[Japan] Tohoku Electric Power Will Establish Tohoku Frontier to Strengthen the Monetization Strategies for Its Smart Society Businesses

Tohoku Electric Power (Tohoku, Headquarters: Sendai City, Miyagi Prefecture) announced on February 25, 2021 that it has decided to establish a new subsidiary, Tohoku Electric Power Frontier (Tohoku Frontier), to strengthen the monetization of its smart society business development projects.

Tohoku’s smart society business activities are part of multiple goals laid out in the Tohoku Group’s Medium to Long-Term Vision. Tohoku plans to officially establish Tohoku Frontier in April 2021. The headquarters of the company will be located in Sendai City, Miyagi Prefecture.

Tohoku Frontier will leverage next-generation digital technologies and innovations to sell a wide variety of customer-oriented services that are integrated with electricity rate plans. Based on energy management technologies, the services will allow customers to save, generate, and store their energy. For instance, Tohoku Frontier will offer a bundle service to combine an electricity plan with a solar energy/storage battery installation service. The service will be exclusively provided by Tohoku Solar eCharge, which is scheduled to be established in April 2021, and will start business during the second half of FY 2021.

Tohoku Group plans to contribute to the move forward towards a smart and sustainable society by providing a wide range of innovative services that address social issues through Tohoku Frontier.[1] [2] [3]

[1] https://www.tohoku-epco.co.jp/news/normal/1219088_2558.html

[2] https://www.tohoku-epco.co.jp/news/normal/1219085_2558.html

[3] https://www.tohoku-epco.co.jp/news/normal/__icsFiles/afieldfile/2021/02/25/b1_1219085.pdf

[Japan] Kansai Electric Power, Chugoku Electric Power and J-Power Each Released 2050 Carbon Neutrality Roadmaps

On February 26, 2021, two Japanese electric utilities and one power producer-- Kansai Electric Power (KEPCO, Headquarters: Osaka City, Osaka Pref.), Chugoku Electric Power (‎EnerGia, Headquarters: Hiroshima City, Hiroshima Pref.), and J-Power (Headquarters: Tokyo)--each announced 2050 carbon-neutral realization roadmaps.

KEPCO’s Zero Carbon Vision 2050 envisions three key pillars to achieve its goal of carbon neutrality by 2050: demand-side carbon neutral strategies, supply-side zero emission management, and adjusting to a transition into a hydrogen society. It emphasizes the importance of accelerating the adoption of new technologies, including hydrogen, ammonia, and Carbon Capture Utilization and Storage (CCUS) which mainly focuses on carbon-recycling technologies. It plans to expand the deployment of ammonia mixed fuel combustion into its existing coal-fired power plants and will utilize CCUS to tackle the CO2 generated by existing plants. KEPCO will also increase the deployment of offshore wind power and distributed energy resources (DERs) as well as  develop next-generation advanced nuclear reactors.[1] [2]

EnerGia also aims to be carbon neutral by 2050 and has set a goal to increase its renewable energy output from 300MW to 700MW. Like KEPCO, EnerGia plans to reduce the CO2 emissions from its coal-fired power plants by utilizing CCUS technologies and an ammonia mixed fuel combustion method. In recent years, EnerGia has conducted a demonstration project for the method at Mizushima Power Station in Okayama Prefecture. Meanwhile, the company has been contributing to the development of hydrogen power through the Osaki CoolGen Project. The project, which has been operating since FY2012, aims to assess the feasibility of Integrated Coal Gasification Fuel Cell Combined Cycle (IGFC) and Integrated Coal Gasification Combined Cycle (IGCC).[3] [4] [5] [6] [7]

J-Power, Japan’s largest coal-fired power operator, aims to reduce its CO2 emissions by 40% by 2030, and be carbon neutral by 2050 by achieving the following goals:

·       Replace its old coal-fired power plants with hydrogen power plants

·       Accelerate the expansion of renewable energy, including onshore and offshore wind power and geothermal power, and increase their output from 9.5GW (FY2017) to 10.5GW by FY 2025

·       Promote the development of the Ohma Nuclear Power Plant Project

·       Improve power infrastructure for widespread introduction of renewable energy in the future[8] [9] [10]

[1] https://www.kepco.co.jp/corporate/pr/2021/0226_3j.html

[2] https://www.kepco.co.jp/corporate/pr/2021/pdf/0226_3j_01.pdf

[3] https://www.osaki-coolgen.jp/project/overview.html

[4] https://www.energia.co.jp/press/2021/13005.html

[5] https://www.energia.co.jp/assets/p20210226-1b.pdf

[6] https://www.energia.co.jp/assets/p20210226-1a.pdf

[7] https://sustainablejapan.jp/2021/02/27/j-power-kepco-carbon-neutral/59484

[8] https://www.jpower.co.jp/news_release/pdf/news210226_4-2.pdf

[9] https://www.jpower.co.jp/news_release/pdf/news210226_4-3.pdf

[10] https://www.jpower.co.jp/news_release/2021/02/news210226_4.html

[Japan] Japan Ministry of Economy, Trade and Industry Released a Roadmap for Expanding the Use of Ammonia

The Public-Private Fuel Ammonia Promotion Council, led by the Agency for Natural Resources and Energy (ANRE) under Japan’s Ministry of Economy, Trade and Industry (METI), released an interim report on its work after holding its third meeting on February 8, 2021. From now on, the council will be held about once every six months to review the progress made by the public and private sectors.

