1、 Task 1 Strategic PV Analysis and Outreach National Survey Report of PV Power Applications in JAPAN 2021 Prepared by:Mitsuhiro YAMAZAKI,New Energy and Industrial Technology Development Organization(NEDO)Osamu IKKI,RTS Corporation Task 1 National Survey Report of PV Power Applications in JAPAN What i

2、s IEA PVPS TCP?The International Energy Agency(IEA),founded in 1974,is an autonomous body within the framework of the Organization for Economic Cooperation and Development(OECD).The Technology Collaboration Programme(TCP)was created with a belief that the future of energy security and sustainability

3、 starts with global collaboration.The programme is made up of 6,000 experts across government,academia,and industry dedicated to advancing common research and the application of specific energy technologies.The IEA Photovoltaic Power Systems Programme(IEA PVPS)is one of the TCPs within the IEA and w

4、as established in 1993.The mission of the programme is to“enhance the international collaborative efforts which facilitate the role of photovoltaic solar energy as a cornerstone in the transition to sustainable energy systems.”In order to achieve this,the Programmes participants have undertaken a va

5、riety of joint research projects in PV power systems applications.The overall programme is headed by an Executive Committee,comprised of one delegate from each country or organisation member,which designates distinct Tasks,that may be research projects or activity areas.The IEA PVPS participating co

6、untries are Australia,Austria,Belgium,Canada,Chile,China,Denmark,Finland,France,Germany,Israel,Italy,Japan,Korea,Malaysia,Mexico,Morocco,the Netherlands,Norway,Portugal,South Africa,Spain,Sweden,Switzerland,Thailand,Turkey,and the United States of America.The European Commission,Solar Power Europe,S

7、olar Power Research Institute of Singapore,the Smart Electric Power Alliance(SEPA)and the Solar Energy Industries Association(SEIA)are also members.Visit us at:www.iea-pvps.org What is IEA PVPS Task 1?The objective of Task 1 of the IEA Photovoltaic Power Systems Programme is to promote and facilitat

8、e the exchange and dissemination of information on the technical,economic,environmental and social aspects of PV power systems.Task 1 activities support the broader PVPS objectives:to contribute to cost reduction of PV power applications,to increase awareness of the potential and value of PV power s

9、ystems,to foster the removal of both technical and non-technical barriers and to enhance technology co-operation.An important deliverable of Task 1 is the annual“Trends in photovoltaic applications”report.In parallel,National Survey Reports are produced annually by each Task 1 participant.This docum

10、ent is the country National Survey Report for the year 2021.Information from this document will be used as input to the annual Trends in photovoltaic applications report.Authors Main Content:Mitsuhiro Yamazaki,NEDO and Osamu Ikki,RTS CorporationData:RTS CorporationAnalysis:RTS CorporationDISCLAIMER

11、The IEA PVPS TCP is organised under the auspices of the International Energy Agency(IEA)but is functionally and legally autonomous.Views,findings and publications of the IEA PVPS TCP do not necessarily represent the views or policies of the IEA Secretariat or its individual member countries COVER PI

12、CTURE:Canopy type PV system(Global Zero Emission Research Center(GZR),National Institute of Advanced Industrial Science and Technology(AIST)with output capacity of 6.9 kW Photo by RTS Corporation Task 1 National Survey Report of PV Power Applications in JAPAN 2 TABLE OF CONTENTS 1 INSTALLATION DATA.

13、4 Applications for Photovoltaics.4 Total photovoltaic power installed.4 Key enablers of PV development.9 2 COMPETITIVENESS OF PV ELECTRICITY.11 Module prices.11 2.2 System prices.11 2.3 Cost breakdown of PV installations.13 2.4 Financial Parameters and specific financing programs.14 2.5 Specific inv

14、estments programs.16 2.6 Additional Country information.17 3 POLICY FRAMEWORK.19 3.1 National targets for PV.20 3.2 Direct support policies for PV installations.20 3.3 Self-consumption measures.23 3.4 Collective self-consumption,community solar and similar measures.24 3.5 Tenders,auctions&similar sc

15、hemes.24 3.6 Other utility-scale measures including floating and agricultural PV.26 3.7 Social Policies.27 3.8 Retrospective measures applied to PV.27 3.9 Indirect policy issues.28 3.10 Financing and cost of support measures.37 4 INDUSTRY.39 Production of feedstocks,ingots and wafers(crystalline sil

16、icon industry).39 Production of photovoltaic cells and modules(including TF and CPV).39 Manufacturers and suppliers of other components.40 5 PV IN THE ECONOMY.43 Labour places.43 Budget for research and development.43 6 INTEREST FROM ELECTRICITY STAKEHOLDERS.45 Task 1 National Survey Report of PV Po

17、wer Applications in JAPAN 3 Structure of the electricity system.45 Interest from electricity utility businesses.45 Interest from municipalities and local governments.47 7 HIGHLIGHTS AND PROSPECTS.49 7.1 Highlights.49 7.2 Prospects.50 Task 1 National Survey Report of PV Power Applications in JAPAN 4

18、1 INSTALLATION DATA The PV power systems market is defined as the market of all nationally installed(terrestrial)PV applications with a PV capacity of 40 W or more.A PV system consists of modules,inverters,batteries and all installation and control components for modules,inverters and batteries.Othe

19、r applications such as small mobile devices are not considered in this report.For the purposes of this report,PV installations are included in the 2021 statistics if the PV modules were installed and connected to the grid between 1 January and 31 December 2021,although commissioning may have taken p

20、lace at a later date.Applications for Photovoltaics In 2021,as in the previous year,the majority of PV systems were installed under the Feed-in Tariff(FIT)program.As for the utility-scale applications,the majority are ground-mounted systems,but the floating PV(FPV)systems and agricultural PV systems

21、 are also growing.Regarding building-applied PV(BAPV)systems,the main applications are residential,commercial and industrial.For building-integrated PV(BIPV)systems,roof tile-integrated PV modules are installed in some residential applications.While some commercial installations have been reported,B

22、APV accounts for the majority of installations.Total photovoltaic power installed Annual installed capacity in Japan in 2021 reached 6,545 MW(DC),an approximately 24.6%decrease from 8,676 MW(DC)in 2020.Table 1:Annual PV power installed during calendar year 2021 Installed PV capacity in 2021 MW AC or

23、 DC PV capacity Off-grid 2.2 DC Decentralized 3,551 DC Centralized 2,992 DC Total 6,545 DC Task 1 National Survey Report of PV Power Applications in JAPAN 5 Table 2:PV power installed during calendar year 2021 Installed PV capacity in 2021 MW DC value Grid-connected BAPV(1)Residential(10 kW)805(2)Co

24、mmercial(50 kW,including ground-mounted)1,664(3)Industrial(50 kW-1 MW,including ground-mounted)1,037(4)Total of BAPV 3,506 BIPV(5)Residential(250 kW)(8)Total of BIPV 45 Utility-scale(9)Ground-mounted(1 MW)2,572(10)Floating PV systems 120(11)Agricultural PV systems 300(including small-scale systems)(

25、12)Total of utility-scale 2,992 Off-grid(13)Residential NA(14)Other (15)Hybrid systems NA(16)Total of off-grid 2.2 Total(17)Total(4)+(8)+(12)+(16)6,545.2 Task 1 National Survey Report of PV Power Applications in JAPAN 6 Table 3:Data collection process If data are reported in AC,please mention a conv

26、ersion coefficient to estimate DC installations.AC:Figures announcement by the Ministry of Economy,Trade and Industry(METI)DC:Estimated value(DC/AC ratio:based on the overpanelling ratio announced by the Procurement Price Calculation Committee)Is the collection process done by an official body or a

27、private company/Association?-Figures for installation volume outside of the FIT program,BIPV,floating PV(FPV)systems,and PV systems on farmland are estimates by RTS Corporation based on hearings,etc.-Installation volume of off-grid systems is based on shipment statistics from the Japan Photovoltaic

28、Energy Association(JPEA)Link to official statistics(if this exists)https:/www.fit-portal.go.jp/PublicInfoSummary Other issues to be noted DC capacity was estimated in consideration of over-panelling of PV modules The cumulative PV installed capacify in Japan as of the end of 2021 reached 78,413 MW(D

29、C).The cumulative PV installed capacity by application is;178.2 MW for off-grid and 78,235 MW for grid-connected applications.Task 1 National Survey Report of PV Power Applications in JAPAN 7 Table 4:The cumulative installed PV power in 4 sub-markets Year Off-grid MW(Including large hybrids)Grid-con

30、nected distributed MW(BAPV,BIPV)Grid-connected centralized MW(Ground,floating,agricultural)Total MW 1992 15 1 2 19 1993 19 2 3 24 1994 24 5 3 31 1995 30 11 3 43 1996 36 21 3 60 1997 45 43 3 91 1998 53 78 3 133 1999 57 149 3 209 2000 64 264 3 330 2001 67 383 3 453 2002 73 561 3 637 2003 79 778 3 860

31、2004 84 1,045 3 1,132 2005 87 1,332 3 1,422 2006 89 1,617 3 1,708 2007 90 1,823 6 1,919 2008 91 2,044 9 2,144 2009 95 2,522 11 2,627 2010 99 3,496 23 3,618 2011 103 4,741 69 4,914 2012 109 6,522 6,632 2013 123 13,476 13,599 2014 125 23,214 23,339 2015 127 34,023 34,150 2016 161 41,879 42,040 2017 17

32、1 49,329 49,500 2018 173 55,989 56,162 2019 175 63,017 63,192 2020 176 71,692 71,868 2021 178.2 78,235 78,413 Task 1 National Survey Report of PV Power Applications in JAPAN 8 Table 5:Other PV market information 2021 Number of PV systems in operation in Japan N.A.Decommissioned PV systems during the

33、 year 250 MW Repowered PV systems during the year N.A.Table 6:PV power and the broader national energy market 2020 2021 Total power generation capacities 270 GWAC 1 271 GWAC 1 Total renewable power generation capacities(including hydropower)120 GWAC 2 125 GWAC 2 Total electricity demand 858 TWh 3 87

34、3 TWh 3 Total energy demand 12,082 PJ 4(FY 2020)NA 4 New power generation capacities installed 5.0 GWAC 1.3 GWAC New renewable power generation capacities(including hydropower)8.0 GWAC 5.3 GWAC Estimated total PV electricity production 71,868 GWh 78,413 GWh Total PV electricity production as a%of to

35、tal electricity consumption 1 8.4%9.0%1:METIs Survey of Electric Power Statistics(Total power generation capacities of electricity retailers,general power transmission and distribution operators,power transmission operators,designated power transmission and distribution operators and power producers

36、)(Distributed systems are NOT included.)2:Total of hydro capacity+Cumulative installed capacity under FIT program+Total of renewable energy facilities by ten electric power companies(EPCOs)3:Statistics on actual electricity demand by METI(Total of electricity demand from Jan.to Dec.each year)4:METI

37、statistics.Statistics for FY 2021 are not available at the time of writing this report.Preliminary figures are expected to be released in October or November 2022 and final figures in April 2023.Task 1 National Survey Report of PV Power Applications in JAPAN 9 Key enablers of PV development Table 7

