Wind Power Business in Japan

IWPC2015
Session14
Wind Power Business in Japan
2 April 2015
JAPAN WIND POWER
ASSOCIATION
http://jwpa.jp
Nikaho, Akita Pref.
Yokohama, Kanagawa Pref.
1
Wind power mass introduction can reduce
fossil fuel import and help Japan
Japan has imported
26 billion $ of fuel
[70 bil.TRY ,24 bil.€]
in 2013 & in 2014
Ref: GWEC/Global Wind Day
http://www.globalwindday.org/
3
Public Opinion has changed in Japan
Impact of Fukushima No.1 nuclear incident in 2011 was broad
and long-lasting, thus public opinion dramatically changed from
“accepting-nuclear” stance to “anti-nuclear and pro-renewables”
Reactor
#3
Reactor
#4
Source: Jiji Press
Source: Daily Yomiuri
Japan has plenty of Wind Energy
Resources at onshore & offshore
Available Energy;
Onshore:
Fixed offshore:
Floating offshore:
Total:
Conditions;
Average wind speed
at 80m height:
Onshore:
6.0m/s >
Fixed offshore:
7.0m/s >
Floating offshore: 7.5m/s >
Capacity/area conversion
at 10,000 kW/1km2
Considering particular
social conditions
210GW
156GW
300GW
666GW
Japanese Government introduced attractive
FIT price for renewables since July 2012.
-
-
The tariff are without tax, and keep for 20 years.
The tariff are re-assessed every year based on the latest market prices.
The tariff are qualified just before grid connection approval (almost finishing
4 years EIA process for wind farm. On the other hand, solar power is EIA free.)
22 JPY/kWh for wind power is attractive, but unfortunately,
40-36 JPY/kWh for solar power were more attractive for investors in past days.
FY2012
FY2013
FY2014
FY2015
FY2015
July-Mar.2013
Apr.-Mar.2014
Apr.-Mar.2015
Apr.-June
July-Mar.2016
Wind Power
(onshore:
≧20kW)
22 JPY/kWh
[ 0.48 TRY/kWh ]
[ 0.17 EUR/kWh ]
Wind Power
(offshore)
Solar Power
(large scale:
≧10kW)
Had not offered.
36 JPY/kWh
[ 0.78 TRY/kWh ]
[ 0.28 EUR/kWh ]
40JPY/kWh
36JPY/kWh
32JPY/kWh
29JPY/kWh
27JPY/kWh
[ 0.87 TRY/kWh]
[ 0.31 EUR/kWh]
[ 0.78 TRY/kWh]
[ 0.29 EUR/kWh]
[ 0.69 TRY/kWh]
[ 0.25 EUR/kWh]
[ 0.63 TRY/kWh]
[ 0.22 EUR/kWh]
[ 0.59 TRY/kWh]
[ 0.21 EUR/kWh]
FIT price for Wind,Offshore wind,
and Solar power in Japan
FIT price (JPY/kWh)
45
40
35
30
FIT price for solar was more
than 1.8-1.6 times higher than
for wind power until Mar. 2014.
25
20
15
Wind
10
Offshore
5
0
Solar
Solar price has decreased rapidly.
Then,
Wind power becomes attractive
for investors after Apr.2014.
Foreign Companies start investing to Japan
Solar power in Japan burst in 2013&2014
10MW
Solar Power
Accumulated at the
end of March 2015:
17.66 GW
New installation for
FY2014:
8.55 GW/year
The total FIT approved
projects now:
68 GW
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
( 27 GW of them were
Fiscal year (April – March)
requested only in
Feb&Mar 2014 )
But, Wind Power in Japan is still low level.
(About 1/40 of Solar power industry)
Latest wind Power Statistics in Japan (at the end of Mar. 2015)
- Total installed wind power : 2,922MW, 2,031 units ← 77% of Turkish 3,763MW
- New wind installed FY2014 : 215 MW / year, 97 units←1/4 of Turkish 804MW/year
- Total electric output from wind : 4500 GWh / year
- Wind generation share of national electric demand : 0.5 %
Japan could not achieve
the past target 3GW by 2010.
×
Lack of
Incentive
Subsidies
terminated
FIT
starts
Delay by
Assessment
Assumed from
JWPA’s data
Obstacles against Wind Power in Japan.
Root Problem
- Inconsistent Policy for Renewable Energies by Japanese Government