In December 2020, METI issued the Green Growth Strategy towards 2050 Carbon Neutrality Action Plan, which describes actions to achieve a carbon neutral society by 2050 and identifies fourteen policy priority areas, one of which is increasing the use of ammonia. Based on the Action Plan and the third meeting, the committee’s interim report highlights challenges and issues in expanding the use of ammonia and the roles of the public and private sectors to be addressed.

The interim report elaborates on the four key priorities to work towards the expansion of ammonia use, as follows:

1)   Stabilize the supply of fuel ammonia

2)   Reduce costs of ammonia utilization in terms of procurement, production, transportation, and storage

3)   Tackle CO2 emissions by adopting an ammonia mixed fuel combustion; and

4)   Advance the overseas expansion of the use of ammonia.

The interim report also formulates a roadmap for introducing and expanding the use of ammonia. The report has estimated that Japan will need 3 million tons of ammonia per year in 2030 and 30 million tons per year in 2050. The current price of ammonia in Japan is in the low 20s Japanese yen ($0.21 USD[1]) per Nm3, and the council aims to reduce the price to the high 10s yen ($0.18USD) per Nm3 by 2030.

The report has set 2030 and 2050 goals to meet Japan’s needs for ammonia. By 2030, Japan aims to introduce and deploy 20% ammonia mixed fuel combustion into coal-fired power plants. By 2050, Japan aims to increase the mixed fuel combustion ratio to nearly 50%. In the long term, Japan aims to establish a supply chain that will ensure a stable ammonia supply in Japan and overseas.[2] [3]

[1] ¥ 1 = $ 0.0095 USD. Based on the exchange rate as of February 23, 2021.

[2] https://www.meti.go.jp/shingikai/energy_environment/nenryo_anmonia/20200208_report.html

[3] https://www.meti.go.jp/shingikai/energy_environment/nenryo_anmonia/pdf/20200208_1.pdf

[Japan] TEPCO Renewable Power Joined an Offshore Wind Demonstration Project

On February 4, 2021, TEPCO Renewable Power (TEPCO RP, Headquarters: Tokyo) announced that it has joined Denmark’s TetraSpar Demonstrator, a demonstration project for testing the TetraSpar floating offshore wind foundation. The project was jointly launched by RWE Renewables (RWE, Headquarters: Essen, Germany), a leading renewable energy solutions provider; Shell New Energies (Shell, Headquarters: The Hague, Netherlands); and Stiesdal Offshore Technologies (SOT, Headquarters: Odense C, Denmark), a Danish company that develops wind power technologies. TEPCO RP will own a 30% share of the TetraSpar Demonstrator.

The project has assembled the TetraSpar floating offshore wind turbine foundation at the port of Grenaa in Denmark. TEPCO RP will contribute its efforts to the project by providing its technical knowledge from the electric power business that Tokyo Electric Power (TEPCO, Headquarters: Tokyo) has developed over the years.

The wind turbine foundation is comprised of a tubular steel pipe and a floating keel. The tubular pipe was manufactured by Welcon (Headquarters: Give, Denmark). The pipe was delivered to the port of Grenaa, Denmark in the summer of 2020 and was assembled on the site in less than two months. It was assembled quickly because TetraSpar does not require specific processes such as welding at the time of assembly, and because the project has validated the assembling and manufacturing method. Compared to other floating wind turbines, it is likely that the TetraSpar design concept has an advantage in simplifying the manufacturing, assembly and installation processes and reducing costs.

The project plans to mount the wind turbine on the foundation and then test it at the Marine Energy Test Centre (Metcentre) near Stavanger, Norway, where it will be fixed to the seabed with three anchor lines and connected to the power grid. The turbine is expected to start its operations in the summer of 2021. It will have an output of 3600 kW. The four companies hope that the project will: provide them with experience and knowledge in offshore wind turbine construction, installation, and operation; that it will refine the TetraSpar technology; and that the project will help to expand the use of offshore wind power.[1]

[1] https://www.tepco.co.jp/rp/about/company/press-information/press/2021/1572776_19679.html

[Japan] Okinawa Electric Power Invested in NEXTEMS, a Japanese Energy Aggregator

Okinawa Electric Power (OEPC, Headquarters: Urasoe City, Okinawa Pref.)[1] announced on February 4, 2021 that it has invested in NEXTEMS, a Japanese energy aggregator (Ginowan City, Okinawa Pref.), and will own 23.4% of the shares of the company. NEXTEMS will become an affiliate of OEPC.