38、shows the information on key enablers contributing to PV development.The information available at the time of writing this report is listed in the table,since official statistics in Japan are released by fiscal year(April to March).The shipment data of stationary lithium-ion battery storage systems

39、include not only distributed applications but also other applications such as grid-connected applications.However,applications for transportation(electric motorcycles,those related to vehicles,construction equipment and automated carrier machines,etc.)and industrial applications(robots,uninterruptib

40、le power system(UPS)are not included.It is assumed that around 80%of the reported figures are for residential applications.A typical heat pump for residential application is“Eco Cute”highly efficient water heater which uses CO2 as refrigerant.The subsidy program conducted between FY 2002 and FY 2010

41、 encouraged the installation of this heat pump system,and total 7.27 million units of Eco Cute heat pump systems have been installed in houses as of the end of FY 2020.As for electric vehicles(EVs),the number of units sold in 2021 and the number of units owned as of the end of March 2022(end of FY 2

42、021)(equivalent to cumulative number of units sold)are listed in Table 7.Task 1 National Survey Report of PV Power Applications in JAPAN 10 Table 7:Information on key enablers Description Annual volume Total volume Source Shipment data of lithium-ion battery storage systems Integrated lithium-ion ba

43、ttery storage system consisting of li-ion battery,power conversion devices such as inverter and converter 972,355 kWh(133,759 units)4,425,845 kWh(624,551 units)The Japan Electrical Manufacturers Association(JEMA)Residential heat pumps Residential heat pump water heater with natural refrigerant(Eco C

44、ute)585,989 7,857,953 The Japan Refrigeration and Air Conditioning Industry Association,Heat Pump&Thermal Storage Technology Center of Japan Electric vehicles(EVs)(number of units)Passenger car(PC),Light car(LC)22,010(2021)45,329(2021)Next Generation Vehicle Promotion Center(Numbers of sales and own

45、ership of EV,etc.)Electric buses and trucks(number of units)EVs other than passenger car or light car,which are categorized as“Other”in the statistics 308(2021)1,871(2021)Same as above Task 1 National Survey Report of PV Power Applications in JAPAN 11 2 COMPETITIVENESS OF PV ELECTRICITY Module price

46、s Table 8 shows typical PV module prices for a number of years for residential applications.These are end-user prices.There is a large price gap between residential PV systems and utility-scale PV power plants.Table 8:Typical residential PV module prices for a number of years(end-user prices)Year Av

47、erage price(JPY/W)Best price(JPY/W)2005 428 2006 433 2007 436 2008 447 2009 393 2010 366 2011 327 2012 284 120 2013 251 112 2014 227 101 2015 196 89 2016 169 78 2017 150 69 2018 139 62 2019 133 56 2020 127 52 2021 111 58 2.2 System prices Table 9 shows typical applications and prices of PV systems b

48、y category.Table 10 shows the trends in system prices.The standardization of grid-connected PV systems has progressed with the growth of the PV market in Japan,and the prices have been decreasing.On the other hand,off-grid system prices are determined on a case-by-case basis,because there are variou

49、s types of applications,and the size of each market is small.Task 1 National Survey Report of PV Power Applications in JAPAN 12 Table 9:Turnkey PV system prices of different typical PV systems Category/Size Typical applications and brief details Current prices(JPY/W)Off-grid 1 kW Telecommunications,

50、lighting,traffic and road signs,ventilating fans,pumps,remote monitoring,navigation signs,clock towers,etc.N.A.Off-grid 1 kW Agricultural facilities,communication facilities,disaster prevention facilities,mountain cottages,park facilities,housing in remote areas,lighthouses,etc.N.A.Grid-connected ro

51、of-mounted,distributed PV systems 10 kW Residential 286 Grid-connected commercial and industrial 10 kW-1 MW Commercial and industrial 204 Grid-connected 1 MW Power generation business(mainly ground-mounted)196 Other category(hybrid diesel-PV,hybrid with battery)N.A.Table 10:National trends in system

52、 prices for different applications (JPY/W)Year Residential PV systems (10 kW)Commercial and industrial(10 kW-100 kW)Commercial and industrial(100 kW-250 kW)Ground-mounted(1 MW)2005 661 2006 683 2007 696 2008 723 2009 605 2010 559 2011 513 2012 451 410 380 280 2013 405 380 330 260 2014 366 343 290 23

53、5 2015 332 313 256 217 2016 293 265 227 192 2017 272 236 202 170 2018 252 217 185 152 2019 242 200 178 139 2020 231 187 165 128 2021 220 178 155 122 Task 1 National Survey Report of PV Power Applications in JAPAN 13 2.3 Cost breakdown of PV installations Cost breakdown of PV installations is the typ

54、ical value analysed from the results of hearing survey.Hearing survey was conducted on major suppliers of PV system,installers,and EPCs.Table 11:Cost breakdown of Residential PV System 1 MW(extra-high voltage)Cost category Typical value(JPY/W)Hardware Module 69 Inverter 15 Mounting structure 19 Meas

55、urement/monitoring instrument,etc.19 Other(electric equipment/transformer/materials of electric equipment,etc.)Soft costs Installation 53.4 Site development 14 Contribution for grid connection 6 Designing/development 0.6 Fund raising Other(administration cost,etc.)Total(excluding consumption tax)196

56、 Task 1 National Survey Report of PV Power Applications in JAPAN 14 2.4 Financial Parameters and specific financing programs Since the FIT program started,a number of commercial PV power plants have been constructed one after another.Following this trend,financing institutions and project developers

57、 are now financing through a variety of measures.Corporate finance,project finance,financing via the Infrastructure Fund Market which was established by the Tokyo Stock Exchange(TSE)as well as issuance of green bonds have been conducted.The following table shows the general financing measures in Jap

58、an.Table 13:PV financing information in 2021 Residential(solar loan/sales on credit)Long-term prime rate+approx.1.5%(low-interest rate financing is available by combining with home mortgage).Preferential interest rate is available depending on financial institute.Small to medium size(corporate loan/

59、sales on credit/lease)Long-term prime rate+approx.1.5-2.0%Guarantor or collateral are required in many cases.Even though the interest rate is high,loan without collateral is available in some cases using sales on credit.In case of the scheme of lease,the facilities are owned by the leasing companies

60、,etc.Large-scale PV(project finance)-Financing is provided to the sponsor on a non-recourse or limited recourse basis,collateralized by all assets and interests in the PV project -TIBOR+approx.1.0-1.5%+up-front fee(approx.1%of the amount financed)which is paid to financial institutes at the time of

61、financing Asset-based lending(ABL)ABL is a financing scheme in which loan is secured with collateral of assets of the power generation business such as power generation facilities,guarantee agreement,electric power selling agreement and insurance,etc.Infrastructure Fund Market Raising capital from p

62、rivate investors who seek for long-term stable dividend through listing of stocks on the Infrastructure Fund Market which was established by the Tokyo Stock Exchange(TSE).Raised capital is used for development and operation of power plants and the revenue from sales of electric power is distributed

63、to the investors as dividend.Task 1 National Survey Report of PV Power Applications in JAPAN 15 Green bonds Bond which is issued for the purpose of raising funds to be allocated to the projects which are effective to improve the environment(green projects).Sustainability bonds Bonds whose purpose of

64、 use of raised funds is limited to the projects that contribute to the environmental and social sustainability.Loan for solar sharing Loan which is provided by Norinchukin Bank aiming to increase income of Japan Agricultural Cooperatives(JA)and revitalize regional economy Green loans Financing used

65、by businesses,local governments,and other entities to raise funds needed for green projects in Japan and abroad Sustainability linked loans(SLL)Loans that set action targets(Sustainability Performance Targets(SPTs)consistent with the borrowers ESG strategy to encourage the borrower to improve its su

66、stainability performance,and provide incentives or disincentives to the borrower based on its progress in achieving the SPTs Green deposits(environmental deposits)-Loans must be used only for projects that reduce CO2 emissions,such as PV power generation-Companies that deposit money contribute indir

67、ectly to environmental measures by simply transferring their existing deposits to the Green deposits Task 1 National Survey Report of PV Power Applications in JAPAN 16 2.5 Specific investments programs Under the Feed-in Tariff(FIT)program,a wide variety of business models have been introduced by tak

68、ing advantage of the long-term and stable revenues from selling electricity generated by PV systems fixed for the period of 20 years under the FIT program.Basically,typical business models for investment are loan and lease programs.Other business models include the following:Regarding the TPO model

69、of PV systems,local governments are conducting public tenders for the lease of the roofs of public facilities such as elementary and junior high schools.Since the risks of collapse of business of the owner or removal of facilities are low compared with the lease of the roofs of private facilities,th

70、e tenders are actively responded.Also,as the FIT purchase price declines,the service for self-consumption becomes more popular,in which electricity generated by PV systems installed on the rooftops of these facilities is supplied directly to them.Major electric companies,gas companies and Power Prod

71、ucer and Supplier(PPS)are promoting a service to install PV systems for self-consumption at no initial cost(on-site PPA).A tax system to support small-and medium-sized enterprises(SMEs)is utilized and a preferential tax treatment under the Act for Facilitating New Business Activities of Small and Me

72、dium-sized Enterprises was continued in FY 2021,which offers immediate depreciation of corporate tax or tax reduction,reduction of fixed property tax for PV systems for self-consumption(selling surplus electricity).Table 14:Summary of existing investment schemes Investment Schemes Introduced in Japa

73、n Third Party Ownership(TPO)(no investment),on-site PPA“Roof lease model”is available,which leases only the right of use of roofs.However,this business model has legal restrictions.Long-term power purchase agreements(PPAs)to supply PV-generated electricity on-site are being promoted.Renting There ar

74、e some cases where land is rented.Leasing It is easier for leasing to secure credit line than bank loans and the procedures are easier.It is not necessary to own excessive asset for a long time.The leasing model has been actively used for these reasons.Leasing is also utilized to support PV systems

75、on farmland while continuing agricultural activities.Utilization of taxation system Taxation system which supports investment by small-and medium-sized enterprises(SMEs),mainly dealing with small-and medium-scale self-consumption type PV systems Task 1 National Survey Report of PV Power Applications

76、 in JAPAN 17 2.6 Additional Country information Table 15:Country information Retail electricity prices for a household(Low voltage 100 V or 200 V)(TEPCO Energy Partner)Base rate:286 JPY/10 A(1 kVA)Charge for the volume of usage:300 kWh/month 30.57 JPY/kWh(TEPCO Energy Partner,type B,typical ampere f

77、or general household:10-60 A,three-phase pricing system with prices varying depending on the volume of usage)*1:“Surcharge to promote renewable energy power generation(2.98 JPY/kWh(May 2020-April 2021),3.36 JPY/kWh(May 2021-April 2022)”will be added on top of the above-mentioned charge,depending on

78、the electricity usage.*2:Fuel regulatory costs will be added or reduced depending on the import prices of crude oil,LNG and coal as well as currency exchange(fuel regulatory cost of low-voltage supply in Kanto Area as of December 2021:-1.09 JPY/kWh).*3:There are various price plans depending on time