- Some people still want nuclear power, others loves solar power than wind power.
Short Term
- Cumbersome Environmental Impact Assessment (EIA) procedures.
This was applied for all wind farm over 10MW since Oct. 2012.
It needs about 4 years and millions of euros to complete this EIA process.
- Japanese government admits this problem and starts improving.
- 88 projects of 5.2 GW are in the EIA process now.
Most of them are locates in northern rural area of Japan, Hokkaido & Tohoku.
Middle Term
- Grid restriction caused by old-fashioned electric power operating systems.
Japanese electric power system is dominated by 9 regional utilities.
They dominate from power generation, transmission & distribution at each region.
- They dislike to send electricity inter-regionally.
It narrows wind power introduction in Japan in past days.
- Japanese government intends to achieve unbundling Japanese electric power,
so called “Electric power system reform”.
Bottleneck Between Wind Resources
and Electricity Demand in Japan
•
•
•
Good for Wind
Grid lines in Japan are divided into 9 regions and Okinawa.
Power
Generation
Eastern 3 regions are 50Hz and western 6 regions are 60Hz.
140GW
Each region has its own utility tasked with
Hokkaido
Capacity of transmission lines
Electric Power
preserving the demand/supply balance.
between supply and demand
With the increase of wind generation in
regions is insufficient.
appropriate areas, issues arise in terms
High volume transmission
of facilities and rules when considering
lines do not match wind
power specs.
Tohoku
transmission to far away demand locations.
73GW
Electric
Power
(Electric Company)
Maximum
Demand
Available Onshore
Wind Energy
Hokkaido
5.6GW
140GW
Tohoku
15GW
73GW
Utility
Tokyo
64GW
4GW
Chubu
28GW
8GW
Hokuriku
5.6GW
5GW
Kansai
33GW
13GW
Shikoku
5.9GW
5GW
Chugoku
12GW
9GW
Kyushu
17GW
21GW
EAST
50Hz
5GW
Hokuriku
Electric
Power
9GW
Chugoku
Electric
Power
50Hz
Kansai
Electric
Power
21GW
60Hz
Okinawa
Electric
Power
Kyushu
Electric
Power
Shikoku
Electric
Power
5.6GW
8GW
4GW
Major
Demand Area
13GW
5GW
2GW
Chubu
Electric
Power
16.7GW
Tokyo
Electric
Power
WEST
60Hz
Available
Wind Energy
Source : FEPC, Ministry of the Environment
11
The Way to Improve Situation
Improve Power Grid Operation
 Inter-regional grid operation for wind power aggregation
 Build new local grid lines at northern rural area
 Enlarge inter-regional grid line between Hokkaido and
Aomori (“Kita-Honn transmission line”)
 Sophisticated wind power output prediction system
 Power storage system (pumped hydro, batteries)
 Demand side management system
 Retrofit fossil power plants for ancillary service
Improve Wind Farm Operation
 Wind farm output park control
 Reduce output fluctuation using battery system
12
New Organization for operating power grid
inter-regionally starts work in April 2015.
OCCTO: Organization for Cross regional
Coordination of Transmission Operators
13
Japanese METI has started 50% funding for
building new grid lines for wind power in 2013
Ref:METI
Northern Hokkaido: 0.29GW→3.935GW
By 290 billion JPY, from 2013
Tohoku, Akita and Aomori:
1.94GW→2.22GW
By 20 billion JPY, from 2014
15
Japanese NEDO started to develop sophisticated
wind power output prediction system in 2014
16
Japanese Electric Companies still resist now
Roadmap for the Wind Power Introduction
for Japan, estimated by the JWPA



