The route and how Japan has successfully implemented energy efficiency for better utilization of their energy resources and sustaining their economy to grow

1. ENERGY EFFICIENCY INFORMATION
SHARING SERIES
Introduction of
Energy Economy and
Energy Conservation
Kuala Lumpur, Malaysia
Nov, 2011
Hiroshi Shibuya
The Energy Conservation Center, Japan
ECCJ
1

2. Contents
1. Energy and Energy Flow
1.1 Categorizing Concept of Energy
1.2 Energy Flow, Energy Loss
1.3 Energy Balances in Japan
2. Economic Growth and Energy Consumption
2.1 Energy Consumption and GDP
2.2 Primary Energy Supply in Japan
2.3 Energy Intensity per GDP, GDP Elasticity for Energy Supply
3. Energy Conservation
3.1 Energy Efficiency and Conservation
3.2 Promotion Methods for EE&C
4. Learning from Japanese Experience
4.1 Key Success Steps for EE&C in Japan
4.2 Typical Policy and Measures for EE&C in Japan
5. Benchmark
ECCJ
2

3. 1. Energy and Energy Flow
ECCJ
3

4. Energy-1
Energy is defined as the ability to do work in physics.
Here, Energy is considered as the resources having the ability to do work.
Categorizing Concept
Primary Energy
Secondary Energy
generated from natural excavation
produced by conversion or refining
Consumable Energy
Non-Consumable Energy
fossil energy like Oil, Coal, Natural Gas, etc.
renewable energy like Solar, Wind, Hydraulic, Biomass
Conventional Energy
Non-Conventional Energy
Oil, Coal, Natural Gas, etc
Non-utilized energy like Oil Sand, Oil Shale, etc.
Commercial Energy
Non-Commercial Energy
New Energy
Hydrogen, Solar, Ocean, Fuel Cell, Clean Coal, GTL, etc.
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4

5. Energy-2
Conversion of Energy
Primary
Energy
- Crude oil
-
Secondary
Energy
- Electricity
-
Conversion
rate ?
Cogeneration ?
Energy Resources
1. Fossil Fuel :
2. Renewable energy :
3. New Energy :
4. Unused Energy :
5. Nuclear Energy:
6. Hydraulic Energy :
Petroleum, Coal, Natural Gas
Solar light & heat, wind, wave, Geo thermal,
Hydraulic, Bio mass, etc.
Fuel cell, Heat from wastes, etc.
(Substitute for petroleum)
Waste heat, Temperature difference, etc.
5

6. Energy Flow
Primary Energy Supply: 100
Energy Loss in Japan
（2006）
Petro. 47.9
LNG 15.3
Export
Coal 20.6
9.9
4.8
38.6
15.7
6.9
9.2
8.8
23.7
Loss:
26.8
0.3
Industrial
use: 30.5
Loss: 3.5
Resid. & Comm.
Use: 18.0
Transportation
use: 16.0
Energy Consumption Ratio
Industry
： 46.6%
Residential
& Commerce : 27.4%
Transportation: 24.4%
11.9
Electric P.: 42.8
Non-Electric P.: 52.1
Final Energy
Consumption
65.5
Nuclear 11.4
8.1
5.4
Non Energy
Hydro., Wind,
Geoth. 4.8
Effective use of
Energy: assump. 35
Total Loss: assump. 65
Total exhaust energy: 100
ECCJ
6