NEXTEMS, established in April 2018, provides customers with energy products, including solar power generation systems, battery storage, and EcoCute.[2] The company has been conducting demonstration tests of distributed energy resources’ (DERs) remote monitoring and control with controllable loads. The demonstration tests have been primarily in the Miyakojima area. OEPC and NEXTEMS had previously cooperated to jointly promote renewable energy service providers’ businesses in Miyakojima, and their cooperation helped the area to receive the prestigious New Energy Award in the First Fiscal Year of Reiwa Era (FY 2019) from the New Energy Foundation (NEF, Headquarters: Tokyo)[3], a Japanese organization that promotes the development of renewable energy technologies.

Promoting renewable energy as a main power source is one of OEPC’s focus areas under its long-term Zero Emission Initiative to tackle climate change. Leveraging NEXTEMS’s knowledge and experience with installing DERs control systems, OEPC aims to develop the new solar power and storage battery service that was announced in January 2021.[4]

[1] https://www.nextems.co.jp/profile/

[2] EcoCute is an energy efficient electric heat pump, water heating and supply system.

[3] https://www.nef.or.jp/english/aboutnef.html

[4] https://www.okiden.co.jp/shared/pdf/news_release/2020/210204.pdf

[Japan] Japan to bolster transition to LNG in Asian countries

The Ministry of Economy, Trade and Industry (METI) held a meeting of experts on February 19, 2021 and indicated a policy that would support the introduction of liquefied natural gas (LNG) in Asian countries. [1] The Japanese government plans to encourage the introduction of LNG infrastructure not only at LNG thermal power plants but also at LNG receiving bases and liquefaction facilities. Additionally, the Japanese government plans to support the gradual decarbonization efforts of Asian countries.

Coal is a major source of energy for countries such as Indonesia and Vietnam due to its affordability. According to the METI, a shift from coal to LNG in seven Asian countries—India, Indonesia, Vietnam, the Philippines, Malaysia, Thailand, and Myanmar—would reduce carbon emissions by about 864 million tons and increase LNG demand by 16 million tons. According to the minister of METI, increased demand for LNG in other Asian countries will lead to higher levels of production by countries in the region and may lower procurement costs of the energy source. Japan is the world’s largest LNG consumer and relies on LNG for nearly 40% of total power production. The country’s main suppliers are Australia, Qatar and the United States, but Japan is hoping to expand production in Asian countries. The increased effort to reduce purchasing costs and guarantee LNG supply follows an unseasonably cold winter which coincided with depleted LNG stocks.

[1] https://www.japantimes.co.jp/news/2021/02/23/business/lng-coal-energy/

[Japan] Mitsubishi Heavy Industries Engine & Turbocharger Conducted a Combustion Test for a Pure Hydrogen Engine in Collaboration with AIST

On January 21, 2021, Mitsubishi Heavy Industries Group (MHI, Headquarters: Tokyo) announced that its subsidiary company, Mitsubishi Heavy Industries Engine & Turbocharger (MHIET, Headquarters: Sagamihara, Kanagawa Prefecture), had conducted a combustion test for a pure hydrogen engine in collaboration with Japan’s National Institute of Advanced Industrial Science and Technology (AIST, Headquarters: Tokyo), a Japanese research institute.

This combustion test installed a modified single cylinder gas engine (bore 170mm x stroke 220mm) made by MHIET at the AIST Fukushima Renewable Energy Institute in Koriyama City, Fukushima Prefecture. The test aims to validate and confirm certain conditions for combusting hydrogen without emitting CO2.

MHIET and the MHI Research and Innovation Center have jointly developed and produced the hydrogen engine by leveraging their knowledge of hydrogen combustion technologies, diesel engines, and natural gas engines. Since AIST has prior experience in developing large-scale, high-power, high thermal efficiency, and low NOx hydrogen engines, the research institute has been responsible for building and testing the hydrogen power generation facility, as well as collecting data from the test. Based on the test results, the hydrogen power output is expected to increase up to 340kW for a 6-cylinder engine and 920kW for a 16-cylinder engine. MHIET plans to conduct further tests and gather more data in order to build a multi-cylinder hydrogen engine with 1MW of output.

Both MHI and MHIET have prior experience in hydrogen R&D: MHI has been developing zero-CO2 emission products, while MHIET has also been developing hydrogen engines and has been partnering with AIST to conduct hydrogen engine combustion research since FY2019. MHIET plans to replace its gas engine generator with EBLOX, its triple-hybrid, self-sustaining power supply system, including a hydrogen engine generator. MHI has stated that it will continue to contribute to an energy-stable and carbon-free society by utilizing solar power, batteries, and hydrogen energy.[1]

[1] https://www.mhi.com/jp/news/210121.html

[Japan] Daigas Group Released its Carbon Neutral Vision to achieve the 2050 Carbon Neutrality Action Plan

On January 25, 2021, Daigas Group (Daigas, Headquarters: Osaka), Osaka Gas’s parent company, released its Carbon Neutral Vision (the Vision), as part of its contribution to the national goal of achieving carbon neutrality by 2050.

