volume
Source ： Current status and outlook of the PV power generation industry, 2003 edition (NEDO)
Public/industrial facilities （ subsidized ）
General market （ not subsidized ）
Residential （ subsidized ）
residential volume in particular, is increasing
15
Germany
U.S.A.
IndiaChina Australia Indonesia ItalyHolland
J apan
0
100
200
300
400
500
600
700
800
900
1000
Cum
ula
tive P
V p
ow
er
genera
tion
inst
alla
tion v
olu
me in 2
003
（MW
）
・ Japan’s cumulative installation volume ranks first in the world: approx. 860MW
Cumulative PV power generation installed capacity in 2003
Source ： IEA-PVPS T1-13: 2004
・ Japan 860MW・ Germany 410MW・ USA 275MW・ India 83MW・ China 58MW・ Holland 46MW
Results of R&D/installation support activities （ Cumulative Installed Capacity ）
16
0
100
200
300
400
500
600
700
800
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003
213MW
74MW
127MW
331MW
Annu
al so
lar
cell
pro
duct
ion
volu
me
（MW
/y
）
Annual solar cell production volume・ Japan’s production volume has rapidly increased since 1998: 331MW in 2003・ Accounted for approx. 45% of the world production volume in 2003
Source ： PV news
Japan
U.S.A.
Europe
Other
Japan
Europe
U.S.A.
Other
(2003)
Results of R&D/installation support activities （ Production Volume ）
17
Lessons LearnedLessons learned
Future focus
→Prevents unsubsidized market expansion
・ Establishment of laws, guidelines and regulations
・ Creation of national introduction targets
・ Establishment of subsidy systems
Renewable energies with less advantageous economic aspect:・ Combination of R&D and installation support activities is effective
・ Government’s involvement is important at the initial stage of introduction＜Government’s involvement＞
METI and NEDO continue active implementation of
R&DCost reduction
Creation and expansion of initial market
Increase of production levelInstallati
on support
to promote introduction
The higher cost relative to conventional energy sources still persists
R&D and installation support activities
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Thank you