Wind power shall supply 20% of Japanese electricity by FY2050.
Accumulated installed capacity:11GW by 2020, 36GW by 2030, 75GW by 2050.
About half of them shall be offshore wind power including floating type.
-
80
8,000
70
7,000
Floating
浮体式風力
offshore
着床式風力
Fixed
陸上風力
offshore
実績
60
6,000
累積導入量[万kW]
FY2050
75GW
Roadmap for the introduction of wind power
風力発電導入ロードマップ:ビジョン
50
5,000
FY2020
11GW
40
4,000
FY2013
2.7GW 0.1GW
0.004GW 0.6GW
0.046GW
2.6GW
10. GW
30
3,000
20
2,000
10
1,000
18GW
4GW
19GW
6GW
38GW
27GW
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
2036
2038
2040
2042
2044
2046
2048
2050
00
FY2030
36GW
Electricity supply by wind power :
0.5% →
2%
→
9%
→
20%
18
Onshore, Fixed offshore, Floating offshore




Onshore wind leads at early years. But, onshore capacity
shall be limited by high population density in Japan.
Japan has world 6th largest EEZ (Exclusive Economic
Zone). Therefore, offshore wind has large potential.
Floating offshore shall be applied for deep sea area.
Onshore 50%, Fixed offshore 25%, Floating offshore 25%
Onshore
Fixed
Offshore
Floating
Offshore
19
New wind turbines by Japanese companies
MHI’s New Hydraulic
Drive wind turbine
Hitachi’s Downwind tyoe 5MW Japan Steel Work (JSW)’s
wind turbine (will applied for
New J100/2.7 Gearless
Kashima offshore PJ)
PMSG wind tubine
Industrial Effect by Installation & Manufacturing
 There are many wind power associated companies in Japan.
21
WTG Industry Production Summary for FY2012
Million JPY
Companies
Micro size (1kW <)
Factories
Employees
Domestic
Production
Oversea
Production
7
6
47
50
6
Small size (1kW ≦ 50 kW)
5
5
61
97
0
Middle Size
3
2
34
120
0
4
4
460
71,638
0
16
16
554
71,905
6
Blade, Nacelle cover
8
7
301
11
8,454
Blade material (fiber & resin)
5
3
11
5
112
Drive train (Hub, Main shaft, Gearbox)
9
9
267
2,743
0
Controller, Converter, Transformer
12
10
356
595
0
Main bearing
5
8
808
11,118
120
Generator
8
6
286
5,680
0
Yaw control, Pitch control, Brake, Hydraulic
6
7
119
2,424
0
Tower
5
3
103
500
3,550
Flange, Nacelle base plate
4
3
83
0
2
Other parts and Accessories
6
6
62
540
0
Others
20
21
1491
8,446
360
60
65
3,228
32,062
12,598
68
76
3,313
103,966
12,604
Main
Wind
Turbines
Detail Categories
Large Size
(50 kW ≦ 1,000 kW)
(≦ 1,000 kW )
WTG Total
Main
Compo
-nents
Components Total
General Total
22
Total Domestic Production of WTG Industries in Japan
Components
etc.
Total Domestic Production
(million JPY)
Total
251 billion JPY
Wind Turbines
Trends from FY2009 to FY2012
95 bil.
Total
104 billion JPY
156 bil.
32 bil.
72 bil.
Total Domestic Production
(million JPY)
FY2009
FY2010
FY2011
FY2012
etc.
Other electric devices
Other machineries
Substation, Grid device
Other parts
Flange, Nacelle base
Tower
Yaw, Pitch, Hydraulic
Generator
Main bearing
Controller, Converter
Drive train
Blade material
Blade
Large WTG
Middle WTG
Small WTG
Micro WTG
Detail Research Results in FY2012
23
Economic Effects (Industry and Employment)