79、 zones.*4:Electric Power Companies(EPCO)announced various price plans of their own following the full liberalization of electric power including retail electricity prices for households from April 1,2016.(Source:TEPCO Energy Partners website)Retail electricity prices for a commercial company(High vo

80、ltage:6.6 kV)(TEPCO Energy Partner)Base rate:1,716 JPY x(185-power factor)/100 per kW Charge for the volume of usage:17.54 JPY/kWh(summer),16.38 JPY/kWh(other seasons)(TEPCO Energy Partner,commercial use,from October 1,2019)*1:Contract electricity volume will be fixed according to annual maximum ele

81、ctricity demand.*2:Surcharge to promote renewable energy power generation will be added in the same way as the one for households.Fuel regulatory costs will be added or reduced(fuel regulatory cost as of December 2021:-1.05 JPY/kWh).*3:There are various price plans depending on time zones and season

82、s.(Source:TEPCO Energy Partners website)Retail electricity prices for an industrial company(High voltage:6.6 kV)(TEPCO Energy Partner)Base rate:1,815 JPY x(185-power factor)/100 per kW Charge for the volume of usage:16.16 JPY/kWh(summer),15.15 JPY/kWh(other seasons)(TEPCO Energy Partner,high voltage

83、 electricity(500 kW),from October 1,2019)Base rate:1,292.5 JPY/kW x(185-power factor)/100 per kW Charge for the volume of usage:17.37 JPY/kWh(summer),16.24 JPY/kWh(other seasons)(TEPCO Energy Partner,high voltage electricity A(500 kW),from October 1,2019)Task 1 National Survey Report of PV Power App

84、lications in JAPAN 18 *1:Contract electricity volume will be fixed according to annual maximum electricity demand.*2:Surcharge to promote renewable energy power generation will be added in the same way as the one for households.Fuel regulatory costs will be added or reduced(fuel regulatory cost as o

85、f December 2021:-1.05 JPY/kWh).*3:There are various price plans depending on time zones and seasons.(Source:TEPCO Energy Partners website)Population 125.38 million(Statistics Bureau,Ministry of Internal Affairs and Communications(MIC),as of December 1,2021)Country size 377,975 km2(Statistics Bureau,

86、MIC)(as of October 1,2021)Average PV yield 1,000-1,100 kWh/kW/yr Name and market share of major EPCOs(based on electricity demand of December 2021)1 TEPCO Energy Partner 26.7%2 Chubu Electric Power Miraiz 16.2%3 Kansai Electric 14.9%4 Kyushu Electric 11.3%5 Tohoku Electric 10.8%6 Chugoku Electric 7.

87、2%7 Hokuriku Electric 4.5%8 Hokkaido Electric 3.7%9 Shikoku Electric 3.5%10 Okinawa Electric 0.9%(Source:Survey of Electric Power Statistics,METI)Name and market share of electric utilities(based on electricity demand of December 2021)1 Former General Electricity Utilities(10 EPCOs from Hokkaido to

88、Okinawa)78.4%2 Power Producers and Suppliers(PPS)21.6%(Source:Survey of Electric Power Statistics,METI)Task 1 National Survey Report of PV Power Applications in JAPAN 19 3 POLICY FRAMEWORK Table 16:Summary of PV support measures Residential Commercial+Industrial Centralized Measures in 2021 On-going

89、 New On-going New On-going New Feed-in tariffs Yes(purchase of surplus electricity)-Purchase prices for FY 2022 and 2023 were determined Yes-Cut in purchase price-Tender scheme(250 kW)Yes-Cut in purchase price-Tender scheme(250 kW)Feed-in premium(above market price)No Electric companies and PPS set

90、the post-FIT power purchase menu No No No FIP program is scheduled to start from FY 2022 for 1 MW Capital subsidies No No There are subsidies for non-FIT applicant There are subsidies for non-FIT applicant Green certificates Yes Yes Yes(rarely used since FIT is more profitable)Renewable portfolio st

91、andards(RPS)with/without PV requirements No No Transitional measures of the past programs are still valid No Transitional measures of the past programs are still valid No Income tax credits Preferential tax treatment under the Act for Facilitating New Business Activities of Small and Medium-sized En

92、terprises-Intended for companies and individuals who file an income tax return on the blue form-Two options:immediate depreciation(100%)or 10%tax credit-Fixed Property Tax is reduced by 50%for three years as a special measure Self-consumption No There are subsidies intended for PV for self-consumpti

93、on purpose(non-FIT)No No Net-metering No No No No No No Net-billing Yes Yes Yes(in case of self-consumption)Yes(in case of self-consumption)Yes(in case of self-consumption)Yes(in case of self-consumption)Collective self-consumption No No Commercial bank activities e.g.,green mortgages promoting PV T

94、here are loan programs such as mortgage and home improvement loans,etc.Many financial institutions offer financing options for PV systems with a capacity of 10 kW or more taking advantage of FIT.There are moves to issue green bonds and establish funds for PV power generation,and approaches for non-F

95、IT are emerging.Activities of electricity utility businesses No Obligation to equip devices to address output curtailment-Obligation to equip devices to address output curtailment started in 2015-It is planned to introduce economic output curtailment(online proxy curtailment)as well as to bring PV p

96、ower generation,etc.online in order to improve the efficiency of output curtailment Sustainable building requirements-Based on the“Act for the Improvement of the Energy Efficiency Performance of Buildings”,a gradual change to conformity obligations to energy efficiency standards is promoted.Previous

97、 non-binding obligations were changed to conformity obligations for buildings with gross floor area of 2,000 m2 or more from FY 2017 onwards.Following the revision of the act in May 2019,buildings with gross floor area of 300 m2 or more are obliged conform to energy efficiency standards,which took e

98、ffect on April 1,2021,and it is proposed to obligate residential buildings to conform to the law starting in 2025-In case of conformity obligations,a building which primary energy consumption falls below standard as a result of assessment in a specific manner cannot be constructed.It is expected tha

99、t installation of PV on buildings will increase through conformity obligations because PV is assessed as a device to reduce energy consumption BIPV incentives No No No No No No Other Task 1 National Survey Report of PV Power Applications in JAPAN 20 3.1 National targets for PV The Sixth Strategic En

100、ergy Plan was approved by the Cabinet on October 22,2021.Under the new Strategic Energy Plan,the roadmap for energy policy was outlined to achieve carbon neutrality in 2050 and a greenhouse gas reduction target of 46%compared to FY 2013 levels by FY 2030.Based on the fundamental premise of ensuring

101、safety,initiatives will be promoted to ensure stable supply and reduce energy costs(S+3E)while addressing climate change.The maximum introduction of renewable energy will be promoted while thoroughly making renewable energy the main power source,working on the principle of giving top priority to ren

102、ewable energy,curbing the burden on the public and maintaining harmony with the local communities.The outlook for energy supply and demand in FY 2030 was also revised,setting new targets for energy conservation,while raising the ratio of renewable energy in the energy mix from conventional 22 to 24%

103、to 36 to 38%.Of this amount,the share of PV power generation is 14 to 16%,with an estimated installation volume of 103.5 to 117.6 GWAC(equivalent to 123 to 139 GWDC).Table 17:Energy mix in Japan in FY 2030 Fourth and Fifth Strategic Energy Plan Sixth Strategic Energy Plan Renewable energy 22-24%36-3

104、8%Nuclear power 22-20%20-22%LNG 27%20%Coal 26%19%Oil,etc.3%2%Total electricity generation Approx.1,065 TWh Approx.934 TWh 3.2 Direct support policies for PV installations 3.2.1 Description of support measures-Project to promote making renewable energy a mainstream power source/strengthening of resil

105、ience in local communities through reduction of renewable energy price,etc.such as utilization of PPA This project provides subsidies for the introduction of renewable energy and storage batteries through new approaches such as on-site PPA models,etc.Not subject to feed-in tariff program.-Project to

106、 support realization of sustainable and resilient local communities through planning of maximum introduction of renewable energy and cultivation of local human resources This project supports the formulation of regional renewable energy introduction targets for 2050,the establishment of an implement

107、ation and management system for sustainable implementation of renewable energy introduction projects,and the cultivation of regional human resources to improve the sustainability of regional renewable energy projects.Task 1 National Survey Report of PV Power Applications in JAPAN 21 -Project to prom

108、ote installation of independent and distributed energy facilities to evacuation centers,etc.which realize resilience and decarbonization of local communities in parallel This project supports the introduction of renewable energy facilities,etc.to public facilities that are positioned as evacuation c

109、enters,etc.in the event of disasters based on local disaster-prevention plans and subsidizes part of the costs.-Subsidy for project expenses to implement a special scheme for surcharge under the FIT program For energy-intensive industries,reduction of surcharge payment is eligible.The amount of redu

110、ced surcharge is compensated with the national budget.-Project to support establishment of net zero energy houses(ZEHs)at detached houses The project provides subsidies to those who build new detached houses(custom-built or ready-built)that meet the ZEH requirements and provides a fixed amount of su

111、bsidies for the installation of storage batteries.-Project to promote decarbonization and enhancement of resilience of buildings,etc.A certain amount of subsidy is provided for the introduction of net zero energy building(ZEB)in commercial facilities and demonstration,etc.of advanced decarbonized bu

112、ildings that can supply energy even in times of disaster.-Project to promote CO2 saving in collective housing(in partnership with METI)This project subsidizes to support energy conservation,CO2 reduction and thermal insulation of collective housing,as well as the installation of storage batteries.-D

113、emonstration project to establish the next-generation technologies utilizing distributed energy resources such as storage batteries,etc.This demonstration project promotes aggregation technologies,etc.that utilize renewable energy and distributed energy resources such as storage batteries,etc.-Subsi

114、dy for project expenses to support promotion of renewable energy introduction in Fukushima Prefecture This subsidy program supports demonstrative research on introduction of renewable energy-based power generation facilities,establishment and improvement of storage batteries and power transmission l

115、ines,and toward commercialization of renewable-energy related technologies in Fukushima Prefecture.-Project to Promote Dissemination of Renewable Energy,etc.in harmony with local communities This project subsidizes a certain amount of the necessary expenses for private business operators,etc.that in

116、tend to build a regional microgrid utilizing renewable energy,etc.or develop a plan to introduce such a microgrid.3.2.2 Description of support measures excluding BIPV and rural electrification The Ministry of Economy,Trade and Industry(METI)is taking initiative in supporting introduction of PV syste

117、ms under the Feed-in Tariff(FIT)program.In order to achieve a well-balanced introduction of renewable energy while curbing of national burden,the“Act on Special Measures Concerning Procurement of Renewable Energy Sourced Electricity by Task 1 National Survey Report of PV Power Applications in JAPAN

118、22 Electric Utilities(Renewable Energy Act or FIT Act)”was amended,and the“revised FIT Act”was enacted.Effective from April 2017,the FIT program was fundamentally reviewed and revision of approval scheme,change of method to set FITs,change of entities obliged to purchase FIT electricity,improving tr

