Wind Power in Japan - JWPA

1 March 7, 2017 Japan wind Power Association (JWPA) Power in Japan -Present Status and Challenges-REvision2017 Experts MeetingRenewable Energy InstituteJapan wind Power Association (JWPA) Brief HistoryDecember 17, 2001 started as a Voluntary AssociationApril 1, 2010 incorporated as a General Incorporated Associationwith the present legal status Basic philosophy- to improve the energy security of Japan and contribute to solutionsfor global environmental issues including warming- to promote sound growth of the wind Power industries at home and abroad- to conduct ourselves with strong awareness of responsibility as an industrygroup representing our country- to be accountable and maintain compliance by ensuring the function andability to exert influence both internally and externally Composition of Members(as of February 15,2017)

2 Number of members 312 companies and groups covering whole wind industry Our members are owning and running wind Power generatingfacilities in operation in Present Status of wind Power Development in Japan wind Power generating facilities in operation 3,378MW(as of E/March/2017 estimated by JWPA) under development & EIA process 10,493MW(as of E/January/2017 surveyed by JWPA)Project Area MWHokkaido2,533 MWTohoku6,834 MWothers1,126 MWTotal 10,493 MWStatus of EIAMWP rimary consultation 3,213 MWScoping documents 3,510 MWDraft EIA3,770 MWTotal10,493 MWGeographical DistributionProgress of EIA Process Summed up figure( ) 13,871 MWThe figure of 10,000MW indicated in 2030 Energy Mix for wind Power generation seems achievable in the early stage of 2020s.

3 Major Challenge Constraints in Grid ConnectionCurrent Issues Cross-Regional Grid Operation yet to startThe nation wide cross-regional grid operation has been long waited. - rules and regulations to be reformed comprehensively- OCCTO s Long Term Vision of Cross-Reginal Network Developmentexpected to be announced toward the end of March, 2017 Grid Constraints getting harder in areas with good windHokkaido New WF shall have battery to avoid variations of output to the gridTohoku Due to a plenty of new installation plans, the lack of thermal capacity of trunk transmission lines are anticipated Concern Heavy investment(cost allocation) and 10 years time for constructionbe required ?

4 Solutions The government committee (Grid WG) worked out certain alternativeideas to cope with the situations. The wind industry is anxiously awaitingconstructive and feasible proposals by electric utilities/OCCTO based on such discussions at Grid WG. Major Challenge Constraintsin Grid Connection Remark latest update (as of March 7, 2017) New proposal by Hokkaido Electric (HEPCO)(announced and agreed in the Grid WG on March 7, 2017)HPCO proposed a new invitation for additional capacity for grid connection. Additional Capacity 1,000MW (1stphase 600MW, 2ndphase 400MW) Batteries - to be installed at the HEPCO s grid side instead ofeach WF(present requirement)- expected required total capacity of batteries(15%-4h)for 1stphase; 4h (installed toward FY2022)for 2ndphase.

5 4h (to be decided)* battery capacity to be further studied and scrutinized Cost allocation to be shared by both generators and HEPCO4 Sources: Federation of electric Power companies of Japan , transmissions network, of Japan is machined to base source: federation of electric Power companies of Japan transmission network http: ofKamikitaNishinoAkitaNishiate separatesLarge fieldHakodateShimokitaIwateMiyagiWest SendaiSouth SomaSouth IwakiNew IwakiNew kogaNew ImaichiNew MotegiEast Gunma prefectureWest Gunma prefectureNew NittaNew SakadoNew TokorozawaNew TamaNew ChichibuShin-FujiNew Shino partNorthern partGifuIn progress NotoKagaEchizenToyoneMieEast OmiReinanNew ikomaNanjing cityKeihokuSouth fukumitsuKihokuNoseNishikyo capitalAnanToyoSanukiSendaiAwaWest seedingMitsuoka mountainShin " okayamaBuzenSouth HayakitaWest FutabaYamazakiHinoWestern shimaneKitakyushuWestern KyushuCenterKumamotoCentral KyushuSouthern KyushuMiyazakiEast KyushuSefuriNew