4.5 Trillion JPY/year will be carried out by wind power in 2050.
1.5 T JPY by Construction & Manufacturing, 3 T JPY by O&M etc.
They will create more than 290 thousand jobs for Japan in 2050.
☆ Construction & Manufacturing
Total cost
Onshore
Fixed, offshore
Floating, offshore
Total
JPY B
JPY B
JPY B
JPY B
Unit
Economic ripple
Onshore
Fixed, offshore
Floating, offshore
Total
JPY B
JPY B
JPY B
JPY B
Job creation
Onshore
Fixed, offshore
Floating, offshore
Total
Unit
1,000
1,000
1,000
1,000
Unit
2020
330.0
128.0
40.0
498.0
☆ O&M, insurance
2030
426.0
247.0
336.0
1,009.0
2050
381.0
201.0
229.0
811.0
Direct
Onshore
Fixed, offshore
Floating, offshore
Total
JPY B
JPY B
JPY B
JPY B
2020
604.0
224.0
70.0
898.0
2030
780.0
433.0
590.0
1,803.0
2050
697.0
354.0
402.0
1,452.0
Economic ripple
Onshore
Fixed, offshore
Floating offshore
Total
JPY B
JPY B
JPY B
JPY B
2020
39
15
5
59
2030
2050
Job creation
Onshore
Fixed, offshore
Floating, offshore
Total
Unit
1,000
1,000
1,000
1,000
50
30
41
121
45
24
28
97
Unit
Unit
2020
87.0
25.0
4.0
116.0
2030
226.0
240.0
160.0
626.0
2050
296.0
578.0
596.0
1,470.0
2020
179.0
48.0
8.0
235.0
2030
466.0
467.0
308.0
1,241.0
2050
625.0
1,196.0
1,211.0
3,032.0
2020
2030
2050
12
3
0
15
31
27
18
76
43
75
74
193
24
Offshore Wind Power
Projects in Japan
Hakata
2011
Lens type 3kW X 2units
(Floating)
Sasebo, 2009
1/10 Model
(Floating)
Kabashima
at Goto Islands
2012 FHI 100kW
2013 Hitachi 2MW
(Floating)
Setana
2004
Vestas
600kW
X 2units
Black: Early exam.
Green: Founded type
Brown: Floating(small)
Blue: Floating type
: National Project
Sakata, 2004
Vestas
2MW X 5units
Fukushima FORWARD
2013 Hitachi 2MW
2014/15 MHI 7MW X 2units
(Floating)
Hibikinada
2013
JSW 2MW
Kamisu
2010 FHI 2MW X 7units
2013 Hitachi 2MW X 8units
Choshi
Jan 2013
MHI 2.4MW
Saga, 2013
500kW Model
(Floating)
Note: FHI’s WTG division has merged
by Hitachi in July 2012.
Why Offshore Wind for Japan?

Japan has high population density : 336 people/km2
Ref: Netherland 339, Germany 230, Danmark 127, USA 33
About 70% of Japan is “mountainous”.
→ Plains are occupied by housings.
→ Onland WTGs may cause NIMBY problem.
→ Japan has the world 6th largest EEZ.
(exclusive economic zone).

Wind resources in Japan locate at northern parts.
→ Very far from population center, lacking grid lines
→ Offshore near Tokyo,Nagoya,Fukuoka go attractive.

Japan needs “New Business & Industry”
→ Offshore wind development has large influence.

