The 40th IAEE Annual Conference A Comparative Analysis on Three Different Supporting Methods to Expand Renewable Energies in Japan Yoshiki Ogawa Toyo University The 40th IAEE Annual Conference June 20, 2017, Singapore 1

Contents of presentation Backgrounds and measures to expand REN Expansion by the RPS system Expansion by the Green E certificate system Expansion by the FIT system Comparison among three different system Concluding remarks 2

Backgrounds and measures to expand renewable energies The target for the introduction of renewable energies 1997　Kyoto Protocol adopted 2001　Maraquesh Agreement adopted The introduction target of renewable energies in 2010: 19.1 Mkl-coe Share of REN in primary energy about 3% (2010) from 1% (1999) Three measures introduced in Japan since 2000 The green electricity certificate system from 2001 (Opposing to the discussions on RPS introduction) The RPS system from 2003 to 2012 The full-scale FIT system from 2012 (The partial FIT system to surplus solar for houses was introduced from 2009 and then integrated.) 3

Mechanism of RPS system and obligators Retail suppliers invite REN electricity. 4

Increases in renewable electricity by the RPS system 5

Players’ structure in the RPS system (Note) : Role, : Participate, : Not participate. 6

Mechanism of Green Electricity Certificate System 7

Changes in Green Electricity Approved by the Certificate System 8

Various Uses of Environmental Values by the Certificate Purchasers (Source) Document by Nippon Natural Energy Co. 9

Players’ structure in the certificate system (Note) : Role, : Participate, : Not participate. 10

Mechanism of full-scale FIT system from July 2012 11

Changes in capacities installed and approved by full-scale FIT system The cost burden of surcharge has increased so sharply. 12

Players’ structure in the FIT system (Note) : Role, : Participate, : Not participate. 13

Comparisons among Three Systems (1) RPS FIT Certificate Obligation Exist Government Not exist Voluntary Starter Retail electlici-ty company Renewable power producer Certificate purchaser Producer risk Renewable E competition Government obligation Purchaser/iss-uer guarantee Extra cost burden Surcharge to End-user purchaser 14

Comparisons among Three Systems (2) RPS FIT Certificate Total size of electricity 2003-2011 10 TWh 2012-2016 138.43 TWh 2001-2016 0.3 TWh Related player Quite simple Power supplier REN Power producer Simple End-user Complicated Players related to certificate Use of Env. value Not used Used by vari-ous methods Home use Not accepted Accepted 15

Concluding Remarks From the viewpoint of rapid and drastic expansion of renewable electricity, the FIT system would be the most suitable. From the viewpoint of gradual and systematic expansion of renewable electricity, the RPS system would be the most preferable. On the other hand, from the viewpoint of PPP, the green certificate system would be the most excellent, because participants is widely expanded and the advertisement effects is induced largely. Three different supporting systems have individual merits and demerits. We should pursue reasonable and effective improvements for the future by taking excellent merits of other systems. For this purpose, it is important to apply various activities utilizing the environment value of green electricity observed in the green certificate to the RPS and FIT. This is also expected to play a crucial role on the reduction of surcharge burden to people in the FIT. 16

Thank you very much for your kind attentions. Questions or comments ? y-ogawa@toyo.jp 17