7. Example of energy flow and electric power consumption
Electric power receiving/distributing equipment
(transformers, cables, etc.)
< 95-97% >
Contents inside parentheses〈 〉are
examples of efficiency (depending upon
facilities)
Contents inside parentheses
( ) are examples of electric
power that can be used at the
end of each equipment unit
when it has received the power
of 100 at the power receiving
Substitute
point.
transformer
Pumps,
Electric
Valves,
fans,
Excessive supply
motors,
dampers,
etc.
(flow rate, pressure)
inverters,
etc.
Piping,
< 60-85% >
etc.
ducts, etc.
(Depending upon
<Depending
(Depending upon the way to use)
upon variable
< 70-95% >
size, length,
opening:
20-100%> shape, leaks, etc)
(66-82)
(7-70)
Load
(95-97)
(Decreasing further
Electric
due to piping
(If excessive
Pump
(39-70) pressure loss or
motor
supply occurs, it
others)
decreases further)
Load
Inverter
Electric
motor
Pump
Nozzle
Power
receiving
point (100)
Load
Power
receiving
transformer
Substitute
transformer
Electric
motor
Fan
Nozzle
Nozzle
Substitute
transformer
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Electric
motor
Compressor
7

8. 2005 Energy Balances in Japan
in thousand tones of oil equivalent (ktoe) on a net calorific value basis
SUPPLY and CONSUMPTION
Coal
Crude
Oil
Production
Imports
Exports
International Marine Bunkers
Stock Changes
TPES
Transfers
Statistical Differences
Electricity Plants
CHP Plants
Heat Plants
Gas Works
Petroleum Refineries
Coal Transformation
Liquefaction Plants
Other Transformation
Own Use
Distribution Losses
TFC
Industry sector
Transport sector
Other sectors
Residential
Commercial and Public
Agriculture / Forestry
Fishing
Non-Specified
Non-Energy Use
0
113675
-1205
0
-397
112073
0
806
-62986
0
-15
-43
0
-21438
0
0
-2334
0
26063
25027
0
641
0
641
0
0
0
395
753
216244
0
0
-702
216295
0
984
-7543
0
0
0
-215097
0
0
6560
-119
0
1080
25
0
0
0
0
0
0
0
1055
0
51322
-8839
-5859
-1225
35398
-8
-2741
-18668
0
-29
-2258
212369
-373
0
-7025
-9382
0
207282
32956
91374
43471
16030
22706
2993
1741
0
39481
2860
67782
0
0
-104
70538
0
1180
-43972
0
-357
1692
0
0
0
0
-1119
0
27962
5166
0
22448
9364
13084
0
0
0
348
79421
0
0
0
0
79421
0
0
-79421
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
6726
0
0
0
0
6726
0
0
-6726
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
361
1055
29908
348
0
0
- of which
Petrochemical Feedstocks
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Petroleum
Products
Gas
Nuclear
Hydro
Geothermal, Combustible Electricity
Solar, etc. Renewables
and Waste
3717
6295
0
0
0
0
0
0
0
0
0
0
0
0
3717
6295
0
0
0
0
0
-1
-91
-2924
-3709
94100
0
0
0
0
-145
-99
0
0
0
0
0
0
0
0
0
0
0
0
0
-21
0
0
0
-4944
0
0
-4337
793
2418
84630
0
2392
29833
0
0
1639
793
26
53157
563
26
28729
138
0
24345
92
0
83
0
0
0
0
0
0
0
0
0
0
Oil Dependency=48.9% (753+216244+51322)/(99772+449024)
Import Dependency=81.8% 449024/(99772+449024)
Rate of Electricity Power=41.2% (94100+131848)/(99772+449024)
0
0
Heat
Total
0
0
0
0
0
0
0
2
0
0
620
0
0
0
0
0
0
0
623
0
0
623
32
591
0
0
0
0
99772
449024
-10045
-5859
-2428
530463
-8
138
-131848
0
-25
-609
-2729
-21811
0
-486
-17898
-4337
350849
95400
93013
121158
54743
61505
3169
1741
0
41279
0
31672
Source: IEA statistics
8

9. 2. Economic Growth
and
Energy Consumption
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9

