KEPCO'sapproach to Energy Saving and Carbon Reduction Kenjimorimoto the KANSAI Electric Power Co., Inc

KEPCO'sapproach to energy saving and carbon reduction KenjiMorimoto The KANSAI Electric Power Co., Inc. ［KEPCO］

1. Actions taken on the demand side

2. Summary

Expand service Best partner for lineup and global energy and life contribution

Main player in Pioneer in the the low carbon stable supply of society next-generation energy

Pursuit best solutions

Rock-solid business base

Firm values

GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 ©2012 KEPCO All Rights Reserved. Strategy Toward the Realization of 3 a Low Carbon Society Promoting energy saving and carbon reduction through both: a)carbon reduction on the supply side by promoting nuclear power generation and streamlining power plants. b)enhancement of energy efficiency on the demand side by disseminating highly efficient devices and promoting electrification. Kansai e-Eco strategy

generating transmitting using contribute to energy saving, accelerating carbon constructing Kepco’s cost reduction and carbon reduction smart grid reduction for our customers and society

development of supply-demand promoting utilizing nuclear streamlining sophistication expanding control technology dissemination of heat power thermal power distribution spread of using rechargeable pump and other highly generation plants system electric vehicles batteries efficient devices advancing energy maintaining and proactive solar power saving and carbon expanding purchasing new generation visualization of reduction activities in hydro power energies output forecast energy our corporate generation technology activities

GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 ©2012 KEPCO All Rights Reserved. Deployment of actions on both supply and 4 demand sides toward the realization of a low carbon society SSuppuppllyy ssiidede DeDemmaanndd sisidede EEnneergrgyy savsaviinngg tthhrroouughgh Ever more efficient and Ever more efficient and ddiissemssemiinnaattiioonn ooff hhiigghhllyy lower carbon grid power lower carbon grid power ×× effeffiicciieenntt ddeveviicesces aanndd ((EExxppaannssiionon ooff uusese ofof rerenneewwaabbllee eellectectrriiffiicatcatiionon eennerergygy,, eettcc.).) ((hheaeatt pupumpmp,, eellececttrriicc vveehhiicclele,, eettcc.).)

making combined efforts of the government and the private sector

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GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 ©2012 KEPCO All Rights Reserved. Trend in power demand and development of 5 power sources [ Kepco(1) ] While power demand has been consistently expanding, we have steadily developed power sources.

Supply capacity (unit: 10 MW) Trend of the maximum power and supply capacity 3500 Others (To purchase from other companies, etc.)

3000 Thermal power

Nuclear power 2500 Hydro power

2000 Max. power

1500

1000

500

0 1955 1960 1965 1973 1979 1985 1990 1995 2000 2005 2010 Year

Power resource development has been carried out keeping in mind well-balanced power resource composition.

100 GWh Trend of electric energy generation 1800 Others (To purchase from other companies and new energy)

1600 Thermal power

Nuclear power 1400 Hydro power 1200

1000

800

600

400

200

0 1957 1960 1965 1973 1979 1985 1990 1995 2000 2005 2010 Year

Aiming at non-fossil fuel power generation that accounts for 60% of all, however, the situation remains opaque due to the Great East Japan Earthquake.

n Trend of power resource composition ratio (on the basis of powergeneration amount)

Nuclear power Hydro power and others Thermal power 100%

90% 34 80% 38 38 40 44 43 45 51 70% 56 60 60

60% 78 15 11 10 50% 10 11 11 12 40% Non-fossil fuel power 66 30% 17 ratio, aiming 50 50 47 46 46 at 60% in 20% 44 40 44 37 2020 16 10% 23 6 0%

Hydro: main, Thermal: main, Best mix based primarily on nuclear power Thermal: sub Hydro: sub

Expansion of introduction of nuclear power generation, Electric power Expansion of use of and enhancement of utilization ratio of nuclear power generation supply side non-fossil fuel energy Development and dissemination of renewable energy Enhancement of electric power Enhancement of efficiency of thermal power generation equipment

Development and dissemination of highly efficient and energy saving devices Electric power Energy saving PR activities for provision of information demand side on energy saving

Use of renewable energy and unused energy

Equalization of Promotion of the use of a heat storage system electric load

Utilization of Kyoto mechanism International Greenhouse effect action gas reduction project Expansion of CO2 sinks

Research and Development of greenhouse effect gas Development of heat pump technology, etc. development reduction technology

1.Actions taken on the demand side

Performing energy saving PR activities toward customers in the household through various tools and opportunities

Customers in the household

Summer energy saving PR on the back of a meter reading slip

❖Running summer energy saving PR on the back of a meter reading slip Posting our URL to every July guide customers to our energy saving homepage

“Guidance for electricity”

❖ Sent on the occasion of change of the contract ❖ Utilized as a consulting tool

•In addition, cooperation is performed with the Energy Conservation Center through participating in their activities such as energy conservation events, and women and consumer groups, etc. through running summer energy saving advertisements in their newspapers and booklets.

Performing energy saving PR in addition to everyday individual consulting activities

Corporate customers

e-Solution, energy saving information (on Website) ❖Posting energy saving information in the e-solution site ❖Sending a mail magazine to e-solution site members Posting a variety of useful information on energy conservation

PR for efficient use of electricity

Distributing leaflets to enhance awareness and effect of efficient use of electricity

Posting how to use air conditioners, lighting, OA devices, etc. with less energy

Providing household customers with a higher added value through proposal of adding such merchandise and service as environment-friendly solar power generation and electric vehicles to our Ecocute, a home-use heat pump device

Utilizing “air heat”, which is renewable energy, for hot-water supply Solar power generation system

Solar light

Solar heat is stored in air.

Air heat CO2 heat pump water heater “Ecocute”

Ecocute

(Both solar power generation and Ecocuteutilize solar energy and friendly to environment, therefore the combination of the two is the best mix.)

Kepco’sElectric Vehicle

For corporate customers, recommending highly efficient heat pumpdevices for commercial- use air-conditioners and water heaters as well as promoting the development and dissemination of highly efficient devices in the industrial area

[Activity for corporate customers] [Example of a device using a heat pump] Air-conditioning Water heating and domain kitchen domain Total Solution Services

IH Cooking Turbo freezer Heater Turbo freezer Heat pump water heater

CO2 heat pump hot air generator CO2 heat pump hot air Heat pump water heater generator Industrial process (used for industrial process) domain

Heat pumps uniquely convert unused “ambient heat”into heat of utilizable temperatures, by inputting a very small amount of primary energy without burning fossil fuels as a source of CO2 emissions. Heat pumps need electricity that is only about one-sixth. Therefore, heat pumps produce heat energy with high efficiency and can dramatically reduce the damage to the environment. Capability Energy Compressing the refrigerant 1 andtemperature rises COP ： Coefficient Of Performance Output energy（kW） 6 ＝＝ 6 Input energy（kW）１ Compressor 5 6 Heat Condensation Output energy ６ Cooling exchanger Heating ➂

Liquid Compression Heat cycle ➁ Vapor Expansion Valve ➃

P r e ss u re Expansion ➀ Evaporation １ Lowering the pressure and temperature drops Tank Liquid and Vapor (mixed) Refrigerant(vapor) Heat pump Input energy Refrigerant(liquid) Heat Energythat was put Energy into a compressor

Current status of heat pump technology at home International comparison of heat COP Transition of heat pump pump efficiency efficiency COP (When cooling) Room air-conditioner 8 6.2 6 3.8 4 4.5

2 (Heat pump) Water heater 2.2

0 Japan North America and Europe Heat pump efficiency has almost doubled in the past ten years.

Actions (Examples) CO2 heat pump hot air generator (Eco-sirocco) Joint development with manufacturers Generates high temperature, as CO2 heat pump water heater (Ecocute) high as 120℃, air flow, usable State-of-the-art model: Release in 2001 for the drying process Efficiency has risen to as high as an APF of 3.9 High efficiency hot water heat pump Enabling concurrent extraction of cold and warm water realizes high efficiency. (Overall COP: 4.5)

APF ： Annual Performance Factor GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 （In the condition of standard mode in Japan） ©2012 KEPCO All Rights Reserved. The introduction of Electric Vehicles 16 for commercial use by Kepco

◆Kepco’starget of introducing EV

The accumulated total of Target year vehicles FY.2009 –2012 Approx.270 By FY.2020 Approx. 1,500

Hybrid vehicle

Electric Vehicle

Use of non-combustion type heat without burning fossil fuels is the key to the reduction of CO2

Ratio of electric power n Examples of heat supply by utilizing unused energy n to fossil fuel in energy consumption Heat of groundwater Heat of river water Heat of sewage water Kepco-Kobe Building KepcoHeadquarters Fossil (since 2000) Building (since 2005) fuel Househol Electric (Heat) power d sector 53% 47%

Fossil fuel Commerci (Heat) al sector 43% Electric power 57%

Electric power Industrial Fossil 23% In FY2010:Survey of the flow rate and fuel temperature of the sewage water sector 77% In FY2012:Demonstration test in Osaka City Utilizing the heat of Utilizing the heat of river water Accommodating heat with other groundwater as heat source for as heat source for air remote points by utilizing sewage Reference: Energy & economy air conditioning conditioning water (pipelines) statistics directory, 2010

【Outline of the building】 Examples of an environment-friendly model building Main application: Office 2 •Eco-frame (preventing summer direct sun from entering) Floor space: 106,000 m 41 stories above the ground, •Adoption of natural ventilation 5 stories under the ground •Human sensing light control and luminance control Height: Approx. 195 m •Combined use of overall air-conditioning and individually adjustable air-conditioning •Adoption of high performance windows and solar power generators

MJ/㎡・年year 0 500 1,000 1,500 2,000 2,500

Ordinary office 一般事務所ビル 558 537 773 280 2,148 building

20052005年度 399 509 503 138

20062006年度 346 492 502 138

20072007年度 314 485 493 137

20082008年度 303 471 506 137 Energy saving rate p36% 20092009年度 286 467 510 114 Amount of CO emission is approx. 40 kg-CO /m2 1,377 2 2 Þ Less than half compared to an ordinary Hea熱源t source P動力ower O照明utleコt ンforセントlighting そOの他thers office building Annual specific energy consumption

Name Outline of the system Image

™ Establishment of a three-stage classified pricing system according to the consumption [Graphical representation amount of electricity unit price] •1st stage: Corresponds to the consumption amount of daily necessities, relatively low in price 3rd stage 3-stage •2nd stage: Price approximately equal to the (Yen) 2nd stage

pricing average cost 1st stage system •3rd stage: Relatively high price reflecting the Relatively tendency of rise of cost and promotion of energy Relatively Average high low saving 121 kWh– 301 kWh–

™ Has been adopted since 1974.

Name Outline of the system Image

[Graphical representation of daytime and nighttime]

23 o'clock ™ Establishment of day and night dependent [Graphical Nighttime representation of Hour price electricity unit price] dependent •In order to shift the load from day to night, a 7 o'clock Daytime electric relatively high price is set for daytime (7:00 to 3rd stage 23:00) and a relatively low price for nighttime light 2nd stage (23:00 to 7:00). (Yen) 1st stage Relatively high ™ Has been adopted since 1990. Average Relatively low Low 91 kWh– 231 kWh–

Nighttime Daytime

Name Outline of the system Image

[Graphical [Graphical representation of representation of daytime and electricity unit price] nighttime] Still higher in ™ Establishment of season and hour dependent the summer 23 o'clock (Yen) Season price daytime •In order to shift the load from daytime to nighttime and hour Nighttime Living hours dependent and living hours, a relatively high price is set for daytime (10:00 to 17:00, summer time, varies 7 o'clock Relatively Living hours Relatively high electric 17 o'clock Low depending on a season) and a relatively low price Daytime Low for nighttime (23:00 to 7:00) and living time (hours light 10 o'clock Nighttime Living Daytime other than daytime and nighttime). hours ™ Has been adopted since 2000.

Name Outline of the system Image

Summer time Other seasons [Holidays, etc] Season and (July to September) (October to June) hour 22 o'clock 22 o'clock dependent In order to shift the load from heavy load Daytime electric hour (summer time: 10:00 to 17:00) to Nighttime Nighttime Nighttime power daytime & nighttime, the electricity rate 17 o'clock Daytime Heavy load for daytime (8:00 to 22:00) is set lower hour Daytime than that for heavy load hour and a still 8 o'clock 8 o'clock For lower rate for nighttime (22:00 to 8:00) 10 o'clock commercial than that for daytime while a relatively use high electricity rate is set for the heavy (January 1996) load hour. For industrial (Yen) use (January 1988) Relatively Relatively high Low Low

Nighttime Daytime Heavy load hour

GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 ©2012 KEPCO All Rights Reserved. Approach to the restriction of demand (Hour dependent price menu) 23 Annual load rate tends to improve after introduction of an hour dependent price menu. Transition of annual load rate and the number of hour dependent price menu contracts [Annual load rate (%)] [Number of contracts Commercial use season Commercial use season concluded (unit: 10,000)] and hour dependent 66% HourHour dependendependentt and hour dependent 200 eelleectctrriicc popowwerer (1996)(1996) eelleectctrriicc lliighghtt (1990) 63% 180 63% (1990) SSeaeassonon andand hourhour dependent electric 61% dependent electric 60%60% 61% 160 lilighghtt (2000)(2000) 59% 60% 59% 140 57% 57% 56% 120 57% 56% 56% 100 54% 54% 89 100 54% 54% 53% 79 67 80 56 51% 45 60 36 28 40 48% 16 22 8 13 20 0.050.10 2 5 45% 0 H2 H5 H8 2 000 2 003 2 004 2 006 2 009 1 990 1 998 2 001 2 002 2 005 2 010 1 988 1 993 1 996 2 007 2 008 S 63 H 10 H 12 H 13 H 14 H 15 H 16 H 17 H 18 H 19 H 20 H 21 H 22

Load rate denotes an index representing how use of Annual averaged electric power Annual load rate = ´ 100(%) electricity depends on season and hour. Maximum electric power in a year

Kepcotries to introduce Smart Meter for improvement in customer service and streamlining business management.

Electricity charges are calculated by Transmitted by charge-free wireless Unit type meter remotely-read meter readings bucket-brigade system to the intensive (every thirty minutes) unit Communication unit • Transmits reading data.

Measuring unit •“Safe”and Optical cable “effective” Data Center replacement free from power failure Intensive unit is allowed. (data relay) Service office Opening/closing unit ○ The size allows comfortable •Switching “Hapi-eMiruden”, service fit into the installing space of stop/release of offering information on use of the conventional meter. supply ○ Replacement of each unit as electric power necessary is allowed.

AAss fforor ccuussttoommeerrss bbeeiingng iinnttrroodduucecedd SmSmaarrtt mmeteeterr,, hourhourllyy eellectectrriicacall Day by day uusasaggeses aarree ddiissppllaayyeedd grgraapphhiicacallllyy onon records tthhee nnextext ddaay.y.

Hourly records

For [1] Realization of offering meter-reading notifying service without posting at site and [2] Support for customers’power-saving activity by visualizing actual records of electricity usage, “Electrical Usage Notifying Service”is provided with using the new meter-reading system.

Electrical usage and amount billed Haｐｐｙ in the current electricity month are displayed.

Watch

Weather and the minimum and maximum temperatures of the current day are displayed in a calendar. Electrical usages in the past 15 months are graphically displayed.

“Simulation of energy saving and CO2 reduction”content started in 2010 in addition to the “Electrical usage notifying service”, which enables the simulation of the effect on the reduction of heating and lighting cost and CO2 emission when currently used home electric appliances such as air-conditioners and refrigerators are replaced by the up-to-date models. (1) Input of customers' basic information

Comparison among equivalent households

GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 ©2012 KEPCO All Rights Reserved. Provision of information on the simulation of energy 27 saving and CO2 reduction [2] (2)Display screen showing comparison and ranking among equivalent households in terms of the current heating and lighting cost and CO2 emission

heating and lighting cost

CO2 emission

(3) Registration of the appliances now you are using

(4)Heating and lighting cost and CO2 emission ranking display screen when the currently used appliances are replaced by the up-to-date models.

Saving5,000 yen/year ( 5,500US＄)

™ The contents containing the information on the “energy saving ideas”that can be easily carried out at home is now being posted in our homepage. ™ The contents will make you understand the energy saving ideas that will be helpful for the various living scenes.

Example of air conditioning

Click on “Select the type of energy saving.”

The execution of it displays “Gained eco-points.”(5 points gained)

GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 ©2012 KEPCO All Rights Reserved. Provision of information on energy saving ideas [4] 33 Ticking “Disconnect plugs in the off-season”gives you one eco-point. (6 points in total)

Ticking “Circulate the air by using an electric fan”gives you three eco-points. (9 points in total)

Ticking “Set the room temperature to 28°C on the air-conditioner” gives you five eco-points. (14 points in total)

Ticking “Lower sensory temperature by devising clothing or types of clothmaterials” gives you two eco-points. (16 points in total)

GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 ©2012 KEPCO All Rights Reserved. Provision of information on energy saving ideas [8] 37 Ticking “Make you feel cool by frequent cleaning”gives you three eco-points. (19 points in total)

GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 ©2012 KEPCO All Rights Reserved. Provision of information on energy saving ideas [9] 38 Not just up-to-date energy-saving actionsalso presents “energy-saving tips” from traditional practice in Japan as “Idea Card.”

Challenging and enjoyable while reading cartoons.

GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 ©2012 KEPCO All Rights Reserved. Colum１ 40 Mｓ.WangariMutaMaathai Kenyan women environmental activists. Maathai, won the Nobel Peace Prize in 2004 in recognition of achievements of afforestation activities to the wilderness of Africa, she was the Deputy Minister of Environment of the Republic of Kenya. Whatshe proposed was that …

“I was impressed during the visit to Japan in 2005 by Japanese. It was ”mottainai“.

3R + Respect = environmental wasteful 3R：Reduce, Reuse, Recycle Not only expressed by the word just the 3R environmental activities, Irreplaceable resource for the Earth with respect, "mottainai". Maathai, protect the environment "MOTTAINAI" this beautiful Japanese has been proposed that the spread as a global commonlanguage.

Inputting the monthly used amount or price of electricity, gas, city water, gasoline, etc. shows the amount of CO2 emission in a household at a glance, andenables you to see their transition graphically. (Including comparison in ranking with other participators)

Previous year

This year

Less than average

More than average Average

PR is now being carried out to promote use of our [Environmental household accounts] and [Electrical usage notifying service]

PR leaflet (Cover page) PR leaflet (Body) Seals

Set up in the environmental information portal site in 2011

An environment awareness enhancement activity has been conducted since 2008 at primary schools using green curtains for the purpose of enhancing environment awareness of the future generation.

Learning the effect of green Primary school children Green curtains covering curtains planting seedlings windows

GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 ©2012 KEPCO All Rights Reserved. Energy education for the future generation [2] 46 (Kanden e-kids club) In order to make school kids interested in energy and environment issues, a next generation education “Kandene-kids club”is being conducted to 100 children in the service areas of Kepco.

Contents of the education in 2011(October to March)

Calling for entries Experience learning (November) Inauguration ceremony (October) Experiencing tree climbing and a forest creating study at the Expo Park Inauguration ceremony and looking around the facilities were Facilities observation tour conducted at NankoPower Plant (December)

Tour of observing the recycle facilities by making use of winter holidays Kids ISO 14001 performed (November) Graduation ceremony (February) Energy saving activity taken A certificate was awarded at each home after looking back on the activities of the past half year Workbook

Kepcoassists schools in an energy & environment education through “delivery classroom”and “observation tour.”

KeKeppcocoisis h helelpfpfuul lfo forr ““aann e enneerrggyy & & e ennvvirironmonmeennt t eedduuccaatitoionn.”.”

Thinking through data/materials, Delivery classroom models, experiments, etc.

Experiential understanding through an observation tour of power plants and Observation tour PR facilities

Kepco'semployees visit schools to explain plainly about energy and global environment issues.

［Feedback from pupils］ •Detailed explanation enabled us to understand the environment issue and the system of a power plant. •It was wonderful to know how electricity is provided for our houses and how important electricity is. •Use of a model globe in Giving a plain explanation Understanding global warming the experiment helped us by the use of materials through experiments to understand the warming mechanism well.

Aiming at experiential understanding of the role and the method for utilization of energy-related facilities including a power plant

Hydro power Map of PR facilities of Kepco PR Center at Okawachi Power Plant (El-Village)

WakasaTakahama Nuclear power ELDOLAND

PR Center at NankoPower Thermal power Plant [El-City Nanko] PR Center at Hidaka-ko New Energy Park New Energy

GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 ©2012 KEPCO All Rights Reserved. １ PR Center at OkawachiHydro Power Plant (El-Village Okawachi) 50 (External view) (Overall view)

Main attractions

Village Hall Information Center Timber Land

(External view) (Entrance)

Main attractions

First floor experience zone Second floor experience zone Library

Main attractions

Wonder Tour Science Wonder Tropical Wonder

(External view) (Overall view)

Micro hydro small-size solar biomass power wind power power power

Solar car circuit

Small-scale hybrid Power (solar, Wind)

Main attractions

Solar Car Circuit (Park facilities) Methane Hydrate Introduction Area Small-scale Biomass Power (PR Center) Generation (PR Center) GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 ©2012 KEPCO All Rights Reserved. Environmental Pamphlet 54

Creating and distributing various type of environmental pamphlets

Let's look for CO2 together KepcoGroup's CSR Report A pamphlet introducing the A booklet summarizing CSR activity of the Environmental activities and the state of activity household accounts “Eco e-life check”

KepcoGroup's Approach to Environmental Issues Let's become natural people A leaflet describing plainly A pamphlet introducing an “Progressive approach to ecological and natural life environmental issues”in the CSR report

What is good to the earth Eco-friendly activities all of us that we can do can take part in A pamphlet introducing the A pamphlet introducing everyone's actions we can take to eco-friendly activities centering on reduce environmental load planting activity centering on the prevention of global warming GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 ©2012 KEPCO All Rights Reserved. Environment-related DVD 55

Producing animation DVD's aimed at a future generation to be used at a delivery class or in the bus on a visit to facilities A question of Mako-chan'sparrot: What is good to the earth that we can do What is the global environment? Recycling-based society which we should learn from Edo Period

Explaining environmentalissues such as Created in collaboration with Kyoto Seika global warming in the form of animation University (Kyoto International MangaMuseum) with a story-like organization

2.Summary

Customers want energy saving activity that will not impair comfort or convenience.

¢ Which do you prioritize, environment ¢ Are there anything you do or comfort / convenience? related to energy saving?

No particular Priority placed on Priority placed on a No energy action is taken. environment over comfort, convenient saving action is comfort/convenience taken at all. 9% 4% life over environment 7.6% 0.1%

Something is done Something is occasionally. done habitually. 87% 46.7% If environment is compatible with 45.6% comfort/convenience, a life with environment will be taken into consideration.

Source: Tepco’sSurvey data in December of 2008 GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 ©2012 KEPCO All Rights Reserved. １ Example of trial calculation of the amount of energy saved by energy saving efforts 58

Based on the assumption that the energy saving effect brought about by energy saving efforts is approx. 10% (i.e. comfort / convenience is not significantly impaired) ¢ Examples of energy use at home Energy saved by energy Baseline saving efforts Amount of consumption of Load (a year) primary energy Amount of consumption of primary energy (Amount of energy used) Water (Amount of energy used) heater City gas City gas 17GJ 21GJ 19GJ 1 0 % e n er g y sa v i ng ffo r ts (425 m3) (467 m3) (Efficiency 80%) (Efficiency 80%)

FF type Heater FF type Kerosene 16GJ Kerosene 20GJ 18GJ (545 L) (490 L) (Efficiency 80%) (Efficiency 80%)

Cooler 7GJ (Efficiency 300%) (Efficiency 300%)

Electric power 20GJ Lighting 18GJ Electric power 4GJ 55GJ 50GJ (5,639 kWh) (5,075 kWh) Home appliances, etc. Total 96GJ (Baseline) 14GJ Total 87GJ (r9%) GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 ©2012 KEPCO All Rights Reserved. ２ Example of trial calculation of the amount of energy saved by replacement to more highly efficient devices 59 Energy saving effect achieved by an energy type-by-energy type control (replacement to more highly efficient devices) is estimated to be approx. 20%.