119、ansparency of issues related to electric grids and revision of the surcharge reduction system were implemented.In December 2018,the retroactive measures were decided for the first time to deal with the FIT-approved PV projects which have not started operation for a long time.The Acts for Establishin

120、g Resilient and Sustainable Electricity Supply Systems were enacted in June 2020 and the name of the special measures act was amended to the Renewable Energy Promotion Act(revised Act on Special Measures Concerning Procurement of Renewable Energy Sourced Electricity by Electric Utilities,or the curr

121、ent FIT Act).Two types of power sources,competitive power source and locally-utilized power source were presented.As for competitive power source,the Feed-in-Premium(FIP)program is planned to be introduced from April 2022 for 1 MW PV systems to promote the integration into the electricity market.As

122、for locally-utilized power source,it is planned to maintain the FIT program after setting the requirements for local utilization.In addition,an approval cancellation system will start in April 2022 to deal with the FIT-approved projects which have not started operation for a long time.3.2.3 BIPV dev

123、elopment measures The introduction of PV power generation into buildings is adopted in the demonstration jointly supported and promoted by the Ministry of Land,Infrastructure,Transport and Tourism(MLIT),METI and the Ministry of the Environment(MoE),in order to realize net zero energy house(ZEH)and n

124、et zero energy building(ZEB)as the measures for energy conservation of houses and buildings.The New Energy and Industrial Technology Development Organization(NEDO)is promoting Development of Technologies for Wall installed PV Systems under the Development of Technologies to Promote Photovoltaic Powe

125、r Generation as a Main Power Source,a new program being implemented since FY 2020.It will develop see-through solar cells and perovskite BIPV modules for aperture area of building walls,formulate guidelines,and conduct system demonstrations.Also,METI started a three-year project for International St

126、andardization of Building-Integrated Photovoltaic(BIPV)Systems in FY 2021.As a project consignee,Photovoltaic Generation Technology Research Association(PVTEC)undertakes international standardization of design standards for indoor window-mounted solar cells,design safety standards for snow-melting t

127、ype PV modules,weather resistance evaluation methods for BIPV module design,and power generation estimation methods for vertically installed PV modules,etc.Task 1 National Survey Report of PV Power Applications in JAPAN 23 3.3 Self-consumption measures Table 18:Summary of self-consumption regulation

128、s for small private PV systems in 2021 PV self-consumption 1 Right to self-consume Transfer of environmental value is available through green power certificates,etc.In other cases,the right to self-consume attributes to the consumer.2 Revenues from self-consumed PV Self-consumed electricity is not s

129、ubject to taxation.3 Charges to finance Transmission,Distribution grids&Renewable Levies The fee will not be charged in case of self-consumption.Excess PV electricity 4 Revenues from excess PV electricity injected into the grid FIT for surplus electricity is set.For the post-FIT residential PV syste

130、ms,electricity retailers set the purchase price.5 Maximum timeframe for compensation of fluxes Measured by installing two meters(sale/purchase)and bill separately on a monthly basis.Therefore,there is no compensation.6 Geographical compensation(virtual self-consumption or metering)There is no compen

131、sation.Other characteristics 7 Regulatory scheme duration Surplus power purchase periods under FIT program:10 years for 10 kW and 20 years for 10 kW systems.8 Third party ownership accepted So far,the roof-lease business has been conducted using FIT,however,introduction of PPA model in combination w

132、ith electricity retailing is making progress as the purchase price declines.9 Grid codes and/or additional taxes/fees impacting the revenues of the prosumer Except for respecting the regulations set at the time of grid connection and paying the amount required by electric companies,there are no char

133、ges intended for renewable energy such as fees that arise out of ancillary service,etc.10 Regulations on enablers of self-consumption(storage,DSM)For residential PV systems,responses to the mode to promote self-consumption(Green Mode)are being promoted,in preparation for the termination of the FIT p

134、urchase period.11 PV system size limitations Purchase of surplus electricity for 10 kW systems.For 10 kW systems,there is no size limitation as far as power transmission and distribution operators permit.12 Electricity system limitations There is no major barrier at present 13 Additional features Su

135、pport measures for the introduction of supply/demand integrated systems,such as self-consumption,etc.,are strengthened in order to become independent from the FIT.Task 1 National Survey Report of PV Power Applications in JAPAN 24 3.3.1 Dissemination measures related to self-consumption From FY 2020,

136、under the FIT program,requirements for approving power sources as locally-used power sources for self-consumption are applied to PV systems with a capacity of 10 kW-50 kW.The self-consumption rate of 30%or more is one of the requirements for approval.3.3.2 Other dissemination measures related to sel

137、f-consumption Nothing special to report.3.4 Collective self-consumption,community solar and similar measures There is no established scheme for the use of electricity from PV systems by multiple consumers.However,METI established the Smart Community Alliance,a public-private partnership organization

138、 with NEDO as its secretariat,and 16 companies are participating as operating companies.In addition,METI published the list of examples of smart communities,which use energy effectively within communities and is promoting smart communities across Japan through companies and organizations.The New Ene

139、rgy Promotion Council compiled and reported on the results of the Project to promote introduction of smart communities in the areas stricken by the Great East Japan Earthquake.3.5 Tenders,auctions&similar schemes There are two types of tenders:tender for grid connection capacity and tender for FIT c

140、apacity.-Tender for grid connection capacity The“tender process to secure the grid connection capacity”was conducted to bid for grid connection capacity in areas where projects of various power sources such as PV are concentrated into specific power transmission and distribution lines,and a total of

141、 40 processes have been completed throughout Japan.Under the tender process to secure the grid connection capacity,reduction of the burden of each business operator is aimed to be achieved through cost sharing with neighbouring projects.The cost for enhancement of bulk power system is the general bu

142、rden which is widely covered by consumers based on the guideline by METI.As for the enhancement cost of power transmission and distribution facilities other than those for bulk power system,the ratios of general burden and burden for business operators(specific burden)are calculated for each tender

143、process.A ceiling price was set for the general burden,at the uniform price of 41,000 JPY/kW for all the power sources.The Organization for Cross-regional Coordination of Transmission Operators,JAPAN(OCCTO)is the organizer of the tender process,and the tender process can be started when the requirem

144、ents are satisfied following the application for the start by the business operator.General power transmission and distribution operators are in charge of the procedures,and they present tender capacity and minimum tender price(minimum unit price of tender burden)per kW for each area.Power producers

145、 bid for the planned system capacity and tender price(unit price of tender burden)per kW and the priority for grid connection is decided in descending order according to tender price.The tender process becomes effective when the Task 1 National Survey Report of PV Power Applications in JAPAN 25 prod

146、uct(result of multiplication)of unit price of tender burden and capacity exceeds the construction cost for that tender.From October 2020,a bulk consideration process to secure the grid connection capacity was introduced to replace the tender process to secure the grid connection capacity.In case the

147、 capacity of the grid is insufficient,and construction of grid enhancement is required,the general power transmission and distribution operators formulate measures involving neighbouring projects as well.Effective grid maintenance,etc.will be available through sharing the cost of grid enhancement co

148、nstruction among multiple applicants for grid connection.TEPCO Power Grid started accepting applications for the bulk consideration process for the eastern area of Gunma Prefecture on July 13,2021,and about 20 other processes have been initiated throughout Japan.-Tender for FIT capacity Following th

149、e incorporation of the tender for FIT capacity in the revision of the Renewable Energy Act which was enacted on May 25,2016,a tender scheme for 2 MW and larger PV projects was introduced from FY 2017.The scope of PV projects subject to the tender scheme was expanded to include 500 kW from FY 2019 an

150、d 250 kW from FY 2020.For FY 2021,the number of tenders was increased to four times,and the ceiling prices were announced in advance:11.00 JPY/kWh for the eighth tender,10.75 JPY/kWh for the ninth tender,10.50 JPY/kWh for the tenth tender,and 10.25 JPY/kWh for the eleventh tender.The tender capacity

151、 was set at 208 MW for the eighth tender and revised for the ninth and subsequent tenders based on the results of the previous tender.Setting 208 MW as the minimum capacity,and if the amount of tenders received exceeds the capacity,the tender capacity will be increased for the next tender.In order t

152、o encourage participation in the tender,the requirement to refund the deposit was eased,and the participation fee was lowered.The results of the eighth through tenth tenders are shown in the table below.The results of the eleventh tender will be announced in March 2022.Table 19a:Results of the eight

153、h tender for FIT capacity in FY 2021 Item Description Subject of the tender scheme 250 MW PV systems Tender capacity 208 MW(a uniform tender is conducted nationwide)Ceiling price 11.00 JPY/kWh(preliminarily announced)Winning bids 137 projects with a total capacity of 208.47 MW(including those awarde

154、d following the withdrawal of successful bidders)Lowest winning price 10.00 JPY/kWh Highest winning price 10.98 JPY/kWh Withdrawal after winning the bid 9 projects with a total capacity of 6.80 MW Paid the second deposit to acquire approval 128 projects with a total capacity of 201.67 MW Task 1 Nati

155、onal Survey Report of PV Power Applications in JAPAN 26 Table 19b:Results of the ninth tender for FIT capacity in FY 2021 Item Description Subject of the tender scheme 250 kW PV systems Tender capacity 224.3357 MW(a uniform tender is conducted nationwide)Ceiling price 10.75 JPY/kWh(preliminarily ann

156、ounced)Winning bids 208 projects with a total capacity of 233.8177 MW(including those awarded following the withdrawal of successful bidders)Lowest winning price 10.28 JPY/kWh Highest winning price 10.75 JPY/kWh Withdrawal after winning the bid 29 projects with a total capacity of 43.7739 MW Paid th

157、e second deposit to acquire approval 179 projects with a total capacity of 190.0438 MW Table 19c:Results of the tenth tender for FIT capacity in FY 2021 Item Description Subject of the tender scheme 250 kW PV systems Tender capacity 242.6158 MW(a uniform tender is conducted nationwide)Ceiling price

158、10.50 JPY/kWh(preliminarily announced)Winning bids 82 projects with a total capacity of 242.8075 MW(including those awarded following the withdrawal of successful bidders)Lowest winning price 10.23 JPY/kWh Highest winning price 10.40 JPY/kWh Withdrawal after winning the bid 8 projects with a total c

159、apacity of 45.9794 MW Paid the second deposit to acquire approval 74 projects with a total capacity of 196.8281 MW 3.6 Other utility-scale measures including floating and agricultural PV Although there are no support measures to promote the introduction of floating PV(FPV)systems,the installed capac

160、ity of FPV systems in static freshwater such as reservoirs and regulating reservoirs gradually increased,reaching a cumulative capacity of more than 400 MW.There are no actual cases of installations in coastal and offshore areas,although there are cases of feasibility studies.In November 2021,Guidel

161、ine for the design and construction of floating PV(FPV)systems was issued under the commission project of NEDO(this guideline is a provisional version,and a final version will be issued in FY 2023 following the results of research and development and demonstration tests).The guideline is expected to

162、 lead to an increase in the installation of FPV systems with higher safety standards than before.There is no policy to directly promote the introduction of PV systems on farmland,however,through support measures for leading model demonstrations,provision of information such as regular updates of han

