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WIND ENERGY JAPAN

June 2012 Content Background Wind Energy in Japan Japanese Wind Energy Industry Government Supports Useful Links Major Japanese Companies Profiles of Major Japanese Companies Major Wind Energy Projects in Japan

Background
The result of the Fukushima accident and subsequent shut-downs of reactors elsewhere in Japan signaled that the nuclear power production wont be back to the pre-Fukushima level. To offset the shortfall, oil and gas now generate nearly 90 percent of the nations electricity, with hydropower accounting for about 8 percent and other renewables, solar, wind, geothermal and biogas, making up the balance. All of 54 nuclear reactors in Japan have been out of operation since May 2012. Japans future energy mix stands at the crossroads. Nuclear power generation will be resumed; however, debate nowadays is the level of reliance on nuclear. The scenario with ratio of 15% nuclear power in total electricity supply is looming large.

To cope with a shortage of electricity, the government has requested both industries and households to take energy saving measures. It is also easing regulations and restrictions on renewable energy projects. Furthermore, utilities will be required to buy electricity from renewable energy providers

through the feed-in tariff (FIT) system from July 2012. Quick diffusion of technology for peak suppression and backup power is called for. Diversification of energy sources is an urgent issue. So far, Japans renewables supplied merely 3% of the total power generation which is only 1% increase since 1990. With or without nuclear, renewables will expand. Estimate of Renewable Energy in Japan 2010
Cumulative installation volume (kW) 3,884,000 2,440,000 540,000 3,239,000 3,256,000 13,358,000 Estimate generation volume ( billion kWh) 4.083 4.275 2.652 17.305 11.978 40.293 Share of total domestic generation (%) 0.35 0.37 0.23 1.49 9,600 142,000 3.0 11.9 29.7 100 1.03 3.47

Type

Installation per year (kW) 1,063,000 256,000 2,000 5,000

Increase in installation volume (%) 37.7 11.7 0.4 0.1

Share of generation 10.1 10.6 6.6 42.9

PV Wind Geothermal Small Hydro Biomass Total

Source: Renewables Japan Status Report 2012, Institute for Sustainable Energy Policies

Wind Energy in Japan


At the end of March 2012, there are 1,855 units of wind turbines in Japan, the cumulative installed capacity accounts for 2,556.8MW, according to Japan Wind Power Association.

Source: Japan Wind Power Association Japans wind power generation started in 1980, but began in full-force with the introduction of 1,000 kW generating systems in 1999. Many wind turbines have been installed in Hokkaido, Tohoku and Kyushu where the wind conditions are desirable. Recently, new installation is subdued because grid connection capacity has not been improving. Furthermore, various restrictions on location, the amendment to the building code in 2008, and global demand on wind power plants have added burden on the wind power industry. As a result, the market for wind power in Japan stagnated. Despite the introduction of the feed-in tariff (FIT) and a shortage of electricity, it is not yet clear how the current situation will affect wind energy market in Japan. Wind energy industry is similar to assembly industry such as automobiles, where Japan possesses competitive edge. Components industry (machinery, electronics, materials, etc.) maintenance (twice a year), installation, construction, consultancy services are all related to the wind business. According to the Institute for Sustainable Energy Policies, the market size for the Japanese wind energy is

envisaged at 500 billion JPY (5 billion ) per year, equivalent of 20,000 jobs. Taking foreign markets into calculation, the wind energy market can attain the size of 2 trillion JPY (20 billion ) per year, creating 50,000 jobs.

Japanese Wind Energy Industry


The top three Japanese manufacturers are: Manufacturer Mitsubishi Heavy Industry Japan Steel Works Fuji Heavy Industry Cumulative installation MW 322 210 57 Share 13% 8% 2%

The top three developers/integrators are: Developers/Integrators Eurus Energy Holdings Corporation Electric Power Development Co., Ltd. (J-POWER) Japan Wind Development Co., Ltd. Remark TEPCO 60% share; Toyota Tsusho 40%

Market Share in Japan by Manufacturer (end of March 2012)