Energy saving achieved by introduction Baseline of more highly efficient devices Load (a year) Amount of consumption of primary energy Amount of consumption of primary energy Water

(Amount of energy used) Re p l ac e m n t o or h i g y ef f c d v es (Amount of energy used) heater City gas Latent heat City gas 17GJ collection type 21GJ 18GJ (398 m3) (467 m3) (Efficiency 80%) (Efficiency 95%)

FF type Heater FF type Kerosene 16GJ Kerosene 20GJ 18GJ (545 L) (501 L) (Efficiency 80%) (Efficiency 87%) Highly efficient cooler •On the assumption of: air-conditioner •50% reduction by highly efficient air- 7GJ conditioners, (Efficiency 300%) (Efficiency 600%) •60% reduction by lighting, and •20% reduction by home appliances replacement Electric power 20GJ Lighting 14GJ 4GJ 1.6GJ 55GJ LED Electric power (5,639 kWh) Home 37GJ appliances, 11GJ (3,824 kWh) etc. Total 96GJ (Baseline) 14GJ LCD Total 73GJ (r24%) GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 ©2012 KEPCO All Rights Reserved. ３ Example of trial calculation of the amount of energy 60 savedby the selection of energy type and the replacement to more highly efficient devices Total control including energy selection instead of energy type-by-energy type control enables “selection of the measures that produces the maximum energy saving effect”. (Energy saving efforts is approx. 40%)

Baseline Energy saving achieved by [Energy selection Load (a year) + Introduction of highly efficient devices] Amount of consumption of primary energy Water (Amount of energy used) Amount of consumption of primary energy heater (Amount of energy used) City gas 17GJ E n e r g y se l c t i o + R p ace m or h 21GJ (467 m3) (Efficiency 80%)

FF type Heater CO2 heat pump water •On the assumption of: Kerosene 16GJ heater “Ecocute” •60% reduction by heating eff i c e n t d v ces (APF:3.3) •50% reduction by highly 20GJ efficient air-conditioners, (545 L) (Efficiency 80%) Highly efficient •60% reduction by lighting, air-conditioner •20% reduction by home cooler appliances replacement 7GJ (Efficiency 300%) (Efficiency 600%)

Electric power 20GJ Lighting 22GJ 4GJ 1.6GJ Electric power 55GJ LED 59GJ (5,639 kWh) Home (6,048 kWh) appliances, 11GJ etc. Total 96GJ (Baseline) 14GJ LCD Total 59GJ (r39%) GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 ©2012 KEPCO All Rights Reserved. Summary 61

ØHome users, who use small amount of energy, tend to save energy on an energy type-by-energy type basis.

However, this kind of energy saving effort has a limitation.

ØIn order to realize a sizable amount of energy conservation, it is essential to induce the selection of suitable energies and introduction of highly efficient devices through which the overall energy consumption amount will be minimized.

Reference: Actions taken on the supply side

Development and dissemination of highly efficient and energy saving devices Electric power Energy saving PR activities for provision of information demand side on energy saving

Use of renewable energy and unused energy

Equalization of Promotion of the use of a heat storage system electric load

Utilization of Kyoto mechanism International Greenhouse effect action gas reduction project Expansion of CO2 sinks

Research and Development of greenhouse effect gas Development of heat pump technology, etc. development reduction technology

Maizurucoal-fired power generation plant started to use woody pelletsofbiomass fuel, mixed with coal for power generation in 2008. n Conceptual diagram of mixed combustion of coal and biomass fuel Biomass silo

Boiler Coal silo

Flow of coal B u n k er C oa l m ill

Biomass silo Flow of woody pellets

(Additional facilities)

n Outline of Maizurupower plant

Rated output power Date of start of operation Generator No. 1 900 MW August 2004 Generator No. 2 900 MW August 2010

Actions are taken to expand mid-and small-scale hydro power generation through use of river maintaining flow and current equipment.

Power generation Amount of electric energy generated Start of operation output (Expected date) Okuwanojiripower plant 490 kW Approx. 3,500 MWh/year June 2011 ShinkuronagiNo. 2 power plant 1,900 kW Approx. 12,000 MWh/year December 2012

Power generation plan by the use of river maintaining flow (*) (Okuwanojiripower plant)

大桑野尻Power plant (*) River maintaining flow means; の例 Quantity of water flow discharged to maintain the environment of a river, preservation of Hydraulic pipe line the scenery of the downstream of a dam Discharge of river maintaining flow (current status) Bypass pipe Water discharge valve

Water turbine generator

Water outlet Newly constructed power plant

Commercial operation started in September 2011 at Sakai Solar Power Plant (all sections)

Business operator: Sakai City and Kepco Installation site: Chikko-Shinmatchi, Nishi-ku, Sakai Area: Approx. 21 ha Power generation output: 10 MW Power generation amount: Approx. 11,000 MWh/ year Place of installation: On the ground Start of operation: All sections to be operated in September 2011

A large scale solar power plant is planned to be constructed in Wakasadistrict, Fukui Prefecture.

WakasaOhiSolar Power WakasaTakahamaSolar Power Plant (Tentative name) Plant (Tentative name)

Inumi, Ohi-cho, Ohi-gun, Azuchi, Takahama-cho, Ohi-gun, Site location Fukui Fukui (adjustment in progress) Power generation Approx. 500 kW Approx. 500 ｋW output Estimated amount of Approx. 500 MWh/year Approx. 500 MWh/year electric energy Estimated date of FY 2013 FY 2014 completion

Solar power generation output is unstable because of its dependence on the weather. (sunlight, wind condition, etc.)

(%) Trend of solar power generation output by weather

Fine

Cloudy

Rainy

(Time) O u t pu ra i o (p w e r g enera on ou / a d t)

Reference: First meeting of the Workshop concerning a Low CarbonPower Supply System, Ministry of Economy, Trade and Industry, July 2008

In September 2011, a study aiming at controlling demand and supply by connecting nickel hydride batteries to the power system was started in the premises of Ishizugawasubstation, which is interconnected to Sakai Solar Power Plant.

Headquarters of Kepco Instruction of power input to 関西電力本店 Battery interconnection image in Ishizugawasubstation or output from the batteries 大阪湾【】 in response to the output 77 kV system fluctuation

Transformer Transformer Controller 22 kV system 6.6 kV system 大阪湾

Inverter

Sakai Solar Power Plant Sakai Solar Power Plant 堺堺太陽太陽光光発発電所電所 Customers Customers

Ishizugawasubstation Nickel hydride batteries

Specifications of the nickel hydride batteries [Details of the study] Nickel hydride battery stack •Study of a demand and supply control system that can Number of stacks 48 respond to the introduction of a large amount of solar Rated voltage 576 V energy •Evaluation of the suitability and life of batteries used for Rated capacity 177 Ah demand and supply control Energy capacity Approx. 100 kWh •Search for suitable battery capacity that can match up with the scale of solar energy Output 250 kW*

* Output as a demand and supply system with the inverter interconnected GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 ©2012 KEPCO All Rights Reserved. Kepco'sengagement with wind-power generation 70

Kepco'sfirst wind-power plant is now being built.

Perspective of the complete wind-power plant

Awaji City

¡ Planned project place: Awaji City, Hyogo ¡ Power generation output: 12 MW (2 MW/windmill x 6) * Tower height: 80.4 m, Rotor diameter: 80 m ¡ Start of commercial operation: By the end of year 2012 (estimate) ¡ Annual power generation amount: Approx. 20,000 MWh/year (estimate) ¡ Amount of electricity use at an ordinary household (equivalent to the electricity use of approximately 55,000 households)

GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 ©2012 KEPCO All Rights Reserved. How KEPCO addresses the problem of electric power saving KenjiMorimoto The KANSAI Electric Power Co., Inc. ［KEPCO］ [万kW]

Cut 3,000

About 35% Electric power for Change industrial use 2,000 Shift About 40% Electric power for commercial use 1,000

Electric power for stable some severe severe very severe About 25% household use 0 1 5 9 13 17 20 24 GSEP/PPA Energy efficiency improvement Workshop Guam20-24, 2012 ©2012 KEPCO All Rights Reserved. Contents 1

1.Last summer's state of supply and demand 2.Important points in promoting electric power saving 3.Power Saving at Home 4.Power Saving at Companies 5.Kepco’sApproach to Power Saving 6.Advantages Acquired by Kepco’sApproach

1.Last summer's state of supply and demand

of electric power

•Electric power saving and electric load leveling become necessary as measures to lower an electric power peak (kW). ［As a result of the reduction in the electric power supply capability ］ (due to the earthquake of March 2011)

•The consumption of fossil fuel to supply electric power has increased. •Economic growth of emerging nations, global warming.

It leads inevitably to an increased effort in saving energy.

As a result of the damage inflicted to a nuclear power station by the Great East Japan Earthquake, a substantial shortfall in the supply capability in summer occurred.

The government’s request for electric power saving in the service areas of the Tokyo Electric Power Company was a 15% suppression of the maximum electric power for use at the period and time zone in which the peak demand on electric power occurs (*).

Maximum electric power for use[%] [Ten thousand kW]

Large-scale consumers (Consumers contracted for an electric power of 500 kW or more) Suppression down 20.5 million kW to minus 15% 60 Small-scale consumers million (Consumers contracted for an Saving target kW in electric power of less than 500 kW) 15% total 21.5 million kW

Households 18 million kW

[o’clock] Itemization of the maximum peak demand in the service area of the Tokyo Electric Power Company last summer

*The data for large-scale consumers refers to weekdays from July 1 to September 22. * The data for small-scale and household consumers refers to the time zone from 9:00 to 20:00 on weekdays from July 1 to September 22. Source: Agency for Natural Resources and Energy, “Saving Electric Power This Summer”

１．Large-scale consumers (Business operators with contracted electric power of 500 kW or more) ü Restriction on the use of electric power on the ground of the Electricity Utilities Industry Law ü They will draw up and implement a program for concrete measures to be taken. ２．Small-scale consumers (Business operators with contracted electric power of less than 500 kW) ü They will draw up and publicize a voluntary program. ü The government makes approaches to electric power saving thoroughly known to the public by using “the Standard Format of Electric Power Saving Action Programs”. ü Implementation of guidance tours on electric power saving or on-site meetings for explanation for small-scale consumers ３．Households ü Acceleration of electric power saving at home by making the “Menu of Electric Power Saving at Home”thoroughly known to the public and educating the public in electric power saving

Consumers with contracted electric power of 500 kW or more are subject to the restriction on the use of electric power on the ground of Section 27 of the Electricity Utilities Industry Law

(kW) Maximum electric power for use

1200 kW

Rate of reduction: 15% 1020 kW

Upper limit of the electric power that can be used

9-10 o’clock 10-11 o’clock 11-12 o’clock 12-13 o’clock 13-14 o’clock 14-15 o’clock 15-16 o’clock 16-17 o’clock 17-18 o’clock 18-19 o’clock 19-20 o’clock

Restriction based on Section 27 of the Electric Utilities Industry Law on the maximum electric power that can be used

Consumers affected by the restriction on use: Large-scale consumers (with contracted electric power of 500 kW or more) in the service areas of Tokyo Electric Power Company. Period of the restriction on use:July1 to September 22, 2011 (9:00 to 20:00) for the service areas of the Tokyo Electric Power Company

Source: Agency for Natural Resources and Energy, Restriction based on Section 27 of the Electric Utilities Industry Law GSEP/PPA Energy efficiency improvement Workshop Guam20-24, 2012 ©2012 KEPCO All Rights Reserved. (2) Measures for small-scale consumers (in the service 7 areas of the Tokyo Electric Power Company) Voluntary electric power saving was requested of small-scale consumers with contracted electric power of less than 500 kW.

Electric power Using a “standard format for an electric power saving saving action action program”covering eight category of business, Consumers covered program consumers are kindly requested to plan an electric power saving action program to make an approach to electric power saving voluntarily. [Standard format for an electric power saving action program] High-voltage power receiving consumers

Planning an electric power saving Contracted electric power: below 500 kW program with the assistance of About 280,000 consumers in the service areas of qualified electrical engineers with the Tokyo Electric Power Company. license on guidance tour Examples: Supermarkets, middle-sized factories, and the like

[Categories of business] Low-voltage power receiving consumers ¡ Office building ¡ Retail and wholesale stores Holding explanation meetings Business operators in the service areas of the ¡ Food supermarkets Participants draw up their own Tokyo Electric Power Company. ¡ Medical institutions electric power saving programs. About 3.5 million consumers ¡ Hotels and Japanese-style inns Examples: Stores, restaurants, and the like ¡ Restaurants ¡ Schools ¡ Manufacturing (factories) ¡ Free entry forms Source: Documents from SetsudenSupport Office

¡ The electric power saving action program you have made is publicized on “setsuden.go.jp”, the Japanese government’s portal site for electric power saving. ¡ An “Electric Power Saving Declaration Sticker” is given to a consumer business that has kindly publicized its action program, to be shown in its office room or elsewhere. GSEP/PPA Energy efficiency improvement Workshop Guam20-24, 2012 ©2012 KEPCO All Rights Reserved. (3)Household electric power saving measures (in the service 8 areas of the Tokyo Electric Power Company)

Making a household electric power saving menu and making it thoroughly known to the public

Always try a 28 degree room temperature.

Turn off the air conditioner, anduse a fan.

Source: Agency for Natural Resources and Energy, “Menu of Household Electric Power Saving Measures”

GSEP/PPA Energy efficiency improvement Workshop Guam20-24, 2012 ©2012 KEPCO All Rights Reserved. Occurrence of a shortfall of the supply capability resulting 9 from the Great East Japan Earthquake (in the Kansai) With nuclear power generation not allowed to go into operation again in the service areas of the Kansai (except for 2 plants), a shortfall in the supply capability occurred, and Kepcoalso requested the customers to save electric energy. Maximum power inlast August (in the case of fierce heat as that of the previous year)

31.38 million kW

Supply capability in last August

29.38 million kW Five-percent reserve rate About 11% necessary for stable supply of electric power 27.98 million kW

The demand that a supply capability of 29.38million kW can meet 0 Supply capability Demand 1. Period: Weekdays between July 1 and September 22 2. Time zone: 9:00 to 20:00 Electric power saving is requested of household consumers, between 13:00 and 16:00, in particular. 3. Target of electric power saving: About 15%

GSEP/PPA Energy efficiency improvement Workshop Guam20-24, 2012 ©2012 KEPCO All Rights Reserved. Features of the electric power demand in the service 10 areas of the Kansai Electric Power Company The maximum power in the service areas of the Kansai in 2010 was30.95 million kW. A slightly higher weight of the industrial sector is a feature in the ratios of electric power consumption of the industrial, commercial, and household sectors.

(Generating end) [万[TenkW] MW] Demand for electric power 30.95 million kW 14:00 15:00 3,000 August 19, 2010

About 35% Electric power for industrial use 2,000

Electric power for About 40% commercial use 1,000

Electric power for About 25% household use

0 1 5 9 13 1617 20 2424:00

2.Important points in promoting electric power saving

Electric power (expressed in kW) means force of electricity to do work and expressed as the product of current and voltage. Electric energy (expressed in kWh) is the product of electric power and the time during which electric power is used.

kW (Height)

kWh (Area) E l ec t r i c p o w e f u se ( k W)

Two actions as means of electric power saving: “cut”and “shift”

100 Shift Cut Shift 85

0 9:0010:00 15:00 20:00 23:00

“Cut”is so-called “eliminating the use electric power,” being called peak cut because peak demand for electric power is restrained.

Cut Electric power saving during a designated time zone by means of elimination of wasteful use, interruption of use of facilities Reduction in fixed electric power Equipment efficiency increase

Maximum electric power used [%] 15% restriction

Electric power saving during the daytime

Peak period and time zone 9:00 to 20:00 on weekdays Elimination of from July to September fixed electric power

(o’clock)

Source: Agency for Natural Resources and Energy, “Saving Electric Power This Summer” GSEP/PPA Energy efficiency improvement Workshop Guam20-24, 2012 ©2012 KEPCO All Rights Reserved. What is “shift”? 15

“Shift”means shifting the use of electric power in terms of space or time, namely, shifting the peak demand.

Shift [example]

Shift in space Shift of production from the Kanto to the Kansai region

Restraint scheme held jointly by consumers

Shift from simultaneous start to sequential Shift in time Shift in the demand time start of facilities and equipment

Shift on an hour/day basis Dispersal of lunch recess time zones

Holiday shifting

Operations under a rotation system such as shifting in the operation time depending on departments or processes

Re-examination and dispersal of periodical servicing periods for plants

Grasp the maximum electric power used and GGrasraspp t hthee ac actutuaal ls statatete o of fu usese （１） other data in the previous fiscal year. oof fe eleclectrtricic p poowwer.er.

Find available electric power saving （２） Find available electric power saving Draw up an electric power saving program. memeaassuurreses a andnd d drraaww up up a a p prrooggram.ram.

Implement the program according to the plan （３） ImImplplemeemennt tt hthee p prrogogram.ram. on a participation-by-all basis.

Examine the maximum electric power used, （４） both during the practice and after the practice. VVererifiyfy t hthee p prrooggram.ram.

(1) Grasp the actual condition.

✔ To save electric power in a proper way, grasping how you use electric power first is important.

maximum electric power of last year

見本 Electricity usage of last year

High-voltage power receiving consumers Low-voltage power receiving consumers

(2) Find available electric power saving measures, draw up a program and practice it.

✔ On the basis of how your company uses electric power actually, examine electric power saving measures from the viewpoint both of “cut”and of “shift.”

✔ When you have not grasped an itemization of use of electric power for your company, refer to the standard electric power saving action menus on a business-category basis described later for a help in drawing up your program.

✔ Eliminating fixed electric power use leads to the reduction in electric power in the peak hours.

(4)Verification

✔ It is absolutely necessary to grasp the track records of results of the program you have implemented and to make the results known to all those involved. It is also important to have the track records in terms not only of quantities but also of amounts of money.

✔ Approaches to the urgent need of electric power saving should not be ended in temporary actions. They can be a motive for all employees to be energy- preservation-minded or to promote energy conservation activities.

3. Power Saving at Home

A weekday’s power consumption during summer

Reduce electricity intensively from 13:00 till around 16:00!

Please cooperate to save electricity during the peak hours.

Reduce electricity from 9:00 till 20:00!

13:00 16:00 (o’clock)

W/household 14:00

Even when family members are out, Others electricity is used for Standby power fridge, warm water Warm water washing toilet seat washing toilet seat, 1200 standby power, etc. Personal computer W Lighting equipment

TV 340 Fridge W Air conditioner

members are out>

Source: Agency for Natural Resources and Energy

Standby power, 4% 14:00 W/household Warm water Other, 10% washing toilet seat, 0.8% Personal computer, 0.3% Lighting Others equipment, 5% Standby power TV, 5% Warm water Air washing toilet Pseatersonal computer conditioner, 53% Lighting equipment

Fridge Fridge, 23% Air conditioner

Source: Agency for Natural Resources and Energy

Three ways to save electricity

Cut : Cut power consumption.

Shift : Shift time to use electricity.

Change : Change to other methods.

High-efficiency heat pump water heater, which has spread since 2001, the effect of power demandduring the daytime shift to nighttime zone are coming out. This is a good example of a “shift”.

heat pump water heater

Hot Water tank

Heat pump water heater, boil demand the required amount of hot

water during the nighttime, 100 Shift Shift the hot water holding tank to reservoir. 85

Heat pump unit 50

0 9:0010:00 15:00 20:00 23:00

time

Living room/bed room

Air conditioner Fluorescent lighting equipment Incandescent lamp Bulb-type fluorescent lamp LED light bulb LCD TV Personal computer Electric fan

Source: Survey by the Agency for Natural Resources and Energy

Sanitary

When using a warm water washing toilet seat (pre-heated reservoir type) When using a warm water washing toilet seat (instant heating type) Dryer Washer Washer/dryer Vacuum cleaner Bathroom dryer (electric) Iron

Bathroom dryer a warm water washing toilet seat

Source: Survey by the Agency for Natural Resources and Energy GSEP/PPA Energy efficiency improvement Workshop Guam20-24, 2012 ©2012 KEPCO All Rights Reserved. Home appliances with high levels 28 of power consumption (3)

Kitchen IH cooking heater (3 heaters) Fridge Microwave Rice cooker (electric) Electric pot (at the time of boiling) Toaster oven Dishwasher/dryer

IH cooking heater (3 heaters)

Source: Agency for Natural Resources and Energy

lLiving room/bed room

Air conditioner Set room temperature to 28°C. 10% reduction (Parallel use of fan makes you feel cool.)

Use bamboo blind or reed screen to absorb sunlight 10% reduction entering through the window. Be careful (It helps to reduce cooling energy consumption.) about heat stroke inside Clean filters periodically (roughly every other week). the house.

( Turn off air conditioner and use electric fan to a reasonable extent. 50% reduction )

reed screen

Source: Survey by the Agency for Natural Resources and Energy

lLiving room/bed room

Lighting Keep lights turned off during the daytime, and 5% reduction equipment minimize the lights turned on even at night.

Change incandescent light bulbs to bulb-type fluorescent lamps or LED bulbs.

TV Have Power Save mode turned on, set the 2% reduction brightness to a lower level and turn TV off when not necessary.

Standby Turn off the main power supply, not the 2% reduction power switch on remote controller. Unplug from outlet when not in use for a long period of time.

Tap with switches Source: Survey by the Agency for Natural Resources and Energy

lSanitary Any of these Warm water Make full use of OFF function of heated measures: toilet seat/warm water supply, as well as washing toilet a timer for Power Save mode. Under 1% seat reduction (heated toilet seat) If the above functions are not available, unplug it from outlet.

Dryer Avoid using from 09:00 till 20:00.

Washer/dryer Do the laundry in a lump avoiding from 09:00 till 20:00.

Refrain from the use of drying function and dry the laundry in the sun.

Avoid using from 09:00 till 20:00. Vacuum cleaner Change paper pack frequently (in the case of paper pack-type cleaner).

Source: Agency for Natural Resources and Energy

lKitchen

Change the temperature setting from “Max” Fridge to “Medium,”reduce the time of opening the 2% reduction door as much as possible, and be careful not to cram food too much.

Rice cooker Cook rice for the whole day by setting a timer (electric) to work in early morning, and store it in the 2% reduction fridge.

Microwave Turn off air conditioner or other devices when using microwave. Don’t use them together.

Electric pot Don’t use keep-warm function for a long period of time.

Source: Agency for Natural Resources and Energy

lSummary of Power Saving Menu

Warm water washing toilet seat Air conditioner Set room temperature to 28°C. 10% Make full use of OFF function of heated Any of these measures: (Parallel use of fan makes you feel cool.) toilet seat/warm water supply, as well as a reduction timer for Power Save mode. Under 1% Use bamboo blind or reed screen to absorb sunlight reduction If the above functions are not available, entering through the window. 10% unplug it from outlet. (It helps reduce cooling energy consumption.) reduction Turn off air conditioner and use electric fan to a reasonable Fridge extent. 50% reduction Change the temperature setting from Lighting equipment “Max”to “Medium,”reduce the time of 2% Keep lights turned off during the daytime, and minimize the lights turned on opening the door as much as possible, reduction even at night. and be careful not to cram food too much. TV 2% Have Power Save mode turned on, set the brightness to a Rice cooker 2% reduction lower level and turn TV off when not necessary. Cook rice for the whole day by setting a timer to reduction work in early morning, and store it in the fridge.

Standby power Total menus checked % reduction Turn off the main power supply, not the switch on 2% remote controller. Unplug from outlet when not in use for a long period of reduction time.

lSave energy, but don’t overdo it.

Be careful of heat stroke inside the house. (Save energy to a reasonable extent.) • Don’t restrain yourself so much, and avoid heat with the use of air conditioner, fan or bamboo blind. • Devise clothing. Wear cool clothes. • Drink water frequently. • Take extra caution on a day it gets hot suddenly, such as the interval or the end of the rainy season.