163、dbooks by the Ministry of Agriculture,Forestry and Fisheries(MAFF)and deployment of best practices,the introduction of PV systems on farmland gradually increased to a cumulative total of more than 3,500 projects,amounting to over 1.1 GW.Moreover,in November 2021,Guideline for the design and construc

164、tion of PV systems on Task 1 National Survey Report of PV Power Applications in JAPAN 27 farmland was issued under the commission project of NEDO(this guideline is a provisional version,and a final version will be issued in FY 2023 following the results of research and development and demonstration

165、tests).The guideline is expected to lead to an increase in the installation of PV systems on farmland with higher safety standards than before.3.7 Social Policies Although no support program is available specifically for low-income families,the Ministry of the Environment(MoE)provides generous subsi

166、dies to support the introduction of renewable energy to schools and public facilities,including the Project to promote making renewable energy a mainstream power source/strengthening of resilience in local communities through reduction of renewable energy price,etc.such as utilization of PPA,the Pro

167、ject to establish symbiotic and recycling-based community with innovation for decarbonization and the Project to promote installation of independent and distributed energy facilities to evacuation centers,etc.which realize resilience and decarbonization of local communities in parallel.In particular

168、,the Project to promote installation of independent and distributed energy facilities to evacuation centers,etc.which realize resilience and decarbonization of local communities in parallel subsidizes part of the installation costs for projects to introduce renewable energy such as PV power generati

169、on and storage batteries,etc.to public and private facilities that serve as evacuation centers and disaster prevention bases in the event of disasters based on local disaster-prevention plans,etc.METI supports the establishment of regional micro-grids as part of its Project to Promote Dissemination

170、of Renewable Energy,etc.in harmony with local communities.The Ministry of Education,Culture,Sports,Science and Technology(MEXT)supports the introduction of PV power generation in schools as part of its Public school facility development project.From FY 2022 onward,support projects for communities,sc

171、hools and public facilities are scheduled to be launched through the Project to grant for transition to local decarbonization and promotion of renewable energy,the Project to establish leading areas of decarbonization based on a long-term perspective through 2030 and the Project to accelerate priori

172、ty measures.3.8 Retrospective measures applied to PV Since the start of the FIT program in July 2012,installation of 10 kW commercial PV systems rapidly increased,and the purchase price(FIT)more than halved from 40 JPY/kWh for FY 2012 to 11 JPY/kWh for FY 2021.Under the scheme where FIT is set at th

173、e time of approval,there are a large number of FIT-approved PV projects which have not started operation for a long time while keeping the high FIT,which brought up the following issues:1)Concerns over the future increase in the financial burden of the nation;2)Stagnation in new development and cost

174、 reduction and 3)Occupation of open grid capacity.In order to further increase the installed capacity of renewable energy while curbing the national burden,new measures were decided on December 5,2018 to handle the FIT-approved PV projects which have not started operation.Among the commercial PV pro

175、jects which acquired FIT approval between FY 2012 and FY 2014 and have far exceeded three years,which is an indicative period of starting operation after acquisition of approval,the following measures have been taken for the projects for which the deadline for starting operation was not set:1)FIT re

176、sponding to the timing of starting operation is applied instead of the higher FIT based on the cost at the time of approval,if the Task 1 National Survey Report of PV Power Applications in JAPAN 28 preparations for starting operation have not started by the end of FY 2018(March 31,2019)in principle

177、and 2)One-year deadline for starting operation is set in principle,in order to secure the start of operation as early as possible.In FY 2020,the subjects of the measures expanded to include the PV projects which were approved between FY 2012 and FY 2016 and for which the deadline for starting operat

178、ion is not set.In April 2022,the approval cancellation system was launched to set the deadline of approval cancellation in addition to the existing COD deadline.For the projects whose COD deadline is March 31,2022,or earlier,a grace period before cancellation of approval will be granted upon confirm

179、ation of submission of an application of construction start for grid connection on April 1,2023,and if the submission is not confirmed,the approval will be cancelled at that point.3.9 Indirect policy issues 3.9.1 Rural electrification measures Since the entire nation is almost 100%electrified in Jap

180、an,there are no rural electrification measures.However,there are support measures for remote islands in order to reduce carbon emissions in remote islands not having grid connection with the mainland.These islands depend on expensive fossil fuel-based energy such as high-cost diesel power generation

181、,therefore,they are susceptible to the changes in fossil fuel prices and have an issue of large amount of CO2 emissions.Given this,METI and the Ministry of the Environment(MOE)have carried out dissemination measures for renewable energy such as PV and installation of storage batteries in remote isla

182、nds to reduce fossil fuel usage.Since the feed-in tariff(FIT)program was introduced,installation of PV systems has increased even in the remote islands with idle lands.However,problems such as suspension of responses to applications for grid connection contracts and output curtailment became obvious

183、 because of the limit of adjusting power which was caused by limited demand.MoE invited public participation for the Survey and verification commission project for the introduction of renewable energy,etc.on Iwo Jima and Minami-Tori-shima,located at the easternmost tip of Japan,from FY 2021,and laun

184、ched a demonstration project to supply the necessary electricity from renewable energy sources.MoE allocated 350 MJPY for related expenses in its budget request for FY 2021.Renewable energy power generation facilities such as PV systems and storage batteries are installed to examine whether it is pr

185、actical to deploy them on the isolated island 1,800 km away from the mainland Japan.Furthermore,MoE started a project to formulate a plan for a project to introduce facilities to increase the ratio of renewable energy to the total electricity supply on remote islands by strengthening dispatching abi

186、lity through management and control of renewable energy facilities and demand-side facilities on a group basis under the Project for introduction and construction of operation and control of facilities to make renewable energy the main power source on remote islands.The Ministry of Land,Infrastructu

187、re,Transport and Tourism(MLIT)published a list of needs or local issues which local governments are facing and seeds,such as new technologies from private companies,with the aim of realizing the Smart Island concept.MLIT is aiming to revitalize the remote islands by combining the needs of local gove

188、rnments in fields such as transportation,energy and disaster prevention with the seeds of businesses.In the field of energy,technologies to address output fluctuations,etc.are proposed in anticipation of the large-volume introduction of renewable energy.In conducting the demonstration on the remote

189、Task 1 National Survey Report of PV Power Applications in JAPAN 29 islands,it is planned to make an effective use of the storage batteries installed in households while asking for the cooperation of storage battery manufacturers.3.9.2 Support for electricity storage and demand response measures Rega

190、rding demand response,METI announced a public invitation for“Demonstration project to establish the next-generation technologies utilizing distributed energy resources such as storage batteries,etc.”,carried out by the Sustainable open Innovation Initiative(SII).The Renewable energy aggregation demo

191、nstration project was added along with the demonstration projects on the consumer side until FY 2020,covering the following:1)demonstration to avoid imbalance in renewable energy generation;2)verification to increase profits from market trading;and 3)demonstration of renewable energy generation fore

192、casting.Three consortiums participated in these demonstration studies:ENERES,Next Kraftwerke Toshiba and SB Energy.The existing project was renamed Demonstration project for further utilization of distributed energy resources(DER aggregation),and further divided into the following categories:Project

193、 A)Infrastructure development project;Project B)DER aggregation project;and Project C)Introduction of DER,etc.Project A was conducted by Waseda University and Project B was conducted with ENERES and Kansai Electric Power as consortium leaders.Under the DER aggregation project,the equipment and const

194、ruction costs,including storage batteries,are eligible for subsidies,and in FY 2021,subsidies were also provided for residential and industrial energy storage systems(storage batteries+PCS).The target price for industrial energy storage systems was set at 210,000 JPY/kW,and subsidies of 70,000 JPY/k

195、W(capped at one third of the price)were provided for those below the target price.For residential storage batteries,a target price of 165,000 JPY/kWh was set,and subsidies of 40,000 JPY/kWh to 55,000 JPY/kWh were provided for storage batteries purchased at or below the target price.In the area of in

196、dustrial energy storage,etc.,MoE provided subsidies for the introduction of self-consumption type PV systems,storage batteries,etc.that contribute to the promotion of decarbonization and disaster prevention as part of the Project to promote making renewable energy a mainstream power source/strengthe

197、ning of resilience in local communities through reduction of renewable energy price,etc.such as utilization of PPA.The MoE also provided subsidies for the installations of net zero energy house(ZEH)and demonstration projects of net zero energy building(ZEB)as a subsidy program.“Project to support es

198、tablishment of net zero energy houses(ZEHs)at detached houses”is implemented by the SII as a liaison for this program.In case of introducing a storage system to the eligible ZEH,20,000 JPY/kWh is granted for an energy storage system that costs 165,000 JPY/kWh or less.Following the establishment of n

199、egawatt trading market in April 2017,a mechanism in which negawatt can be traded as a supply capacity as is the case with the generated electricity was developed.Following the full liberalization of electricity retailing,general power transmission and distribution operators are conducting public inv

200、itation for dispatching ability used for frequency control and adjustment of supply and demand balance within the electricity supply service area.To utilize demand response(DR)as a dispatching ability,requirements for participation in public invitations have been improved to make it easier for DR op

201、erators to participate in the public invitation.Dissemination of residential storage batteries for stationary applications is progressing thanks to the subsidies provided by the support projects of ZEH.Many of them were for emergency Task 1 National Survey Report of PV Power Applications in JAPAN 30

202、 use at the time of electric outage,etc.or operated in the mode to store electricity in the middle of the night and discharge in the daytime.However,the surplus power purchase under the FIT program started to be terminated for PV systems from November 2019,and the operation in demand response mode s

203、tarted,following the change of the operation mode.METI held the Study group for expanding the dissemination of stationary storage batteries four times between November 2020 and February 2021 and presented the measures for expanding the dissemination of storage batteries until 2030.In FY 2022,the Pro

204、ject to promote the introduction of grid-scale storage batteries,etc.toward accelerating the introduction of renewable energy will be implemented.3.9.3 Support for electric vehicles(and VIPV)Since FY 2009,METI has been providing subsidy for the introduction of clean energy vehicles.This scheme has b

205、een reviewed following the change of policy,etc.In FY 2020,subsidies were granted through the Subsidy for project expenses to introduce clean energy vehicles that can be used in times of disaster which was included in the third supplementary budget.The subsidy is available for individuals who purcha

206、se electric vehicles(EVs),plug-in hybrid vehicles(PHVs),and fuel cell vehicles(FCVs).The maximum subsidy amount is 800,000 JPY for EVs,400,000 JPY for PHVs and 2.5 MJPY for FCVs.In addition,subsidies for charging facilities are also provided to individuals and businesses,covering one half of the cos

207、t of the facilities or a maximum of 750,000 JPY.Construction costs are subsidized at a fixed amount,with the maximum amount of 400,000 JPY for individuals or 950,000 JPY for businesses.Aside from government subsidies,local governments also provide subsidies for the introduction of EVs.While there ar

208、e no specific subsidies from the government for vehicle-integrated PV(VIPV),NEDO provides public funding support for R&D and demonstration to promote the spread of PV mounted on vehicles,based on the accomplishments of the PV-Powered Vehicle Strategy Committee and the projects to promote the develop

