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6AkihiroMATSUTA PDF
6AkihiroMATSUTA PDF
EnergyEfficiencyLawinJapan
September2009
AkihiroMATSUTA
DeputyDirector
EnergyEfficiencyandConservationDivision
AgencyforNaturalResourcesandEnergy
MinistryofEconomy,TradeandIndustry,Japan
Key Questions
What was the background of the recent introduction
of benchmarks in Japan?
How were they developed? What issues were most
hotly debated during the discussion?
What are the commonalities between the Japanese
and the emerging EU benchmarks? How much will
they differ?
What is the possible future development of the
Japanese benchmarks?
1
OverviewofJapansEnergy
EfficiencyLawandSectoral
Benchmarks
JapansEnergyEfficiencyLaw
EnergyEfficiencyLawisthepillarofJapaneseenergyconservationpolicies.
Thelawwasenactedin1979inthelightoftheoilshock.
Thiscomprehensivelawcovers
allsectorsasfollows
(i)Targetistoimproveannuallyenergy
intensity1%ormoreonaverage.
(1)Energymanagementin
manufacturing,commercialand
transportationsectors
(ii)Currentcoverage:7,000 companies
(9,000factoriesand5,000workplaces)
(2)Energyefficiencystandardsfor
vehiclesandappliances(Top
RunnerProgram)
(increasedfrom10%bythelatestrevision
ofthelaw)
(3)Energyefficiencystandards
forhousesandbuildings
Industrialsector:approx.90%
Commercialsector:approx.50%
Industrial
Sector
Commercial
Sector
Approximately90%
Approximately50%
Approximately10%
[%]
CoverageofenergyusebytheRegulation
JapansEnergyEfficiencyLaw
WhySectoral Benchmarks?
1.Themoreenergyefficiencyisimproved,themoredifficultit
istocontinuetoreduce1%ormoreofenergyintensity.To
ensurefairnessinevaluatingcompanies energysavingefforts,
Benchmarkshavebecomenecessary.
2.JapanhasadvocatedSectoral Approachesformultilateral
tablessuchastheUNFCCC,APPandIEA.Inordertoappeal
effectivenessofthisapproach,Japanneededtointroduceit as
adomesticregulationastheworldsfirstattempt.
Targetshavebeensetattheenergyefficiencylevelofthebest performing
companies(top10%20%)ineachsubsector(Averagevalue Standard
deviation).
Ahigherleveltargetisadoptediffurtherenergysavingpotentialscan
betakenintoaccount.
[DistributionofBMindicator(asanimage)]
100%
Rank
(inrelativevalue)
Assumingthatdistribution
ofBMindicatorsforms
normaldistribution
50%
Around1020%
BMIndicator
0%
BM
Average
Companiesinthesesubsectorsareobligatedtoreporteveryyear
thestatusofbenchmarkingindicator,inadditiontotheratioof
energyintensityreductionandimplementationofenergy
managementsystem.
Basedoncompanies reports,theindicatorsaveragevalueand
standarddeviationforeachsubsectorwillbepublishedbythe
government.
Thenamesofcompaniesperformingwellbeyondthetargetwill
bealsopublished.
Whydidweselectthreesectors?
[Basicprinciple]
Thethreesectorswereselectedtobeginwith,takingintoaccountenergy
consumptionandprogressofinternationaldiscussionsofeachsector.
Thecoveragewillbeexpandedtoothersectors;commercialsectorisalso
envisaged.
Energyconsumptionbyindustriesparticipating
theVoluntaryActionPlanin2007fy
Industry(Industrialsector)
FederationofElectricpowerCompaniesof
Japan
Convertedto
crudeoil,
1,000kl
Energyconsumptionof
manufacturingindustries
Metalproducts
&machines
155,000
JapanIronandSteelAssociation
63,400
JapanChemicalIndustryAssociation
29,930
PetroleumAssociationofJapan
17,250
JapanPaperAssociation
8,300
JapanCementAssociation
6,280
JapanAutoPartsIndustriesAssociation
3,740
JapanAutomobileManufacturersAssociation
3,370
JapanFederationofConstructionContractors
2,090
JapanMiningIndustryAssociation
2,050
2007fy(convertedtocrudeoil,171millionkl)
2006fy 173
SourceEnergy&EconomicStatisticsinJapan
Red:sectorsalreadycovered
SourcetheFiscal2008FollowuptotheVoluntaryActionPlan
ontheEnvironment,JapanBusinessFederation
Blue:sectorstosettargetinFY2009
7
OverarchingPrinciples
1.Ensureconsistencywithmultilateraldiscussions
Consistencywithdiscussionsininternationalsectorassociations
andAPP.