In the Vision, Daigas underscores the importance of the reduction of CO2 emissions, since technological innovation to achieve carbon neutrality will require significant time and tremendous social costs. The Vision lays out targets to achieve Daigas’ goals and action targets by 2030 as follows:

·       Increase its renewable energy deployment to reach a total of 5GW[1] (inside and outside Japan) by developing and owning their energy sources, as well as promoting procurement from others

·       Aim to increase Daigas’ renewable energy share to approximately 50% of the company’s domestic energy portfolio

·       Reduce annual CO2 emissions from 33 million tons to 10 million tons

Daigas has already contributed to a wide range of research and development activities on the latest technologies, including methanation and hydrogen production technologies. Based on the Vision, Daigas plans to 1) build a hydrogen energy network; 2) decarbonize the CO2 emissions of its gas business by utilizing methanation technology; and 3) reduce the CO2 emissions of its electric generation business by expanding the use of renewable energy. With its new Vision, Daigas will continue to accelerate research and development activities by promoting alliances with various industry-government-academia partner companies.[2]

[1] As of December 2020, the total amount of renewable energy sources that had already been developed was approximately 0.7 GW, including wind, solar, and biomass, both inside and outside Japan.

[2] https://www.osakagas.co.jp/company/press/pr2021/1291446_46443.html

[Japan] J-Power has Begun Hydrogen Production for a Japan-Australia Hydrogen Energy Supply Chain Pilot Project

J-Power, a Tokyo-based Japanese power producer, announced on February 1, 2021 that it has begun hydrogen production at a coal gasification and hydrogen refining facility located in Latrobe Valley, Victoria, Australia. The hydrogen production is part of its Japan-Australia Hydrogen Energy Supply Chain Pilot Project, which aims to develop and demonstrate technologies for hydrogen production, storage and distribution, and to facilitate the creation of a hydrogen supply chain in Japan.

The project is financially supported by the Victoria state government and the New Energy and Industrial Technology Development Organization (NEDO, Headquarters: Tokyo), a Japanese public R&D funding organization. The CO₂-free Hydrogen Energy Supply-chain Technology Research Association (HySTRA)[1] and the Australian Consortium[2] are also cooperating in the project. HySTRA is also separately carrying out a demonstration project led by NEDO for the establishment of a mass hydrogen marine transportation supply chain derived from unused brown coal (lignite).[3]

Victoria has abundant lignite resources. The coal has a high moisture content and is considered unsuitable for exporting and it is normally exclusively used by power plants adjacent to the mining sites. However, lignite can be converted into a syngas containing hydrogen. J-Power believes that the hydrogen from undeveloped lignite reserves in Australia has the potential to accommodate Japan's electricity demand. The project therefore aims to optimize the utilization of Australia’s lignite. J-Power is responsible for operating the demonstration facility for the coal gasification and hydrogen refining.

The hydrogen generated at the demonstration plant will be shipped from the port of Hastings in Victoria, Australia to the hydrogen discharging terminal on Kobe Airport Island. In the future, J-Power will collaborate and integrate with the CarbonNet project, a CO2 storage project being promoted by the Commonwealth of Australia and the Victoria state government, in order to manage the CO2 generated from the project. The by-product CO2 will be captured and stored underground. Through these projects, J-Power hopes to contribute to the formation of a hydrogen supply chain in Japan, as well as the realization of a decarbonized society. [4] [5]

[1] The CO₂-free Hydrogen Energy Supply-chain Technology Research Association (HySTRA) comprises J-Power; Iwatani (Headquarters: Osaka City, Osaka Prefecture), a trading company supplying gases for industrial and household use; Kawasaki Heavy Industries (KHI, Headquarters: Tokyo) , a heavy machinery manufacturer; Shell Japan (Headquarter: Tokyo); Marubeni (Headquarters: Tokyo), a Japanese major integrated trading and investment business conglomerate; ENEOS (Headquarters: Tokyo), a petroleum company; and Kawasaki Kisen Kaisha (Headquarters: Tokyo), a Japanese transportation company.

[2] The Australian consortium consists of J-Power, Iwatani (Headquarters: Osaka City, Osaka Prefecture), a trading company supplying gases for industrial and household use; Kawasaki Heavy Industries (KHI, Headquarters: Tokyo), a heavy machinery manufacturer; Marubeni (Headquarters: Tokyo), a Japanese major integrated trading and investment business conglomerate; Sumitomo (Headquarters: Tokyo), a Japanese major integrated trading and investment business conglomerate; and AGL Energy (Headquarters: Sydney, Australia), an Australian utility.