209、ment of innovative and high-performance solar cells.Based on the accomplishments so far,VIPV is expected to be an opportunity to create new markets and solve energy and environmental issues,and the future support measures are anticipated.3.9.4 Curtailment policies Power generation amount of renewabl

210、e energy sources such as PV varies depending on the natural environment.Accordingly,in case the power generation amount within a region exceeds the local electricity demand,output curtailment is conducted to maintain stable supply of electricity.Based on the priority dispatch rules which were stipul

211、ated by the Ordinance for Enforcement of the FIT Act and Operational guidelines for the power transmission and distribution business,etc.by the Organization for Cross-regional Coordination of Transmission Operators,JAPAN(OCCTO),curtailment of thermal power generation,operation of pumped storage powe

212、r generation and utilization of inter-regional interconnection lines will be conducted.In case where the power generation amount remains excessive even with these measures,output curtailment of renewable energy sources will be conducted.In October 2018,the first output curtailment was implemented in

213、 mainland Kyushu.Kyushu Electric Power conducted a PV output curtailment simulation and reported that the output curtailment rate was projected to be 4.6%in FY 2021 and 5.2%in FY 2022.Output curtailment forecasts for FY Task 1 National Survey Report of PV Power Applications in JAPAN 31 2022 were als

214、o presented for the Tohoku,Shikoku,and Okinawa areas.METI summarized the basic direction of a comprehensive package to reduce renewable energy output curtailment including the following:1)improvement of efficiency in output curtailment;2)supply measures;3)demand measures,and 4)grid measures.Consider

215、ation is also underway regarding the application of non-firm connection,which was applied to the bulk power system from January 2021.As for the local grid,Tokyo Electric Power(TEPCO)and NEDO are conducting a pilot project,and studies are underway with the aim of starting to accept applications by th

216、e end of FY 2022.Regarding the method to control congestion in the grid where non-firm connection is applied,re-dispatching method by general power transmission and distribution operators will be adopted at first.3.9.5 Other support measures 3.9.5.1 International policies affecting the use of PV Pow

217、er Systems In order to achieve the reduction target of greenhouse gas(GHG)emissions which was presented in the Intended Nationally Determined Contributions(INDC)of Japan,which was approved by the 21st Session of the Conference of the Parties to the United Nations Framework Convention on Climate Chan

218、ge(COP 21),the national government formulated the“Plan for Global Warming Countermeasures”in May 2016,in which a mid-term plan for Japans global warming prevention measures is indicated.This plan specifies the actions to be addressed by the national government,local governments,business operators an

219、d general public and the national measures and draws a path for achieving targeted reduction,as well as establishing a goal to reduce the GHG emissions by 80%by 2050 as a long-term target.In this plan,it is stated that renewable energy should be“introduced to the maximum extent possible”.In November

220、 2016,the Japanese government approved the accord on the Paris Agreement in the plenary session of the House of Representatives and established goals to reduce the GHG emissions by 26%by FY 2030 compared to FY 2013(25.4%decrease from FY 2005)and by 80%by 2050.In 2020,a new target to further accelera

221、te this goal was announced.Prime Minister Yoshihide Suga declared in his first Policy Speech at the 203rd extraordinary session of the Diet held on October 26,2020,that Japan aims to reduce greenhouse gas emissions to net zero by 2050,achieving carbon neutrality and decarbonized society by 2050.In t

222、his speech,he presented the realization of a green society which creates a virtuous circle between the economy and the environment as a pillar of Japans growth strategy.He also mentioned the maximum introduction of renewable energy as well as the promotion of nuclear power policies with safety as th

223、e highest priority and explained the policy to achieve both decarbonization and stable power supply.Furthermore,he indicated his intention of accelerating commercialization of progressive innovation such as the next-generation solar cells and carbon recycling,considering them as the key factors,and

224、announced the drastic conversion of the policies for coal-fired thermal power generation.In response to this decision,the Ministry of Economy,Trade and Industry(METI)announced that it will formulate an action plan in the end of 2020 that will show the way to achieve this goal by 2050.METI will discu

225、ss them intensively at the Advisory Committee for Natural Resources and Energy and Green Innovation Strategy Meeting.Meanwhile,the Ministry of the Environment(MoE)announced a policy to revise the Law Concerning the Promotion of the Measures to Cope with Global Warming to promote introduction of rene

226、wable energy.Task 1 National Survey Report of PV Power Applications in JAPAN 32 3.9.5.2 The introduction of any favourable environmental regulations Regulatory Reform by the Task Force for comprehensive review of regulations,etc.on renewable energy The need for regulatory reform is becoming a major

227、challenge to maximize the introduction of renewable energy by making renewable energy a main power source toward carbon neutrality by 2050.In order to address the necessary regulatory reforms as a national issue and to strongly promote speedy reforms beyond the framework of ministries and agencies,t

228、he Task Force for comprehensive review of regulations,etc.on renewable energy was established in December 2020 under the leadership of Taro Kono,Minister for Administrative Reform and Regulatory Reform.Some examples of the outcomes are shown below.The Task Force is continuing and producing results i

229、n FY 2022.-Approaches to location restrictions,such as elimination of single income requirement on devastated farmland and conversion of devastated farmland that is difficult to reclaim into non-agricultural use -Establishment of the renewable energy value trading market where consumers can trade di

230、rectly -Review of grid restrictions on transmission networks,such as non-firm connections of local grids -Compliance with electrical safety regulations,such as expanding the scope of pre-use self-confirmation for small-scale renewable energy facilities -Compliance with regulations under the Fire Ser

231、vice Act concerning stationary lithium-ion storage battery facilities -Clarification of technical standards for PV power generation facilities -Reform of the Chief Electrical Engineer system -Relaxation of requirements for the promotion of power generation facilities on farmland and use of agricultu

232、ral reservoirs for the dissemination of floating PV(FPV)systems -Strengthening of energy conservation standards for buildings and promotion of net zero energy houses(ZEH)and net zero energy buildings(ZEB)In August 2022,the Ministry of Land,Infrastructure,Transport and Tourism(MLIT),METI and MoE comp

233、iled a list of housing and building measures toward achieving carbon neutrality in 2050 and presented the ideal vision for housing and buildings in 2050 and 2030 as well as the way forward for energy conservation measures and other initiatives.Table 20:Ideal vision for housing and buildings in 2050

234、and 2030 2050 The energy conservation performance of the ZEH/ZEB standard level is secured on average in the stocks,and the introduction of renewable energy such as PV systems becomes common in houses and buildings where the introduction is reasonable.2030 Energy conservation performance at the leve

235、l of ZEH/ZEB standards shall be ensured for newly constructed houses and buildings,and 60%of newly constructed detached houses shall be equipped with PV systems.Task 1 National Survey Report of PV Power Applications in JAPAN 33 How to proceed with energy conservation measures,etc.-Obligation to comp

236、ly with energy conservation standards including for residential buildings by FY 2025 -Increasing the energy conservation standards to the level of ZEH/ZEB standards by 2030 at the latest,and make it mandatory to comply with them -Promoting the installation of PV systems by considering all possible m

237、eans,including future mandatory installation as one of the options 3.9.5.3 Policies relating to externalities of conventional energy While the operation of nuclear power plants is suspended after the Great East Japan Earthquake,electricity supply capacity has been secured by increasing the operation

238、 of thermal power generation facilities as shown in Figure 1.The share of thermal power generation in the generation mix was approximately 65%in FY 2010,before the earthquake,which increased to around 84%in FY 2015.In FY 2020,it slightly decreased to approximately 76%.While the share of fossil fuels

239、 decreased,the share of nuclear power and renewable energy increased to 3.9%and 19.8%,respectively.Figure 1 Generation mix of the electric companies Source:Report on electricity supply-demand verification(October 2017)and White Paper on Energy 2022 Based on the Fifth Strategic Energy Plan approved b

240、y the Cabinet in July 2018,studies were conducted to address the fade-out of inefficient coal-fired thermal power plants.A policy was presented that inefficient coal-fired power plants should be steadily faded out Task 1 National Survey Report of PV Power Applications in JAPAN 34 by 2030,and that in

241、 addition to taking both regulatory and directive measures,the efforts of business operators should be confirmed and secured through the fade-out plan.In the Sixth Strategic Energy Plan approved by the Cabinet in October 2021,renewable energy is described as a promising,diverse,and important domesti

242、c energy source that can contribute to energy security because it is a decarbonized energy source that does not emit greenhouse gases and can also be produced domestically.It was noted that the policy includes thoroughly making renewable energy a main power source through a principle of placing the

243、highest priority on renewable energy.As for thermal power generation,while it is necessary for the time being as a supply capacity/dispatching ability to cover the volatility of renewable energy,it is fundamental to reduce the ratio of thermal power generation in the energy mix to a level as low as

244、possible by FY 2030.Based on the premise of securing stable supply,while working on environmental measures toward decarbonization of thermal power generation,issues such as strengthening the competitiveness and improving the economic efficiency of thermal power generation will be addressed.From the

245、perspective of ensuring stable supply,in light of growing concerns about supply capacity shortages due to the ongoing closure and decommissioning of existing thermal power plants,it is planned to proceed with studies on measures to prevent the withdrawal of power sources and strengthen efforts to se

246、cure fuel,while securing the necessary installed capacity over the mid-to long-term by means of the capacity market.-PVs contribution during peak demand hours After the Great East Japan Earthquake,electricity supply and demand status has become tight in Japan.Accordingly,METI evaluates the actual pe

247、rformances and makes a forecast on electricity supply and demand from the viewpoint whether electricity can surely be supplied to cover the demand in peak hours in the summer and in the winter.Following full liberalization of electricity retailing from April 1,2016,from the winter of 2016,supply and

248、 demand of all areas including Power Producers and Suppliers(PPS)were included in the scope of verification in addition to former General Electricity Utilities.Verification is conducted by OCCTO and the actual power supply capacity records of PV systems are also evaluated.As shown in Table 21,in the

249、 summer of 2021,electricity supply capacity in the peak hours of the day with the peak demand was expected to be 15.11 GW(excluding Okinawa Prefecture),but the actual supply capacity was 39.19 GW in total.It is estimated that the supply capacity in the summer of 2022 will be 19.35 GW(excluding Okina

250、wa Prefecture).This estimation assumes that,since the PV power generation cannot always expect sufficient irradiation in the peak hours of electricity demand,supply capacity of PV is expected conservatively.Task 1 National Survey Report of PV Power Applications in JAPAN 35 Table 21:Evaluation of pow

251、er supply capacities of PV systems in the summer by electric companies in Japan(MW)Former General Electricity Utilities by area Hokkaido Tohoku Tokyo Chubu Hokuriku Kansai Chugoku Shikoku Kyushu Total Summer of 2021(Actual)Assumption 190 1,800 4,080 2,810 400 1,710 1,750 880 1,480 15,110 Actual supp