10. Trend of the Energy Conservation in Japan
Changes in Final Energy Consumption and GDP
Crude Oil Equivalent
(million Kl)
450
2nd oil crisis
1st oil
crisis
GDP (trillions of yen
at 1990 values)
Energy Conservation Act
enacted in 1979
600
16.2%
400
500
16.4%
350
67.4%
Transportation
300
250
200
Consumer
17.9%
24.8%
400
27.9%
300
24.9%
200
150 57.1%
100
Industrial
47.3%
100
50
0
19
5
19 5
5
19 7
5
19 9
6
19 1
6
19 3
6
19 5
6
19 7
6
19 9
7
19 1
7
19 3
7
19 5
7
19 7
7
19 9
8
19 1
8
19 3
8
19 5
8
19 7
8
19 9
9
19 1
9
19 3
9
19 5
9
19 7
9
20 9
0
20 1
0
20 3
0
20 5
07
0
Source: METI/General Energy Statistics
ECCJ
Fiscal year
Note: consumer = residential + commercial

11. Change in Final Energy Consumption
by Sector
Index (1973=100)
250
Consumer sector
210
200
207
Transport sector
150
Total
141
100
103
Industrial sector
50
2005
2003
2001
1999
1997
1995
1993
1991
1989
1987
1985
1983
1981
1979
1977
1975
1973
0
Source: General Energy Statistics (METI)
ECCJ
11

12. Composition of Primary Energy Supply in Japan
（%）
100
Nuclear power
Hydro/geothermal
12.4
15
11.4
Natural gas
80
13.1
New Energy etc.
15.4
3.6
3.5
1.1
17.9
77.4
60
1.3
20.6
Coal
1st Oil Crisis
20
ECCJ
60
3.2
3
19
40
1955
14
65
70
51.8
Oil
Success in reducing
Oil Dependency by
- EE&C, and
- Fuel Conversion
75
80
Year
85
90
95
47.9
45
2006
2000
2010
Source: METI/General Energy Statistics 2008 12

13. Changes in Primary Energy Intensity per GDP in Japan
1st Oil Crisis
Ton oil eq.
/ Billion yen
Source: METI/General Energy Statistics
Main Improvement
*Energy Management
*Energy Efficient Equip.
*Efficient Process Tech. R&D
2nd Oil Crisis
1,600
1,566
1,573
1,467
1,500
1,438
1,405
1,400
1,345
1,327
1,300
Improvement by 30%
1,273
1,200
1,192
1,131
1,142
1,100
10 years
1,101
1,091
1,101
1,050
1,059
1,059
1,000
1,0361,037
1,038
1,021
1,059
1,049
1,036 1,013
1,051
1,044
1,013
1,000
985
978
951
Fiscal Year
'0
5
'0
3
'0
1
'9
9
'9
7
'9
5
'9
3
'9
1
'8
9
'8
5
'8
3
'8
1
'7
9
'7
7
20 years
'7
5
'7
3
ECCJ
1,077 1,070
10% improved
900
'8
7
Primary energy consumption / GDP
1,700

14. Primary Energy Intensity per GDP
1,870
830
830
(2005 by IEA statistics)
860
Currency rate to US$ as of 2000
800
700
640
600
540
480
toe/million US$
500
400
330
317
300
213
200
193
176
195
144
106
100
0
Wo
OE
rl d
nc
to t
y
al
14
al
es
to t
e
CD
F ra
.
an
da
rm
na
U .K
Ge
Ca
n
pi n
. A.
pa
ilip
U .S
Ja
Ph
d
si a
an
l ay
ai l
Ma
Th
ia
a
es
f r ic
on
ia
S .A
In d
In d
ia
ina
ss
Ch
Ru
ECCJ

15. Primary Energy Intensity per GDP
(toe/MMUS$,CY2000Price)
Year
Russia
China
India
Indonesia
Thailand
Malaysia
Philippines
Japan
USA
Canada
Germany
UK
France
OECD Total
World Total
2005
1843
783
578
617
511
501
337
105
212
324
173
133
173
185
287
2007
1635
717
552
593
493
499
303
99
204
308
161
119
161
173
280
2008
1582
711
554
589
493
502
303
96.5
198
301
160
118
160
172
280
Source: Energy Balances of OECD and Non-OECD Countries (IEA)
15