[3] http://www.hystra.or.jp/about/

[4] https://www.jpower.co.jp/news_release/2021/02/news210201.html

[5] https://www.jpower.co.jp/english/news_release/pdf/news210201e.pdf

[Japan] Japanese energy minister says nuclear critical to hitting 2050 net zero goal

In an interview with the Financial Times published on February 1, 2021, Japan’s Minister for economy, trade, and industry Hiroshi Kajiyama said nuclear power will be crucial for meeting Japan’s energy goals and that the energy shortages this winter have helped to shift public debate over the nuclear sector.[1] In October 2020, Prime Minister Yoshihide Suga announced that Japan will aim to be net-zero emissions by 2050. Analysis by the Ministry of Economy, Trade and Industry (METI) has found that it will be hard to supply more than 60% of Japan’s electricity needs from renewables. The country’s lack of flat empty land for solar panels and its deep oceans that raise the cost of offshore wind “mean it is not as easy to introduce renewables as in Europe or North America,” said Kajiyama.

Prior to the 2011 Fukushima disaster, Japan's nuclear generating capacity provided around 30% of the country's electricity. However, most of Japan’s nuclear generation has laid dormant pending regulatory change and just 9 of the country’s 33 operable reactors have been restarted. Another 16 reactors have applied to restart and two reactors under construction are under review, but opinion polls show continuing opposition to the industry. Kajiyama, who has previously worked in the nuclear industry, said, "Personally, I think nuclear power will be indispensable." Kajiyama described Japan’s electricity supply as “touch-and-go” during heavy snowfall in January 2021, saying, “Solar wasn’t generating. Wind wasn’t generating.” The issue in a portion of customers experiencing high electricity bills due to tight energy supplies in the country and the subsequent soaring wholesale power market prices. “I’m trying to persuade everybody that in the end we need nuclear power,” he said.

[1] https://www.ft.com/content/47b189de-bb5e-409b-87b9-86405661fc03

[Japan] Tohoku Electric Power Began Adopting Non-Firm Grid Connection Method to Adapt to Increase the Use of Renewable Energy

On January 13, 2021, Tohoku Electric Power (Tohoku, Headquarters: Sendai City, Miyagi Prefecture) announced it has adopted a non-firm grid connection method to give operators more flexibility to control the power output generated from renewable energy generation, in order to better deal with increased sources of renewable energy. The grid connection is a method of connecting and accessing new energy sources by utilizing the free available capacity of power transmission and transformation equipment, including transmission lines. The non-firm method also allows operators to curtail their output, along with their capacity status, even in normal times.[1] The Japanese government has directed all of its transmission and distribution operators to begin to adopt the non-firm method from January 13, 2021. As part of the government’s directive, Tohoku decided to adopt the method for its bulk-power systems with 500kV and 270kV, in order to optimize the management of the power generated by renewable resources.

The Subcommittee on the Introduction of Renewable Energy and Next-Generation Power Network[2], developed by the Agency for Natural Resources and Energy (ANRE) under Japan’s Ministry of Economy, Trade and Industry (METI), and the Wide-Area System Maintenance Committee[3] of the Organization for Cross-Regional Coordination of Transmission Operators, Japan (OCCTO, Headquarters: Tokyo), have studied the non-firm grid connections and have promoted the adoption of this method. Based on their findings, Tohoku has therefore decided to utilize the non-firm grid connection method. Tohoku will make an announcement once the method has been adapted to Tohoku’s systems.[4]

[1] https://nw.tohoku-epco.co.jp/news/normal/__icsFiles/afieldfile/2021/01/13/21011302.pdf

[2] https://www.meti.go.jp/shingikai/enecho/denryoku_gas/saisei_kano/index.html

[3] https://www.occto.or.jp/iinkai/kouikikeitouseibi/

[4] https://nw.tohoku-epco.co.jp/news/normal/1218240_2394.html

[Japan] Chugoku Electric Power Invested in Live Smart KK

Chugoku Electric Power (‎EnerGia, Headquarters: Hiroshima City, Hiroshima Pref.) announced on January 14, 2021 that it has invested in Live Smart KK (Live Smart, Headquarters: Tokyo), a venture company established in 2016 that provides smart home devices and service platforms based on Artificial Intelligence (AI) and Internet of Things (IoT) to support customers’ convenient and comfortable living. The investment amount has not been disclosed. This is the fifth time that EnerGia has invested in a start-up company.

A smart remote controller developed by Live Smart can control a wide variety of home appliances and equipment. Through EnerGia’s IoT platform, the controller can provide users with various AI-powered energy management services, such as setting individualized preferences for air conditioners.

Smartphones and smart speakers have become essential devices for many people, and the smart home market is expected to grow in the future. EnerGia sees this growth as an opportunity for Live Smart’s service platform, which can improve user’s lives and energy efficiency, to grow significantly in the future. Therefore, the company decided to invest in Live Smart and will consider future collaborations.[1]

[1] https://www.energia.co.jp/press/2021/12917.html

[Japan] Tokyo Electric Power and Nippon Telegraph and Telephone Launched a Joint Demonstration Test for a Renewable Energy Direct Current Power System in Chiba City

On January 14, 2021, Tokyo Electric Power (TEPCO, Headquarters: Tokyo) announced that its partner company, NTT Anode Energy (Headquarters: Tokyo), has launched a demonstration test for a renewable energy direct current (DC) power system in Chiba City. NTT Anode Energy is a subsidiary of Nippon Telegraph and Telephone (NTT, Headquarters: Tokyo), a Japanese telecommunications company that offers smart energy solutions. The project will also collaborate with TN Cross (Headquarters: Tokyo), jointly owned by TEPCO and NTT, which provides smart energy management systems.