Source: “Let’s review how we use electricity.”Tokyo Metropolitan Government, Tokyo Metropolitan Center for Climate Change Actions and Energy Conservation Center

lExample of standby power consumption

Plugged Plugged Electricity is consumed for maintaining functions. For memory, built-in clock and monitor display

Electricity is consumed while waiting for input This may be applicable when the main power supply is OFF, as well as ON, waiting for input by remote controller or to operate functions.

Electric current is not Electric current is flowing. flowing. Electricity is consumed while just being connected. Some appliances consume a bit of power by just connecting to an outlet.

Standby power consumption per household 285kWh/year

Breakdown of 6.0% Total power Gas water consumption per ６．０ household ％ heater 4,734kWh/year 20%

Others 33% Cooling & heating air conditioner 9%

94.0% Telephone Power consumption by the (excluding cell use of electric appliances Integrated phones) audio system 9% 3% TV HDD&DVD 3% player/ DVD Oil water heater player 4% PC Warm water 6% VCR 4% washing toilet 4% seat VCR: Videocassette recorder 5%

STEP 1 ¡Using Power Save mode of appliances reduces approx. 8%. STEP 2 ¡Turning off the main power supply when not in use reduces approx. 23%. STEP 3 ¡Plugging off the appliances, if there will be no functional problems by doing so, when not in use reduces approx. 40%.

Standby power consumption of a household About 8% reduction STEP1 About 23% reduction STEP2 About 40% reduction STEP3

Today’s air conditioners save energy by approx. 14% compared to 10 years ago. About －14% ¡ Energy-saving performance (period power consumption)

2000 1,017 kWh

2010 872 kWh

Source: Agency for Natural Resources and Energy “Energy Conservation Performance Catalogue”

Today’s fridges save energy by approx. 60% compared to 10 years ago. About －60% ¡ Energy-saving performance (Annual power consumption)

2000 690 to 770kWh/year

2010 260 to 290 kWh/year

Source: Agency for Natural Resources and Energy “Energy Conservation Performance Catalogue”

Today’s LCD TVs save energy by approx. 64% compared to CRT TVs.

About －64% ¡ Energy-saving performance (Annual power consumption)

2010 225 kWh/year 32”CRT TV

2010 32V Flat 81 kWh/year screen TV

Source: Agency for Natural Resources and Energy “Energy Conservation Performance Catalogue”

Bulb-type LED lamps save energy by approx. 80% compared to conventional electric bulb. About －80% ¡ Comparison of power consumption

Conventional bulb 54 W (60 W)

Bulb-type LED lamp (Conventional bulb-type approx. 10 W) About 10 W

Supervised by: Akarino Hi (Light Day) Committee

lWhat does the unified energy-saving label mean?

Indicated for non-flon fridges only. New Standard mark is indicated when How you should choose the standards have been changed. good products? Applicable year of the contents of this label is indicated. Those having many « Multi-stage assessment (criteria) marks Energy-saving performance of the product is indicated using a five-star system. Those having a green Energy-Saving Label e-mark of the energy- (Energy-Saving Labeling System) saving label Manufacturers indicate energy-saving performance of their own products. Those indicating an inexpensive estimated Estimated annual electricity bill electricity bill Electricity bill is calculated as 22 yen per 1kWh (tax inclusive) based on the estimated electricity unit price.

Source: “Aha! Unified Energy-saving Label”Agency for Natural Resources and Energy

l Energy-saving product replacement navigation system “Shinkyu-san”

Using the product

Better consider, smart choice How to smart choice choose product

lPower/energy-saving lifestyle (examples)

• Make more time for the whole family to get together and enjoy.

• Have meals as a family.

• Change from a late-night person to a morning person.

GSEP/PPA Energy efficiency improvement Workshop Guam20-24, 2012 ©2012 KEPCO All Rights Reserv44ed. Power/energy-saving lifestyle (2) 45 l Examples of power/energy saving lifestyle during the summer season

Carry around drinks in Go on a trip this summer. Going out contributes to energy “my bottle.” saving as well.

Dry your laundry in the sun. Check if there is any light too bright.

Source: “Let’s review how we use electricity.”Tokyo Metropolitan Government, Tokyo Metropolitan Center for Climate Change Actions and Energy Conservation Center

In 2000, he joined a leading Internet search company Google. As a software engineer, such as improvement of accuracy involved in the search, have been the director of the department web spam.

Whathe suggest is that …

Give it a try for 30 days before that wanted to do. But that's just the right length or wearing a new habit, to achieve a small goal that I know that it is to try it 30 days. Small change I'm getting sustainable long-lasting.

4. Power Saving at Companies

Usage patterns of electric power greatly depend on the types of industries. (Details of demand at peak hour by small-scale consumers)

Office buOilffdiceing

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Hotels anHdo Jteapl,a Jnaespea-nsteyslee i ninsnn Restaurants Restaurant Schools School Manufacturing (factories) Manufacturer

0% 20% 40% 60% 80% 100%

Air conditioning Lighting

Receptacle outlet Elevator

Kitchen instrument Refrigerating showcase

Office automation equipment Power

Others Production facility (including utilities)

General facilities (including air conditioning and lighting)

Source of reference: Arranged data from “Power Saving Action Plan Document”by The Agency of Natural Resources and Energy GSEP/PPA Energy efficiency improvement Workshop Guam20-24, 2012 ©2012 KEPCO All Rights Reserved. Office Building [1] Features of Power Consumption 49

Ratio of power consumption by use in average office building

Others 7% Breakdown of power consumption Elevator 5% (at peak hour, around 14:00)

Office Among varied use applications of electric automation power, air conditioning, lighting, and office equipment Air 16% conditioner automation equipment (PC, copier, etc.) 48% occupy approx. 88% of entire power consumption. Power-saving measures in Lighting these fields will be especially effective. 24%

The government prepares “Standard format for an electric power saving action program ”to put forward approach to power saving. Power-saving effect for entire Execution Enforce five basic actions building check •Reduce lighting in working area to half. 13% Lighting •Thoroughly switch the light off in non-working areas (conference room, passage way, etc.). 3%

•Set the temperature in the office to 28°C (or slightly higher, taking into consideration environment in the 4% room such as ventilation). (when the temperature Air is +2°C) conditioning •Stop air conditioning in non-working areas. 2%

Office automation •When leaving your seat for a long time, shut off the power supply to office automation equipment, or put it equipment in the standby mode. 3%

Review the actions below with greater power-saving effect

•Stop ventilators for a fixed period within the indoor standard range of CO2, or adjust the amount of open air intake by intermittent running of them. 5%

Air •Use blind, heat shield film, eaves, bamboo blind, etc. to block solar insolation. conditioning 3%

•Set the cold water outlet temperature of a freezer rather higherto reduce the power to a turbo freezer, heat pump, etc. (applicable to the case of the central air conditioning) 2%

•Take turns andshut down with several business operators (when divided into seven groups and have two Others days off in a week by rotation). 14%

Source of reference: “Power Saving Action Plan Document”by The Agency of Natural Resources and Energy GSEP/PPA Energy efficiency improvement Workshop Guam20-24, 2012 ©2012 KEPCO All Rights Reserved. Office Building [3] Main Power Saving Effects (Lighting) 51

¢ Power-saving Effect by Reduction of Lighting

Power-saving effect expected for entire building when reducing lighting in 13% working area to half

(Effect obtained by reduction of lighting: approx. 10%) + (Influence to air conditioning: approx. 3%) = 13%

Partially reduce lighting

¢ Illuminancein Office Buildings

(On May 13, 2011, by Electric Power Supply and Demand Task Force) As for the illuminancein office buildings, promote consumers’appropriate use of lighting by definitizingand putting forward the lowest limit of JIS Standard illuminance accepted with some amount of latitude by the Ministry of Economy, Trade and Industry.

Ø JIS Z9110: 2010 General Rules for Lighting Standard (revised on May 9, 2011) (Office: Office in the working area) Recommended illuminance: 750 lx Illuminance range: 500 to 1000 lx

Case example of power consumption ratio for manufacturing use applications Breakdown of power consumption (peak hour: around 14:00) 8% 8% •Since production facilities account for major share of power consumption, power-saving measures for production process will be especially effective. 9% •Power consumption form depends on the 49% production process, delivery date, and required production environment (air conditioning). 11%

Other production facilities

15% Compressor, pump, fan

Air conditioning Freezer

Lighting

Electric furnace, electric heater

n One-Day Power Consumption (on the summer-time peak day)

Daytime operation consumer All-day continuous operation consumer (average operation period) (high operation period)

AAi空ri rco 調cndonditio・ningi照明,t ilionghtinging, lighting A空調ir cond・照明itioning, lighting P生rodurodu産ction設備c fatciiolityn facility P生産roduc設備tion facility

0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 0:00 1:00 2:00 3:00 4:00 5:00 6:00 7:00 8:00 9:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00 10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00 22:00 23:00

Main industries: Metal processing, automobile parts Main industries: Food processing, electric, manufacture, electric or general semiconductor manufacturer, etc. machinery manufacture, etc. Load facilities: Production machinery, air conditioning, Load facilities: Production machinery, electric furnace, lighting, clean room, freezing and air conditioning, lighting, etc. refrigerating facilities, etc.

Source of reference: “Power Saving Action Plan Document”by The Agency of Natural Resources and Energy GSEP/PPA Energy efficiency improvement Workshop Guam20-24, 2012 ©2012 KEPCO All Rights Reserved. Manufacturer [2] Power Saving Action Plan Format 55

The government prepares “Standard format for an electric power saving action program”to put forward approach to power saving

Power-saving effect Execution for each machinery check Power saving menus for production facility and facility •Thoroughly execute shutting off the power supply to unnecessary or standby electrical facilities or preventing idle running of rotating equipment including motors. - •Enhance the heat insulation of electric furnaces or electric heaters. 7% Power saving menus for utility facilities

•Decrease the supply pressure to compressors by reviewing the pressure on the usage side. 8%

•Decrease the air intake temperature of compressor [compensating the room temperature in the installing location and outside temperature]. 2% (Power-saving effect: When the air intake temperature is decreased by 10°C in a unit)

•Adjust the number of units of compressors, pumps, and fans depending on the load. (Power-saving effect: When using the system comprising five compressorsand the peak load ranges from 60% to 80%) 9%

•Review the running method of pumps and fans having inverters. (Power-saving effect: When the inverter is utilized by checking and adjusting the opening of valves and the total pressure has reached 15% 80%)

•Set the cold water outlet temperature of the freezer rather higher to reduce the power of the turbo freezer and heat pump, etc. (Power-saving effect: When the temperature is increased from 7°C to 9°C while checking the status on the usage side) 8%

¢ Remove all the obstacles around the outdoor equipment, and prevent it from direct exposure to sunlight.

In order to decrease the temperature and reduce the load to the condenser, block solar insolation (avoid direct sunlight to the outdoor equipment) by using reed screens for the outdoor equipment of air conditioner to offer full shade. Power-saving effect of facility 10%

Picture: From the convention of excellent examples of power saving

¢ Prevention of motor idling (example)

The conveyor keeps running even after all the products have beenconveyed. It keeps running for ten seconds after works have been sent to the next stage. ® Timer is improved so that the conveyor stops three seconds after conveying is finished.

Power-saving effect 4,289 kWh reduced a month

Picture: From the convention of excellent examples of power saving

¢ For effective power saving, revision of the promotion system comprising related business operators under the top management is required.

Power saving Committee Chairman Company President

Administrative Head of Head of Head of Facility Manager Tenant A Tenant B Manager Department A Department B Department C

Power Saving Secretariat Division n Executives including company presidents, store managers, and factory managers should top the groups. nFull participation n Follow-up conference n Power-saving patrol

5. Kepco’sApproach to Power Saving

Object How to Approach Website SNS Posters Common Making Banners Cooperation with Municipalities Implementation of Street PR TV Commercial Newspaper Ad Distribution of Leaflets Household Meter Reading Form Challenge for Power Saving by Elementary School Students Visiting for all large-scale consumers Sending direct mails for all small-scale Companies consumers Main Charge Systems

Ten types of TV commercials will be made for both summer and winter, respectively.

Settemperature to 28℃

Use bamboo blind at the window

Don’t put in too much in the refrigerator

Turn off the main switch

Pull off the outlet if you don’t use for a long time

Publication of “Request for Power Saving”in Japanese five major newspapers

Request items offered by Kepco

Specific power-saving know-hows

Promotion of utilizing Electricity Forecast

Notice of dedicated dial for power-saving

Distribution of leaflets together with meter reading forms for all the customers (12 million cases) Menu of household Request items electric power saving (Front) (Back) measures offered by Kepco

Notice of dedicated dial for Specific power- power-saving saving know-hows

Setting leaflets and posters in service offices of Kepco

one type two types

Description of request for power saving on the back of meter reading forms for 12 million households Request for power saving Power-saving check sheet for households

Degree of power-saving effect can be understood by newly allowing the comparisonof electricity usage in the current month to that in the same montha year ago.

Electricity usage in the current month

Electricity usage in the same month a year ago

Provision of information on demand and supply of electric power by utilizing social network service (SNS).

From last winter, Facebookhas been newly added to our information sending tools.

¢ Main contents in Power-saving Facebookpage ¿ Wall (board) • Electricity Forecast (for the current day and the next day) -To be provided at the timing of updating Electricity Forecast (around 8:00 and 18:00 every day) • Information on power saving -Varied information such as power saving methods and TV commercials related to power saving will be offered. ¿ Request for power saving •Introduction of required power-saving period and power- saving hours ¿ Kepco’sapproach •Introduction of approach to securementof our power supplying capacity ¿ Introduction of power saving methods •Introduction of power-saving know-howsfor electric appliances by animation

“Electricity Forecast”, service of updating information on daily demand and supply on website

供給力が関西電力の電源設備 12月×日×時××分毎日変わる理由（各月の供給力の内訳）

（17時～18時）

供給力に関するお知らせ

※本日（９時～２０時）の１時間ごとの使用電力予想 ※本日（９時～２１時）の１時間ごとの使用電力予想

12月×日×時×分更新

現在の使用電力状況（7月25日 XX時台）現在の使用電力状況（12月XX日 XX時台）使用電力

ピーク時供給力

使用率（％）

昨日の使用電力状況

When you click on this “Information about the supply capacity”, you can get information of main power station where stops on the currentday.

To explain the reason to change power supply facilities the supply capability every day

the forecast of demand and supply of electric power for the current day

Forecasted maximum stable some severe severe very severe electric power

supply capacity at the peak time

information about the supply capacity

electric usage Stable Condition Forecast of highest and lowest temperatures

the hourly forecast of electric power usage

（image figure) ＜＜ IInnfforormmaattiionon aabobouutt tthhee ssuppuppllyy cacappaacciityty＞＞ ((EExx..).). •• ______PPoowweerr PPllaanntt NNoo..22 UUnniitt (( __ mmiilllliionon kW)kW) Click ssttoopsps GSEP/PPA Energy efficiency improvement Workshop Guam20-24, 2012 ©2012 KEPCO All Rights Reserved. Electricity Forecast 75 (Breakdown of supply capacity in each month)

you can easily understand the information of power supply capacity generated by power plants in every month

power supply facilities Click

Nuclear

Thermal

hydro

renewable

Total

供給力が関西電力の電源設備 12月×日×時××分毎日変わる理由（各月の供給力の内訳） you can check the actual record of usage condition of previous day.

（17時～18時） Electricity usage condition of yesterday 供給力に関するお知らせ

the maximum electric power electric usage

supply capacity ※本日（９時～２１時）の１時間ごとの使用電力予想 temperature 昨日のピーク時供給力 Highest and lowest 昨日の実績昨日の最大電力の実績 temperatures

Time zone to ask saving electricity 現在の使用電力状況（XX月XX日 XX時台）

使用率（％） Click El昨日の使ectri用c電力状況ity usage condition of yesterday

Saving the data for all over the power saving period and post the data

■Last Summer ■last winter

12月×日×時×分更新 the current usage condition of electric power the current usage condition of electric power the maximum the maximum electric power electric usage electric power electric usage supply capacity supply capacity

Time zone to ask saving electricity Time zone to ask saving electricity

electric usage (%)

Electricity Download to the record data usage condition of yesterday

only the actual record data for the current the data for all over the power saving period day and previous day was posted and post the data

In addition to the data of last summer, we added the forecasts of the “Electric usage”, “Forecasted maximum electric power”and “Supply capacity at the peak time”

■last summer ■last winter

1(Mon) 2(Tue) 3(Wed) 4(The) 5(Fri) 1(Mon) 2(Tue) 3(Wed) 4(The) 5(Fri) the forecast of the forecast of demand and supply demand and supply of electric power of electric power

electric usage (%) 88 92 95 95 93 Weather Forecast Forecasted maximum electric 2,200 2,370 2,480 2,480 2,390 Forecast of highest power (10mW) and lowest （12/24）（14/27）（18/30）（18/30）（17/28） temperatures (℃) supply capacity at the peak (10mW) 2,500 2,550 2,600 2,600 2,550

Weather Forecast

■Changing the publishing time Forecast of highest and lowest （2/10）（1/7）（-1/5）（-1/4）（2/7）（last summer） every Friday about 18:00 temperatures (℃) The forecasted maximum electric power may vary depending on the weather forecast. （last winter）every Friday about 16:00 Please see “Electricity Forecast”for the forecast of following day. ※Only the weekday data during the period of asking for power saving is posted. Your cooperation in reasonable conditions to save electric power would be very much appreciated. ※ If the Friday is a holiday, it is posted in the previous day.

GSEP/PPA Energy efficiency improvement Workshop Guam20-24, 2012 ©2012 KEPCO All Rights Reserved. The result of Electricity Forecast (in July) 79 （単位；万ｋＷ） Monday月 Tuesd火ay Wedne水sday Thu木rsday 金Friday 土Saturday 日 Sunday 6/30 92% 7/ 1 89% ２ 86% ３ 82% 当日需 2,660 需 2,540 需 2,170 需 1,950 Forecast予想供 2,890 供 2,840 供 2,500 供 2,360 実績 92% 81% 81% 86% Result （確報値） 2,665(14時) 2,311(11時) 2,042(13時) 2,058(19時) Topicalトピックス姫路第二５号機トラブル停止４ 86% ５ 87% ６ 89% ７ 86% ８ 87% ９ 85% １０ 81% 当日需 2,430 需 2,470 需 2,450 需 2,300 需 2,560 需 2,190 需 2,110 Forecast予想供 2,820 供 2,830 供 2,740 供 2,650 供 2,940 供 2,550 供 2,580 実績 86% 84% 87% 83% 86% 89% 86% Result （確報値） 2,431(11時) 2,404(14時) 2,406(11時) 2,224(11時) 2,538(14時) 2,286(14時) 2,221(19時) Topicalトピックス舞鶴１号機運転再開１１ 88% １２ 86% １３ 85% １４ 87% １５ 87% １６ 86% １７ 85% 当日 Forecast 需 2,640 需 2,660 需 2,640 需 2,650 需 2,570 需 2,320 需 2,340 予想供 3,000 供 3,060 供 3,070 供 3,030 供 2,950 供 2,670 供 2,740 実績 87% 81% 82% 83% 87% 89% 82% Result （確報値） 2,616(16時) 2,486(11時) 2,546(16時) 2,540(14時) 2,582(16時) 2,383(14時) 2,271(19時) Topicalトピックス姫路第二５号機運転再開大飯１号機トラブル停止１８ 83% １９ 84% ２０ 86% ２１ 86% ２２ 84% ２３ 79% ２４ 80% 当日需 2,360 需 2,400 需 2,430 需 2,470 需 2,360 需 2,040 需 2,100 Forecast 予想供 2,810 供 2,850 供 2,810 供 2,870 供 2,790 供 2,570 供 2,620 実績 75% 79% 85% 79% 78% 81% 77% Result （確報値） 2,115(19時) 2,279(11時) 2,398(14時) 2,271(11時) 2,183(11時) 2,097(14時) 2,031(19時) Topicalトピックス高浜１号機定期検査開始大飯４号機定期検査開始２５ 82% ２６ 85% ２７ 84% ２８ 84% ２９ 88% ３０ 83% ３１ 80% 当日 Forecast 需 2,400 需 2,520 需 2,500 需 2,420 需 2,500 需 2,150 需 2,020 予想供 2,900 供 2,940 供 2,950 供 2,860 供 2,840 供 2,570 供 2,510 実績 82% 84% 82% 88% 88% 83% 84% Result （確報値） 2,392(14時) 2,477(14時) 2,445(14時) 2,526(14時) 2,506(14時) 2,147(14時) 2,113(19時) Topicalトピックス

※ …Holidays the stable condition with electric usage less than 90% the severe condition with electric usage from 95% or more to 97%or less some severe condition with electric usage from 90% or more to 95% or less the very severe condition in which the electric usage exceeds 97%. GSEP/PPA Energy efficiency improvement Workshop Guam20-24, 2012 ©2012 KEPCO All Rights Reserved. The result of Electricity Forecast (in August) 80 （単位；万ｋＷ） Monday 月 Tuesday火 Wedne水sday Thu木rsday 金Friday 土Saturday 日 Sunday １ 85% ２ 87% ３ 87% ４ 88% ５ 89% ６ 82% ７ 81% 当日需 2,490 需 2,510 需 2,560 需 2,600 需 2,600 需 2,290 需 2,280 Forecast 予想供 2,900 供 2,880 供 2,930 供 2,930 供 2,920 供 2,770 供 2,800 実績 85% 86% 87% 88% 84% 83% 80% Result （確報値） 2,466(14時) 2,486(14時) 2,555(14時) 2,586(16時) 2,455(14時) 2,317（14時) 2,267(19時) Topicalトピックス８ 90% ９ 92% １０ 91% １１ 90% １２ 86% １３ 83% １４ 84% 当日需 2,660 需 2,730 需 2,750 需 2,710 需 2,460 需 2,270 需 2,260 Forecast 予想供 2,930 供 2,940 供 3,010 供 2,990 供 2,850 供 2,710 供 2,680 実績 91% 94% 91% 86% 85% 83% 79% Result （確報値） 2,687(14時) 2,784(14時) 2,750(14時) 2,600(14時) 2,443(14時) 2,270(19時) 2,126(19時) Topicalトピックス今夏の最大電力堺港２号機トラブル停止１５ 80% １６ 83% １７ 92% １８ 90% １９ 87% ２０ 82% ２１ 81% 当日 Forecast 需 2,200 需 2,400 需 2,740 需 2,700 需 2,620 需 2,200 需 2,010 予想供 2,730 供 2,870 供 2,970 供 2,990 供 2,980 供 2,660 供 2,470 実績 77% 79% 85% 88% 80% 77% 75% Result （確報値） 2,159(19時) 2,278(19時) 2,528(14時) 2,648(14時) 2,410(14時) 2,070(11時) 1,874(19時) Topicalトピックス２２ 85% ２３ 85% ２４ 86% ２５ 86% ２６ 88% ２７ 86% ２８ 84% 当日需 2,400 需 2,330 需 2,530 需 2,460 需 2,510 需 2,340 需 2,240 Forecast 予想供 2,810 供 2,710 供 2,930 供 2,830 供 2,830 供 2,710 供 2,640 実績 82% 89% 87% 86% 89% 84% 83% Result （確報値） 2,315(14時) 2,437(13時) 2,561(14時) 2,447(14時) 2,540(15時) 2,280(13時) 2,211(19時) Topicalトピックス２９ 89% ３０ 91% ３１ 89% 当日 Forecast 需 2,620 需 2,640 需 2,650 予想供 2,940 供 2,890 供 2,950 実績 89% 91% 86% Result （確報値） 2,629(14時) 2,637(14時) 2,565(11時) Topicalトピックス

When the current status of demand and supply of power is “very severe”in the Electricity Forecast (the usage rate of electric power exceeds 97%), the crunch time will be informed O u t li ne by mail. Corporative and individual customers, municipal customers (pre-registration required) T a rg et ¡ In the case that the usage rate of electric power on the next day is expected to exceed 97% by the Electricity Forecast as of 18:00 on the previous day ¡ In the case that the usage rate of electric power on the current day is expected to exceed 97% by the Electricity Forecast as of 8:00 on the same day ¡ In the case that the usage rate of electric power that had been expected to exceed 97% is revised by the Electricity Forecast updated at 8:00 or later on the current day *Reminder mail will be also sent two hours prior to the hour that

M a i n t imi ng o f cat on the excess of the usage rate of electric power is expected.

Image of information to be sent 配信パターン 1 ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ 携帯電話件名：［関西電力］明日（●月●日）の電気の需給状況のお知らせ ━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━ この度は、節電のお願いにより、大変ご迷惑をおかけし、誠に申し訳ございませんでFoんreきca予報st また、節電のご協力に対し厚く御礼申し上げます。明日、●月●日の需給状況は、「非常に厳しい」見込みです。

大変ご迷惑をおかけいたしますが、下記の時間帯では、より一層の節電にご協力賜りますようお願いいたします。 Notiメfyーingルによmail Notiりfyおing知らせmail ■非常に厳しい需給状況の時間帯（97%を超過する時間帯）非常に厳しい ●●：●●～●●：●● Very severe ■翌日（9時～21時）の各時間帯における電気使用予想需給状況（★印は、非常に厳しい状況の時間帯） (exceed 97%) 9:00～10:00 ●●% （97％超過） ★10:00～11:00 ●●% 11:00～12:00 ●●%

パソコン 12:00～13:00 ●●% … 13:00～14:00 ●●% GSEP/PPA Energy efficiency improvement Workshop Guam20-24, 2012 ©2012 KEPCO All Rights Reserved. Cooperation with Municipalities about Request for Power Saving [1] 82

¡ Status of Preparation of Publicity by Municipalities

Three examples of tasks below required to be executed by Ask the municipalities for efforts against the problem as municipalities will be shown. much as possible with utilizing the media shown below. [1] Posting Kepco’sposters (leaflets) in municipal facilities • Disaster prevention mail •Community wireless system [2] Publication in municipalities’PR magazines •PR automobile •Community broadcasting [3] Insertion of information materials into municipalities’circulars •Website •Bulletin board •FM radio •Cable TV, etc.

* Target: 215 municipalities

Normal time In case of crunch of demand and supply Commun Commun PR Number of Disaster PR Poster Circular ity ity magazine municipalities executing preventio automobi Website Radio CATV wireless broadcas measures Break- n mail le system ting Number of down municipalities 210 160 26 201 executing (151) (28) (1) 40 99 40 15 74 18 24 measures (134) (20) (89) (10) (14) (7) (22) (6) Figures in parentheses indicate actual records in lastsummer

¡ Status of municipalities’e-mail subscription

All the municipalities in the Kansai areas completed subscription

Number of subscriber municipalities ： Total ２１５ municipalities

GSEP/PPA Energy efficiency improvement Workshop Guam20-24, 2012 ©2012 KEPCO All Rights Reserved. Cooperation with Municipalities about Request for Power Saving [2] 83 ¡ PR magazine ¡ Poster ¡ Circular (Osaka City Organization News) (in each community) (Osaka Municipal Transportation Bureau) 1.03 million copies

Circulation

Kepcotries to introduce Smart Meter for improvement in customer service and streamlining business management.

Hourly records

Electrical usage and amount billed Haｐｐｙ in the current electricity month are displayed.

Watch

Weather and the minimum and maximum temperatures of the current day are displayed in a calendar. Electrical usages in the past 15 months are graphically displayed.

In addition to the activities of promoting service subscription,improvement in services taking into account users’needs (addition of new contents) is also being implemented.

100,000 ¤ From December in 2011, the campaign was started, and in consequence, subscribers were Annual total 90,000 increased by 20,000 in a month, and the accumulative total subscription of Accumulated total approximately 90,000 was achived. 80,000 (Conventionally, the average number of monthly new subscribers was approximately 3,000)

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0 Fiscal year-end of 2009 Fiscal year-end of 2010 End of January, 2011

Making banners saying “Request for Power Saving”by service offices (summer: nine offices, winter: twenty-nine offices)

North Side South Side

Implementation of street PR in mainly during rush hours for 250 times in summer and 490 times in winter

Main objects distributed (in summer)

Paper fan

Magnet (with thermometer)

Promotion of household power-saving actions by provision of challenge sheet as a tool for elementary children for approach to power saving by entire family

(Approaches) 1) Prepare power-saving challenge sheet for elementary school students (by Kepco’swebsite or newspapers). 2) Use the power-saving challenge sheet at home, and practice an approach to power saving. 3) Send the results of practice of power-saving approach (for five days) and essay to the head office. 4) A certificate of appreciation and a small present is sent to the applicant.

[Power-saving challenge sheet] [Small present (stickers)]

Recommendation of subscribing the demand and supply adjustment special contract by sending direct mails to all the customers whose contractual high-voltage is less than 500 kW (110 thousand cases)

Charge Outline of contract system

For the customers restraining their demand Planning and for electric power by shifting their working coordination days to their holidays or adjusting load special during the daytime on weekdays, special contract rates will be given depending on the degree of restraining.

For the customers restraining their demand Occasional for electric power on demand from Kepco in coordination cases of crunch of demand and supply of special power, special rates will be given contract depending on the degree of restraining.

Demand and For the customers whose maximum supply demand for power in last summer is adjustment decreased from that in the same month in the previous year by their approaches to special power saving, special rates will be given contract depending on the degree of restraining.

6. Advantages Acquired by Kepco’sApproach to Power Saving

As a result of cooperation of the consumers, an average of 1.2 million kW was reduced in last summer. In comparison with the maximum electric power of 31.38 million kW which we supposed as an equivalent hottest summer like previous year, we conclude approximately 1.6 millionkW was reduced. （10 MW） 3,200 31.38 million kW (the supposed maximum power in last summer) △ MH22ay年 15 月連休to Se明p.け～22, 92月02210日 ○ H23年5月連休明け～6月30日 3,000 May 1 to June.30, 2011 27.84 million kW H23年7月1日～9月21日 ● July 1 to Sep.21, 2011 (the maximum power in last summer) reduced 2,800 about 1.6 million kW reduced an average of 1.2 2,600 million kW

【H22相関式】 2,400 y = 3.9775 x2 - 151.6372 x + 3,348.9979 2 Reduction Reduced kW R = 0.9702 ratio 2,200 About 1.6 Total About 5% million kW Household About 0.25 About 3% use million kW Itemization 2,000 Commercial About 0.65 (listed for a About 5% use million kW second time) Industrial About 0.70 About 7% use million kW 1,800 18.0 20.0 22.0 24.0 26.0 28.0 30.0 32.0 34.0 36.0 38.0 （℃） * The values in the itemization table are obtained on the basis ofestimation based on statistics values from limited sample data. GSEP/PPA Energy efficiency improvement Workshop Guam20-24, 2012 ©2012 KEPCO All Rights Reserved. Change in the maximum power outputted 93 by Kepcoin the past (In ten thousand kW) 3,500 (単位：万ｋＷ,℃)

Lehman 3,250 shock 3,161 リーマンショック Including 3,087 3,084 3,095 the effect 3,055 3,047 3,053 3,067 of electric 3,000 power saving 2,818 2,784 2,750

2,500

2,250

2,000 2H00214 2H00315 2H00416 H200517 2H00618 2H00719 2H00820 H200921 2H01022 2H01123 H200214 2H00315 H200416 H200517 2H00618 H200719 H200820 H200921 H201022 H201123

(a) Hig(a)he最st ai高r t気温emperature 36.1 35.3 35.9 37.0 36.0 35.7 36.4 34.8 36.6 35.6 (b) Average of the highest air temper(ab)tu過re去s o20n 年theの最 day大 w電力hen the 発生日における最高気温平均 35.9 35.9 35.9 35.9 35.9 35.9 35.9 35.9 35.9 35.9 maximum power occurred in the past (a)-(b) 0.2 ▲ 0.6 0.0 1.1 0.1 ▲ 0.2 0.5 ▲ 1.1 0.7 ▲ 0.3

Last summer, Kepcodid its best to secure an additional procurement to assure its supply capability, with the daily maximum electric power having not exceeded the supply capability.

Generating end (Ten thousand kW) 3500 Daily maximum Daily supply electric power capability 3000

2500 Supply capability secured additionally as a 2000 result of the request for electric power saving 1500

1000

500

Jul. Aug. Sep. 0

GSEP/PPA Energy efficiency improvement Workshop Guam20-24, 2012 ©2012 KEPCO All Rights Reserved. Daily supply and demand in last summer (A trial calculation withthe 95 electric power from nuclear power generation excluded)

A substantial shortfall in the supply capability would have occurred should no nuclear power generation have not in service at all.

Generating end (Ten thousand kW) 3500

Daily supply Daily maximum electric capability power 3000 Supply capability 23.98 million kW on the day on which the maximum electric power occurred 2500 (August 9)

A decrease in nuclear power generation 2000 A decrease in pumping-up power generation Aug. 10 Aug. 9

1500 Daily supply capability (with the Days on which the maximum electric electric power from nuclear power exceeds the supply capability power generation excluded) 1000

500

Jul. Aug. Sep. 0

Under the current situation in which the successive shutdown of nuclear power generation has increased the burden on fossil-fired power stations.

(Hundred million kWh) 160

140 Additional purchase 120 Power receiving from other utilities

Petroleum An increase of about 540,000 kl 100

LNG An increase of about 3,700,000 kl

80 An increase of about 730,000 t

60 An increase of about 2,350,000 t 8 units 7 unis Nuclear 4 units power 40 generation

3 units 1 unit 0 unit 20 Coal

Hydroelectric power generation (including pumping-up power generation) 0 Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. GSEP/PPA Energy efficiency improvement Workshop Guam20-24, 2012 ©2012 KEPCO All Rights Reserved. Change in the generated energy 97

The most of the decrease in the generated energy due to the shutdown of nuclear power generation will be replaced by petroleum-fired power generation.

[Generating end]

Nuclear Interchanged electric Hydroelectric Coal- LNG Petroleum- power from other FY2011 fired fired utilities supply and 142 108 705 289 44 331 demand plan (8%) (7%) (44%) (18%) (3%) (20%)

FY2011 track record 153 123 322 442 211 343 (estimation) (9%) (8%) (20%) (28%) (13%) (22%)

Continuation of the condition in 153 140? 480? 430? 340 or more FY2011 (20% or more) (an image) (9%) (9%) (30%) (30%)

*Interchanged energy from other utilities includes pumping-up power generation. It was assumed that hydroelectric power generation is of the same amount as the FY2011 track record and coal-and LNG-fired power generation is in all-out operation.

(Hundred million kWh) 0 200 400 600 800 1,000 1,200 1,400 1,600

As the replacement of nuclear power generation, the power generation fired by LNG or petroleum has increased, which depends on fuel being priced higher and higher. This has increased the fuel expenses for fossil-fire power generation.

???

An increase of over 500 billion yen (in comparison with the previous year) ¥788.4billion ¥837.1billion

Purchased energy expenses

Fuel expenses for fossil-fired power generation Fuel expenses for nuclear power generation

H21FY年度2009 HF22Y2010年度 HF23Y2011年度－

Ratio of Case where the condition in FY utilization of About 38% 2011 is supposed to continue nuclear 77% 78% (All nuclear power generation power suspended in February 2012)

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Try to calculate how much you spent electricity. The kind of contract ・・・ incurred amount A Amount of electricity per month ・・・250kWh ＜unit price＞ Basic charge・・・Up to the first 15kwh 320.25Yen Electricity charge・・・over 15kWh up to120kWh 19.05Yen/kWh ・・・over 120kWh up to 300kWh 24.21Yen/kWh ・・・over 300kWh 25.55Yen/kWh ＜unit price of Fuel cost adjustment＞ Basic charge・・・Up to the first 15kWh +1.12Yen Electricity charges ・・・ +0.08Yen/kWh (the fuel unit price of fuel cost adjustment is a temporary one)

Basic charge [1] 320.25 Yen

Electricity Over 15kWh up to 120kWh [2] 2,000.25 Yen (120-15)kWh×19.05Ｙｅｎ/kWh charge

Over 120kWh up to 300kWh [3] 3,147.30 Yen (250-120)kWh×24.21Yen/kWh

Over 300kWh [4] 0.00 Yen

＋ × Fuel cost adjustment [5] 19.92 Yen 1.12Yen (250-15)kWh 0.08Yen/kWh （） Sum total charge [6] 5,487 Yen = [1]+[2]+[3]+[4]+[5] (Round down to the nearest decimal × （ Consumption tax [7] 261 Yen =[6] 5/105 Round down to the nearest decimal) Total charge [8] 5,487 Yen =[6]

Consumption tax has been included in Sum total Charge GSEP/PPA Energy efficiency improvement Workshop Guam 20-24, 2012 ©2012 KEPCO All Rights Reserved. Practice 2（Answer） 2 Try to calculate how much you spent electricity. The kind of contract ・・・ incurred amount A Amount of electricity per month ・・・457kWh ＜unit price＞ Basic charge・・・Up to the first 15kwh 320.25 Yen Electricity cherge・・・over 15kWh up to120kWh 19.05Yen/kWh ・・・over 120kWh up to 300kWh 24.21Yen/kWh ・・・over 300kWh 25.55Yen/kWh ＜unit price of Fuel cost adjustment＞ Basic charge・・・Up to the first 15kWh +1.12Yen Electricity chrges ・・・ +0.08Yen/kWh (the fuel unit price of fuel cost adjustment is a temporary one)

Basic charge [1] 320.25 Yen

Electricity Over 15kWh up to 120kWh [2] Yen (120-15)kWh×19.05Yen/kWh

charge 2,000.25

Over 120kWh up to 300kWh [3] 4,357.80 Yen (300-120)kWh×24.21Yen/kWh

× Over 300kWh [4] 4,011.35 Yen (457-300)kWh 25.55Yen/kWh

Fuel cost adjustment [5] 36.48 Yen 1.12円＋(457-15)kWh×0.08Yen/kWh （） Sum total charge [6] 10,726 Yen = [1]+[2]+[3]+[4]+[5] (Round down to the nearest decimal) Consumption tax [7] 510 Yen =[6]×5/105（Round down to the nearest decimal) Total charge [8] 10,726 Yen =[6] Consumption tax has been included in Sum total Charge GSEP/PPA Energy efficiency improvement Workshop Guam 20-24, 2012 ©2012 KEPCO All Rights Reserved. Practice3（Answer） 3

Try to calculate how much you spent electricity. ・・・ The kind of contract Hapi-e time Up to 10kVA [1] 2,100.00 Yen Contract electricity・・・10ｋVA Mi-con 5kVA Hapi-e plan Basic ・・・ Amount of electricity per month 1,250kWh charge Over 10kVA [2] 0.00 Yen Day time 162kWh

Living time 213kWh daytime [3] 4,539.24 Yen Night time 875kWh Electricity Living time [4] 4,609.32 Yen For the month of May charge ＜＞ unit price Night time [5] 7,166.25 Yen Basic charge （1contract up to 10kVA） 2,100.00Yen （Over per 1kVA） 378.00Yen/kVA Sum total [6] 16,314.81 Yen （・ Amount of electricity daytime summer) 30.72 Yen /kWh =（[3]+[4]+[5]）（daytime ・other） 28.02 Yen /kWh （Living time ） 21.64 Yen/kWh Mi-con discount [7] 840.00 Yen （Night time） 8.19Yen /kWh Mi-con discount 168.00Yen/kVA Fuel cost adjustment [8] 100.00 Yen Happy-e plan discount（basic charge＋electricity）×10％＜unit price of Fuel cost adjustment＞ Hapi-e plan discount [9] 1,841.48 Yen Electricity charge・・・ +0.08Yen/kWh =（[1]+[2]+[6]）×0.1 (the fuel unit price of fuel cost adjustment is a temporary one) Yen Sum total Charge [10] 15,833 Summer ：7/1 - 9/30 =（[1]+[2]+[6]-[7]+[8]-[9]）（Round down to the nearest decimal） Other ：10/1 - 6/30 Consumption tax [11] 753 Yen [3] 162kWh×28.02Yen/kWh =[6]×5/105（Round down to the [4] 213kWh×21.64Yen/kWh nearest decimal） [5] 875kWh×8.19Yen/kWh Total charge [12] 15,833 Yen [7] 5kVA×168Yen/kVA =[10] [8] 1,250kWh×0.08Yen/kWh Consumption tax has been included in Sum total Charge GSEP/PPA Energy efficiency improvement Workshop Guam 20-24, 2012 ©2012 KEPCO All Rights Reserved. Practices of calculating Japanese electricity charges

KenjiMorimoto The KANSAI Electric Power Co., Inc. ［KEPCO］

GSEP/PPA Energy efficiency improvement Workshop Guam August20-24, 2012 ©2012 KEPCO All Rights Reserved. Practice 1 1 Try to calculate how much you spent electricity. The kind of contract ・・・ incurred amountA Amount of electricity per month ・・・250kWh ＜unit price＞ Basic charge・・・Up to the first 15kwh 320.25Yen Electricity charge・・・over 15kWh up to120kWh 19.05Yen/kWh ・・・over 120kWh up to 300kWh 24.21Yen/kWh ・・・over 300kWh 25.55Yen/kWh ＜unit price of Fuel cost adjustment＞ Basic charge・・・Up to the first 15kWh +1.12Yen Electricity charges ・・・ +0.08Yen/kWh (the fuel unit price of fuel cost adjustment is a temporary one)

Basic charge [1] Yen

Ele c t r i ty Over 15kWh up to 120kWh [2] Yen c h ar ge

Over 120kWh up to 300kWh [3] Yen

Over 300kWh [4] Yen

Fuel cost adjustment [5] Yen

Sum total charge [6] Yen =（[1]+[2]+[3]+[4]+[5]）(Round down to the nearest decimal Consumption tax [7] Yen =[6]×5/105（Round down to the nearest decimal) Total charge [8] Yen =[6] Consumption tax has been included in Sum total Charge GSEP/PPA Energy efficiency improvement Workshop Guam August20-24, 2012 ©2012 KEPCO All Rights Reserved. Practice 2 2

Try to calculate how much you spent electricity. The kind of contract ・・・ incurred amountA Amount of electricity per month ・・・457kWh ＜unit price＞ Basic charge・・・Up to the first 15kwh 320.25Yen Electricity cherge・・・over 15kWh up to120kWh 19.05Yen/kWh ・・・over 120kWh up to 300kWh 24.21Yen/kWh ・・・over 300kWh 25.55Yen/kWh ＜unit price of Fuel cost adjustment＞ Basic charge・・・Up to the first 15kWh ＋1.12Yen Electricity chrges ・・・＋0.08Yen/kWh (the fuel unit price of fuel cost adjustment is a temporary one)

Basic charge [1] Yen

Ele c t r i ty Over 15kWh up to 120kWh [2] Yen c h ar ge

Over 120kWh up to 300kWh [3] Yen

Over 300kWh [4] Yen

Fuel cost adjustment [5] Yen

Sum total charge [6] Yen =（[1]+[2]+[3]+[4]+[5]）(Round down to the nearest decimal) Consumption tax [7] Yen =[6]×5/105（Round down to the nearest decimal) Total charge [8] Yen =[6] Consumption tax has been included in Sum total Charge GSEP/PPA Energy efficiency improvement Workshop Guam August20-24, 2012 ©2012 KEPCO All Rights Reserved. Practice 3 3

Try to calculate how much you spent electricity. ・・・ The kind of contract Hapi-etime Up to 10kVA [1] Yen Contract electricity・・・10ｋVA Mi-con5kVA Hapi-eplan Basic Amount of electricity per month ・・・ 1,250kWh charge Over 10kVA [2] Yen Day time 162kWh Living time 213kWh daytime [3] Yen Night time 875kWh Electricity Living time [4] Yen For the month of May charge ＜unit price＞ Night time [5] Yen Basic charge （1contract up to 10kVA） 2,100.00Yen （Over per 1kVA） 378.00Yen/kVA Sum total [6] Yen （・ Amount of electricity daytime summer) 30.72 Yen /kWh =（[3]+[4]+[5]）（daytime ・other） 28.02 Yen /kWh （Living time ） 21.64 Yen/kWh Mi-condiscount [7] Yen （Night time） 8.19Yen /kWh Mi-con discount 168.00Yen/kVA Fuel cost adjustment [8] Yen Happy-e plan discount(basic charge＋electricity）×10％＜unit price of Fuel cost adjustment＞ Hapi-eplan discount [9] Yen Electricity charge・・・ +0.08Yen/kWh =（[1]+[2]+[6]）×0.1 (the fuel unit price of fuel cost adjustment is a temporary one) Yen Sum total Charge [10] Summer ：7/1 -9/30 =（[1]+[2]+[6]-[7]+[8]-[9]）（Round down to the nearest decimal） Other ：10/1 -6/30 Consumption tax [11] Yen =[6]×5/105（Round down to the ＝ [*]Happy-e plan 10% discount nearest decimal） [*]Mi-con discount Total charge [12] Yen This is applied to the equipment having functions of =[10] automatic power distribution after back calculating the time Consumption tax has been included in Sum total Charge for preparing a bath. GSEP/PPA Energy efficiency improvement Workshop Guam August20-24, 2012 ©2012 KEPCO All Rights Reserved. UUttiliilittyy OuOuttrereaachch ffoorr EEnnerergygy EffEffiicciieenncycy DDrr.. HHererbberertt WadeWade