ReportofCO2emissionisalsopartofregulatoryrequirements.
2.Evaluatetotalenergyconsumption
Thelawalsocoversindirectconsumptionofpurchasedelectricity,
steam,etc.
3.ReflecthighenergyefficiencylevelinJapan
Setting,asnecessary,moredetailedbenchmarkingindicators.
4.Reportbenchmarkingvalueforentirecompanyratherthan
individualsitesorfacilities.
Optimaloperationofeachfacilitydoesnotnecessarilyleadto
optimizationofamanufacturingsiteasawhole.Likewise,acompany
optimizesitsentirebusinessratherthaneachbusinesssite.
8
Specificdiscussionsineachsector
(1)IronandSteel
(2)Cement
(3)ThermalPowerPlants
BenchmarkforIronandSteel
BasicconceptisthesameasthatoftheWorldSteelAssociation.
(1)Forenergyconsumption,[direct+upstream credit]areincludedincalculation.
*EUETScountsdirectemissionswithoutupstream.
(2)Asdenominator,crudesteelproductionisused.
(3)Blastfurnaceandelectricarcfurnacearedividedassubsectors.
(InJapan,thelatterisfurtherdividedintoordinaryandspecialtysteel.)
(4)Abenchmarkingvalueiscalculatedforanproductionsiteas awhole.
*IntheEUETS,eachfacilitywillhaveabenchmarkingvalueinthethirdtradingperiod.
PracticesofJapansEnergyEfficiencyLawhavebeenreflectedtodiscussionsin
theWorldSteelAssociationandtheAPPSteelTaskForce.
Essential Facilities
DirectEnergy
Sources
Coke Oven
Sinter
Brast Furnace
Pellet
BOF
Casting
Upstream
EnergySources
DRI Plant
EAF
Credit
Lime Kiln
Hot rolling
Steam Boiler
Cold rolling
Power Plant
Coating
Oxygen Plant
10
BenchmarkforIronandSteel
Subsector
BenchmarkingIndicator
Steelcompany
usingblastfurnace
Ordinarysteel
companyusing
electricarcfurnace
Specialtysteel
companyusing
electricarcfurnace
Target
Below0.531
kl/t
Energyconsumptionfortotalprocess
Crudesteelproduction
*Asforthetwosubsectorsofelectricarcfurnace,
energyconsumptionfordownstreamprocess(Rolling
Processetc.)shallbeadjustedaccordingtothequantity
ofthesemifinishedproductspurchasedfromorsoldto
externalorganization.
Below0.143
kl/t
Below0.36
kl/t
(crudeoil
equivalent)
11
BenchmarkforCement
(1)BasicconceptisthesameasthoseconsideredinPCA(U.S.) and
CEMBUREAU(EU).Denominatorisbasedonclinkerproduction.
PracticesofJapansEnergyEfficiencyLawhavebeen reflected
indiscussions of theAPPCement TaskForce.
(2)AdvancedenergyefficiencyofJapanscementindustryhasbeen
takenintoaccount.
Allenergyefficiencymeasuresinclinkerproductionprocess
havealreadybeenimplementedinJapan.
Energyefficiencycanbeimprovedmainlyinclinkergrinding
processinwhichelectricityisused.
Considersintensityofclinkergrindinginfinishingprocessfor
Portlandcementproductionaswell.
Slightlydifferentfromboundarydefinitionofothers.However,consistencyis
easilyensuredforinternationalcomparison,onlybyremovingJapans
specificelementfromcalculation.
12
BenchmarkforCement
Exempted
Otherproducts
productionprocess
Mine
Finepowered
slag
(purchased)
(limestoneproducts,etc.)
Slagcrushing
Breakdownofenergyconsumption
DirectEnergy
Sources
8%
82%
Rawmaterial
process
Burning
process
Clinker
production
Electricity
(purchased/onsite
generation)
Cementproduction
process
Salesofelectricity
(Deducted)
Under
10%
Finishing
process
Portlandcement
production
process
Shipment
Mixedcement
production
process
Exempted
13
BenchmarkforCement
Forcement,thetargetissetatevenmoreambitiouslevelthantop1020%
(AveragevalueStandarddeviation),duetogreaterenergyconservation
potential.