16. Primary Energy Intensity per GDP
(2005 by IEA statistics)
toe/million US$
Currency rate to 2000 US$ on PPP basis
ECCJ
500
450
400
350
300
250
200
150
100
50
0
16

17. Trend of GDP Elasticity for TPES in Japan
500.00
600,000
EC Law
enforced
500,000
400.00
400,000
300.00
300,000
200.00
200,000
GDP Elasticity of Energy Supply
100.00
1.2
0.3
0.4
1.2
0.2
100,000
0
65
67
69
71
73
75
77
79
81
83
85
87
89
91
93
95
97
99
1
3
5
0.00
GDP (Bil. in 2000)
1st Oil Crisis
Primary Energy Supply (MM TOE)
600.00
2nd Oil Crisis
GDP Elasticity for Energy Supply =
Annual Energy Increase Rate/ Annual GDP Increase Rate
Primary Energy Supply
ECCJ
GDP
(Source: EDMC Handbook of Energy & Economic Statistics in Japan 2007) 17

18. 3. Energy Conservation
ECCJ
18

19. Energy Efficiency & Conservation
(EE&C)
ECCJ defines Energy Conservation (EC) as the following;
EC is the practice of decreasing the quantity of energy used.
It may be achieved through save of energy and/or efficient use of energy,
in which case energy use is decreased while achieving a similar outcome.
People often think Energy Conservation (EC) is energy saving only.
Therefore,
ECCJ uses the Energy Efficiency and Conservation (EE&C) to clarify
the real meaning of Energy Conservation (EC).
ECCJ
19

20. What is EE&C ?
(Energy Efficiency & Conservation)
0. Reduction of running load itself, then;
1. Minimization of energy loss (prevention and recovery)
2. Maximization of energy usage efficiency
Incandescent lamp
prevention
insulation
Heat loss
(Input)
Raw Material
(Output)
Machine,
process
Product
Change of efficiency
Energy
Heat loss
Heat exchanger
recovery
ECCJ
LED
Fluorescent light
CFL
20

21. EE & C is Win-Win Approach
For the Next Generation;
• Mitigation measures for the global warming issue by
Reduction of CO2 Gas originated from fossil fuel
• Sustainability for Energy Security
For the Current Generation such as the Government Sector
and Energy Consumers;
• Cost Reduction by decreasing energy consumption
It may enhance international competiveness.
• Stable Energy Supply
It may prevent frequent black out, or installation of power plants
• Contribution to stable International energy price, etc.
ECCJ
21

22. Factors affecting
Energy Efficiency & Conservation
Factors for
EE&C
Promotion
Policy
Law & Regulation
Incentives
(tax,subsidy,etc.)
Finance
Energy/Economy
Technology
Data Base
Energy
Consumption
(Volume/Cost)
Application of
Suitable
Technology
(Soft/Hard)
Capacity
Building
Education &
Training
Maintain Human
Resources
Implementing
Body
Dissemination
& PR Activities
Energy Price
ECCJ
22

23. Programmatic Approach for EE&C
Political Overview
ECCJ
23

24. 3 Steps to Promote EE&C
in Industrial Sector
Measures
Enhancement of
Step management,
1
Improvement of
operation
Description
To enhance energy management based on the current setup,
so as to improve operation
(at least measuring instruments may be required)
Improvement and
Step
additional installation
2
of equipment
To improve or retrofit some facilities with only a small
investment, so as to achieve higher energy efficiency as well
as to recover waste energy
Changes in process,
Step Introduction of
3
high-efficiency
equipment
This step is intended for improving or updating process and
manufacturing equipment
It involves technical development and large-scale investment,
but on the other hand produces a substantial effect
ECCJ
24