Energy Efficiency Improvement Workshop Guam August20-24,2012 GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Demand SidMnagent(SSM) •Supply SideMangmt(SSM) Utilities andEnergyffccy Utilities andEnergyffccy –Reduc wastth e customr’preies –Reduc wastintrnsmissondirib ution –Reduc wastingeneration GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Some custerrossubidiedf thers •Required byGovernment Why HelpCustomrsRduceUse? Why HelpCustomrsRduceUse? –Utilty losemoney on saletubided –Residential custom ers oftengealowerte –Econmy sufferingduethighelctrii costs customers § § Seling lesmean ore cashvailble! Mostly duethighdiselfuelprces GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Reduc theneforainvstmen capity •Improved custoerrelations GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Promoting Energyffch e Pacific Promoting Energyffch e Pacific (ADB PEEP2 (ADB PEEP2 . Programme Programme ) ) GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Promoting Energyffccy Promoting Energyffccy •The firstphaseoPEEP was •Five countries:CookIslands, •The PromtingEnegy conlude inMay2011 Tonga, andVanuatu. Papua NewGuina,S amo, Septembr 2008. (PEEP) projectbeganin Efficiency nthePaf GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 PEEP Phase1 PEEP Phase1 efficiency project thademonstraescving through energy the islandconexandfordvelopnga t leastonepilo primarily fordatgahering,uderstdin EEconeptsin Pacif (PEEP)projectwasompltedn 201andws The firstphaseotPrmingEnergy Eficiency inthe GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Establish thepolicy and impleentaonfrworks PEEP: Phase2:2012 •Contribue oachievngheeralll f •The objectivfPEEPPhas2tmpl emnt energy • PEEP: Phase2:2012 by 10% move twardshegoal s of March 2015 the residenial,comerialdpublict ors by reduction efficiency (EE)masureinthfvounrie s to: PROJECT BCTIVES by the in avergemonthlynegcsupion end of2018 - - 2015 2015 reducing fosslu imports . 10% 31 GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Ned todeerminebaselfenergyu e in-ordto •But insomecounrie,illnoenughsta tistcally •Folw frmphaseneorPEEP1 How doyuPEEP2? •PEEP1 hasgiveno me insght,haneedobefurher How doyuPEEP2? determine: relevant daaabounergyse. survey ofenergu s. strengthened hroug asticallyvaldenerg-u –Impact ofEnergyE fficiency initaves –Energy efficiencyopportunies GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 PEEP1 viewforthePotentialinTonga PEEP1 viewforthePotentialinTonga Number ofmeters GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Potential Tonga Potential Tonga GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 activtes tha driveenergyu se inthPacf, case-tudyofTonga -AMinorField Study-” Graph fromMaste r’s theiJ.Dehnch,MLndhe“De velopment ofarworks human Potential Tonga Potential Tonga GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Energy fficopportunes Energy fficopportunes GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 • Project Outputs Project Outputs Outpu 1:DevlopmnofErgyUse atabse – – Conduct fIn-countrysurveallors avilbe energyusdata Reviw, Complatnadalif GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Support h e devlopmentofi ated andorganizse rvice •Devlop andimpm nt raingpogmsfolcexpe •Improve Ebestac tices fornewlybuildenal, •Encourage thesalenduofw-enegy nsumption •Establih pracilandmeenbta gets and • provides th at haveincensom plement EEacivs. servic; and undertaking enegyaud its andnprovdngEoduc efficeny provsonn building coesfrnews; commerial, andgovn ment buildings,ncludenergy standard (MEPS)an/oenegylabeling; enforcemt ffivminimuenegype ormance regulations boughabouyhedeveopmen and appliances andequipmenthroughopria import incorpoate hesonalenegyli andplans; Procedures Outp 2:DevelopmenofErgyic y Policiesand GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 – Efficeny Progams Outpu 3:ImplenationofErgy § § § § § Governme nt Sector Impleentaion ofEE Measureinthe and CommercilSect or Impleentaion ofEE MeasureinHotel Management Sraegy Devlopment fFluorescLaWst Commercial andGovmentSectors Energy EfficientLihinginResdnial, Expansion Energy EfficientSreeLihingProam GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 • Awareness Outpu 4:Informatiodissematona Public § § § § Efficiency I nformation Devlopmen t andDeliveryofEne rgy Training for UtilityPersonnelin he on Energyfficiency Devlopment fScho ol EducatinMdues Maintenance Conditing Equipmen t Selection,Useand Materils RingofrigeraonndAir Prepartion fConsumerIion Effectiv forheargeounry Delivery ProcsssSuitablendCost Detrminao fIonsinio GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Government ErgyMamnt Government ErgyMamnt Assistance bytheUili ty GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 The Problem The Problem •Since theearly1990s,governmfaili y energaudits •For smallercountrieinpariuar,govern ment energy have bencarriedout use iahighprcentgofnaionalrgy use –Palau Capitolanex ample –Many opportuniies,fwchagsinenerg y manageent GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •The peolwhustenergydonopa y thebills More ofthProblem More ofthProblem –Energy usingeqip ment, especiallyair-onditiners, –No neingovrnmtdepartmentsisre sponible –Often heydon’evknwhmuc y use factor are purchasedonten der withfirscosthemain for energymanageent finance orpaymnt since govrnmntuiliybilltypialldi rect to GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Departmnts becodirectlyresib forenergyuse Efficiency How CanGovernmentImprveEnergy Efficiency How CanGovernmentImprveEnergy –Departmnal EnergyManagersssigned –Energy savedbdepartmentsdoenoc ut budgets for thenextyearbuadsoprograming § § Report directlyodepar tment head enforced andmint ned Ensure thameaurforenergyiciency are GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Why SouldteUtiliHp? Why SouldteUtiliHp? •In somecountrieh e governmtishelargestdebor •With hehighenrgycostsfodaplu he facthaall to heuilitybudiscon nection isnotanopon. maintenanc, frasructureiprovts and salaries. money tspendfororeianhing like utility makes enforutiliieoryhelpheir ownersave but Vanuailiiesreownedbyhegover nment, it GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Provide headofpartmentsandinanc amonthly How CantheUtiliylp? How CantheUtiliylp? meter noinghelocain. detailed ctricyusgreporfeah partmen –Must incldeshg overnmet faciliesw –Importan firstepsicenohingffv e canbe they aremajoruser of electricity. supply sytemand ewage systmsinctypially various departments not kwhoheenergyisbeinguedam ong the done ifFnanceandthedivualprtm ents do GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Concepts forimprov ing exstingbuildngs •Construction andardsfornewbuilding to reducehe •Purchasing standardforomputers •Purchasing standardforair-ondtioers Standards forGovernmentFacilities Help GovernmentEstablishEnergy Standards forGovernmentFacilities Help GovernmentEstablishEnergy need forA/C GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Utilty personeskilldevpdhrough PPAtraining Walk ThroughEnergyAudits Walk ThroughEnergyAudits course fordetctingeneryffincyprob lem aras –Buildng probems § § § under theroo f? Does thebui lding havereflect foilinsulation building method forreducings olar heatfrmneringhe the norhneedobes haded orvesom Windows toheeastandendm es to bepumpedoubyaircondiiners Dark colouredroforwalsabrbhetha t has GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Air Conditiers –Type instaled –Quality ofmanuct ure § § § § place ifnotient zone mangetbu t hardochangeonein facilities iproperlynstalleddapabe of Central aircondiionganbeokforlarge unit sed Split typeokfinstaledcorrectyandgod quality Window typearehelstffcent governmn t laboraoy) Efficiency l abel orrating(ndsc ertified bya GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Installation –Air flowthroughhe condesermpentfheA/C –Condesr cmptfheA/Cino in theshade –Condesr cmpt(exio)fheA /C isbadly –Window unitsdonotfsohereareairp assages is partialybocked corrode ordamaged around theunit GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Servers inA/Croom •Personel Cmputers –Level ofA/Cusda nd otherheagenerioninhe –Main powerturnedofnighvoid“p hantom –Set o“sleep”afternonuefor15min s orless –“Green”rated (new) –Use LCDscreennotRTreens serv room–notwh ere asharedprinterloc loads” GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Lights •Ink Jetpriers •Laser Printers –Type oflightandus e patterns –Switches provdeperbankoflightsnotor thewhole –Powerd fatnight –Powerd fatnight –Sleep btwnpriting –Excessiv usofligh ting room § § § Task lightingpreferred extrior Interior GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Departmnal brakroosndichens –Microwave usm chanil timer,noelectronic –Refrigerator isenergycienandprope rly sizedfo –Hot waerdelivyndem,noconst antly running the needs pot § excpt whenactualy in use Cheaper, morrelib le andnopowerdmand GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 What aboutSolroneRoof What aboutSolroneRoof •Bils arereducdbutnoobeuedaan excusto ignore nergyffciency. –Should beaetenergyfficencys fuelimports are furtherreduced GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Assist inranngperonwhoemde departmental Work WithGovernmentDepartments Work WithGovernmentDepartments energy magers –Equipment loans –Particpae inperodmeengsfdepar tmental –Technial Rsource –Training sessions energy magers § § § IR Thermo meter “Kill-a-Wat”ype app liance mter Illuminoeter GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Currently YapSaPublicServiop ration charges •Until afewyearsago,NiuePerCorp ation mered Special RatesforA/CorGovernment Special RatesforA/CorGovernment customers to: governmnt aboua20%higherrahan other higer tariforA/Cuse. each aironditionergovmeand rged amuch –Encourage governm ent oinstiuenergyffciency –Help crosssubidiz e lowincmresidental measures customers GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Conversion fstandarddumorercur y tpe Street Lights Street Lights streetlights ohighefficiencyLEDun –Governmet payshebillsforpublicarea lightng § to LEDlighing Can cuthosebilby30%ormoron version GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 streetlight pilot Evaluation ofPEEP1LDTonga streetlight pilot Evaluation ofPEEP1LDTonga •Savings of19,920kW h peryeao •109 LEDstreeligh installed log •Total measuredeciy •Replaced 109streelighing,150W •Total cs=USD$75,000 •ADB/TPL fundedproject 12,720/year cost aving ofaroundUSD 36,800 kWh/year. the samerouwillbe reducedto consumpti of56,720 kWh/year. (HPS) lamps Sylvania High-PressuSodm GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 streetlight pilot Evaluation ofPEEP1LEDTonga streetlight pilot Evaluation ofPEEP1LEDTonga GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 sensor andpoitoningfLEDs.CouesyTPL pilot rjec.Phoshowcingf,aumaday/n t TransNet sensor andpoitoningfLEDs.CouesyTPL pilot rjec.Phoshowcingf,aumaday/n t TransNet 100W LEDStreetlighampsusedforePEEP1 100W LEDStreetlighampsusedforePEEP1 GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 al streeigh wer orking). Shows montl y consumptioneardf eachstrelighrcu(no not pilot inTonga Evaluation ofPEEP1LEDstreetlight pilot inTonga Evaluation ofPEEP1LEDstreetlight GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 HPS Streetlight HPS Streetlight GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 LED Streetlight LED Streetlight GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Average ilumnanc(lux) pilot (TOP) Average costannualonump ion fortal (kWh) Average monthlycsupionfoalpil Individual purchsecot(TOP) Streetligh ype Uniformty illu minance (min/avg) Minimu illun ance (lux) (kWh) Average annualconsmptionfo r toalpilo streligh (kWh) Average monthlycsupionpe Total purchasec(OP) LED Streetlighassessment LED Streetlighassessment HPS 250W $100,389 $60,822 65,400 5,450 $921 0.33 7.7 2.5 50 LED 100W $124,805 $43,323 $1,145 46,584 3,882 13.1 0.68 8.9 36 LED ifference +$24,416 -17,498 -18,816 -1,568 +$224 +0.34 +6.4 +5.4 -14 GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 LED Streetlighassessment LED Streetlighassessment GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 PPubliublicc IInnffoormrmaattiioonn PPrrogograrammmmeses ffoorr DDSMSM DDrr.. HHererbberertt WadeWade

Energy Efficiency Improvement Workshop Guam August20-24,2012 GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •All DSMeffortshouldbeuppored by Public InformationrogrammesorDSM Public InformationrogrammesorDSM technologis, oandbenefs. relevant informaonabouheprogram , its programmes toprovideheargegroup with –Visit by utility repsenatives to largectriity –Workshops andmee tings formati –Public media(TV,ronwspaps) mportan consumers todiscusDSMposs bilities commerial/industr DSM progammes dissemnato reapp ropriate fgvnmennd some cmmrialDSMpgammes for distrbutingnmaonabotedelDSM and GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Public events(e.g . fairs,holidayevent)proide •Use Nwoutlaoftenpossi ble. Peop •Long termcommimenwihmanyrepe tions of Public InformationStrategy Public InformationStrategy distribue brochure s andotherwrittenmaerial opportunies forne ws coverageandt advertisng plufree! pay moreattentionohenewshan o paid especially forredentlDSM. the publicinformaonmessageneeded , GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Information prov ded throughschool •Energy EfficencyInformatonprov ded with reach mosthoueho lds programmescan be veryeffctiandan informatve. payment canbeuseflikephorand elctri billsorprovidedaheimo f bill –Should bepartofhebill.eparae papers tend obehrownayunread. GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Givng awyCFL bulbsorprovidngcouponf •For commerialustomer,newe tters and househol ds be acost effctiv wayo atch hetteniono f buying CFLsatdeep ly discountedprcean distribuion actions aremoreeffvhanmedia periodc workshopsfoungonpe ifc DSM –Work throughbusinessaocon s ucha Associaton, ec. the Chamberofommerce,Hl GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •The threekeysosuccssflpublic newspaper are informaton programmesungTV,radio or –focus onpeithi ngs thabeneficuomer –Vary theconent.Cyclehroughaleas thre –repetiion ofhebascmssagwhhor t, change or “it’s goodforheearh) conditioner s) notlofy,genericid eas (likeclimat (like lowri ng billsthroughmain enance ofair- conten isalwyshe ame message. Rptiion is goodbutgeboringfhe different presenaionendingheme humors andintestingpreenains GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Take advntageof he waltofprossionallypraed •It isnoeasyodeignandprducehor t bu Use MediaProfessonls Use MediaProfessonls the Inerneandlarge countries. public informatonres ources avilblfromotherPIC, better andmorecstfftive. doing tyourselfbuhereultsarelik bemuch media profssionalsybegnicantlh igher than your mesagcross.Theotfuingx perienced humors, interestingediaprenaion s thage –But adap t ioyourlcalond itions andlguge GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 What InformionDssem What InformionDssem Residental Ergyffccy Residental Ergyffccy Needs toCver Needs toCver GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Residental DSM Residental DSM •Energy UseinHoueholds –Lightng sually he mostinefficientusefenergy –In mostcounries,refrigeraionhelarge st ingle –Ranges widelyfrom25kWh/montov er 5,000 potenial foreasymp rovemnt in houseldthePa cif andhasthemost user ofreidentalelectricty kWh permonth. § § May beir-condtonng, efrigeatos eezrs Correlats clyinmparns GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •The useofhighdemand,lwctapp liances to DSMeffors. ovens andriceookerdoenotre pond well such aeltrieaktt,frypan oaster –Public informationen couraging reduesof to reducehirusage those typeofapplian ces iaboutheonlymean GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •TV/video canbeasgnftenerg y usein households –Reduced lightings ually accompniesTV –New flatscrenLCDTVaremuhor energy impled bytheTVen rgy usealone the householdnrgy use maynotrich efficient hanoldrCRTtypeunts GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Typical HomeApplianceUsag Typical HomeApplianceUsag laptop) Computer ah ome (not Rom AC(per room) Floor oCeingan Table Fan Radio Stereo Colr TV/ideo Rice oker Electri Jug Electri ooksove Chest ypefrezer Double dorRfigator Single DoorRfato Home Apliance Typical kWh/month 20 150 9 5 1.5 4 20 12 25 60-110 65 40-90 30 -50 GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Household EnergySurvys Household EnergySurvys •Need toundersandapplianceuage intypcal household oyouneeddataon: –Priority foraplnc e us(whichmostiprtan?) –Informatio abujppliacesh asage, –Inventory ofappliacesanddlightsw ith heir –Number of personandge f personinthe –Description fhety pe ofconstructionuedinhe brand, sizeandarrangmntofdors daily usgepatterns houseld house § Including protyfnexapp liance purchase GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •For countrieswhereherearemany ehold air- conditioners heurvyhould: –Note heconstructionfhouse –Windows –Use patternofthe A/C § § § § § § Roof/Atic nsulaion Wal colour Wal mterials Roof colour Direction wdsfac e, theirsizandtype for sleeping 24/7, justwhenroom are occupied,justanigh GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Air conditionerharacteristsndheire fects onEE •Conditi ofairilter •Location ofondens er •Type –splitunior“ windo”uit •Energy efficiencyfonthelabl(EER,COP , etc.) •Age •Watts whencooling •Voltage •Size (BTU,kJ,tc.) •Model •Manufcturer •Has good ventilaion •In theshadeornot GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Improving theeffcencyofrerigera tion ype •Lightng sheeaeandquck o effct. Targets forResidentlDSM Targets forResidentlDSM residental energyuereducon units hahegreaeoverallpoen al for –Maintenanc ssist ance –Finance forupgrad ofequipment –Provide CFLorEDlightstoreplacein andescent bulbs andolder“ironst”fluorescet be lights § § § § Prope ventil ation andplcemenofA/C condensers Cleanig of ilters inA/Cuts Cleanig ofc ondenser infgeators andfreezers Door sealepacementfo r efigeatosandzrs GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Water heaingand cooking –Rep lace elctri c ooksto ves withgas –Replac tankypeel ectric waterhsi –Reduc hatenryinoair-ndiionliv ing solar orintanhea ype heatrs spaces § § § § § Separate kichensandlaundfomA/Cooms Reflctiv msonwndws Awnings overndothahauenypoblms Insulation cengs Radiant baresoof/cilngs GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Energy auditsofhomesarebetcarried out bya meber ofthehoushld Audits School Audits School –Audits ofhouseldarerlatvelymple andwith –Too expensivtoendpepleryh ouse tdo meber modest traingcanbe donebyahoushold an audit Programme Programme for Home for Home GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Utiliy preparesenergefficencyim provement •Home auditresulhoudbeen o theuiliy importan byhehouseholdenergaud its programmes focuingonthearea ound tobe for analysisandprogrammedeveopment –Focused financeprogrmsor homenergy –Focused pbliinf rmation progres audits improveen t addresingissu foundinthe addressing princpal ssues foundintheaudits GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 What AbouEncouragingPeople ToShiftt Pre-Paid MtrngToSvEn rgy? GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Pre Pre •Pre-paid metersrequirecuomer o purchase elctriiy nadvance - - –Help withnon-aymenssues –Widely useinveralPICs –Option for very diffcultoeaha tions Paid MeterngndDSM Paid MeterngndDSM § § § § a problem Especially ueflorgov rnment oficeswhepay Customer payno elctriyspovded. reconnetion Avoids thecanunpleanefsconne on and diffcul t orneliab le Outer island customer wheead ing andbills GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •High up-frontcost Expensive Prepaid MetengMyb Expensive Prepaid MetengMyb –Maintenanc isxpctedobehgerfor pre-paid –Prepaid metersarevlco tly as meters hanforconven tional meersinhPICs conventioal mers § § High ambenteper tures Moist, saltyairhard oncomplexelctronics GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •One theoryishabecaueenerg use mutbe Pre Pre elctriity more thoughispunoheeffcen use of planned inadvanceandpadfor vance tha –People on tighbudgetsarehe onesthaaremost –Because therIndcyobuyman y smal –No realevidnctsupporhiheory - - payment MetersndDSM payment MetersndDSM energy user s whocanbestredu ce nergyusage. likely towa tch theirpaymentsno t hewastefulhigh per month user eailyloetrac k ofwhatisacuallybengpad blocks fpwerinstead ofpayingonebigbil,the GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Another heoryishabecauehem allows money islwthuheirdeanforenerg is less houseld implyallowtheerrunou t when no penaltyofaeerreconnection,thapoorer customers thuffpwbynon-pae nt buwih –This doereultinlwerngyub hose higer mpactthanhe lowendusers. targe sinceperna ge wise,thyhavamuc be directedat.Thelar ge userneedtobehe it snohepoorerho usehold thaDSM houseld andreducedfuelbythe ility but GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Disadvantages ofPre Disadvantages ofPre –Hiden coststheuility § § § handle permoth Many moresaletranctionhav be to providecodesifhemainunails Must haveanidentcal,surebackupom puter area codes iexpenvandmustbkeptina ecure Computer eqienandsftwarecrea te - - Payment Meters Payment Meters GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Disadvantage ofpre-paymenme ers for DSM –May bemoredifficul t ofindmeershahav –May bedifcultomposeierpearifs thaare been ypassed know tbeeffcivDSMmasures § § § lowering f lectriy use No easywa toseemonhlyuage note sudden No vistbyulpersonne l onaregubasis price whenthelimspassed usage overthemonhandauicllyk Wh Tier typeafsequhmokpc tal s more xpnsivadcl x thansiglermrs Metrs andsofwrhlipcguy GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Use taicsuablfordegno DSM about hesameimeeachmonth since meterngofuagerandomra ther han programmes becomemorediffulto obtain –Use staticsforDSMrequirhahe ystem probably h as notbeencomple ly used. purchased andeventhenhepre vious blck energy hasbeenu d iswhenablock meters. Theonlyi theuilityknowsha not usualyeasyodo withpre-paymenype passing throughame ter foragivenime.This have thecapbilityofdeerminngnerg y GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Helping CustomrsUndand Cost Savings Clcutons GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Payback eriod Payback eriod •The amountfieksrcverh added investmnt forenergyiciencyroer y savings –Simple aybackperiodgnoresthec ost f –True paybackperiodconsierthemv alue of money money § § § efficiency b y theannualsving in energy Simply dividetheadd ed costforenergy such aolarwter eating Reasonable forction s thavefapayback Easy forthelayman o understand GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Simple PaybackExle: –Simple aybacktime –Electric wateros$20inallndh as an –Solar waterheaercosts$200inall and$25 life xpectancy average annulcost f operationo$350.10year expectancy per yearaveragemintnancos.15 ar life = (2000-200) /(350-25) =5.54years GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Simple aybackxle2: –If rerigeratorsaretypicalyreplaedever y 10ears kWh? and costs$10iftheelectrity .50 per or onethaismaedu180kWhper year estimatd ous250kWhperyearndc sts $800 which refrigeatorshouldbepuhaed,one thais GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Total savingerhe 10yearlife=4.3x$5$1050 •Payback forthemor e xpnsivrefrigerator= •Difference inoprat ing cost=$35peryear •Difference inostfrrigrats=$200 •$0.50 perkWhx180=$90peryear •$0.50 perkWhx250=$125eryear •Step 1:Compueheanallectriciy st $200/35 =5.7years GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Which oneisthem t appropiaeopurchasfhe •A smallvillagestorenedwfreezr . Theowner •Payback prolem3: has beenin Nauru? -What ifheelectricty ost is$0.08perkWha -What ifheelectricty is $0.25perkWh? elctricity os$0.50 perkWh kWh/year. Thefreezerisxpctedtola10 years. expnsiv oat$80hapected use 240 $650 thaisexpectdou300kWh/year oran needs todecidwheherbuyheap st oneat it GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •So bettertopurchas e themorxpensivonebecau •How manyearstbreakev?$150/$3 0 =5years •Cost diference=$150 •Annual sving=$150-$12030 •240 kW/year=$120peryearelctricity •30 kW/year=$150peryearelctricity of theelectricitysavn gs. GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Takes 10yeartobrea k even.Soeitheronhasabu •Price differen=$150 •saving $15peryear •240 kW/year=$60peryear •30 kW/year=$75.00peryear •If theelectricitys$0.25perkWh the bestchoie. rise overthe10yar , thenhemorefficienonestills the samecost-bui f theelectricypriesxpedo GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •So itwouldbest to buyhecap,loweffiiency •Years tobreakeven =$150/$4.803125years •Price differen=$1 50 •Savings peryear=$4.80 •240 kWh/year=$19.2 •30 kWh/year=$24 •At $.08perkWh: freezer GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 EEnnerergygy UUsese SSuurrvveyseys DDrr.. HHererbberertt WadeWade