For Exam.: Shipbuilding, Marine Construction, Steel, etc.
Commercial Offshore Windfarm in Japan
”Kamisu” became the 1st survivor of tsunami.
Windpower Kamisu offshore windfarm is
made by 7 FHI’s SUBARU80/2.0 2MW WTGs.
They are about 300km far from the epicenter.
Shaking level was 5 plus and about 5 m
height tsunami attacked the farm.
But turbines are safe and start operation
again on 14.March.
↑Many trashes are carried by
tsunami under the turbines
Photo by Tokyo Shinbun
Demonstration of Offshore Wind Power Generation
by NEDO, at Choshi, Chiba Pref.
WTG: MWT92/2.4 offshore model
Foundation: Gravity type
Output: 2.4MW
Rotor Dia.: 92m
Hub Ht.: 80m
Water Depth: 12m
3km from seashore
Ibaragi
茨城県
鹿島港
Chiba
千葉県
風車
観測タワー
285m
Ref: NEDO (New Energy and Industrial
Technology Development Organization)
28
Demonstration of Offshore Wind Power Generation
by NEDO, at Hibikinada, Fukuoka Pref.
WTG
Anemometer Tower
1,400m
Under sea cable
Ref: NEDO
Switching
Gear
Hybrid Gravity Foundation
JSW J82 2MW gearless PMSG WTG
In Operation on June 2013.
Ref:NEDO
ハブ
変圧器
ナセル
サブフレーム
コンバータ
除湿機
発電機
29
MOE Floating WTG Project
at Kabashima in Goto Islands,
Nagasaki Pref.
Fuji Heavi Industries‘
Down wind type
2MW wind turbine
June 2012: in Operation
Hitachi’s
Down wind type
2MW wind turbine
Water depth: 96m(LSWL)99m(HSWL)
Distance from land: 1km
28 Oct.2013: in Operation
Distance for marine cable: 2km
Vaverage@60m: 7.5m/s
Ve50@60m: 53.1m/s
Hs50: 7.7m
Ts50: 14sec
Max Current: 0.96m/s
2km
Cable
1km
Fukushima floating
WT project
(Overview)
METI’s Fukushima
Recovery,
Experimental
Offshore Floating Wind Farm Project
Project Consortium:11 members
Marubeni (Project integrator)
MHI
University of Tokyo
Mitsubishi Corp.
IHI Marine United
MES
Nippon Steel
Hitachi
Furukawa Electric
Shimizu Corp.
Mizuho Information & Research
2013
Hitachi
JMU Spar
2MW WTG on 4 Column
semi-sub Floater in 2013
25 June : Press conference at Dockyard
of Mitsui Engineering & Shipbuilding
Co. at Ichihara, Chiba Pref.
28 June – 1 July :
It cruises from Ichihara to Onahama
port at Fukushima Pref.
2013
Hitachi 2MW
Mitsui semi-sub
2015
MHI 7MW
MHI semi-sub
7MW
JMU Spar
Source; Fukushima offshore wind consortium
Ref: Fulushima FORWARD PJ
Hitachi’s
Down wind type
2MW wind turbine
11 Nov. : in operation
Ref: Asahi Shinbun
2015
Ref: Nikkei Business
7MW WTG on 3 Column semi-sub Floater in 2015
Start tower installation at Onahama
port in Fukushima in Mar. 2015.
Cruising from MHI Nagasaki
Dockyard on 30 Oct. 2014.
Ref: Fukushima FORWARD
Conclusion





Japan was not so eager to wind power
development in past days.
Because there are many hurdles against
wind power development in Japan.
Such as, severe EIA, grid restriction etc.
Japan has changed to pro-wind action
after Fukushima accident.
Offshore wind is one of the key technologies.
We are trying to remove these hurdles now.
But, it needs more a couple of years to realize.
Please expect “Future wind power
development in Japan”.
34
Who is the JWPA ?


The Japan Wind Power Association (JWPA)
represents wind power industry in Japan.
By expanding wind power in Japan, we wish to
contribute to improving Japanese energy security
and preventing global warming.
The JWPA has been founded in 2001.
264 companies (developers, turbine manufacturers,
constructors, consultants, etc.) join JWPA at Mar.2015.
JWPA’s members own 85% of wind power installation
in Japan.
2
You can get more detail
at JWPA’s web site
Japanese
日本語
English
36