25. Step 1 Good Maintenance
To prevent Heat & Oil Loss
Close opening points
Furnace
Fuel
STACK
・Proper Air Ratio
・Maintenance (stop the leakage of air, fuel, etc)
ECCJ
25

26. Step 2 Equipment Improvement
To recover Waste Heat
Air Pre-heater
(Recuperator)
Furnace
Fuel
FAN
STACK
・Reinforce Insulation
・Install Recuperator
ECCJ
26

27. Step 3 Change of Production Process
To introduce High-efficiency Equipment
Ingot Casting & Slabing Method
(Conventional Technology)
Continuous Casting Method
(New Technology)
ECCJ
Slab
27

28. 4. Learning from
Japanese Experience
in EE & C
ECCJ
28

29. Principle of Energy Policy in Japan
---
3‘E’s harmonization --Economic
growth
Best Mix of Primary
Energy
3‘E’ harmonization
Environment
protection
Global warming Issue
EE&C Policy;
Rational Use of Energy
Energy
security
Being more important
Contribution to CO2
Reduction
< CO2 Reduction >
ECCJ
29

30. Key Success Steps
for EE&C in Japan
Energy such as electricity, fuel oil ,fuel gas, etc. is consumed anywhere.
Energy is consumed by anybody.
Therefore, participation by all is a key success step for the EE&C.
Japanese way of
Promotion for EE&C
in Industrial Sector
1. Legal measures by Government
（the Energy Conservation Law for rational use of energy）
2. Financial supporting system by Government
（tax reduction, low interest loan, and subsidy）
3. Voluntary efforts toward cost reduction by enterprises to overcome
international competition
(investment, ZD, QC or Kaizen activities by SGA, TPM, etc.)
4. Implementation & dissemination activities by the Energy Conservation
Center, Japan (ECCJ) and nodal agencies concerned
30
ECCJ

31. Typical Policy & Measures
for EE&C in Japan
Industrial & Business Sector
Enterprises
EC Law
- Designated Factory System
- Energy Manager System
- EC Guidelines (Judgment Standard)
- Tax and Financial Incentive, etc.
- Energy Management Cell
- Daily Management of Energy Use
- SGA and PDCA Cycle Activity
- Energy Audit, EC Investment, etc.
Building & Residential Sector
Energy Users
EC Law
- Same systems as the above are applied
for Designated Energy Consumers
- Top Runner System (Since 1998)
- Similar measures as the above are
taken by Designated Energy consumers
- Voluntary Labeling, Voluntary Activities
Transportation Sector
Carriers, Cargo Owners
EC Law
Since 2007
- Specific Carriers
- Specific Cargo Owners
- Medium and long term energy plan
- Periodic reporting on energy use
31
ECCJ

32. 5. Benchmark
ECCJ
32

33. Bench Marking Activity
< Definition of “bench mark” / “bench-marking activity” >:
Management activity to measure and compare its business
process to “best” comparable in the same class (business field,
industry type) and to achieve or overcome that level, regarding
some management index (ex. energy intensity, production cost,
productivity per person, etc,).
“bench-marking” was a kind of strategic planning tools,
but today it can be viewed as a component of TQM.
(TQM: Total Quality Management)
33

34. <Types of bench-marking>:
1. competitive bench-marking:
to get information from target company/competitor (or
“best” in the world) --- difficult
2. collaborative bench-marking:
to promote activities collaboratively with other company
--- if friendly company
3. internal bench-marking: --- as first step activity for
Energy Conservation, there are many successful cases
in many companies.
to promote in own company --- “best” in own company
(or factory) as “bench mark”
to spread the activity result easily within own company
34