Manufacturer Vestas+NEG-Micon GE Wind Energy+TACKE Mitsubishi Heavy Industry Enercon Japan Steel Works Siemens+Bonus Repower Gamesa Lagerwey IHI-NORDEX Fuji Heavy Industry Ebara-Pfleiderer Wind Power DeWind Ecotecnia Fuhrlander Others Total 2557 100 Source: Japan Wind Power Association Country Denmark USA Japan Germany Japan Denmark Germany Spain Netherlands Japan+Germany Japan Japan+Germany Germany Spain Germany Ebara Corporation Fuji Electric IPP Japan Ebara Siemens Meidensha Toshiba Plant System JFE Engineering (License) Ishikawajima-Harima Heavy Industries (IHI) Hitachi Engineering & Service Represented by Vestech GE Japan Cumulative installation MW 615 478 322 291 210 127 116 110 87 68 57 32 21 Share 24 19 13 11 8 5 5 4 3 3 2 1 1

Remark: Vestas (Denmark) was represented by Vestech until January 2011 Lagerwey merged with the Windmaster, NKK, nowadays JFE Engineering Corporation (merged with Kawasaki Steel in 2003), have introduced Lagerweys 750kW turbines since 1996. Today, JFE Engineering also handles Gamesa from Spain, focusing more on large scale turbines Siemens withdrew from the Japanese wind market in 2004 but decided to restart the business in 2011

Japanese manufacturers lagged behind of European firms in the wind market. Reasons vary. Domestic market has been small, many projects have not been commercially viable and other technologies such as nuclear and solar were priorities among renewables. About 80% of Japanese wind energy plants, which are commercially based, are developed by private

companies, Eurus Energy, J-POWER and Japan Wind Development Co., Ltd. through establishing locally based companies involving communities. Wind farm developers often represent foreign manufacturers and earn commissions by selling turbines. Together with subsidies, which accounted one thirds of initial investment, developers were able to finance wind farm projects. General contractors made profit out of constructing new wind farms by installing wind turbines without considering management, maintenance and generating stable electricity. Consequently, many wind farms in Japan operate at a loss.
Type Research and Demonstration Commercial Number of Plants 91 326 Public operated (Municipalities, NEDO, METI related) plants: 68 Private operated plants: 258 Remark:

The current electricity shortage gives a new incentive to re-evaluate, re-organize and re-boost Japanese wind industry. The introduction of the feed-in tariff (FIT) system sheds new light on possibilities of wind energy production. Furthermore, the project of offshore floating wind farm off the coast of Fukushima will test what Japanese technology and industry could do as a whole. Japanese wind energy industry is to develop a new business model which includes, manufacturing, construction, management/maintenance of wind farm and to export it to markets abroad, especially China. How Japan could compete price-wise, is yet to be answered.

Government Supports
The government has been supporting wind energy development since early 1990s. Research projects and field-tests had been financed by the government and conducted mostly byNew Energy and Industrial Technology Development Organization (NEDO). Subsidies for constructions were handedout until 2010. Laws and regulations have been reviewed. Those supply-side support schemes were to be terminated before the Fukushima accident of 2011. Now that the shortage of electricity is a reality, more progressive measures are called for. From July 2012, the feed-in tariff (FIT) system will be introduced. Utilities will be required to buy electricity from renewable energy providers at a rate of 42 JPY per kwh for solar energy, 23 per kwh for wind power and 30-35 JPY per kwh for small-scale hydropower. These preferential rates will apply for 10 to 20 years depending on the energy source. Consumers are going to bear these higher rates. Ministry of Economy, Trade and Industry (METI) is currently supporting the offshore demonstration project in Fukushima which will cost 12.5 billion JPY, built by a consortium including Japanese trading house Marubeni, Mitsubishi Heavy Industry (MHI), Mitsubishi Corp., IHI Marine United, Mitsui Engineering & Shipbuilding, Nippon Steel, Hitach, Furukawa Electric and Shimizu. The University of Tokyo and Mizuho Information & Research Institute are also involved. Japan has already announced another pilot wind farm off Goto Island. The government will also support Japanese companies to get involved in offshore wind projects abroad. New Energy and Industrial Technology Development Organization (NEDO), which is Japans biggest public R&D management organization supported by METI, is fostering innovation for the nextgeneration in the wind technologies. NEDO Projects: Energy and Environmental Technologies

Useful Links
Government of Japan Ministry of Economy, Trade and Industry (METI) http://www.meti.go.jp/ Wind Power Generation Natural Resources and Energy Agency of METI http://www.enecho.meti.go.jp/ Ministry of the Environment http://www.env.go.jp/en/ Regional Electric Power Companies (10 EPC) Hokkaido EPC http://www.hepco.co.jp/