Energy Efficiency Improvement Workshop Guam August20-24,2012 GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Why DoSurveys Why DoSurveys •Energy UseSurvysarenotenerg audits, needed todesignDSMprograms. they aresurveysofuergeinorma tion –An auditincludeso st informaionndpredicts –Typicall theendresulianinvenoro f the particular energysav ng activty. the savinghacanbe obtainedfromdong energy usingqipmentinheerbase GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Design theurvysofndouabou t hefaciliies in useatheer’locon Survey Design –To determinewhaypesfenrgffcien cy measur willbffctive § when only5%oftheuili customerhem progameto eplc ctri waeheasol For exampltheisnouchsvingn GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 –To providedataregardingwhaelctrical equipment related ctions is inuetohelpforecasthemrkorappl iance § DSM projectdesign respon adgetmlone.Focing tan in DSM progammesfomcutilan r alge It isjustabadobeunprepaedflgeepon se to GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 When ToDoSurvys When ToDoSurvys •After yougatherallvilableda,de termine not dosurveys enough forenergyefficencyprojt design do time consuming.Ifavilabldaadequa te through asurvey.Sysarexpen sive and the gapsindaahaveobef illed –Surveys shouldbe pecifally desgnedillinthe gaps inthevailble data. GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Survey beforedesignngtheenerg efficency programme –Don’t decideonaprogramedhen o asurvey already cidd. design aprograme,notojustfyoneha t is to ryjustif.Thesurvehouldonlb usedto GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 • Who tosurvey Who tosurvey commerial/ndustri, govnment,.) with (residnal,mllcommrge Randomly –For useppulation of ver1,000lwpecentages –For useppulationfunde1,0 truly andom. percentages, olonga theuserlcionposs can beused,withlarge r populationsllowingme surveyed. customer lssinheaegoy,llhoudb least 20cuomer,whiv.Ifhe e ar20 least 15%ofhecumerineda egory oat selct uomrinheaegoyw rk randomly selct a GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Microsft Exelhaheapbilyrand omly selecting Doing aRndomSelecton Doing aRndomSelecton the numberofuserwanedorurvy. –Using theExcelrand om nuberfunction,youcan –First putallhecuomersfhetypeyou wanto survey user andthoewillbe theuserelectedfor then selectrandomline numbersfrothelistoall survey intoxcelwihonelneforeau tomer GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Staff neededforsuccesslurv y include: Who doesthesurvy? Who doesthesurvy? –Survey manger –Several suyteam.Tpicalon for about evry100-200 customers tbeurveyed. § § Each teamwillypilln clude: survey tchniqueandhhnologbengrv ed and ensurethingunmooly.Undebo Design theurvy,lcandanpeo nnel s s 6 to10surveyrs Team lder GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 –Team supervior § leader handesupevion. widely separatedgeogphcll.Ifju1m team Needed iftheresmohan1ea willbe s s for eachteamsuvey Responibl frtamgicsandcu ers and proecmltion Responibl tcheckurvyfmahdrr ess GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Surveys haawiderangeofcst according How MuchDSurveysCst How MuchDSurveysCst be gathered the complexiyofsurvdaaha t haso to geographicseparaonfurvey ites and –More cmplexsurv eys (.gwherecustomersar –Basic numerialurveys(e.gyof of thesurv ey area. US$50 per siteaganaccordg to hegeography opin sr equired) costfromab out US$15- asked mnyquestio s includingonewheran are spreadoverwi e area site indenurbareaupoUS$25when they aplinces inhom)otfroUS$5er urvey GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Before designngaurvytermne: Survey Design Survey Design –The informationeedrosurvey –The customergrp tobesurveyedandhir general characteristics (geography inparticular) § opinons abouthemporancfDSM) expenditurs), andocloga(.gwhapeop le’s is theaverghoueholdncomandwha rage household havectriooks),fnana(.gw hat May includedathasumer(.gw%of GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 –All avilbledatrelaingohen ded –Budget availablefor carryingouthesurvey –Availabity andcostfpepeordaen try –Availabity andcostfpepebeur eyors § Don’t surveyfordaaldvilble GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Minimize (hopefullyliminate)ques tions ha Questionnare desgn Questionnare desgn require thesurveyorowriinanw ers. –Use multiplechoilctionwhnevr than 1%ofheanswe rs awriteinaners. can bewrittenin.Agoodsurveyilha ess think ofbualwaysleavean“oher”slction tha possible. Includeevryiblhoiou can GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 –All dataobeenerdshoulnupinb oxes ina –Keep thequestionsafwinumber d asimple vertical line as possible § § data enry dramtically slowbo th heraeandccuracyof If dataispreadovr differentpartsofheage,i question harenfcnolvanohepobm at hand agencies oryouwnutladdngman y more Keep tighlyfocusednheprobmahand.Don’ let ohr GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Code theanswersinawyhaminz s confuion when entrigdata –For alphbeticalod es avoidtheletterIndO –Use numricalodforquest and since theyareail onfused withnumbers you areinthequestionaire being entredseasyokeepracfwh ere alphbetical odsfrherwnda is GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Have suryortkdiglphoo at each survey ite –Each potshould how acarditheseID –Helps confirmthea ccuracy oftheinormaion –Helps youunderstadtheconxof data –Helps enurethaurvyoracllgo o thesite –Cheap digtalcamrasorphoneera s are Take Photos site fro m theseq uence oft he photoa s taken. survey it . Neverasumyouc an figureouthe code onits o thephcanbem atched tohe provide bythecusto mer provided usally fine GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •All personparticipaginheurvya superviors, Trainng Trainng survey beingcarredout surveyor fdataenrhouldberaine d forthe –Classrom trainigfaleastoneday cover for datacollection procedures forasking questionsandrequiremnts GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Surveys shouldbeinthelocalag –Survey qustionnairshouldbeinthelo cal Languge it seailyandcorrelunderstood needs tobeduringherialurvy besure the question.Tqueionshouldbeclear and languge sotheurveyordoha ranslate GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Experinc hashowturvyorne ed tobe: Choosing urveyors Choosing urveyors –Preferably mn/w oman teanojustonepersn. –Reliab andcompe tent –who arenotseenanyorfauhority igure by –person whohavenodirectinteresth e resultof the peoplewhoarebingsurvyed the survey GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Suggestions forurveyinclude –Tertiary schoolstud ents duringschoolvactionime –Person frmatechnilschoolssig d tohe –Unemployed schoolleavers –Person 25orunder project asaninternh ip GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •For surveys,aoid: –Person notcmple ting aleastform5(good –Local omunityresidents(rvyorhou ld not –Foreigners –Anyone hldingpolitcalfferseeking ofice literacy isrequied) survey theirowncmuniis) GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 –Modify thequestionairesifproblmare foundwith –Do apracticesurvynludngtenr and Practice Survey the questionsorwhdaaenry week analysis oftleast4epeream-bou t one GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Carying outhesurvey Carying outhesurvey •Each day,superv isor checkeveryomplted •Supervisor enurethaurey get ohe •Each day,teamsaressignedblocks ofsurvey surveyor toavidhoseprob lems inthefuure survey documentf or problemsandwkswith new sites site andhavhenecssaryranpor t oshift sites GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Dat enryshouldbearedoon as completed quesionnairareavilab le Data Entry –Ensure thaifherearepoblminhe way difficulties correct theproblemoinzeoreda entry can getbackohesurveyupriorin ime to questionaires arefilledouthaheinorm ation GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Data CorrectionandAnlysis Data CorrectionandAnlysis –Microsft Exelhabenoundbeade quate for –All dataenryshouldbecheckefrom orignal learn andareusy not necessary packages (e.gSPSS)canbeuedbutare hardto these typeofurvy.Specialdanal si one enteringhedata survey dataheetsbdiferenperonh an the GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •The datafromsurveyneedo be analyzed Analysi ofdata Analysi ofdata to geheinformaonneeded –Do notsarheur vey untilallprocdursfor –When youdothesmallrialurvebefor e themain analysis arefiguredo ut. and moreccurate Adjust srveyqueiontomakanlysiea sier survey, doananalysioftheryda ta. § analysi oftwareouhav e avilable in ordetgehfmat ion fromthesuveyng You mayneedtochange question oraddme GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Sample Questionnre GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Labeling thPhoos Labeling thPhoos GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Each questionholdhavherults wn eitheras Publication oftheAnalysis Publication oftheAnalysis is need. table oragrphccdingohetypef formation ha GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Outreach forBsinesses Outreach forBsinesses •Provison ofgoodqualityenergyaudits –Includes andstimatedofheollu ionsand –Audits notonlydeermnewha energy is through reducdlct ricity use the amounofneyiplegw ill save possible solutions used btalonoeprolmaraandhe ir -- -- Audits Audits GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Investmet GradAudits Investmet GradAudits •Utilty providedfreeautsareusuayor guidanceoly. the cosandbenefi isincluded. and costestimfrupl.Alear analysis of detailed signforhenrgyciencym provemnt “Bankable”) auditshouldbeone.Thirequi res a energy thanIvstmGrade(omi es calld Once theustomerknwshaareaare asting GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Investment GradeAuditscanbedonehr ough theility to ensureheyareeriuabouinvsting. but shouldincueomstveragby he customer GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 EnEneergyrgy EquEquiippmmeentnt IInnvveentorntoriieses DDrr.. 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Energy Efficiency Improvement Workshop Guam August20-24,2012 GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Befor adetildengyaudscrredu t, here equipment nhefaclty needs tobabaicnvenryfheeneg using Invetory BefreAudit –Ensure thaaudio s bringappopatequmen –Slighty dfferenequmsfonv ying in detalheequpm t inhefacliy. for measueentand arepepaedtochaiz faciltes, andhops. commerial/govnmt budgs,ho d touris GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •For hospital,ssncefromontr ined “walk •For mostcmmeialandgovnenf ites, he through”audis pobablyoubeoved. themselvs. inventory canbeaccuelpedbhe user GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Background Ifmtion •Contac Ifrmion Invetory Compoets Invetory Compoets –Informati aboueachbuildnghem plex, its –Who istheperoneponblfoenegy at he constrution maerl,ageandheha teriscs facilty andhowonhapers GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Prio EnegyAudts •Energy ConsumptiData –Details ofheaudit,whoponredda , etc. –Other fuels/eneyued –Self-generated ctrity –Metred lctrity GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Equipment Invoryfrmaon –Informati abouhevenrylighng, Air- pumps, Refrigeratoc. conditoners, FanWaheabol t GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Sample InvtoryFoms (Handout) GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Refrigraton (geos/Feezrs Invetory Residental Ergyqupm Invetory Residental Ergyqupm –Dor arrangement –Size (litrsofcapaiy) § § § § § Top openingsledo or Vertical toprfgeo r botomdawefeeer Vertical onsdefreez er onesidfrgeator Vertical topfreezrboomgeor Vertical sngdoorfgetofreezer GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Air Conditoner Air Conditoner •Location nwhroom •Capacity nBuorhe r units •Type –Split unit –Window unit GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 TV /Video TV /Video •Televison/Vdeo Scren –Wats onlabel –Diagonal dmenson (usallyinches) –Plasm Type –LCD type –LED Type –CRT type GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Video Game Video Game •Video GameconsolthauTscreen –Model § § § X Box Sony Plasti Wii GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Lights Lights •Each ligtlised –Type –Watts –Location § § § § § LED CFL New tubeypefluors cent wiheltronibast Old tubeypefuoresc ent Incandesent GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Large Apliances Large Apliances •Electri ClothesDryer •Washing Mcne •Electri CokStve –Is thereanovn? –Number ofstvoplents GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Water Pumps Water Pumps •Swimmng poolfilter pump •Type ofpump(manuactureandodel) –Wats onlabel –Open cirutoflank –Closed cirutfhouse –Source ofwater GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Small Aplinces Small Aplinces •Other ______•Electri FryPan •Rice ooker •Electri Ktle •Hair Dyer •Iron •Microwave –Check forphantmload GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Fans Fans •Window Fan •Whole HousFan •Coking ExhaustFan •Desk Fans •Flor StandFans •Ceiling Fan GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Water Heating Water Heating •Solar WteHeawihctribckup •Instan Heainglctrwreaer •Tank typeelctriwarheaer –Manual –Automaic –With mer GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012

Development of EEI-related legislation Introduction of EEI-related systems

Taiichi Kaizuka The KANSAI Electric Power CO., INC.

1 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012

Index (Day 3)

1. Development of EEI-related legislation Introduction of EEI-related systems 1.1 Overview of energy conservation measures 1.2 Why is energy conservation important? 1.3 Why was energy conservation accelerated in the past? 1.4 Energy conservation measures by regulation 1.4.1 Measures for Factory/Business establishment 1.4.2 Top runner standard and Energy saving labeling system 1.5 Subsidy and tax reduction, etc for supporting energy conservation

2. Energy efficiency improvement business by utility 2.1 Overview and scheme of ESCO 2.2 Application example of ESCO 2.3 Economic side of ESCO

3. Actual application of Energy efficiency improvement 3.1 America - EERS 3.2 France – Eco watt

GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Overview of energy conservation measures (Example of Japan) •Divided into three sectors, “Industrial”, “Commercial & Residential”, “Transportation” •Measures are divided into “regulation by law” and “support by tax reduction and subsidy”.

Industrial Commercial & Residential Transportation Commercial Residential Regulation •Almost secured measure (Legal obligation or non-binding target) (Energy •Target and degree of involvement must be carefully considered conservation •Data collecting is easy (Periodical report) from user law) •Need clarification for confines of law

Support (tax •Need financial resources (Prepare as national budget or ADB grant) reduction, • Appropriate support level (low: inactive response, high: budget subsidy, etc) shortfall) •Influence to ESCO business

3 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Overview of energy conservation measures (Regulation)

Industrial Commercial & Residential Transportation Commercial Residential

Factory and business establishment Consigner (Annual energy use: 1500kl in crude oil [sender] and equivalent or larger) carrier (above Submit energy saving plan, a certain size) Periodical report on the use of energy Energy saving plan, report on energy Regulation Owner of residence or building and client consumption (Energy for construction (above a certain size) conservation Submit notification of energy saving measures law) Top Runner Standard Stipulate energy conservation standards for house appliances and vehicles

Energy-saving labeling system Inform consumers of energy efficiency of house appliances

4 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Overview of energy conservation measures (Support)

Industrial Commercial & Residential Transportation Commercial Residential

Subsidy for introduction of Eco point Subsidy for energy conservation facilities system for clean energy housing vehicles Support Tax reduction (special depreciation) (tax for introduction of energy Tax Tax reduction conservation facilities and reduction for for ecology car reduction, construction of energy saving building home subsidy, etc) renovation

Subsidy for developing energy conservation technology (high efficiency heat pump, high-efficiency heat insulating material, etc)

Provision of information related energy conservation

5 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012

1.2 Why is energy conservation important?

6 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012

Why is energy conservation important?

 Contribution to energy security (Does the fuel price go up in the future?)  The capital investment for infrastructure can be avoided or postponed.  More effective countermeasure than building new power plant (According to one estimate in the U.S., unit cost for base load type power plant is 7.3 – 13.5 cents/kWh, unit cost for energy conservation is about 3 cents/kWh.)  Energy conservation measures have high mobility. (Effects emerge in a short period. The effect of capital investment on energy conservation comes up in 1 – 3 years.)  The fuel cost can be reduced by operating high-efficiency generator preferentially. (peak shift, peak cut）

7 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012

Why is energy conservation important? (cont.)

 When the electricity rate is back spread (electricity rate is lower than cost), there is a merit by saving energy.  It becomes to be widely realized the hardness to restrict using electricity. (Do people become more cooperative to build new power plant? Or still exist NIMBY? Example of “Eco Watt”)  Contribution to preventing global warming  To be honest.. as an electricity supplier, is it better to sell more electricity?

Demand Response

To be exact, demand responses like peak cut or peak shift are not the same energy conservation. DR aims kW reduction and energy conservation aims kWh reduction, but in wider sense, DR also contributes to KWh reduction. In this meaning, DR is also regarded as one of measures for energy conservation.

8 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 World Energy Demand outlook and comparison of self-sufficiency ratio in the energy supply

The world energy demand is expected to increase by 1.3 times in 2030. (mainly in Asian countries) The competition for acquiring resource by the consuming countries like China will escalate and energy supply-demand structure will become serious.

There is a possibility of spike in fuel price in case that world energy consumption increases greatly. The increase of energy purchase expense in the national budget

A⇒ million ton World Energy Demand outlook oil equivalent comparison of self-sufficiency ratio in the energy supply total Others Energy conservation 1.3 times Africa India contributes to Middle east 1.9 times improvement of energy Latin America self-sufficiency rate India China China Asia (*1) 1.7 times Russia East&Central Asia Japan U.S. Source: IEA 2008 2030 OECD(*2) Italy Japan Germany France U.K. U.S China 12,271 16,014 (*1) except Japan, China, India, Korea (*) Nuclear is counted as imported energy. Source: IEA (*2) except Japan, U.S. Nuclear is counted as domestic energy in parentheses.

Energy conservation contributes to ensuring energy security. 9 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Shale Gas Production Projections

10 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Shale Gas –Widely Dispersed

Source: EIA 11 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Effect of Peak-cut or Peak-shift

Short term: Possible Stored power generation to reduce fuel cost

Long term: Possible to reduce the installed generation capacity Thermal power

Pumped storage Purchases and interchanges

Hydro-power

Nuclear

0 3 6 9 12 15 18 21 24 (O’clock) 12 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012

1.3 Why was energy conservation accelerated in the past?

13 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 The efforts for energy conservation after oil crisis in Japan In Japan, the government and people did their best in energy conservation after the oil crisis of the 1970s. As a result, energy efficiency was improved by 33% during 30 years from 1979 to 2030. Efficiency per GDP has made little increase after the 1980s and further approach is expected.

Trends of primary energy consumption per GDP in Japan Comparison of primary energy supply per mil TOE / trillion yen GDP unit (2009) TOE / 100 US $ about 33% Improvement Japan U.S. EU Australia Canada Korea Thai Mideast Indonesia China India Russia World

Source: IEA

(*)TOE: tonne of oil equivalent Source: METI, cabinet office 14 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Turmoil in the oil crisis in 1970’s (Japan)

Toilet paper (bathroom tissue) had been sold out ! 15 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Progress of energy conservation World Japan 1973 The first oil shock 1979 The second oil shock Enforcement of the Act on “the Law Concerning the Rational Use of Energy” (Energy conservation law) 1988 The 1st Intergovernmental Panel on Climate Change (IPCC) held in Geneva The Oil Shock built a momentum of 1992 The UN Conference on Environment and full-fledged deployment about energy Development (UNCED/Earth Summit) conservation activity in Japan held in Rio de Janeiro 1995 Implementation of the International Energy Star Program 1997 The 3rd Conference of Parties (COP3) held in Kyoto 1998 Enforcement of the Act on Promotion of Global Warming Countermeasures 1999 Establishment of the system for designating the Type 2 Designated Energy Management Factories, Introduction of the Top Runner Standard (*) 2000 Unceasing effort has made to Introduction of the energy-saving labeling system fit with the times on energy 2003 conservation law Enhancement of the measures for office buildings (*) 2006 Establishment of the measures for transportation and the integrated control of heat and Electricity (*) 2010 Introduction of the system for regulating the energy use as a whole enterprise (*) Source: ECCJ (*)Revision of Energy conservation law 16 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012

1.4 Energy conservation measures by regulation

17 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012

1.4.1 Measures for Factory/Business establishment

18 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Overview of energy conservation measures (Regulation)

Industrial Commercial & Residential Transportation Commercial Residential

Energy-saving labeling system Inform consumers of energy efficiency of house appliances

(*)1500kl is about 330 k gallon 19 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Measures for Factory/Business establishment (1)

Factories Business Establishments

Department Store School Office Building Hotel Factories/business establishments Factories/business with high energy consumption establishments with medium energy consumption Annual energy use in crude oil equivalent (3000kl～) Annual energy use in crude oil The division of electricity and heat are equivalent (1500kl ～3000kl) abolished. (Formally, evaluated in kWh) Possibility of application Factory for in-company license Business establishments Factory / Business establishment Appointment of Energy Manager Appointment of a qualified Appointment of a qualified person (Mandatory to possess a person for energy for energy management license for a qualified person for management (Training energy management ) Required) Preparation & Submission of Preparation & Submission Preparation & Submission of Periodical Reports of Periodical Reports Periodical Reports Preparation & Submission of Preparation & Submission Mid- and long-term Plans of Mid- and long-term Plans

20 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Measures for Factory/Business establishment (2) Confines of law : Annual energy use: 1500kl in crude oil equivalent or larger cover 90% of industrial sector, 50% of commercial sector in energy usage base Cover ratio is important, Mandatory⇒ submission of annual report especially in energy base (not 1. Transition of specific energy consumption in number of customers base) 2. State of implementation on energy conservation measures 3. State of benchmark index Benchmarking is one of the most effective analysis tool

In case of insignificantly insufficient level of energy conservation against judging criteria, instruction, public discloser, compliance order, fine are conducted.

(Flow of general inspection)

Evaluation of On site Rationalization Public disclosure/ Inspection annual report investigation plan guidance compliance order

If the assessment If deemed significantly In case of refuse result is poor insufficient against to comply judging criteria

21 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Training System of Specialized Technical Engineers

 Purpose of Creating the System This system was created in FY2007 to build an environment in which each employee can work with stronger motivation and a sense of challenge. It also aims to improve the technical performance and skills of each employee and to maintain their technical abilities, which are closely related to the frontline as a power utility, and to pass them on to the next generation.

 Target Persons Persons who meet the following requirements are accredited as specialized technical engineers:  Belong to an applicable office for accreditation  Have advanced technical knowledge and skills closely related to practical work  Have strong leadership and passion to teach technical knowledge and skills to the younger generation  Not an officer

 Role A new role is given: to help solve various technical tasks in the office, and to instruct and train the younger generation on cross-cutting technical performance and skills closely related to ordinary work, mainly in the office.

22 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Training System for Specialized Technical Engineers in the Distribution Sector  Accredited Fields As of Sept. 2010 Number of Accredited Fields Name persons Particular Grid Failure Specialized Technical Engineer (Particular Grid Failure) 11 Distribution Network Specialized Technical Engineer (Distribution Network Automation Equipment Automation Equipment) 13 Measuring Equipment Specialized Technical Engineer (Measuring Equipment) 15 Unit Substation Specialized Technical Engineer (Unit Substation) 6 Pursuing electrical work together with other Specialized Technical Engineer (Pursuing electrical work infrastructure companies (eg. together with other infrastructure companies) 10 water/gas company) Specialized Technical Engineer (Indoor Type Transformer Indoor Type Transformer (22kV) (22kV)) 2 Total: 57 persons  Roles of specialized technical engineers Training for young people  Tackling technical challenges at the job site  Giving technical instruction and advice on various  Investigating causes, creating and implementing maintenance work such as inspection, measurement, countermeasures in case of power failure/troubles and checking under presence  Addressing various technical challenges on  Grasping the skill level of the younger generation, maintenance and construction works giving proper instruction and advice to individuals, and compiling the contents of instructions  Drawing up training plans  Teaching at various group education sessions 23 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Specialized Skill and Engineer Activity

Main Action throughout Company

• Briefing session of activity of specialized technical engineers （Once a year） • Study session of specialized technical engineers （Newly planed） • Support of lecturer in the lesson to train specialized technical engineers （Jul ～ Oct） • Support of Specialized Training in the Distribution Engineering Center (DEC) • Participation to the Working Group of Head Office （New Meter SWG, Distribution Tower WG etc.） • Support of Training in the branch offices, Support of work in each section, etc.

•The condition of activities is grasped and the plan of activities is followed, by collecting the report of action plan periodically (Once a quarter of year) which includes activity results of specialized technical engineers. •The opinions to improve system of specialized engineers and activities are exchanged in briefing session of activity. •The leaders of each field lead to support specialized technical engineers in support action, training support, and training of next candidate.

24 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Trends in final energy consumption in Japan Final energy consumption in Japan has been increasing. (except oil crisis and economy depression)  While GDP increased by 2.3 times from 1973 to 2009, total energy consumption increased by 1.3 times. The growth rates of final energy consumption in each sector are different. (Transportation 1.9 times, Commercial/ residential 2.4 times, Industrial 0.85 times)

TOE Trillion Real GDP Yen Total energy 1973→2009 consumption 2.3 times 1973→2009 Transportation sector 1.3 times Transportation 1973→2009 1.9 times Commercial/residential sector Commercial/ residential 1973→2009 2.4 times Industrial Industrial sector 1973→2009 0.85 times

Source: Agency for Natural Resources and Energy, cabinet office Increase in the commercial/residential sector which accounts for over 30% of all is remarkable. Reinforcement in this sector is most sought. (Need to focus in the priority areas) 25 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Introduction of benchmark classified by sector [back ground] ○Fairer evaluation of business entity’s effort ○Promotion of business entity’s effort by visualization of energy saving efforts t is difficult for business entity who has already tackled with energy conservation to considerable degree to accomplish further energy saving. Defining the benchmark index by which business entities’ effort can be Image of benchmark compared contribute to fair evaluation of business entities’ effort and making low-performing business entities tackle further efforts. The superior business entities (10~20%) of each sector become target level. target

[How to select industrial sector for benchmark] In FY 2008, three industrial sectors of steel, cement and electric power were chosen. It’s decided in consideration of largeness of their energy consumption (occupies 40% energy consumption in all industrial sectors) , and extent of international argument in each sector. Paper manufacturing, oil refinery, and the chemical industry were added in FY 2009. (The cover rate of the energy consumption expanded to about 60%) Expansion to commercial sectors such as office, retailing, etc is considered in the future.

［Publication of benchmark results］ In order to urge spontaneous efforts by business entity, average and standard deviation of benchmark are published. The names of excellent energy saving entities are published. Source: METI 26 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012

1.4.2 Top runner standard and Energy saving labeling system

27 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Overview of energy conservation measures (Regulation) Industrial Commercial & Residential Transportation Commercial Residential

Energy-saving labeling system Inform consumers of energy efficiency of house appliances

28 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Top Runner Program (1) • Energy conservation standards for domestic appliances and vehicles are set in the Top Runner program. • The concept of the program is that energy conservation standards shall be set exactly the same as or higher than the best standard value available in the market.