 

The demonstration test is part of their pilot project “Toward the Realization of a Smart Energy City for Chiba City” which was launched in April 2020. The project is studying the following items:

1)   Supporting the development of backup power systems at evacuation shelters,

2)   Promoting the use of renewable energies and improve disaster resilience by utilizing the DC power system,

3)   Maximizing the energy value through the effective use of Information and Communications Technology (ICT) in both normal times and emergencies.

The project aims to achieve the 2) goal above in order to support Chiba city’s transition to a smart city that promotes the introduction of renewable energies and enhance the disaster resilience. According to NTT Anode Energy, this is the first project of its kind to provide DC power from private companies and municipalities to off-site third parties’ facilities, using their own lines.

 

The test will install and use a 59 KW solar power generation system with 36 kWh storage batteries at an idle area of land owned by NTT East (Headquarters: Tokyo[1]). In the event of a power outage, Shirai Junior High School, one of Chiba city’s designated evacuation shelters, will be supplied with renewable energy generated by the installed equipment. The project will demonstrate and verify the operational procedure and the power quality of the power supply system for shelters during emergencies; the power supply system by solar power generation and energy storage battery for communications equipment in normal times; and the utilization of the power system with solar power generation with storage batteries during disasters.[2]

[1] https://www.ntt-east.co.jp/en/aboutus/profile.html

[2] https://www.tepco.co.jp/press/release/2021/1570026_8711.html

[Japan] Japanese energy minister says nuclear critical to hitting 2050 net zero goal

In an interview with the Financial Times published on February 1, 2021, Japan’s Minister for economy, trade, and industry Hiroshi Kajiyama said nuclear power will be crucial for meeting Japan’s energy goals and that the energy shortages this winter have helped to shift public debate over the nuclear sector.[1] In October 2020, Prime Minister Yoshihide Suga announced that Japan will aim to be net-zero emissions by 2050. Analysis by the Ministry of Economy, Trade and Industry (METI) has found that it will be hard to supply more than 60% of Japan’s electricity needs from renewables. The country’s lack of flat empty land for solar panels and its deep oceans that raise the cost of offshore wind “mean it is not as easy to introduce renewables as in Europe or North America,” said Kajiyama.

Prior to the 2011 Fukushima disaster, Japan's nuclear generating capacity provided around 30% of the country's electricity. However, most of Japan’s nuclear generation has laid dormant pending regulatory change and just 9 of the country’s 33 operable reactors have been restarted. Another 16 reactors have applied to restart and two reactors under construction are under review, but opinion polls show continuing opposition to the industry. Kajiyama, who has previously worked in the nuclear industry, said, "Personally, I think nuclear power will be indispensable." Kajiyama described Japan’s electricity supply as “touch-and-go” during heavy snowfall in January 2021, saying, “Solar wasn’t generating. Wind wasn’t generating.” The issue in a portion of customers experiencing high electricity bills due to tight energy supplies in the country and the subsequent soaring wholesale power market prices. “I’m trying to persuade everybody that in the end we need nuclear power,” he said.


[1] https://www.ft.com/content/47b189de-bb5e-409b-87b9-86405661fc03

[Japan] Kyushu Electric Power and SB Power Launched a Joint Demonstration Test for a Demand Response Smartphone Service for Residential Customers

Kyushu Electric Power (Kyuden, Headquarters: Fukuoka City, Fukuoka Prefecture) and SB Power, a retail electric provider which is a subsidiary of the SoftBank Group (Headquarters: Tokyo), announced on December 17, 2020, that they have launched a joint demonstration test for a Demand Response (DR) Smartphone Service for residential customers.

The demonstration test will operate in FY2020 through SB Power's DR service for residential customers. The service is an AI-based demand forecasting system which utilizes electric energy data that is obtained every 30 minutes from Kyushu Electric Power Transmission and Distribution (Headquarters: Fukuoka City, Fukuoka Prefecture). Kyuden customers who have registered to join the demonstration test will use an app called Beautiful Life Plus DR, which was designed by SB Power and customized by Kyuden. As an incentive for customers to save energy through the program, the participants will receive PayPay Bonus, an e-payment credit to be utilized for shopping. The platform was provided by PayPay, a mobile payment provider jointly owned by SoftBank and Yahoo Japan (Headquarters: Tokyo).