Tohoku EPC http://www.tohoku-epco.co.jp/ Tokyo EPC http://www.tepco.co.jp/ Hokuriku EPC http://www.rikuden.co.jp/ Chubu EPC http://www.chuden.co.jp/ Kansai EPC http://www.kepco.co.jp/ Chugoku EPC http://www.energia.co.jp/ Shikoku EPC http://www.yonden.co.jp/ Kyushu EPC http://www.kyuden.co.jp/ Okinawa EPC http://www.okiden.co.jp/

Related Industry Associations Japan Wind Power Association http://www.jwpa.jp New Energy Foundation http://www.nef.or.jp/english/index.html New Energy and Industrial Technology Development Organization (NEDO) http://www.nedo.go.jp Federation of Electric Power Companies http://www.fepc.or.jp/english/ Major Wholesalers Electric Power Development Co http://www.jpower.co.jp/english/index.html Federation of Electric Power Companies, Japan http://www.fepc.or.jp/english/ Electricity Review Japan http://www.fepc.or.jp/erj/index-e.html Energy and the Environment http://www.fepc.or.jp/english/info/ energyandenv/front.html

Major Japanese companies


Source: Japan Wind Power Association Large-scale wind turbine Mitsubishi Heavy Industry (MHI) Japan Steel Works (JSW) FUJI heavy Industry (FHI) Hitachi Engineering & Services Co., Ltd. KOMAIHALTEC Inc. Small-scale wind turbine SINFONIA TECHNOLOGY Co., Ltd. Zephyr Corporation Daiwa Energy Co., Ltd. Nikko Company Kikukawa Kogyo Co., Ltd. Ftech Co., Ltd. Nakanishi Metal Works Co., Ltd. Nasu Denki-Tekko Co., Ltd. Mecaro Co., Ltd. GH Craft Ltd. Loopwing Co., Ltd.

Blade FRP Carbon -

The Japan Steel Works, Ltd. GH Craft Ltd.

U-PICA Company Ltd. DIC Corportion NIPPON REINETSU Co., Ltd. Asahi Glass Co., Ltd. Nippon Electric Glass Co., Ltd. Toray Industries, Inc. fiber Toray Industries, Inc. Mitsubishi Rayon Co., Ltd. Toho Tenax Co., Ltd.

Electrical equipment Hitachi Ltd. Fuji Electric Co., Ltd. TMEIC (Mitsubishi Electric/Toshiba) Yaskawa Electric Corporation Meidensha Corporation Fujikura Ltd. Generator Hitachi Ltd. Meidensha Corporation Yaskawa Electric Corporation TMEIC (Mitsubishi Electric/Toshiba) Transformer Fuji Electric Co., Ltd. Risho Kogyo Co., Ltd. Gear box ISHIBASHI Manufacturing Co., Ltd. Seisa Gear, Ltd. (Sumitomo Heavy Industries, Ltd.) Komatsu Ltd. ONEX CORPORATION Netsuren Co., Ltd. Bearing JTEKT Corporation (Koyo/Toyota) NSK Ltd. NTN Corporation Komatsu Ltd. Nippon Roballo Co., Ltd. Hydraulic equipment Kawasaki Precision Machinery Company (Kawasaki Heavy Industries, Ltd.) Moog Inc. Machinery equipment Nabtesco Corporation Sumiotomo Heavy Industries, Ltd. Toyooki Kogyo Co., Ltd. Akebono Brake Industry Co., Ltd. Steel/Casting The Japan Steel Works, Ltd.

Nippon Chuzo Co., Ltd.