How to set the target standard Target products （23 products）

Standard 1. Passenger Vehicles 13. Computers Energy 2. Freight Vehicles 14. Magnetic Disk Units consumption 3. Air Conditioners 15. Copying Machines Efficiency Target 84 standard (80) 4. Electric Refrigerators 16. Space Heaters 5. Electric Freezers 17. Gas Cooking Appliances 83 6. Electric Rice Cookers 18. Gas Water Heaters 7. Microwave Ovens 19. Oil Water Heaters 80 8. Lighting equipment 20. Vending Machines 78 79 9. Electric Toilet Seats 21. Transformers 10. TV Sets 22. Routers Achievement is judged by 11. Video Cassette Recorders 23. Switching Units 75 weighted average per 12. DVD Recorders (※) two products are added in 2009 best standard product category value available in 74 the market (78) (84+83+79) / 3 = 82 80 Target standards are subdivided according to the type and size, etc. In case of TV ≧ TV type Television size At the time Target year •Carbon lay tube TV, •Below 19V size of setting •Liquid crystal TV •19V ～32V the standard •Plasma TV •32 size or larger Source: METI 29 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Top Runner Program (2) • There is obligation to comply with the standards. In case of failing to comply, recommendation, publication, order, penalty are imposed. • For each of the companies that manufacture or import machinery and equipment covered by the Top Runner Program. Possibility to application of legislation for importers in PPA countries In case of TV, manufacturers or importers whose total shipment volume is fewer than 10,000 units are exempted.

1. Passenger Vehicles 2,000 vehicles 13. Computers 200 units 2. Freight Vehicles 2,000 vehicles 14. Magnetic Disk Units 5,000 units 3. Air Conditioners 500 units 15. Copying Machines 500 units 4. Electric Refrigerators 2,000 units 16. Space Heaters 300 units 5. Electric Freezers 300 units 17. Gas Cooking Appliances 5,000 units 6. Electric Rice Cookers 6,000 units 18. Gas Water Heaters 3,000 units 7. Microwave Ovens 3,000 units 19. Oil Water Heaters 600 units 8. Lighting equipment 30,000 units 20. Vending Machines 300 units 9. Electric Toilet Seats 2,000 units 21. Transformers 100 units 10. TV Sets 10,000 units 22. Routers 2,500 units 11. Video Cassette Recorders 5,000 units 23. Switching Units 1,500 units 12. DVD Recorders 4,000 units

30 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Top Runner Program (3) Result s of energy efficiency improvement are beyond initial expectations.

Example of energy efficiency improvement Product category Energy efficiency improvement (result) Energy efficiency improvement (initial expectation) TV receivers (TV sets using CRTs) 25.7％（FY 1997 → FY 2003） 16.4％ Air conditioners 67.8％（FY 1997 → 2004 freezing year） 66.1％ (Room air conditioners) Electric refrigerators 55.2％（FY 1998 → FY 2004） 30.5％ Fluorescent light equipment 35.7% (FY 1997 → FY 2005) 16.6％ Copying machines 72.5% (FY 1997 → FY 2006） 30.8％ Magnetic disk units 85.7% (FY 2001 → FY 2007） 71.4％

Example of Air conditioner Transition of energy consumption Comparison of efficiency of top model

75.7% reduction COP

year Japan USA EU China Thai 31 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Overview of energy conservation measures (Regulation) Industrial Commercial & Residential Transportation Commercial Residential

Energy-saving labeling system Inform consumers of energy efficiency of house appliances

32 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Energy Saving labeling system (mainly for manufacturer)

• The energy saving labeling system has been introduced to inform consumers of energy efficiency of home appliances and to promote energy efficiency products • 18 products are selected from targets of top runner program in consideration of high frequency usage by general consumer.

Info -3 Info -4 Energy conservation standard achievement Annual Electricity percentage Consumption 108％ 175kWh/year Target year FY2006 Info -2

Info -1 Green: target is achieved, Orange: non-achieved

Energy conservation Label for the product's standard achievement Annual Electricity main unit percentage Consumption 91％ 206kWh/year Target year FY2006 Source: Agency for Natural Resources and Energy “ 33 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Energy Saving labeling system (mainly for retailer)

• The obligation to make efforts to provide information by retailers was stipulated in 2006. • 5 products are selected with consideration for largeness and variability of electricity consumption. (Air Conditioners, TV sets, Electric Refrigerators, etc) • More detailed information is provided to consumers.

Info -1: year the label was prepared Info -2: CFC mark represents CFC-free refrigerators (*) CFC: chlorofluorocarbon

Info -3: Multi-stage rating system － energy saving performance is indicated 5 stages. Arrows are placed under the stars, showing achievement and non- achievement for top runner standard .

Info -4: the same information as Energy saving labeling system for manufacturer

Info -5: Expected annual electricity bill

Source: Agency for Natural Resources and Energy “2009 Energy Conservation Performance Catalogue Summer” 34 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 National Government’s Subsidy System

 Eco-Point System ①CO2 reduction ②Vitalization of the economy Purposes ③Familiarization of TV sets for terrestrial digital broadcasting

Eligible Air conditioners, electric refrigerators and TV sets for terrestrial digital broadcasting equivalent to 4 stars ( ) or over of the Uniform products Energy Conservation Label.

Products for exchange

①Energy Conservation and environment-friendly products ②Redeemable gift certificates or prepaid cards (of environment- friendly purpose, such as sponsor’s environmental donation) that can be used nationwide ③Contribution to regional development (local merchandise coupon, Eco-Point Product Label local goods, etc.) and others….

Source: Agency for Natural Resources and Energy “2009 Energy Conservation Performance Catalogue Summer” 35 35 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012

1.5 Subsidy and tax reduction, etc for supporting energy conservation

~ Model cases to consider the supporting policy for energy conservation measures ~

36 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Overview of energy conservation measures (Support) Industrial Commercial & Residential Transportation Commercial Residential

Subsidy for developing energy conservation technology (high efficiency heat pump, high-efficiency heat insulating material, etc)

Provision of information related energy conservation

37 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Subsidy on support for building renovation aiming energy conservation Overview and purpose Business Image ○In order to promote energy saving in the commercial and residential sector as one of the measures to mitigate tight supply and demand, subsidize equipment Air conditioner Heat Insulating introduction with a certain amount of energy saving ex) High efficiency Air ex) multi layer window, high performance glass effect to existing buildings. conditioner

○Specifically, (1)The targets of subsidy are limited to air-conditioning, water heater, lighting equipment, heat insulation equipment, etc in consideration on reduction effect of electricity consumption. (2)Although in case of introduction of only equipments, Hot water supply Lighting (High efficiency subsidy can be given if the following requirements are equipment heat source) satisfied. “replace more than half of equipments in the ex) High efficiency ex) High efficiency whole building” and “more than 10% energy saving light (including LED), heat pump, high illuminance sensor efficiency boiler, effect” cogeneration

○These measures contribute to reduce electricity consumption of commercial and residential sector by promoting equipment-only replacement in building which was not covered in former subsidy system.

○Subsidy rate 1/3 (for small businesses: 1/2) Source: METI 38 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Subsidy on support for business utility aiming rational use of energy Overview and purpose Business Image

○Subsidy on introduction of facilities (limited to New model turbo freezing machine replacement) from the energy saving measures which business utilities planned in the standpoint of “leading edge technology”, energy conservation effect”, and “cost performance”.

○Set the priority on subsidy to introduce “leading edge facility and technology”

○ In order to promote energy saving investment, Next generation coke oven priority is given to small and medium-sized enterprises and energy intensive type businesses.

○Set priority on the business which has high performance for energy saving in order to help mitigation of tight supply and demand situation.

○ Subsidy rate 1/3 or less (business cooperation of different capital; 1/2 or less)

Source: METI 39 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Subsidy on promoting introduction for specified facility aiming rational use of energy Overview and purpose Business Image

○Investments for energy saving facilities are supposed to increase reflecting the growing needs for energy saving in industrial sector, etc and energy conservation from aftermath of great East Japan earthquake

○When the business utilities which install energy saving facilities or and top-runner equipments take out a loan from private sector financial institutions, the subsidy which serves as a low interest can be obtained. High efficiency turbo freezing machine ○ Subsidy rate fixed amount (grant-in-aid for paying interest 1.0%)

Top runner facilities

Source: METI 40 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Subsidy on promoting introduction for energy saving measures Overview and purpose Business Image

○In consideration of aftermath from the great East Japan earthquake, target business utility is expanded Plan Do from 2012.

Check Action

Source: METI 41 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Overview of energy conservation measures (Support)

Industrial Commercial & Residential Transportation Commercial Residential

Subsidy for developing energy conservation technology (high efficiency heat pump, high-efficiency heat insulating material, etc)

Provision of information related energy conservation

42 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Information provision prescribed in Energy conservation law The obligation to make efforts to provide information about general consumer is prescribed to energy supply utilities.

Energy saving information to Present situation consumers Monthly energy consumption of the It has already provided on electricity bill corresponding month of last year used by general consumer Monthly energy consumption and charge for Information service on web has started in some past one year used by general consumers electric utilities. Rough indication on reduction of energy Energy-saving advice is indicated on electricity consumption and charge by devising the bill. usage of equipments. The electric power used by individual equipment is considered to offer through HEMS (Home energy management system) in the future. Performance and subsidy information for Information has already provided in HP of energy saving equipments electric utilities, etc. In the future, the further information dissemination is supposed as an energy management service by introduction of HEMS, etc. Source: METI 43

44 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012

Energy efficiency improvement business by utility

Taiichi Kaizuka The KANSAI Electric Power CO., INC.

45 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012

Index (Day 3)

2. Energy efficiency improvement business by utility 2.1 Overview and scheme of ESCO 2.2 Application example of ESCO 2.3 Economic side of ESCO

3. Actual application of Energy efficiency improvement 3.1 America - EERS 3.2 France – Eco watt

GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012

2.1 Overview and scheme of ESCO

47 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 What is “ESCO”? Even if you want to start renovation work for energy-saving...... ・Financing of initial investment is difficult. ・Reduction of energy cost does not progress. ・The expense of equipment maintenance may occur suddenly and hard to control cash planning ・I do not want to have an excessive capital from the viewpoint of financial strength. ESCO: Energy Service Company

Customer gain

ESCO expenses

Customer gain - Interest Energy on effect Initial conservati ment

Repay investment Utility charge payment ESCO operator shall Utility charge guarantee the Utility charge payment achievement. payment

Before introduction of the During implementation of After the contract term ESCO project the ESCO project completed

ESCO covers expense for energy saving renovation by its saving merits (reduction of fuel and light cost, etc). ESCO business company provides the comprehensive service like energy audit, design and construction for renovation work, operation and maintenance for facilities. ESCO is characterized by its performance contract by which ESCO business company guarantees the energy saving performance to customer. 48 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Spreading and promotion of the ESCO business ～ The ESCO market is expanding ～  ESCO-related markets have shown rapid growth since ESCO was introduced to Japan in the mid-1990s.  However, market size in FY 2004 decreased from FY 2003 due to a decrease in the number of large- scale projects in the industrial sector.  Market size increased in FY 2005. In particular, the percentage of performance contracts increased.

(Unit: 100 mil.(億円) yen) Trends省エネルギー改修工事の推移（受注額） on energy-saving renovations in Japan (orders received)

600 その他 Others 557 1Us$ = 80yen (2012.5) 診断＋省エネ改修工事＋パフォーマンス契約Energy audit + Energy-saving renovation + Performance contract 診断＋省エネ改修工事Energy audit + Energy-saving renovation 515 497 500 省エネ改修工事のみEnergy-saving renovation 449

400 74 374 140 30.3303億円 billion 68% 353 yen, 68% 300 265 36 172 186 200 170 10 19

100

0 1998 1999 2000 2001 2002 2003 2004 2005 年度FY Source: JAESCO  Market size in the U.S. in FY 2000 was approximately 2 billion dollars. The Kansai has affiliate company offering ESCO business

(KENES: Kanden energy solution). 49 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 ESCO business provides comprehensive service General renovation work ESCO for energy saving Comprehensive services of the ESCO project comprehensive service. (1)Energy audit and consultation for finding energy conservation measure Facility Pre energy audit investigation (2)Planning, design, construction and

construction management for introducing Energy audit Design & energy conservation measures Estimate (3)Measurement and verification of energy contract Individual Planning of an conservation effects after introduction execution plan contract (4)Maintenance and operational management of introduced facilities and systems

ESCO service Contract) contract (5)Project financing, arrangements with financial institutes, etc.

Renovation work (turnkey Renovation work contract

Measurement and Individual verification of the energy-saving Contract In the case of a general energy saving effect renovation work, it is difficult to guarantee

energy saving effect because design

Operation, Blanket contract, construction contract, and the maintenance, and operation operation & management contract for

inspection of contract facility Individual facilities become separate in usual cases.

Blanket contract Individual contract 50 Source: JAESCO GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 The feature of ESCO is performance contract

Contract Type Guaranteed savings contract Shared savings contract Item

Funds flow

Energy-saving renovation Customer ESCO Company costs covered by Owner of energy-saving Customer ESCO Company facilities Service charge payment A certain amount of money or a certain percentage of energy saving gains (saving on utility bills) is paid. Division of profits after All energy saving gains (saving on utility bills) belong to customers. 51 completion of the contract

GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 The feature of ESCO is performance contract (cont.) Contract Type Guaranteed savings contract Shared savings contract Item

Cash flow

Benefit for 1) Energy-saving is ensured because the 1) Energy-saving is ensured because the amount of customers amount of conserved energy is assured. conserved energy is assured. 2)Energy-saving facilities belong to 2) Off-balance-sheeting energy-saving facilities customers because they cover the (facilities need not be incorporated in the balance initial investment costs. sheet) 3) Customers do not have to take financial risks because ESCO companies cover the cost to install energy-saving facilities.

ESCO business company guarantees the amount of energy-saving reduction by a performance contract. For this reason, ESCO business company has incentives to execute reliable renovation work to secure design performance. ESCO business company has incentives for operation & maintenance of facility, because three is merit also to ESCO company when energy reduction effect is better than it was guaranteed. 52 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012

2.2 Application example of ESCO

53 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Example of ESCO business (at a hospital)

○Support, in the forms of partial subsidy for initial investments, low-interest loans, etc., is extended to private enterprises and local governments implementing ESCO business. ○ ESCO projects have tended to increase their shares among “the government subsidy to disseminate and promote the projects that introduce highly-efficient energy system for residences and buildings” and “the government subsidy to assist businesses who execute the rational use of energy”.

Energy saving lighting Inverter control ■Reduced power for air ■Energy conservation省エネ照明 with a three-step light-modulating conditioning fan/pump inverter stabilizer

Reduced water use when using the toilet Fluorescent蛍光灯 lights ■Steam drain used as Steam line 蒸気ライン gray water ■ Insulation,■断熱、統合 integration Gas driven absorption-type hot water system ■Updating to the latest Top Parking 駐車場 Runner qualified equipment Power Central disaster 電気室 Hot/cold冷温水機 Machine prevention room water 機械室ボイラ room Boiler drain ドレン水 monitoring center system Co-generation system ■Toilet using■ 中水利用（トイレ）gray water ■Supply of electricity/heat ■Effective use of exhaust heat

Energy conservation effect from ESCO: approximately 25% 54 Source: METI GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Example of ESCO service by KENES ESCO service： Guaranteed saving contract, Service start： April,2010, Customer: university

Overview of ESCO service

【Introduction of air-conditioning control 】【GHP→EHP 】 Schedule operation, timer operation, temperature Gas engine heat pump with long running time is control using computer contribute to cut waste changed into electric heat pump.

before After

【Air cooling heat pump package air-conditioner 】 steam driven absorption refrigerating machine, 【change to direct expansion air conditioning】 steam heat exchanger, Air conditioning air An air cooling heat pump chiller is improved to handling FCU changed into air-cooled heat pump an efficient air cooling heat pump package. type packaged air conditioners

before After before After

55 Source: KENES GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Example of ESCO service by KENES (cont.)

【Downlight changed to LED 】【Change to fluorescent light with inverter ballast】 Introduction of LED downlight with long life, Fluorescent lights are exchanged to high efficient energy saving and merculy-less type and the motion sensors were introduced at halfplaces.

【Saving energy belt】【Reduction of water for toilets】 After before Fans with long running time demo sound equipment and are exchanged to energy Automatic washing machine saving type. Cost reduction -14%

【High efficiency transformer】 Change to high efficiency oil- before after immersed transformer (300kVA ×１、200kVA×1)

56 Source: KENES GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Mechanism of heat pump (in case of cooling) Heat pump is technology which is made to move the heat which air and water have and is used for an air conditioning, hot-water supply, etc. Electricity is not directly used as a heat source like an electric heater, but electricity is used as a driving force for making heat transfer, and the heat filled in the atmosphere is used well.

Air conditioning utilizing “heat pump” technology expansion valve Inflated & get cold 16 55 45 5 Temperature The℃ room is difference causes ℃ ℃Heat Pump Cycle ℃ cooled. spontaneous transfer of heat. 35 26 Evaporator (Outdoor) 75 10 ℃Condenser (Indoor)℃ compressed &get hot Compressor℃ (driven by electricity)℃

(1) Hot liquid refrigerant is cooled by outdoor air through heat exchanger. (2) Liquid refrigerant evaporates through valve and its temperature falls. (3) Cold gas refrigerant removes air heat indoor (air conditioning). (4) Compressor compresses and liquefy refrigerant. 57 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012

Mechanism of heat pump (in case of heating)

Refrigerant compressed by compressor raises temperature. Electricity

Compressor Heat absorption from the air Discharge of heat (1)+(5) =

Evaporator Condenser

Exterior Interior

Expansion valve Temperature falls by suddenly lowered pressure.

58 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012

2.3 Economic side of ESCO

59 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Economic Evaluation (1) • Lifecycle (or Lifetime) Cost (A) Introducing system of low initial cost and low efficiency(=high energy cost) Total owning cost of period for use = I + E ×( Period of use ) Initial cost (machine and its installation)

*Lifecycle Cost for 10yrs IA Annual energy cost

EA × yr LCCA=IA + EA 10 (B) Introducing system of high initial cost and high efficiency(=low energy cost)

LCCB=IB + EB×10

IB (A) (B)

E *Not in consideration of interest or discount rate for simple B yr 60 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Economic Evaluation (2) • Payback Period for Introducing Higher Efficiency System (A) (A) Accumulated Cost

Initial cost (machine and its installation) (B)

IA Payback Period Annual energy cost

EA yr (B)

EB yr yr Comparing (B) to (A), payback period

= (IB-IA)/(EA-EB)

(when just replacing newer system, IA=0)

*Not in consideration of interest or discount rate for simple 61 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Economic Evaluation (3) • Annual Equivalent Cost *Annual Equivalent Cost for Lifetime of 10yrs AECA=IA /10 + EA (=LCCA/10) (A)

Initial cost (machine and its installation)

IA Annual energy cost

EA yr (B) AECA=IA /10 + EA (=LCCA/10)

EB yr

*Not in consideration of interest or discount rate for simple 62 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 How to compare the present value and future value? In consideration of opportunity cost, ○Present value It is discounted at the same time point. Present 100$ ＞ 1 year later 100$

110/1.1=100 121/1.1/1.1=100

Present 100$ ＝ 110$ in 1 year later Present 100$ ＝ 2 years later 121$ 414 132+184+189=505, is not correct answer 142 184 189

152 132/1.1=120 132 184/1.1/1.1＝152 189/1.1/1.1/1.1＝142 120 120 + 152 + 142 = 414

present 1year later 2years later 3years later

The project cost must be discounted at the same time point 63 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Example for ESCO Service charge (1)

Facility installation expenses 9150 In case of Removal 910, and other expenses 50% of a grant rate with a subsidy is spread into annual basis 100$/year Maintenance 245 Customer’s merit Customer’s merit Water 135 Reduction 920 Reduction 1,600 Expense 1,990 ESCO Charge 1,990 for Light Heavy fuel ESCO Charge oil 1,070 Heating 2,230 390 Water 24 Water 24 Water Light Electricity Electricity 906 Electricity 906 Heating 310 water before 1~15 years later 16~20 years later

Customer’s merit Maintenance 245 Customer’s merit Water 135 730 1,410 Expense Reduction Reduction Heavy fuel 1,799 ESCO Charge 1,799 for Light ESCO Charge oil 1,070 Heating 2,230 390 Water Water 24 Water 24 Light Electricity Electricity 1,096 Electricity 1,096 Heating 310 water 1~15 years later before 16~20 years later ESCO service charge in case $45.7mil subsidy 64 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Example for ESCO Service charge (2)

Since there is no subsidy, In case of no subsidy ESCO service charge goes up. 100$/year Customer’s merit Maintenance 245 Customer’s merit Water 135 508 Reduction Reduction 1,558 Expense ESCO Charge 1,990 1,990 ESCO Charge for Light Heavy fuel 1,481 oil 431 Heating 2,230 Water 24 Water 24 Water Light Electricity Electricity 906 Electricity 906 Heating 310 water before 1~15 years later 16~20 years later

Maintenance 245 Customer’s merit 318 Customer’s merit Water 135 Reduction Reduction 1,368 Expense 1,799 ESCO Charge 1,799 Heavy fuel ESCO Charge for Light 1,481 oil 431 Heating 2,230 Water 24 Water 24 Water Light Electricity Electricity 1,096 Electricity 1,096 Heating 310 water 1~15 years later 16~20 years later before 65 66 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012

Actual application of Energy efficiency improvement

Taiichi Kaizuka The KANSAI Electric Power CO., INC.

67 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012

Index (Day 3)

2. Energy efficiency improvement business by utility 2.1 Overview and scheme of ESCO 2.2 Application example of ESCO 2.3 Economic side of ESCO

3. Actual application of Energy efficiency improvement 3.1 America - EERS 3.2 France – Eco watt

GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012

3.1 America - EERS

69 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Policy on energy efficiency improvement to electric utilities (U.S.) In the U.S., the state law which defines the amount of energy-saving duty (EERS: Energy Efficiency Resources Standard) to future electricity sales has become widespread. Curbing electric power sales is made compulsory not to consumers or public institutions but to electric utilities. (From the side of electric utilities, it will exactly be that the income reduction by curbing electricity sales is forced.) As an incentive to electric utilities, cost recovery for energy saving program, lost revenue recovery, performance incentive, etc. It was first introduced to Texas in 1999, and 26 states have already introduced as of January 2011. Legislation on performance incentive Legislation on EERS for energy saving investment

Combined Performance Under EERS Voluntary Under Source: IEE goal consideration EERS/RES Incentive investigation Source: ACEEE 70 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Incentive scheme to support energy efficiency improvement (1)

What is “Throughput incentive”? The main schemes for making electric utilities •An electric power supplier as well as other manufacturers pursues profits by increasing promote energy efficient measures is as follows. goods, i.e., electricity sales. (1) Cost recovery for energy saving program •That is, it is natural to think that corporate (2) Lost revenue recovery activity seeking more electricity sales is induced. (3) Performance incentive •When discussing promotion of an energy- saving measure, this is called “throughput

incentive” works. (1) Cost recovery for energy saving program Cost recovery for energy saving program like energy saving education, subsidy for replacement from electric bulb to FL (fluorescent light) is the minimum condition. Recovery schemes are •include in rate base and collect as electricity charge •collect by adding extra charge (ex. surcharge) to electricity charge •recover from funds collected proportionally to electricity consumption aiming at public-interest use like subsidy to low income group (SBC:System Benefits Charge)

(2) Lost revenue recovery (2-1) Direct compensation •Recover decrease in electricity sales due to energy saving by adding extra charge (ex. surcharge) to electricity charge •Weak point of direct compensation is that accurate method for measuring energy saving effect doesn’t exist. Few states have introduced. •Moreover, since there is no mechanism of collecting the exceeding sales from an electric utilities in case of electricity sales increase, it does not lead to prevention of throughput incentive. 71 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012

Incentive scheme to support energy efficiency improvement (2)

(2-2) Decoupling •The basic scheme is separation of relation between sales revenue and amount of electricity sales. •That is, a fixed sales revenue guaranteed irrespective of amount of electricity sales. •It is also applied to demand fluctuation resulting from weather condition or economic trends. • If the electricity sales revenue is less than overall cost which is applied at rate revision, collets deficit by raising electricity rate and vice versa. Therefore, throughput incentive does not work. •Since adjustment is done not by the amount of energy saving achievement but by sales revenue, measurement of the energy saving effect is unnecessary which results in becoming operational under relatively simple scheme. •Since In order that a circulation income may aim at profits increase in the fixed bottom, •Since pursuing profit is restricted under the fixed electric sales, electric utilities have incentives for cost reduction. •Large quantity consumer organization (Industrial Energy Consumers of America) expresses concern over decoupling as this scheme hangs the consumer side on the risk of electric sales reduction.

