Japanese Policy Instruments for Wind Energy

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Japanese Policy Instruments for Wind Energy

• May 9, 2001
• Atsutoshi Makihira

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Wind Energy in Japan
fiscal year
Source NEDO 2000
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Wind Energy in the World
Source NEDO 2000
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Policy Instruments for Wind Energy in Japan

• Government
• RDD program (NEDO, 1991-)
• Economic instruments (investment subsidies,
  low-interest loan and tax deduction, 1995-)
• Electric Power Companies
• Voluntary purchasing of electricity generated by
  renewable energy (1992-)
• Electric power company-owned wind power plant

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TEPCO Support (1)

• Voluntary Purchasing of wind-powered electricity
• From non-business supplier (1992-)
• Purchasing 100 of electricity price paid by
  consumers (14.7-16.2 yen/kWh)
• From business supplier (1998-)
• Purchasing long-term contract price
  (11.7 yen/kWh, 15-17 years)
• Purchasing electricity generated by
  non-renewable energy 3 - 6 yen/kWh

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TEPCO Support (2)

• Voluntary Purchasing System

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Wind Energy Policy in the World
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Green Power System(1)
Green Power Fund for Individuals
The other service area
TEPCO service area
Wind Power Supplier
Solar Power Supplier
payment
electricity
subsidy
Subsidy
subsidy
Fund operators
A part of fund
Contribution
Matching Contribution
TEPCO
Green Power Fund
Voluntary contribution by consumer

• Report
• Green sticker

Consumer
Consumer
Consumer
Consumer
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Green Power System (2)
Green Power Certificate system for companies
Organization for certificate
Certify
TEPCO subsidiary
Wind Power Suppliers
Premium dealings
Contract
Contract
Companies
Report
Certificate of Green Power
TEPCO or other electric power companies
Electricity dealings
?Electricity Payment?
?Electricity Payment?
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Current Situation of Green Power in TEPCO

• Green Power Fund
• A successful bidder 1 supplier (4250kW)
• Subsidies 1 yen/kWh for 5 years
• 16,576 contributions (25 April, 2001)
• Green Power Certificate
• 20 firms signed 15 years contracts
• 25 million kWh/year from 3 independent wind power
  suppliers
• Payment100 million yen for the 1st year

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Certificate of Green Power
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Government Proposal

• Goal 3000MW wind power in 2010
• Feed-in tariff (quota obligation for electric
  power companies)
• Creating Green Certificate Market in Japan

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