Profiles of Major Japanese Companies


Mitsubishi Heavy Industry (MHI) http://www.mhi.co.jp/ 2-16-5 KONAN MINATO-KU, Tokyo 108-8215 TEL: 03-6716-3111 FAX: 03-6716-5800 The largest wind turbine manufacture in Japan and ranked at 9th among world wide wind turbine manufactures in cumulative installation. MHI has installed 331wind turbine towers which have capacity of 323MW. MHI is shifting to large scale projects and exploring business opportunities in south Asia as well as United States of America, MHI is aggressively participating in offshore wind energy development project in the United Kingdom Round 3 Project . FUJI Heavy Industry (FHI) http://www.fhi.co.jp/outline/inoutline/index.html 1-7-2 NISHI-SHINJUKU, Tokyo TEL: 03-3347-2111 FHI has developed Down-wind turbine SUBARU 80/2.0 (2MW)jointly with HITACHI SEISAKUSHO and installed 8 towers of 2MW turbine at OMAEZAKI wind farm, where 3 towers already in operation. SUBARU 80/2.0 may be the world first 2MW turbine with its rollers positioned down-stream of the tower. They claim that it withstands better against the sudden change of the wind and better fits to the harsh environment in coastal areas. Japan Steel Works (JSW) http://www.jsw.co.jp/ Gate City Ohsaki-West Tower, 11-1, Osaki 1-chome, Shinagawa-ku, Tokyo 141-0032 TEL: (03)5745-2001 FAX: (03)5745-2025 SW started Wind Power Business using their long experience of industrial machinery and energy technology and delivered 30 sets of GE1.5s wind turbine to Japan including construction of wind power plant in some projects. Using these experience, JSW introduced the technology of permanent gearless synchronous generator wind turbine from Europe and manufacture JSW own wind turbine including blade and tower, which is designed and manufactured to fit for local condition of the site of all over the world, especially Asian and Japanese climate and land. Construction of Wind Power Plant JSW can offer turnkey project for wind power plant. KOMAIHALTEC Inc http://komaihaltec.co.jp/ 1-19-10 UENO TAITO-KU, Tokyo 110-8547 TEL: 03-3833-5101 Komai Tekko Incorporated has made significant accomplishments as a specialist of bridges and steel frames manufacturing. One of their outstanding projects, amongst many other large-scale bridges, was the Honshu-Shikoku Bridges which connected the Shikoku Island to the Main Island. EBARA SEISAKUSHO http://www.ebara.co.jp/ 11-1 HANEDA ASAHI-CHO OTA-KU, Tokyo 144-8510 TEL: 03-3743-6111 EBARA has business tie with Fuhrlander/ Pfleiderer, German wind turbine manufacture and performs full fledged operation of building wind energy plants. Hitachi Engineering & Services Co., Ltd. http://www.hitachi-hes.com Head Office :3-2-2, Saiwai-cho, Hitachi-shi, Ibaraki,317-0073 Japan New Energy Division HQ Mr. Kazuo SUZUKI Tel: 0294-55-5814 Fax: 0294-55-9630 Hitachi Engineering & Services made contract with ENERCON, Germany for sales and maintenance of ENERCON wind turbines in 1997 and proving full turn key services of wind turbine stations. Hitachi Engineering & Services also installs and services Vestas products as well. GE Japan Wind Power Division http://www.ge-energy.com/wind

AKASAKA Park Building 5-2-20 AKASAKA, MINATOK-KU, Tokyo 107-6111 TEL 03-3588-5165 FAX 03-3589-3372 GE is the worlds leading wind turbine suppliers and GE Japan is 100% owned subsidiary company which performs full fledged operation for planning, sales, installation and services., GE Energys current product portfolio includes wind turbines with rated capacities ranging from 1.5 MW4.1 MW and support services extending from development assistance to operation and maintenance. GE has capacity of 436 MW in Japan and enjoys second place next to Vestas of Denmark.

Toshiba Plant Systems & Services Corporation.