35. What is the meaning of “Energy Bench Mark” for the government side ?
< “Energy Bench Mark” means energy intensity >
* “Energy Bench Mark” may be one of the effective guide-lines of energy
efficiency for factories and buildings as a regulative measure.
* If it can be compared with those of other countries, “Energy Bench Mark”
may also be useful for industrial strategy (international competitiveness).
But, it is beleaguered with difficulties to get accurate energy intensity.
It needs precise and complete product statistics and energy
consumption statistics by individual sub-sectors (ex. textile, food,
chemical, cement, steel-making, paper, -------- ).
Generally speaking, it is difficult to get energy intensity figures linked to
cost information directly from enterprises.
If the government can establish friendly and cooperative relationship
with enterprises / industrial associations, it will be able to construct a
system like “bench-mark” which is not complete but useful to some
extent.
Difficulties of “Energy Bench marking”
35

36. ＜Manufacturing Sector＞
Trend of Energy Consumption Intensity per IIP by Sub-Sector
< IIP : Indices of Industrial Production >
Foods
Metals & Machinery
Cement & Ceramic
Iron & Steel
Paper & Pulp
Chemical
Manufacturing Industries (total)
(FY’73=100)
120
Index
110
100
90
80
70
60
50
'02
'01
'00
'99
'98
'97
'96
'95
'94
'93
'92
'91
'90
'89
'88
'87
'86
'85
'84
'83
'82
'81
'80
'79
'78
'77
'76
'75
'74
'73
40
Fiscal Year
ECCJ
36
(Source: EDCM Handbook of Energy & Economic Statistics in Japan 2004)

37. < usable information for bench-mark >
International comparison of energy intensity
at integrated iron and steel works
It is supposed that some kinds of revision are added to be effective for comparison.
140
index (Japan=100)
120
100
110
105
100
125
120
120
110
80
60
40
20
0
Ja
pa
Ko
n
re
EU
a
U.
S.
A.
Ru
ss
C
ia
hi
C
na
(l a
rg
e)
hi
na
(a
ll)
Source: the Japan Iron & Steel Federation (information from Korea Iron & Steel Association
and the China Iron and Steel association, unofficial information from many companies )
37

38. International comparison of energy intensity in other sub-sectors
<heat efficiency at thermal power station (i/p fuel per o/p electricity)
(1)
source: COMPARISON OF POWER
EFFICIENCY ON GRID LEVEL 2006 (ECOFYS), >
Japan
Scandinavia
U.K.
100
103
France
99
Germany
U.S.A.
China
India
110
117
129
135
123
<electricity intensity of manufacturing sodium hydroxide by dissociation method
Economic Handbook, Soda Handbook.>
(2004)
Japan
100
source: SRI Chemical
Taiwan
Korea
India
China
U.S.A.
W-Europe
E-Europe
100
100
108
104
110
119
115
<energy intensity of paper and cardboard manufacturing
source: Japan Paper Association 2003, American
Forest & Paper Association 2002, Forest Product Association of Canada 2001, Confederation of European
Paper Industries2001>
Japan
U.S.A.
Canada
Sweden
Germany
100
144
134
123
<energy intensity of manufacturing cement clinker (2000)
Japan
W-Europe
Korea
100
130
131
M&S. America
145
52
source: CLIMATE CHANGE Mar.2002 (Battelle) >
India
152
China
152
U.S.A.
177
Russia
178
38

39. International comparison of energy intensity in other sub-sectors
(2)
<energy intensity at oil refinery
source: Petroleum Association of Japan,
based on the report of Solomon Associates>
(2002)
Japan
Developed countries of Asia
(excluding China)
Europe
U.S.A. and Canada
100
101
102
113
*1: Korea, Singapore, Malaysia, Thailand
<energy intensity at copper refining factory
source: based on hearing information from some factories>
Japan
Europe
Asia
N. America
100
133
143
154
<energy intensity of aluminum plate rolling
Japan
202
source: International Aluminum Institute>
World
100
S. America
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Attention: these information are disclosed non-official base by associations and institutes, not by
governments.
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40. Thank You
for your attention
More information is available by accessing
ECCJ’s Internet Home Page at:
http://www.eccj.or.jp/index_e.html
The Energy Conservation Center, Japan
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