Energyconsumptionofrawmaterialspreparationprocess
Productionvolumeofrawmaterialsprocess(clinkerbase)
Energyconsumptionofburningprocess
Clinkerproductionvolumeofburningprocess
Energyconsumptionoffinishingprocess
Productionvolumeoffinishingprocess
(Portlandcementbase)
Energyconsumptionofshippingandotherprocesses
ShipmentvolumeVariouskindofcementandclinker
14
BenchmarkforThermalPowerPlants
Measures tobeconsidered
Conceptualindicator
PossibleMRVable indicators
Deviationfrom
designedefficiency
1.O&Mimprovement
Fossil
fuels
Thermal
Efficiency
2.Renovation&
Replacement
Minimumefficiency
standardforincoming
newplants
3.BATinstallation
Thermal Efficiency
Designed Efficiency
10
20
30
40
CommonapproachundertheAPPtrytomaintainorincreasethe
efficiencyforexistingthermalpowerplantsthroughpeerreview
15
BenchmarkforThermalPowerPlants
1. Targettominimizedeviationfromorevensurpass
designedefficiency (toassessthelevelofmaintenance)
BenchmarkingIndicators
Target
Benchmarking
Image
101
ThermalEfficiencyinperformancetestatstandardoutput
Designedthermalefficiencyatstandardoutput
Target
100
Over100.3%
99
98
ThermalEfficiency
97
96
0.5
2.Minimumefficiencystandardforincomingnewplants
FulfillrequirementoftheworldwideBAT
16
Expansionofsectoral coverageforbenchmarking
Discussionisnowunderwaytoexpandthesectoral coverage,
tochemical,oilrefinery,paper&pulpsectors.
(Approx.70%ofJapansindustrialsectorwillbecovered.)
Furtherexpansiontocommercialsectorisinprospect:the
discussiontobefinalizedbytheendof2009.
17
Basicconceptofbenchmarkingforsectorsunderdiscussions
Chemical:3BMs(subsector:naphthacracker,Chloroalikali and
Boiler/CHP)
Coveringapprox.64%ofenergyconsumptioninthissector.
Energyconsumptionfromdirectcombustion,steamgenerationand
electricitygenerationarealsoincluded(bothonsiteandpurchased).
OilRefinery:1BM(actualenergyconsumption/standardenergy
consumption)
Standardenergyconsumption: ([BMfactorbyprocess]X[throughputby
process])
ForBMfactor,datafromSolomonAssociatesLLC.isused.
SolomonAssociatesLLC.
*Generalapproachtobeadoptedworldwide
PaperandPulp:2BMs(subsector:paperandpaperboard)
Energyconsumptionfrompowergeneration,pulpproductionandutilities
arealsoincluded.
CooperationamongsectorassociationsinJapan,China,SouthKoreaand
ASEANisunderwayfordatacollection.
18
PossibleFutureTasks
[National]
Baseforfutureregulatoryscheme
[Overseas]
UseinSectoral CDMmethodologies
Comparativetoolforenergysavingefforts
Ex.Applyincaseofintroductionofborderadjustment
JapanisexposedtomuchgreatercompetitivepressurefromChina thanU.Sor
EUintheenergyintensiveindustriessuchasiron&steel.
(Relatedactivities)
GlobalexpansionthroughAPPandbilateralcooperation
*Developingcountriesinparticular,includingChina.
*APPSteelTFandCementTFhavebeenconductingdatacollectionbasedon
commonmethodologyunderJapansinitiative.
InternationalStandardizationthroughISO,etc.
*Asforiron&steelsector,workstoestablishISOstandardsfor calculationmethod
ofCO2intensitiesareunderway.
19
Conclusions
BenchmarksinJapanhavebeensettoensurefairevaluation
forprogressofenergyefficiencyindomesticindustriesand
consistencywithinternationaldiscussions.
Benchmarksasaregulatoryschemehasjustbeenstarted.
Thereissignificantpotentialofexpandingthisschemeinboth
domesticandinternationaleffortsforenergysaving.
Ourexperiencesaboutbenchmarkscouldbehelpfulforthe
discussioninEU.TheGovernmentofJapanispleasedto
cooperatewiththeongoingEUdiscussion.
20
Thanks
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