http://www.toshiba-tpsc.co.jp/about/index_j.htm 36-5 Tsurumichuo 4-Chome, Tsurumi-ku, Yokohama 230-8691 TEL: 045-500-7050 FAX: 045-500-7155 Toshiba Plant Kensetsu Co., Ltd. and Toshiba Engineering Corporation merged on January 1, 2004, with combined operations carried out in the new company, Toshiba Plant Systems & Services Corporation. This merger more effectively utilizes the management resources of both previous companies and integrates business that combines engineering, construction, and field services (on-site adjustment and testing). The new company serves as a comprehensive engineering constructor capable of quickly providing total solutions that match current needs, for better customer satisfaction. Toshiba Plant Systems & Services made contract with GAMESA of Spain to perform turn-key operation for building wind power generating stations. The company views that Spanish equipment is well designed for the hilly or mountainous sites which may better fit Japanese environment. Toshiba Plant Systems & Services has its own products, like micro-wind turbine in range of 500Watt to 5KW. The company will stretch this area for remote Islanders where no electric grid network is available from mainland. IHI Corporation http://www.ihi.co.jp TOYOSU IHI BUILDING., 1-1, Toyosu 3-chome, Koto-ku, Tokyo 135-8710 TEL: 03- 6204-7800 FAX: 03-6204-8800 IHI made contract with Nordex AG of Germany in 1994 to perform turn-key operation for building wind power generating stations. According to the said agreement, IHI built 10 units of 1.3 MW turbines (Total capacity of 13 MW) in MINAMI-OSUMI Wind Farm and now in operation. The company anticipates 50 more orders of medium to large wind turbines. Products are branded as NOREX-IHI in local market. MEIDENSHA http://www.meidensha.co.jp/pages/corp/corp01/corp01_03_01.html ThinkPark Tower 2-1-1 OSAKI SHINAGAWA-KU, Tokyo 141-6029 MEIDENSHA made contract with REpower of Germany to perform turn-key operation for building wind power generating stations. REpower is a company formed in 2001 after merger of Jacobs Energie GmbH, BWU and Pro Pro. MEIDENSHA will focus on mid size to large turbines, such as model 48/600, 48/750 MD70. the company has strong desire for introduction of 5MW machines from REpower. MEIDENSHA hopes to obtain manufacturing license of those high end turbines. IPP Japan Ltd. http://www.ippj.co.jp CEO Mr. KENSHI SUZUKI MITA MARUHACHI Building 6F , 3-1-10 MITA, MINATO-KU, Tokyo 108-0073 TEL 03-5444-8925 FAX 03-5444-8938 IPP Japan made contract with Ecotecnia of Spain for importing and sales of Ecotecnia wind turbines. IPP Japan expects very much on Spanish design which may withstand harsh mountainous environment, because flat land is getting scares in recent days for building wind turbines. FUJI ELECTRIC CO., LTD. http://www.fujielectric.co.jp ATE CITY OHSAKI, EAST TOWER, 11-2, OSAKI 1-CHOME, SHINAGAWA-KU,TOKYO 141-0032 FUJI ELECTRIC made contract with DeWind of Germany to perform turn-key operation for building wind power generating stations. FUJI ELECTRIC installed 20 units of 1000 KW wind turbines at TOMAKOMAI Green Hill Wind Park in HOKKAIDO

Major Wind Energy Projects in Japan


Operator: Chubu Electric Power Company Location: TSU city, MIE prefecture & IGA shi, MIE prefecture Total Output: 92 MW ( 2MW X 46 units) Planned to operate:: 2015 Operator: J Power Location: AOMORI prefecture, OMA-CHO Total Output: 19.5 MW (1.95 MW X 10 units) Planned to operate: TBD Operator: J Power Location: AKITA prefecture, YURI HONJO-shi Total Output: 20 MW (2MW X 10 units) Planned to operate: TBD Operator: Japan Wind Power Development Corporation Location: YURA Wind Power (Wakayama Prefecture, HIDAKA-gun, YURA-CHO) Total Output: 10 MW (2 MW X 5 units) Planned to operate: August, 2011 Operator: Japan Wind Power Development Corporation Location: TAINAI Wind Power (NIIGATA Prefecture, TAINAI-SHI) Total Output: 40 MW (2 MW X 20 units) Planned to operate: January 2012

Operator: Japan Wind Power Development Corporation Location: ZENIHAKO Wind Power (HOKKAIDO OTARU-SHI ) Total Output: 40 MW (2 MW X 20 units) Planned to operate: TBD Operator: Japan Wind Power Development Corporation Location: MATSUMAE Wind Power (HOKKAIDOMATSUMAE-CHO) Total Output: 40 MW (2 MW X 20 units) Planned to operate: TBD Operator: Japan Wind Power Development Corporation Location: FUKIKOSHI DAICHI Wind Power (AOMORI Prefecture, ROKKASHO MURA) Total Output: 20 MW (2 MW X 10 units) Planned to operate: January 2012 Operator: EURUS Energy Holdings Location: Eurus Energy DATE (HOKKAIDO DATE-SHI) Total Output: 10MW (2MW X 5 units) Planned to operate: November 2011

This information is compiled by the Embassy of the Kingdom of the Netherlands in Tokyo. For more information or comments regarding this documents, please contact the Netherlands Embassy in Japan.

Embassy of the Kingdom of the Netherlands Ms. Kazuyo Komatsubara 3-6-3 Shibakoen, Minato-ku Tokyo 105-0011 Japan E-mail: tok-ea@minbuza.nl Tel: +81 (0)3-5776-5430

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