1. 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

2. 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

3. 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

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

5. Increases in renewable electricity by the RPS system5

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

7. Mechanism of Green Electricity Certificate System7

8. Changes in Green Electricity Approved by the Certificate System8

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

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

11. Mechanism of full-scale FIT system from July 201211

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

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

14. 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

15. Comparisons among Three Systems (2)
RPS
FIT
Certificate
Total size of electricity
10 TWh
TWh
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

16. 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

17. Thank you very much for your kind attentions. Questions or comments ? 17