DR has recently become more critical in Kyushu Prefecture due to the increase in the use of solar power generation, and the new DR service therefore aims to help optimize the local supply and demand balance of electricity. Kyuden and SB Power hope that the service will assist Kyuden to reduce its supply costs, while also helping customers to save energy and costs.[1]

[1] http://www.kyuden.co.jp/press_h201217-1.html

[Japan] Federation of Electric Power Companies Established the 2050 Carbon Neutral Realization Promotion Committee

On December 18, 2020, the Federation of Electric Power Companies (FEPC, Headquarters: Tokyo[1])[2] announced that it has established the 2050 Carbon Neutral Realization Promotion Committee. FEPC is an industry organization of the electric utilities in Japan that supports the harmonization of electric development planning. The committee will consider and discuss solutions to overcome various barriers for electric power businesses to achieve Japan’s 2050 carbon neutrality goal, which was announced by the Suga administration in October 2020.

The Committee will discuss five significant issues for achieving carbon neutrality: 1) Maximizing the use of nuclear power; 2) Making renewable energy Japan’s main energy source; 3) Promoting the development of low-carbon thermal power generation and decarbonization technologies; 4) Innovating new technology development (technologies include hydrogen, ammonia, Carbon Capture Utilization and Storage (CCUS)), carbon recycling, and next-generation furnaces); and 5) Promoting electrification. Based on the discussions, the committee will create and publish a roadmap and action plan.

The major members of the committee include Hokkaido Electric Power (HEPCO, Headquarters: Sapporo City, Hokkaido Prefecture[3]), Tohoku Electric Power (Tohoku, Headquarters: Sendai City, Miyagi Prefecture), Tokyo Electric Power (TEPCO, Headquarters: Tokyo), Chubu Electric Power (Chuden, Headquarters: Nagoya City, Aichi Pref.), Hokuriku Electric Power (Rikuden, Headquarters: Toyama City, Toyama Pref.), Kansai Electric Power (KEPCO, Headquarters: Osaka City, Osaka Pref.), Chugoku Electric Power (‎EnerGia, Headquarters: Hiroshima City, Hiroshima Pref.), Shikoku Electric Power (Yonden, Headquarters: Takamatsu City, Kagawa Pref.), Kyushu Electric Power (Kyuden, Headquarters: Fukuoka City, Fukuoka Pref.), Okinawa Electric Power (OEPC, Headquarters: Urasoe City, Okinawa Pref.), Japan Nuclear Fuel (JNFL, Headquarters: Aomori Pref.[4]), Japan Atomic Power Company (JAPC, Headquarters: Tokyo), and J-Power (Headquarters: Tokyo).[5][6]

[1] https://www.fepc.or.jp/about_us/outline/soshiki/index.html

[2] https://www.fepc.or.jp/about_us/pr/oshirase/__icsFiles/afieldfile/2020/12/18/press_20201218.pdf

[3] http://www.hepco.co.jp/english/company/corporateprofile.html

[4] https://www.jnfl.co.jp/ja/company/about/

[5] https://www.fepc.or.jp/about_us/outline/soshiki/index.html

[6] https://www.fepc.or.jp/about_us/pr/oshirase/__icsFiles/afieldfile/2020/12/18/press_20201218.pdf

[Japan] Japanese Ministry of Economy, Trade and Industry Issued its Green Growth Strategy towards 2050 Carbon Neutrality Action Plan

On December 25, 2020, the Ministry of Economy, Trade and Industry of Japan (METI) unveiled the Green Growth Strategy towards 2050 Carbon Neutrality Action Plan, which describes actions to achieve a carbon neutral society by 2050, a goal that was declared by Prime Minister Suga in October 2020.

The Action Plan describes comprehensive policies to achieve a carbon neutral society by 2050, including timelines, budgets, taxes, regulation reforms and standardization, and international collaboration. It identifies the current challenges and future actions for the following fourteen policy priority areas:

1.   Offshore Wind Generation: Promoting the development of offshore wind generation;

2.   Ammonia: Increasing the use of ammonia to meet Japan’s power needs and reduce CO2 emissions;

3.   Hydrogen: Increasing the use of hydrogen to make it one of the major power sources;

4.   Nuclear: Advancing nuclear technology studies on Small Modular Reactor (SMR), High-Temperature Gas-Cooled Reactor, and Nuclear Fusion Energy;

5.   Electric Vehicles (EVs) and Battery Energy Storage: Ending the sales of all new gasoline-powered vehicles by 2030 and expanding the adoption of EVs and battery energy storage;

6.   Digital Transformation: Accelerating the digital transformation of the energy industry in order to improve operational efficiency and reduce CO2 emissions;

7.   Ship Energy: Improving ship energy efficiency by utilizing Liquefied Natural Gas (LNG) and exploring alternative fuels, such as hydrogen and ammonia;

8.   Smart Transportation and Green Logistics: Promoting the adoption of smart transportation technologies and green logistics;

9.   Smart Farming Technologies: Reducing agriculture emissions through the development of smart farming technologies;

10. Aircraft Efficiency: Reducing aviation's climate impact by adopting sustainable lower-carbon alternative fuels and efficient flight operations;

11. Carbon Recycling: Advancing carbon recycling technologies and facilitating international collaborations and partnerships;

12. Smart Home and the Internet of Things (IoT): Making use of IoT and Artificial Intelligence (AI), and accelerating the introduction of solar power to optimize the energy usage;

13. Recycling and Waste Management: Improving recycling technologies and utilizing biogas; and

14. Zero Energy Building/Housing and Shared Services: Promoting the adoption of net Zero Energy Buildings (ZEB) and net Zero Energy Houses (ZEH) as well as shared services in the public transportation sector.