252、ly capacity records on a day and an hour of peak demand 1,200 3,830 10,810 4,730 910 4,270 4,060 1,980 7,410 39,190 Actual ratio of adjustment factor(%)records on a day of peak demand 59.9 57.5 65.1 46.8 84.7 66.1 72.0 68.7 70.2 Peak demand date and hour in Japan 1-2 p.m.,Thursday,Aug 5,2021-Peak el

253、ectricity demand 4,440 14,620 54,530 24,770 5,220 28,220 10,990 5,030 15,450 163,280 PV ratio to peak demand 27.0%26.2%19.8%19.1%17.4%15.1%36.9%39.4%48.0%24.0%Summer of 2022(Forecast)Estimated peak demand hours 2-3 p.m.2-3 p.m.2-3 p.m.2-3 p.m.2-3 p.m.2-3 p.m.2-3 p.m.2-3 p.m.2-3 p.m.-Estimated supply

254、 capacity 230 2,210 5,250 3,710 530 2,600 2,000 1,140 1,670 19,350 Adjustment factor(%)7.8 24.7 25.3 24.2 31.7 27.1 26.9 32.1 17.1-Source:Report on electricity supply-demand verification(October 2021 and June 2022)*1:“Supply capacity”of PV power generation is the installed capacity of PV systems whi

255、ch contributed to the peak demand hours.With regard to PV power generation,since the PV power generation cannot always expect sufficient irradiation in the peak hours of electricity demand,in the preliminary assumptions,the stable power source replacement value of thermal power and other power sourc

256、es based on the calculation of expected unserved energy(EUE)was included in the supply capacity.*2:PV generated power used for self-consumption is evaluated as energy conservation and not included in supply capacity.Only the surplus electricity connected to electric grids is evaluated here.*3:Detail

257、ed numbers for the adjustment factors are available on the website of the Organization for Cross-regional Coordination of Transmission Operators,JAPAN(OCCTO).The OCCTOs electricity supply plan uses a stochastic calculation method to assess the reliability of electricity supply,and the supply capabil

258、ity of power sources is calculated as follows:Supply capacity=Installed capacity x Adjustment factor.The adjustment factor varies by area and is published as a reference material in the OCCTOs electricity supply plan.For further information,please visit the following website(Japanese only):https:/ww

259、w.occto.or.jp/kyoukei/teishutsu/files/2022-4_kyoukei_sankoushiryou_rev1.pdf 3.9.5.4 Taxes on pollution(e.g.carbon tax)In Japan,“Tax for Climate Change Mitigation”has been imposed since October 2012,which requires the public to widely and fairly share the burden for the usage of all the fossil fuels

260、including petrolium,natural gas and coal,in proportion to their enviromental load(CO2 emissions).Task 1 National Survey Report of PV Power Applications in JAPAN 36 The FY 2021 tax revenue from the petroleum and coal tax,including the Tax for Climate Change Mitigation,was 606 BJPY.Of this amount,reve

261、nue from the Tax for Climate Change Mitigation is expected to amount to about 260 BJPY.This tax revenue will be used for implemention of various measures to curb energy-based CO2 emissions including energy-saving measures,dissemination of renewable energy,and greening and streamlining of fossil fuel

262、s.MoE started studying carbon pricing in January 2017 and discussions are ongoing.As for the options of carbon pricing,various methods such as carbon border adjustment mechanism(CBAM)and internal carbon pricing within a company,in addition to carbon tax,cap-and-trade and credit trading,are being dis

263、cussed.MoE published an interim report on the use of carbon pricing in August 2021,but it is not intended to indicate a specific direction or conclusion.In February 2021,METI launched a study group on economic methods for achieving carbon neutrality in the world as a whole,etc.,and started discussio

264、ns on the system design of carbon pricing that would contribute to Japans growth.In August 2021,METI compiled the results of discussions into a draft interim report.As part of the framework to bring about behavioral transformation in the mid-to long-term,it was proposed to establish a Carbon neutral

265、 top league(tentative name)in which businesses set emission reduction targets and the government verifies their performance,and a Carbon credit market in which businesses trade high quality credits from Japan and abroad.3.9.5.5 National policies and programmes to promote the use of PV in foreign non

266、-IEA countries To achieve the reduction target of greenhouse gas emissions,Japan has implemented the Joint Crediting Mechanism(JCM).The JCM is a mechanism in which credits issued depending on the reduced amount of greenhouse gas emissions are utilized to achieve target of Japans greenhouse gas emiss

267、ions reduction through support for dissemination of high-quality low carbon technologies,etc.to developing countries.As of July 2022,Japan has signed the bilateral documents with 17 countries namely Mongolia,Bangladesh,Ethiopia,Kenya,Maldives,Vietnam,Laos,Indonesia,Costa Rica,Palau,Cambodia,Mexico,S

268、audi Arabia,Chile,Myanmar,Thailand and the Philippines.In these countries,from FY 2013 to FY 2021,more than 700 funding projects and demonstration projects(MoE/METI)were adopted.As of June 2022,146 PV-related projects with a total capacity of approximately 2.2 GW have been promoted by Japanese compa

269、nies.With these projects,support has been provided to projects to introduce PV systems and various feasibility studies have been conducted including the following:introduction of high-efficiency PV systems and appropriate O&M;application of PV systems as a substitute for grid elecricity by diesel po

270、wer generation or fossil fuel power generation,as well as a substitute for self-generation,and installation of floating PV systems.In addition to JCM,international demonstration projects through NEDO started in FY 1993,and International Demonstration Project on Japans Energy Efficiency Technologies

271、is being implemented from FY 2017.Demonstration projects focusing solely on PV technology are currently not being conducted.In non-IEA countries,a smart community demonstration project is being conducted in Slovenia for the period from 2016 to 2022.The Japan International Cooperation Agency(JICA)con

272、ducted inter-governmental cooperation,through grant aid or loan assistance,as well as technological cooperation based on requests from developing countries.It supports developing master plans mainly Task 1 National Survey Report of PV Power Applications in JAPAN 37 for rural electrification using PV

273、 power generation through the study of development for rural electrification.In 2021,JICA signed a project finance loan agreement with Prime Road Alternative(Cambodia)of Cambodia for the development of the Kampong Chhnang PV power plant.This is a large-scale solar IPP project,which has few precedent

274、s in Cambodia.In addition to the effect of reducing greenhouse gas emissions,the project is expected to reduce electricity prices in Cambodia,as the electricity will be supplied at a low generating unit price of 3.877 cents/kWh.JICA provided 150 MUSD to the Bangladesh Infrastructure Finance Fund,an

275、infrastructure fund in Bangladesh.The Japan Bank for International Cooperation(JBIC),in its environmental initiatives,contributes to addressing global environmental issues through a variety of financial options to support the export of sophisticated environmental technologies from Japan and overseas

276、 development.In 2021,JBIC invested in Energy Fiji Limited(EFL),an electric company in the Republic of Fiji,jointly with Chugoku Electric Power.They work on the development of renewable energy in the country.For Benin of Africa,JBIC arranged a 30 MEUR co-financing together with a private bank to supp

277、ort the development of electric grids through PV power generation,which is being promoted by the government of Benin.In July 2021,as part of its GREEN Global action for Reconciling Economic growth and ENvironmental preservation)support program,JBIC invested 30 MUSD in overseas public/private fund,ta

278、rgeting renewable energy power generation projects,etc.in developing countries in Asia,Latin America,and Africa.Dai-ichi Life Insurance and MUFG Bank also invested in the fund,bringing the total investment by the three parties to approximately 100 MUSD.In the GREEN support program,250 MUSD was also

279、provided to a project by the Saudi Electricity Company(SEC)on power transmission and distribution,which will contribute to reduce the environmental burden.In January 2021,a new financing menu Post-COVID-19 Growth Facility was established and launched for a limited period of one year.In the Decarboni

280、zation Promotion Window of this facility,the framework for financing renewable energy,energy conservation,and other development projects undertaken overseas by Japanese companies to reduce greenhouse gas emissions was strengthened.Hydrogen and biomass fuel projects were added to the scope of financi

281、ng.Moreover,JBIC provides assistance to the projects registered in the Joint Crediting Mechanism(JCM)through co-financing with private banks.3.10 Financing and cost of support measures Under the FIT program,the largest incentive for PV dissemination,which took effect in July 2012,all the electricity

282、 consumers share the cost which electric companies paid for purchasing the electricity generated by renewable energy power generation systems,in the form of surcharge in proportion to the amount of electricity they consume.The surcharge is added to the electricity bill.In order to remove regional di

283、screpancies in surcharge collected by electric companies,“Organization to adjust cost burden”(consigned by the Green Investment Promotion Organization(GIO)collects the surcharge once and distribute the grant to electric companies in proportion to their records of purchasing renewable energy-based el

284、ectricity.Under this scheme,however,high-volume electricity consumers such as manufacturers are entitled to reduction of surcharge under the FIT program.METI covers the expenses required to compensate the losses generated from the surcharge reduction and incurred by the Organization to adjust cost b

285、urden in the form of subsidy through the national budget.The budget amount is;7 BJPY in FY 2012,19.1 BJPY in FY 2013,29.0 BJPY in FY 2014,45.6 BJPY in FY 2015,48.3 BJPY in FY 2016,29.2 BJPY in FY 2017,15.5 BJPY in FY 2018,8.2 Task 1 National Survey Report of PV Power Applications in JAPAN 38 BJPY in

286、 FY 2019,8.2 BJPY in FY 2020,8.0 BJPY in FY 2021 and 8.0 BJPY in FY 2022.Following the revision of the FIT Act in 2016 and the enactment in April 2017,the surcharge reduction system was reviewed,and it was decided to set the reduction rate according to the type of business and the status of efforts

287、to improve the electric consumption unit.Amount of purchased electricity generated by PV systems under the FIT program is around 407.5 TWh cumulatively as of the end of December 2021,exceeding 15.5876 TJPY in total.Task 1 National Survey Report of PV Power Applications in JAPAN 39 4 INDUSTRY Product

288、ion of feedstocks,ingots and wafers(crystalline silicon industry)Table 22:Silicon feedstock,ingot and wafer producers production information for 2020 Manufacturers Process&technology Total Production Product destination Price Tokuyama Polysilicon(for semiconductor,Siemens process)Undisclosed(product

289、ion capacity:8 500t/year)Mitsubishi Materials Polysilicon(for semiconductor,Siemens process)N/A As of 2021 in Japan,the scale of production of polysilicon,silicon ingot and wafer for solar cells is not large.As for high purity polysilicon for semiconductor-grade silicon wafers,Tokuyama and Mitsubish

290、i Materials manufacture it.Tokuyama manufactures polysilicon in full capacity at its factory in Shunan City,Yamaguchi Prefecture.Tokuyama is asking wafer companies to correct the price due to the heavy burden of capital investment in reducing the percentage of impurities in silicon wafers for cuttin

291、g-edge semiconductors.Mitsubishi Materials is manufacturing polysilicon in Japan and the USA.At its US manufacturing base,profitability was improved in the first half of FY 2020 as a result of reduced manufacturing costs.Both companies do not conduct manufacturing of solar cells,but occasionally sup

