Energy Efficiency and Future Cornerstones for Economic Success Yasuo Tanabe Vice President Research Institute of Economy, Trade and Industry (RIETI) “Economic Relations Japan-Switzerland” Conference July 3, 2006, Zug 1. Key Issues and Positions – Energy efficiency as triple bottomline: energy security, environmental sustainability, and economic growth – Three keys: government, market and technology – International cooperation as essential mechanism 1 (1) Energy Intensity of Key Countries Prim ary En e rg y S u pply( to e ) / re al G D P( U S 2 0 0 0 $ ) 2500 2000 1500 1000 500 0 Ru ssia Source IEA (2005) V i e t n am In di a C h in a W o r l d ave r ag e U. S . A . F r an c e G e r m an y U. K . S wi t z e r l an d J apan 2 (2) If the world was Japan,how much CO2 would we have in 2030? CO2 billion 38.2 t 40 35 +62% 30 Current course (IEA) ① 23.6 25 21.1 -11% 20 World as Japan ② 15 10 5 0 2002 Source: ①IEA, World Energy Outlook 2004 ②calculation by Tanabe using Japan’s CO2/GDP and 3.5% p.a. econ. growth (World Economic Prospects) 2030 3 (3) Performance of Japan’s Energy Efficiency GDP and Energy Consumption in Japan 30 real GDP(trillion yen) (10 18 J) 600 510 25 500 real GDP(right axis) (le 22.98 ft primary energy supply axi (left axis) s)16.02 20 15 400 Elasticity 1965-’73 ’73-’79 ’79-’86 ’86-’91 ’91-2003 1.19 0.29 -0.11 0.85 0.71 300 final energy consumption 10 (left axis) 200 7.07 5 100 4.54 0 65 70 75 80 85 90 95 0 00 02 (Fy) Source : METI 4 (4) Performance of Japan’s Energy Efficiency Energy Consumption by Sector in Japan (trillion yen in 2000 price) (兆円、2000年価格) (10 1 8 J) 18 Gulf Cris is Real GDP 523tr.Yen 実質GDP 523兆円 500 16 2nd Oil Crisis 14 Transportation 24% 1st Oil Crisis 12 400 Transportation 17% Residential and Services 28% 10 300 Residential and Services 19% 8 6 Industry 48% Industry 64% 200 4 100 2 0 Source : METI 0 65 70 73 75 7980 85 9091 95 00 03(年度) 5 (5) Performance of Japan’s Energy Efficiency Energy Intensity by Industry in Japan Fy73=100 120 100 80 M a nufa ct ur ing S t ee l C he m ica l C em en t P a p er & P u lp 60 40 20 0 73 78 (energy consumption / IIP) Source : METI 83 88 93 98 03 6 2. Practical Examples (Japanese Experience) – Top-runner standard – CDM – Technologies 7 (1) Top Runner Program Energy Conservation Measures for Machinery & Equipment “Top Runner Program” Concept Conceptfor forsetting settingtarget targetstandard standard Fuel efficiency Energy efficiency standard ((A)is the top runner.) Target value is set based on the products with the highest energy efficiency in the market. 18km/L 17km/L Target Value 16km/L A 15km/L B C 14km/L D Source : ECCJ Weighted Average TRP regulates the weighted average of shipment volume of products in the same category per manufacturers, importer etc., in terms of energy efficiency. Currently Currentlydesignated designatedproducts products Total 21 products designated 1. Air conditioners 2. Fluorescent lights 3. Television sets 4. Copying machines 5. Computers 6. Magnetic disk units 7. Video cassette recorders 8. Passenger vehicles 9. Freight vehicles 10. Electric refrigerators 11. Electric freezers 11 products designated in 1999 12. Space heaters 13. Gas cooking appliances 14. Gas water heaters 15. Oil water heaters 16. Electric toilet seats 17. Vending machines 18. Transformers (molded) 7 more products designated in 2002 19. Electric Ovens 20. Electric Rice Cookers 21. DVD Recorders 3 more products designated in 2006 8 (1) Top Runner Program Actual Improvement of Energy Saving in Target Fiscal Year Actual Initial Expected Improvement Energy Saving (%) Energy Saving (%) compared to the compared to the Base Year at the Base Year at the Targetl Year Target Year Base Year Target Year FY1997 FY2004 63.0 67.8 FY1997 FY2003 16.4 25.7 VCRs FY1997 FY2003 58.7 73.6 Electric refrigerators FY1998 FY2004 30.5 55.2 Electric freezers FY1998 FY2004 22.9 29.6 Gasoline Passenger Vehicles FY1998 FY2004 23.0 (*) 22.0 Equipment Air Conditioners (below 4kW) TV sets <Cathode Ray TV> Source : ECCJ (*) 1995->2010 9 (2) CDM : Model Project in Vietnam JAPAN NEDO (Entrusted to) MYCOM VIETNAM CERs Credit Transfer Agreement Transfer of CERs Implementation of equipment MOI HABECO Permits & Supervising BTH NEDO: New Energy & Industrial Technology Development Organization MYCOM: Mayekawa MFG. Co., Ltd. BTH: Bia Thanh Hoa HABECO: Hanoi Alcohol Beer Beverage Corp. MOI: Ministry of Industry Source : NEDO 10 (2) CDM : Model Project in Vietnam Introduced Energy-saving Energy-saving Systems Latest VRC System Optimal Pasteurizing System C C V B B T Chiller Chiller Chiller Economical Methane recovery System Cascade Cooling System Dynamic Ice Storage/Transportation System Source :NEDO 11 (2) CDM : Model Project in Vietnam Effect of the proposed 4 systems Steam Electric power Vapor Recompression Cycle Saving steam by Reusing the discharged steam Additional power Mitigating the required strong odor to outside Refrigeration system Saving steam by heat recovery from discharge gas Saving power Effective demand-side management Optimizing system for pasteurizer Saving steam by optimization No effect Saving water consumption Biogas Boiler Steam generation by Biogas No effect Anaerobic wastewater treatment added Energy-saving: CO2 emission reduction: Source :NEDO 3,386 Toe 10,376 Ton Others 12 (3)Technology ①Photovoltaic Progress of PV R&D in Japan R&D Items R&D Results 2000 Back Reflector (NSS Project Completed) poly-Si Bottom Cell Thin Film Silicon Solar Cells (140 yen/W) <Hybrid TF-Si Solar Cells > Low Cost SOG-Si Production Process <BIPV module> Interlayer 1997 a-Si Top Cell <CIS solar Cells> Textured TCO Glass Substrate NEDO’s Present R&D Programs for Low Cost Solar Cells and Module Production <TF-Si Solar Cells > Low Cost mc-Silicon Solar Cells Production Technology (Efficiency = 17.2%, 189 yen/W) <III-V high eff. Solar cells> 1992 Sun-Light Technology for a-Si Solar Cells Production <PV System Demonstration > Residential PV System Technology <1MW Demonstrate PV plant (Saijyo)> <Grid Connected PV System> <Amorphous Silicon Solar Cells> 1980 <II-VI compound Solar cells> <Crystalline Silicon Solar Cells> 1973 1MW PV Power Plant Textured surface 500 KW Pilot Production- Line for mc-Si Solar Cells Printing fine-electrode AR-coating Establishment of NEDO Basic Technology for Silicon Solar Cells (wafer, cell-process) (SS Project Initiated) BSF Source :NEDO 13 (3)Technology ①Photovoltaic Photovoltaic Application in the World (MW) 1200 2004 World 2596MW 1000 800 600 400 200 0 Japan Germany U.S Austraria Netherland Spain Italy France Source : METI 14 (3)Technology ①Photovoltaic Photovoltaic Application in Japan (¥million) 4 (MW) 1200 1132 System price(¥million/kw)(Left bar) Appilication with subsidy(cumulative)(Right bar) All application(cumulative)(Right bar) 1100 1000 3 900 795 800 700 2 600 500 400 1 300 0.67 200 100 0 0 93 Source : METI 94 95 96 97 98 99 00 01 02 03 04 (year) 15 (3)Technology ②Fuel Cell Fuel Cell Applications For For Households Households FUEL CELL H2 For For Mobile Mobile Computers Computers Source : METI For For Vehicles Vehicles O2 H2O For For Industry Industry 16 (3)Technology ②Fuel Cell Japan’s Targets and Policies FCV Stationary PEFC 2010 2010 50,000 50,000 2020 2020 5M 5M 2030 2030 15M 15M 2002 R&D R&D Stage Stage Infra Demonstration Project Codes Review of Regulations R&D R&D on FC and H2 2010 2010 2.1GW 2.1GW 2020 2020 10 10 GW GW 2030 2030 12.5 12.5 GW GW 2005- 2020- 2010- Introduction Introduction Stage Stage Diffusion Diffusion Stage Stage Step-by-step Construction Full-Scale Full-Scale Diffusion Diffusion Stage Stage Grow Naturally Further R&D Source : METI 17 (3)Technology ③Hybrid Car Clean Energy Cars in Japan ( numbers of Hybrid ) ( numbers ) 30,000 250,000 Natural Gas Car(Left bar) Electric Car(Left bar) Methanol Car(Left bar) Hybrid Car(Right bar) 25,000 200,000 20,000 150,000 15,000 100,000 10,000 50,000 5,000 0 0 88 Source : METI 90 92 94 96 98 00 02 04 ( year-end ) 18 (3)Technology ④ Heat pump Source : IEA Heat pump center 19