In order to fulfill the goal of a carbon neutral society by 2050, METI aims to minimize the use of thermal power and to maximize the introduction of renewable energies, particularly offshore wind generation, battery energy storage and hydrogen energy. The Action Plan also prioritizes next-generation nuclear power technologies that are currently in the developmental stage while ensuring their safe usage. METI will collaborate with the related ministries and agencies to further discuss the action plan and its implementation.[1] [2]

[1] https://www.meti.go.jp/press/2020/12/20201225012/20201225012.html

[2] https://www.meti.go.jp/press/2020/12/20201225012/20201225012-1.pdf

[Japan] Japan increases monitoring as electricity market prices reach record high

According to Reuters, after electricity prices reached 103.1 yen ($1)/kWh on January 6, 2020, Japanese energy regulators say they have increased scrutiny of the electricity market.[1] Electricity prices on the Japan Electric Power Exchange (JPEX) have surged since December 2020 and are now at the highest level since trading started in 2005. Colder-than-normal winter weather has increased demand for heating. At the same time, many power producers have had to lower run rates or suspend operations due to delayed imports of liquefied natural gas (LNG). According to Yoshiaki Kuroda, the director of market policy planning, the Electricity and Gas Market Surveillance Commission closely monitoring trading on JPEX. So far, the commission has not found any improper trades. The Organization for Cross-regional Coordination of Transmission Operators (OCCTO), Japan’s electricity grid coordinator, also stepped in to avoid power shortages in Tokyo and Osaka. OCCTO directed power suppliers to operate at full capacity and offer surplus supplies to the market.

[1] https://www.reuters.com/article/japan-electricity-idUSL1N2JH0YD

[Japan] Japan Gas Association Discussed Focus Areas for Japan’s Gas Industry to Transition to Carbon Neutral

On November 24, 2020, Michiaki Hirose, the Chairman of the Japan Gas Association (JGA, Headquarters: Tokyo), held a press conference to discuss the Japanese gas industry’s perspective on Prime Minister Suga's recent announcement to achieve a carbon neutral society by 2050. JGA is an industry association that promotes the development of city gas utilities in Japan.

JGA recognizes the importance of the goal to achieve a carbon neutral society and made a commitment to accelerate decarbonization efforts in the industry. It laid out the focus areas for the industry to meet the ambitious goal of transitioning to carbon neutral by 2050, while ensuring a stable energy supply. JGA’s priorities are:

1)   Promoting innovation in gas technologies: support innovation and the implementation of technologies such as hydrogen, methanation, biogas, and Carbon Capture Utilization and Storage (CCUS) that reduce CO2 emission and facilitate carbon recycling, while expand the use of carbon neutral Liquefied Natural Gas (LNG).

2)   Expand the use of natural gas and its applications: potential applications include the use of natural gas for balancing the grid to support the expansion of renewable energy and distributed energy systems, such as co-generation and fuel cells.

3)   Strengthen international cooperation: facilitate sharing of advanced gas-related technologies, including hydrogen, with the international community.

JGA expects that the future of the Japanese gas supply and infrastructure will change with as a result of technological advancement. JGA expects to see the development of infrastructure to support the production and transportation of methane gas produced from imported hydrogen. JGA also predicts that there will be increased use of methane produced through methanation in the urban and regional areas in Japan to ensure a secure carbon neutral energy supply. [1]

[1] https://www.gas.or.jp/newsrelease/20201124.pdf

[Japan] J-Power and Genex Power Signed a Development Funding Agreement to Develop a New Wind Power Project in Australia

Tokyo-based Japanese power producer J-Power announced on November 27, 2020 that it has signed a Development Funding Agreement with Genex Power, a renewable energy development company in Sydney, Australia, to develop a 150MW capacity wind project, “Kidston State-3 Wind (KS3)”, in the state of Queensland in north-eastern Australia. The construction of the wind power plant is expected to begin in 2022 and it is expected to commence commercial operations in 2024.

Genex Power currently operates a 50MW solar firm, Kidston Stage 1 (KS1), and is working on four other renewable energy projects with a total additional capacity of 720MW in Australia. [1] [2]

J-Power and Genex Power will develop the Kidston wind power project by leveraging J-Power’s technical expertise in wind power operation in Japan and overseas, and Genex Power’s experience in the development of renewable energy in Australia. This project is J-Power’s first renewable energy project in Australia. J-Power will continue to work on its overseas expansion for power generation businesses, including renewable energy.[3] [4]

 

List of J-Power’s Renewable IPP Project (Overseas)