292、ply off-grade semiconductor-grade products for solar cells.Production of photovoltaic cells and modules(including TF and CPV)According to PV shipment statistics by the Japan Photovoltaic Energy Association(JPEA),domestic shipments of PV module in 2021 totalled 5,099 MW.Of this amount,88%,or 4,501 MW

293、,was imported.Foreign manufacturers appear to have occupied the top positions in terms of shipments,as in the previous year(JPEAs shipment statistics do not include the shipments by JinkoSolar(China)and Trina Solar(China).Total PV module shipments by domestic production in Japan in 2021(January-Dece

294、mber)were 606 MW.Of this total,8 MW was shipped overseas,and the volume of overseas shipments of overseas-produced products was 28 MW.Panasonic and Solar Frontier,which were the major domestic PV manufacturers,withdrew from production,however,they continue to work on the PV power generation business

295、.Major Japanese PV manufacturers are reorganizing the production framework from around 2017 and are transferring its business model from the traditional PV module sales business to the PV solutions business.They are continuing their efforts to provide comprehensive PV solutions including PV systems

296、for self-consumption and ZEH applications,as well as combination of PV systems with HEMS,storage batteries,hybrid inverters,etc.Besides,they Task 1 National Survey Report of PV Power Applications in JAPAN 40 are also focusing on sales of power purchase services and storage battery systems linked to

297、PV for the owners of post-FIT PV systems with their FIT purchase period terminating sequentially from November 2019.Manufacturers are cooperating with electric companies,trading companies,etc.and are starting to offer a plan to install residential PV systems for free of charge combining with Power P

298、urchase Agreement(PPA),which is expanding to industrial applications as well.Further,more manufacturers are entering the electricity business such as the renewable energy power generation business and the energy aggregation business,with a focus on PV power generation.Leading suppliers of c-Si PV mo

299、dules are Sharp Energy Solutions,Kyocera,Panasonic,Kaneka,Fujipream,Choshu Industry,INFINI,KIS,and Solar Frontier.Among them,Kaneka manufactures BIPV modules for residential use.Kyocera also supplies roof-tile integrated PV modules.These major Japanese manufacturers are also progressing technology d

300、evelopment towards commercialization of highly efficient solar cell such as tandem type of perovskite/c-Si and perovskite/CIGS,as well as light weight flexible PV module,aiming for cultivation of new markets.In 2021,Japanese companies made progress in their efforts for recycling PV modules in antici

301、pation of future market expansion.As for thin-film solar cells,F-Wave continues to manufacture a-Si flexible solar cells,and Panasonic produces a-Si solar cells for low-power consumption applications such as watches,etc.Solar Frontier,which used to manufacture CIS solar cells,withdrew from manufactu

302、ring,but continues to conduct research and development.Manufacturers and suppliers of other components-PV inverters PV inverters for residential applications shifted towards certification of multiple-unit grid-connection type inverters.Manufacturers such as Omron,Diamond&Zebra Electric MFG,Panasonic

303、,Kyocera,Sharp,Delta Electronics(Taiwan),Huawei Technologies(China)and SolarEdge Technologies(Israel)have acquired certificates from the Japan Electrical Safety&Environment Technology Laboratories(JET)for their products.For 10 kW to 10 kW inverters,approval is often given by electric companies indiv

304、idually.JET started a certification system for high-voltage grid connected protective equipment in February 2021,which is intended for 2 MW inverters,and Fuji Electric obtained the certificate.-Storage batteries,inverters with storage function Storage batteries are used in net zero energy house(ZEH)

305、in combination with PV systems,as measures to address peak cut and peak shift as well as to stabilize electric grids.In particular,lithium-ion storage batteries are used for ZEH and major manufacturers launched new products one after another with long lifetime,large capacity,and high reliability.Pan

306、asonic,GS Yuasa,Eliiy Power,Murata Manufacturing,etc.,supply storage batteries in Japan.Many domestic manufacturers import storage batteries from South Korea and other foreign countries and incorporate them into their own systems for delivery.Residential storage systems are sold as hybrid inverters,

307、etc.by Sharp,Nichicon,ITOCHU,Choshu Industry,Panasonic,Omron,Diamond&Zebra Electric MFG,Kyocera,Murata Manufacturing and so on.The inverter capacity usually ranges from 4 kW to 9.9 kW and the capacity of storage batteries ranges from 2.2 kWh to 16.4 kWh.Some companies from abroad entered the Japanes

308、e market.PV manufacturers such as Hanwha Q CELLS Japan,Canadian Solar and JinkoSolar Japan are selling residential PV systems equipped with storage batteries.Large-scale lithium-ion batteries with MWh level capacity,sodium-sulfur(NAS)batteries,etc.,are installed for grid stabilization by electric co

309、mpanies and demonstration tests are conducted by Hokkaido Electric Power,Tohoku Electric Power,Chugoku Electric Power,Kyushu Electric Power,etc.In the service area of Hokkaido Electric Power,systems with MWh-level lithium-ion batteries are operating as a backup power supply for dispatching power sou

310、rce under the FIT program.The storage battery manufacturers for these large-scale projects are GS Yuasa,LG Chemical,Task 1 National Survey Report of PV Power Applications in JAPAN 42 Samsung SDI and Toshiba for lithium-ion batteries,NGK Insulators for NAS batteries,and Sumitomo Electric for redox fl

311、ow batteries.-Battery charge controllers Battery charge controllers are used for small-scale off-grid power supply systems for rural electrification,etc.The number of products for installation in Japan is very small.-DC switch gears Also called junction boxes,DC switch gears are manufactured by such

312、 manufacturers as Nitto Denko,Kawamura Electric and Wave Energy,who are exclusively engaged in DC switch gear manufacturing.Some products for MW-scale PV power plants have string monitors embedded,which are used for operation and maintenance(O&M)of PV power plants.Overseas manufacturers in this area

313、 include Weidmueller(Germany),etc.In addition to the products applicable to DC 1,000 V,adoption of products applicable to DC 1,500 V is increasing.-Supporting structures For supporting structures,hot-dip steel plate with high corrosion resistance,molten hot-dip galvanizing steel plate and single-tub

314、e pipes,aluminium and stainless steel are used.Among them,those made of hot-dip steel plate with high corrosion resistance are the most popular.They are manufactured by such manufacturers as Neguros Denko and Okuji Kensan,who are exclusively engaged in this field.As the demand for industrial PV syst

315、ems has increased rapidly,overseas manufacturers such as POWERWAY of China have entered the Japanese market,in addition to domestic manufacturers.Along with the expansion of PV installed capacity,installation locations are getting more diverse.Accordingly,development has advanced on new products whi

316、ch can be easily installed on slopes,products exclusive for rooftop installation,new installation methods which can reduce the installation period,automated installation systems as well as lightweight mounting structures for PV modules.Regarding brackets for supporting structures,development of ligh

317、ter-weight products using aluminium is underway,in order to meet the demand for rooftop installation for industrial applications.As for the float for floating PV system(float+PV module supporting structure),in addition to reservoir solar company(Tameike Solar),Kyoraku,etc.,overseas companies such as

318、 Ciel&Terre(France)engage in the market.Task 1 National Survey Report of PV Power Applications in JAPAN 43 5 PV IN THE ECONOMY This chapter aims to provide information on the benefits of PV for the economy.Labour places Table 23:Estimated PV-related full-time labour places in 2021 Market category Nu

319、mber of full-time labour places 2021 2020 Research and development(not including companies)400 400 Manufacturing of products throughout the PV value chain from feedstock to systems,including company R&D 68,400 74,400 Distributors of PV products System and installation companies Electricity utility b

320、usinesses and government Other Total 68,800 74,800 Budget for research and development As for R&D,D activities concerning PV,technology development for commercialization administered by METI,has been conducted by the New Energy and Industrial Technology Development Organization(NEDO)and fundamental

321、R&D administered by Ministry of Education,Culture,Sports,Science and Technology(MEXT),has been promoted mainly by the project of the Japan Science and Technology Agency(JST)and the project to subsidize the scientific research fund.METIs R&D budget for FY 2021 was 3.3 BJPY.NEDO made an additional pub

322、lic offering in FY 2021 for the Development of Technologies to Promote Photovoltaic Power Generation as a Main Power Source(FY 2020-FY 2024)and selected five themes.These themes include development of technology to evaluate generation amount to support the next-generation O&M,as well as technology t

323、o forecast solar irradiation for a short-term forecast of generation amount.A demonstration experiment to ensure safety of PV systems on slopes,AgroPV and floating PV systems is conducted as well.In 2021,the government established a 2 TJPY,ten-year fund called the Green Innovation Fund(GIF)as part o

324、f NEDO for development of decarbonization technology and R&D on social implementation to realize carbon neutrality by 2050.Projects across 18 areas,the important areas for which implementation plans were formulated under the Green Growth Strategy by METI,will be conducted between FY 2021 and FY 2030

325、.As part of the GIF project,NEDO started the Next-Generation Solar Cell Development Project in 2021 as the 10-year project between FY 2021 and FY 2030 with total budget of 49.8 BJPY.In FY 2021,six themes were selected to develop fundamental technologies of film-type perovskite solar cells with the p

326、erformances equivalent to existing solar cells as well as technologies for commercialization.Sekisui Chemical,Toshiba,EneCoat Technologies,Aisin,Kaneka and the National Institute of Advanced Industrial Science and Technology(AIST)were selected.Demonstration tests are also planned to be conducted in

327、FY 2023 onwards,aiming to achieve social implementation of Task 1 National Survey Report of PV Power Applications in JAPAN 44 these cells.Furthermore,the project of Hydrogen production with water electrolysis using electricity derived from renewable energy,etc.was also started under the GIF project.

328、Task 1 National Survey Report of PV Power Applications in JAPAN 45 6 INTEREST FROM ELECTRICITY STAKEHOLDERS Structure of the electricity system Following full liberalization of electricity retailing from April 2016,new players entered the electricity retailing business one after another.The number o

329、f registered electric retailers was 735(as of December 2021)and these Power Producers and Suppliers(PPS)and ten former General Electricity Utilities that used to conduct regional monopolistic business are competing in the electricity market.Although the share of PPS increased to approximately 22%(as

330、 of December 2021),the situation of the electricity market in which former General Electricity Utilities are dominant remains unchanged and the same situation is observed in the power generation sector.The trading quantity on the Japan Electric Power Exchange(JEPX)accounts for around 40%of the total

331、 demand(as of December 2021).The power transmission division and the power distribution division of the former General Electricity Utilities were legally separated by April 2020,and electric companies demerged the general power transmission and distribution business.New markets were created as a par

332、t of the electricity system reform.In the non-fossil fuel energy value trade market that trades non-fossil fuel value of renewable energy,etc.apart from the value of electricity,the non-fossil fuel values of FIT electricity and non-FIT electricity are traded.The auctions of the renewable energy valu

333、e trading market started in November 2021,allowing consumers to directly purchase FIT non-fossil fuel energy certificates.In addition,auctions were held in the capacity market that trades the value of kW as a supply capacity(targeting to start supply in FY 2025),and the supply/demand adjustment market that trades the value of kW as a dispatching ability started its operation and some products bega