6 YamaguchiWestern shimaneNew HiroshimaShin-Nishi-HiroshimaHigashiyama mouthChizuHayao farToeiMajor transformation SubstationWakkanaiKey transformation Substation with desired establishmentIntersection direct conversion station500,000V transmission ,000V transmission lineDC Power transmission linesCore system with necessary arrangements and enhancementOCCTO shall work fully toactivate existing inter regional grid connecting lineTo select " wind powerpriority area such as HokkaidoTo improve grid infrastructure at the selected priority area Improve the grid infrastructures according to the decommissioning of old facilities. To select wind Power priority area is also effective for growing up wind Power industry at that local area.

7 Not only cross-regional grid connecting lines, but also local grid lines at good wind resource areas (Hokkaido & Tohoku)are important for wind Power promotion in Japan .(for Reference) Grid issues, in middle / long term Cost-effective reinforcement of grid infrastructure Source JWPA wind Vision 2016 Major Challenge EIA ProcedureCurrent Issues Longer Process compared with major European countries and US investigated and prepared by JWPA JWPA s Proposal1)Reduction to half of EIA survey period and examination period2)Formalizing advancement of EIA survey (demonstration projects are undertrial jointly by METI and MOE) 3)Revision of criteria for project magnitude ( 10MW to 50MW)4)Rationalizing evaluation items for survey (such as items during construction)

8 US Germany SpainUKJapanCriteria 50MW 50m height& 20 WTG>50 WTG or < kmfrom existing WF>50 MWOn shore 10 MWPeriod 1 2Y 2Y 3 4/5Y Topics Offshore wind Power Development (1) Overview of Kitakyuushuu Port Project Site1st Project pursuing Amendmentof Port & Harbor Act just launched Awarded to Hibiki wind EnergyConsoprtiumheaded by Kyuden Miraiwith J- Power , Hokutaku,Saibugas, KyudenkoNo. of :expected to start in 2022 Source: discussion paper of Transport Policy Council of MLIT ( , 2015) Topics Offshore wind Power Development (2) 8 Total installed 60MW Total planned 1,926 MWSource investigated by JWPAS ource investigated by JWPA for Reference Latest Report by NREL(USA) 9 Source NREL web site at 2, 2016 The Japan wind Power Association (JWPA)

9 At Sustainable Expanding Deployment of wind Power in Japan JWPA wind Vision Report 10 Scope of JWPA WindVision Report11 Challenges and SolutionsChallenges and To achieve grid parityMedium / long term tactics for LCOE reduction2 To harmonize with grid operation Realistic strategies for grid connection along time line3 High reliability, Job creationTo improve safety, human resources, financing, Power Energy Resources and Mid/Long Term TargetVer. (released by JWPA in June 2014) Long-term Energy Supply and Demand Outlook (2030 Energy Mix) (released by the Ministry of Economy, Trade and Industry in July 2015)Recognizing the challengesPractical tactics for the challengesSafe and stable Power supply,Minimize public burdenJWPA s basic principlesJWPA s basic principles1.

10 To mitigate global warming and secure Japaneses energy security by promoting wind power2. To organize and to grow up wind Power industry for promoting wind power3. To act with responsibility as the representative for Japanese wind Power industry group4. To establish enough abilities for lobbing, and to keep accountabilitiesContents 21. World wind Power development trend2. roadmap for the wind Power Introduction for Japan ,proposed by JWPA3. Scenario for future wind Power in Japan (1) 5 driving forces : Reduce LCOE, Harmonize with electrical grid,Repowering, Offshore wind , Establishing domestic supply chain(2) Time & Area : Challenges for grid interconnection by time Future prospects for LCOE reduction in Japan5.