72 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Incentive scheme to support energy efficiency improvement (3) Principle of Decoupling Rate FY A B C(A/B) D E(D/B) F G(E×F) H(G-A) I(D-G) revi Full Expected Unit Price Approved Applied Actual Actual Difference Balance sion cost($) sales ($/MWh) revenue unit Price sales revenue account (MWh) 1 100.0 1000 0.100 100.0 0.100 1100 110.00 10.00 ▼10.00 1st 2 100.0 1000 0.100 90.0 0.090 990 89.10 ▼10.90 0.90

2nd 3 111.1 1010 0.110 112.0 0.111 1010 112.00 0.90 0.00

The principal of filling lost profit Direct filling decoupling The usual charge design Charge income Charge income Charge income Full cost Full cost Full cost

Assumption volume of sales Assumption volume of sales Assumption volume of sales Expected Expected Expected sales sales sales

GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Incentive scheme to support energy efficiency improvement (4)

(3) Performance incentive •Although the schemes described above, (1) Cost recovery for energy saving program or (2) Lost revenue recovery are supposed to get rid of negative incentives when electric utilities are going to implement energy saving measures, only their use are not connected with investment on positive energy saving measures. •For this reason, performance incentive proportional to achievement degree of energy saving is considered. Conversely, it is considered that imposing penalty is also effective for negligence.

•Specifically, there invented three kinds of schemes. ①Performance target incentives Reward can be obtained in proportional to achievement degree of energy saving against the target prescribed in every fiscal year by the regulating authority. ②Shared savings incentives There generated the merits like reduction of fuel procurement or elimination of construction cost for electricity supplying facilities by energy saving measures. The part of merits converted into financial value is allocated to electric utilities on the basis of its degree of energy saving effort. The rest of merits is deemed to give back to consumer side. ③Rate of return incentives Return rate for energy saving investment is set higher than the other investments.

74 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Introductory situation of incentive scheme by state Cost recovery for energy saving Lost revenue recovery Performance Save a State Direct rate base SBC surcharge decoupling incentive watt compensation Alabama Yes Alaska Arizona Yes Yes Yes Arkansas Yes California Yes Yes Yes Yes Colorado Yes Yes Yes Connecticut Yes Yes Yes Delaware Yes Pending District of Columbia Yes Florida Yes Pending Georgia Yes Yes Hawaii Yes Pending Idaho Yes Yes Pending Illinois Yes Indiana Yes Pending Iowa Yes Yes Kansas Yes Pending Kentucky Yes Yes Yes Pending Louisiana Maine Yes Maryland Yes Yes Massachusetts Yes Yes Yes Michigan Yes Yes Minnesota Yes Yes Yes Mississippi Yes Missouri Pending As of 2009, Source: ACEEE 75 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Introductory situation of incentive scheme by state (cont.) Cost recovery for energy saving Lost revenue recovery Performance Save a State Direct rate base SBC surcharge decoupling incentive watt compensation Montana Yes Pending Nebraska Nevada Yes Yes New Hampshire Yes Pending Yes New Jersey Yes Yes New Mexico Yes New York Yes Yes Pending North Carolina Yes Pending North Dakota Ohio Yes Yes Yes Oklahoma Yes Yes Oregon Yes Yes Pennsylvania Yes Rhode Island Yes Yes South Carolina Yes Pending South Dakota Tennessee Texas Yes Yes Utah Yes Yes Vermont Yes Yes Yes Virginia Washington Yes Yes West Virginia Wisconsin Yes Yes Yes Yes Wyoming As of 2009, Source: ACEEE 76 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 State EERS targets 25%

20%

15%

10%

5% Cumulative Savings as % of Retail Sales % of Retail as Savings Cumulative

0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Ten geographically dispersed states have committed to long-term targets to achieve over 10% cumulative annual savings by 2020 Source: ACEEE 77 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Cumulative Electricity Savings of State EERS Policies Extrapolated to 2020

*Savings beginning in 2009 extrapolated out to 2020 based on final year of annual savings required

Source: ACEEE 78 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Savings vs. Targets in 2010

Percent Savings Compared to Retail Sales Retail to Compared Savings Percent

*Reference year for savings is 2009

Source: ACEEE 79 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012

3.2 France – Eco watt

80 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Power saving campaign in the Bretagne district - Eco Watt (1)

In the Bretagne district of northwestern France, the consumer participation type power-saving campaign “Eco Watt" was started in 2008. This campaign is taken place in winter season (Nov - Mar) when electricity demand reaches a peak. This campaign has been hosted by RTE (power transmission subsidiary of EDF), in addition, local government bodies, ADEME (environment and energy-saving agency), and ERDf (power distribution subsidiary of EDF) have cooperated. Electric supply and demand situation of the day and next day is informed on the web. If power consumption exceeds a fixed level, "alarm" will be sent through an E-mail etc. to the "cooperator" who registered in advance to urge power-saving action. According to estimate by RTE, it is thought to be about (in the case in the Bretagne district) 2~3% effective to peak demand. 81 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Power saving campaign in the Bretagne district - Eco Watt (2) Map of Bretagne 400kV transmission system （as of March,2008）

1. Electric situation in Bretagne In Bretagne, construction plan of "Plogoff nuclear power plant" which was expected to become main power sources was abandoned in late 1970s, because of the strong opposition from local residents. It is not easy to realize power plant project (not only nuclear, but the other sources like wind power) in Bretagne where ecologists have great influence. As a result, generation capacity in Bretagne can supply only 8 –10 % of local consumption. Power supply in Bretagne depends on the generation sources located in the east. Since it is supplied from the considerably distant nuclear and thermal power plant, the transmission capacity approaches its limit at peak hours and blackout risk increases.

The effect expected by Eco Watt 1.Energy conservation effecti under tight supply and demand situation 2.Energy saving as everyday behaviors

3.Educational role for power saving and energy saving is fairly important 82 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Power saving campaign in the Bretagne district - Eco Watt (3) 2. How Eco Watt works? Power supply and demand situation of that day and the next day is shown by 3 colors, green, orange, and red on the website (www.ecowatt-bretagne.fr). Simultaneously, “cooperators” are sought to participate Eco Watt. Alarm is sent through e-mail and RSS feed, etc to “cooperators” who had registered in website in advance in case of tight supply and demand situation. As a "cooperator", three categories of individual, company, and local government body and public institution are assumed. The guidance "suitable action (bons gestes)“ including information for expected power saving in winter peak hours (morning and 18:00- 20:00) are on the website classified into above three categories.  The local government bodies and companies are provided "Eco Watt oath charter“ and choose concrete plan (power saving behaviors such as putting off lights in office, recommendation of Eco Watt registration to personnel) and sign. Participating organization makes public on its website and each cooperative organization appeals by displaying Eco Watt posters and adding Eco Watt logo to e-mail signature and aims image enhancement and popularization. Approach methods are devised according to target. Seminar for companies and educational DVD for children was made under the cooperation of the chamber of commerce and the board of education.

3. The result of Eco Watt campaign ・08-09 year： Cooperator 9000, Alarm 9 times, effect of power saving was unknown ・09-10 year： Cooperator 18500, Alarm 11times, max power saving ：1.5% of peak demand ・10-11 year： Cooperator 30800, Alarm 7times, max power saving ：2.0% of peak demand ・11-12 year：Cooperator 45000, Alarm7 times, max power saving ：2.0%～3.0% of peak demand （max power saving is estimate by RTE based on questionnaire result and power consumption data, etc.) 83 GSEP/PPA Energy efficiency improvement Workshop Fiji Islands June 11-15, 2012 Power saving campaign in the Bretagne district - Eco Watt (4)

The field survey by the Kansai Electric Power team ：Local Newspaper（Ouest France） 3/16/3/2012

4. Result of questionnaire about Eco Watt In February 2011, RTE carried out the questionnaire toward "cooperators“, “local government bodies”, and “local residents" in the Brittany. The result proves the visibility and high evaluation of Eco Watt. Q. Have you heard "Eco Watt"? - Local residents 72%-YES Local governments 92%-YES Q. Do you evaluate Eco Watt positively? –Cooperators 100%-YES Local governments 96%-YES Local residents 97%-YES 93% Cooperator is satisfied with alarm system. 97% Cooperator answers that they will save power in case of receive alarm and try to save power in everyday basis.

5. Others "Provence Azur Eco Watt campaign" was started in the Provence Azur district of south France in autumn of 2010. 84 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012

Development of EEI-related legislation Introduction of EEI-related systems

Taiichi Kaizuka The KANSAI Electric Power CO., INC.

1 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012

Index (Day 3) 1.Development of EEI-related legislation Introduction of EEI-related systems 1.1 Overview of energy conservation measures 1.2 Why is energy conservation important? 1.3 Why was energy conservation accelerated in the past? 1.4 Energy conservation measures by regulation 1.4.1 Measures for Factory/Business establishment 1.4.2 Top runner standard and Energy saving labeling system 1.5 Subsidy and tax reduction, etc for supporting energy conservation

2.Energy efficiency improvement business by utility 2.1 Overview and scheme of ESCO 2.2 Application example of ESCO 2.3 Economic side of ESCO

3. Actual application of Energy efficiency improvement 3.1 America -EERS 3.2 France –Eco watt

2 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012 Overview of energy conservation measures (Example of Japan) •Divided into three sectors, “Industrial”, “Commercial & Residential”, “Transportation” •Measures are divided into “regulation by law”and “support by tax reduction and subsidy”.

Support • (tax Need financial resources (Prepare as national budget or ADB grant) • reduction, Appropriate support level (low: inactive response, high: budget subsidy, etc) shortfall) •Influence to ESCO business

3 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012 Overview of energy conservation measures (Regulation)

Industrial Commercial & Residential Transportation Commercial Residential

Factory and business establishment Consigner (Annual energy use: 1500kl in crude oil [sender] and equivalent or larger) carrier (above Submit energy saving plan, a certain size) Periodical reporton the use of energy Energy saving plan, report on energy Regulation Owner of residence or building and client consumption (Energy for construction (above a certain size) conservation Submit notification of energy saving measures law) Top Runner Standard Stipulate energy conservation standards for house appliances and vehicles

Energy-saving labeling system Inform consumers of energy efficiency of house appliances

4 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012 Overview of energy conservation measures (Support)

Industrial Commercial & Residential Transportation Commercial Residential

Subsidy for introduction of Eco point Subsidy for energy conservation facilities system for clean energy housing vehicles Support Tax reduction (special depreciation) (tax for introduction of energy Tax Tax reduction conservation facilities and for ecology car reduction, reduction for construction of energy saving building home subsidy, etc) renovation

Subsidy for developing energy conservation technology (high efficiency heat pump, high-efficiency heat insulating material, etc)

Provision of information related energy conservation

5 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012

1.2 Why is energy conservation important?

6 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012

Why is energy conservation important?

ü Contribution to energy security (Does the fuel price go up in the future?) ü The capital investment for infrastructure can be avoided or postponed. ü More effective countermeasure than building new power plant (According to one estimate in the U.S., unit cost for base load type power plant is 7.3 –13.5 cents/kWh, unit cost for energy conservation is about 3 cents/kWh.) ü Energy conservation measures have high mobility. (Effects emerge in a short period. The effect of capital investment on energy conservation comes up in 1 –3 years.) ü The fuel cost can be reduced by operating high-efficiency generator preferentially. (peak shift, peak cut）

7 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012

Why is energy conservation important?(cont.)

ü When the electricity rate is back spread (electricity rate is lower than cost), there is a merit by saving energy. ü It becomes to be widely realized the hardness to restrict using electricity.(Do people become more cooperative to build new power plant? Or still exist NIMBY? Example of “Eco Watt”) ü Contribution to preventingglobal warming ü To be honest.. as an electricity supplier, is it better to sell more electricity?

Demand Response To be exact, demand responses like peak cut or peak shift are not the same energy conservation. DR aims kW reduction and energy conservation aims kWh reduction, but in wider sense, DR also contributes to KWh reduction. In this meaning, DR is also regarded as one of measures for energy conservation.

8 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012 World Energy Demand outlook and comparison of self-sufficiency ratio in the energy supply

ØThe world energy demand is expected to increase by 1.3 times in 2030. (mainly in Asian countries) ØThe competition for acquiring resource by the consuming countries like China will escalate and energy supply-demand structure will become serious.

There is a possibility of spike in fuel price in case that world energy consumption increases greatly. ⇒ The increase of energy purchase expense in the national budget A million ton World Energy Demand outlook oil equivalent comparison of self-sufficiency ratio in the energy supply total Others Energy conservation 1.3 times Africa India contributes to Middle east 1.9 times improvement of Latin America energy self-sufficiency India rate China China Asia (*1) 1.7 times Russia East&Central Asia Japan U.S. Source: IEA 2008 2030 OECD(*2) Italy Japan Germany France U.K. U.S China 12,271 16,014 Source: IEA (*1) except Japan, China, India, Korea (*) Nuclear is counted as imported energy. (*2) except Japan, U.S. Nuclear is counted as domestic energy in parentheses.

Energy conservation contributes to ensuring energy security. 9 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012 Shale Gas Production Projections

10 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012 Shale Gas –Widely Dispersed

Source: EIA 11 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012 Effect of Peak-cut or Peak-shift

Short term: Possible Stored power generation to reduce fuel cost Long term: Possible to reduce the installed generation capacity Thermal power

Pumped storage Purchases and interchanges

Hydro-power

Nuclear

0 3 6 9 12 15 18 21 24 (O’clock) 12 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012

1.3 Why was energy conservation accelerated in the past?

13 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012 The efforts for energy conservation after oil crisis in Japan ØIn Japan, the government and people did their best in energy conservation after the oil crisis of the 1970s. ØAs a result, energy efficiency was improved by 33% during 30 years from 1979 to 2030. ØEfficiency per GDP has made little increase after the 1980s and further approach is expected. Trends of primary energy consumption per GDP in Japan Comparison of primary energy supply per mil TOE / trillion yen GDP unit (2009) TOE / 100 US $ about33% Improvement J apan U . S. EU A u s t r al ia C an a da K o r ea Th ai Mi d e a st I nd o n e s ia C h i na I n d ia R u ss ia W o r ld

Source: IEA (*)TOE: tonne of oil equivalent Source: METI, cabinet office 14 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012 Turmoil in the oil crisis in 1970’s (Japan)

Toilet paper (bathroom tissue) had been sold out ! 15 GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 Progress of energy conservation World Japan 1973 The first oil shock 1979 The second oil shock Enforcement of the Act on “the Law Concerning the Rational Use of Energy”(Energy conservation law) 1988 The 1st Intergovernmental Panel on The Oil Shock built a momentum of Climate Change (IPCC) held in Geneva full-fledged deployment about 1992 The UN Conference on Environment and energy conservation activity in Development (UNCED/Earth Summit) Japan held in Rio de Janeiro 1995 Implementation of the International Energy Star Program 1997 The 3rd Conference of Parties (COP3) held in Kyoto 1998 Enforcement of the Act on Promotion of Global Warming Countermeasures 1999 Establishment of the system for designating the Type 2 Designated Energy Management Factories, Introduction of the Top Runner Standard (*) 2000 Unceasing effort has made to Introduction of the energy-saving labeling system fit with the times on energy 2003 conservation law Enhancement of the measures for office buildings (*) 2006 Establishment of the measures for transportation and the integrated control of heat and Electricity (*) 2010 Introduction of the system for regulating the energy use as a whole enterprise (*) Source: ECCJ (*)Revision of Energy conservation law 16 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012

1.4 Energy conservation measures by regulation

17 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012

1.4.1 Measures for Factory/Business establishment

18 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012 Overview of energy conservation measures (Regulation)

Industrial Commercial & Residential Transportation Commercial Residential

Factory and business establishment Consigner (Annual energy use: 1500kl in crude oil [sender] and equivalent or larger) carrier (above Submit energy saving plan, a certain size) Periodical reporton the use of energy Energy saving plan, report on energy Regulation Owner of residence or building and client consumption (Energy for construction (above a certain size) conservation Submit notification of energy saving measures law) Top Runner Standard Stipulate energy conservation standards for house appliances and vehicles

Energy-saving labeling system Inform consumers of energy efficiency of house appliances

(*)1500kl is about 330 k gallon 19 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012 Measures for Factory/Business establishment (1)

Factories Business Establishments

Department Store School Office Building Hotel Factories/business establishments Factories/business with high energy consumption establishments with medium energy consumption Annual energy use in crude oil equivalent (3000kl～) Annual energy use in crude oil The division of electricity and heat are equivalent (1500kl ～3000kl) abolished. (Formally, evaluated in kWh) Possibility of application Factory for in-company license Business establishments Factory / Business establishment Appointment of Energy Manager Appointment of a qualified Appointment of a qualified person (Mandatory to possess a person for energy for energy management license for a qualified person management (Training for energy management ) Required) Preparation & Submission of Preparation & Submission Preparation & Submission of Periodical Reports of Periodical Reports Periodical Reports Preparation & Submission of Preparation & Submission Mid-and long-term Plans of Mid-and long-term Plans

20 GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 Measures for Factory/Business establishment (2) Confines of law : Annual energy use: 1500kl in crude oil equivalent or larger ⇒ cover 90% of industrial sector, 50% of commercial sector in energy usage base Cover ratio is important, Mandatory submission of annual report especially in energy base (not 1.Transition of specific energy consumption in number of customers base) 2.State of implementation on energy conservation measures 3.State of benchmark index Benchmarking is one of the most effective analysis tool

In case of insignificantly insufficient level of energy conservation against judging criteria, instruction, public discloser, compliance order, fine are conducted.

(Flow of general inspection)

Evaluation of On site Rationalization Public disclosure/ Inspection annual report investigation plan guidance compliance order

If the In case of If deemed significantly assessment insufficient against refuse to result is poor judging criteria comply

21 GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 Training System of Specialized Technical Engineers

n Purpose of Creating the System This system was created in FY2007 to build an environment in which each employee can work with stronger motivation and a sense of challenge. It also aims to improve the technical performance and skills of each employee and to maintain their technical abilities, which are closely related to the frontline as a power utility, and to pass them on to the next generation.

n Target Persons Persons who meet the following requirements are accredited as specialized technical engineers: Ÿ Belong to an applicable office for accreditation Ÿ Have advanced technical knowledge and skills closely related to practical work Ÿ Have strong leadership and passion to teach technical knowledge and skills to the younger generation Ÿ Not an officer

n Role A new role is given: to help solve various technical tasks in the office, and to instruct and train the younger generation on cross-cutting technical performance and skills closely related to ordinary work, mainly in the office.

22 GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 Training System for Specialized Technical Engineers in the Distribution Sector n Accredited Fields As of Sept. 2010 Number of Accredited Fields Name persons Particular Grid Failure Specialized Technical Engineer (Particular Grid Failure) 11 Distribution Network Specialized Technical Engineer (Distribution Network Automation Equipment Automation Equipment) 13 Measuring Equipment Specialized Technical Engineer (Measuring Equipment) 15 Unit Substation Specialized Technical Engineer (Unit Substation) 6 Pursuing electrical work together with other Specialized Technical Engineer (Pursuing electrical work infrastructure companies (eg. together with other infrastructure companies) 10 water/gas company) Specialized Technical Engineer (Indoor Type Transformer Indoor Type Transformer (22kV) (22kV)) 2 Total: 57 persons n Roles of specialized technical engineers uTraining for young people u Tackling technical challenges at the job site • Giving technical instruction and advice on various •Investigating causes, creating and implementing maintenance work such as inspection, measurement, countermeasures in case of power failure/troubles and checking under presence ‚Addressing various technical challenges on ‚ Grasping the skill level of the younger generation, maintenance and construction works giving proper instruction and advice to individuals, and compiling the contents of instructions ƒ Drawing up training plans „ Teaching at various group education sessions 23 GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 Specialized Skill and Engineer Activity

Main Action throughout Company

• Briefing session of activity of specialized technical engineers （Once a year） • Study session of specialized technical engineers （Newly planed） • Support of lecturer in the lesson to train specialized technicalengineers （Jul ～ Oct） • Support of Specialized Training in the Distribution Engineering Center (DEC) • Participation to the Working Group of Head Office （New Meter SWG, Distribution Tower WG etc.） • Support of Training in the branch offices, Support of work in each section, etc.

24 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012 Trends in final energy consumption in Japan ØFinal energy consumption in Japan has been increasing. (except oil crisis and economy depression) Ø While GDP increased by 2.3 times from 1973 to 2009, total energy consumption increased by 1.3 times. ØThe growth rates of final energy consumption in each sector are different. (Transportation 1.9 times, Commercial/ residential 2.4 times, Industrial 0.85 times)

TOE Trillion Real GDP Yen Total energy 1973→2009 consumption → 2.3 times 1973 2009 Transportation sector 1.3 times Transportation 1973→2009 1.9 times Commercial/residential sector Commercial/ residential 1973→2009 2.4 times Industrial Industrial sector 1973→2009 0.85 times

Source: Agency for Natural Resources and Energy, cabinet office Increase in the commercial/residential sector which accounts forover 30% of all is remarkable. Reinforcement in this sector is most sought. (Need to focus in the priority areas) 25 GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 Introduction of benchmark classified by sector [back ground] ○Fairer evaluation of business entity’s effort ○Promotion of business entity’s effort by visualization of energy saving efforts Øt is difficult for business entity who has already tackled with energy conservation to considerable degree to accomplish further energysaving. ØDefining the benchmark index by which business entities’effort can be Image of benchmark compared contribute to fair evaluation of business entities’effort and making low-performing business entities tackle further efforts. ØThe superior business entities (10~20%) of each sectorbecome target level. target

[How to select industrial sector for benchmark] ØIn FY 2008, three industrial sectors of steel, cement and electric power were chosen. It’s decided in consideration of largeness of their energy consumption (occupies 40% energy consumption in all industrial sectors) , and extent of international argument in each sector. ØPaper manufacturing, oil refinery, and the chemical industry were added in FY 2009. (The cover rate of the energy consumption expanded to about 60%) ØExpansion to commercial sectors such as office, retailing, etc is considered in the future. ［Publication of benchmark results］ ØIn order to urge spontaneous efforts by business entity, average and standard deviation of benchmark are published. ØThe names of excellent energy saving entities are published. Source: METI 26 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012

1.4.2 Top runner standard and Energy saving labeling system

27 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012 Overview of energy conservation measures (Regulation) Industrial Commercial & Residential Transportation Commercial Residential

Factory and business establishment Consigner (Annual energy use: 1500kl in crude oil [sender] and equivalent or larger) carrier (above Submit energy saving plan, a certain size) Periodical reporton the use of energy Energy saving plan, report on energy Regulation Owner of residence or building and client consumption (Energy for construction (above a certain size) conservation Submit notification of energy saving measures law) Top Runner Standard Stipulate energy conservation standards for house appliances and vehicles

Energy-saving labeling system Inform consumers of energy efficiency of house appliances

28 GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 Top Runner Program (1) • Energy conservation standards for domestic appliances and vehicles are set in the Top Runner program. • The concept of the program is that energy conservation standardsshall be set exactly the same as or higher than the best standard value available in the market.

How to set the target standard Target products （23 products）

Standard 1. Passenger Vehicles 13. Computers Energy 2. Freight Vehicles 14. Magnetic Disk Units consumption 3. Air Conditioners 15. Copying Machines Target 84 Efficiency standard(80) 4. Electric Refrigerators 16. Space Heaters 5. Electric Freezers 17. Gas Cooking Appliances 83 6. Electric Rice Cookers 18. Gas Water Heaters 7. Microwave Ovens 19. Oil Water Heaters 80 8. Lighting equipment 20. Vending Machines 78 79 9. Electric Toilet Seats 21. Transformers 10. TV Sets 22. Routers Achievement is judged by 11. Video Cassette Recorders 23. Switching Units 75 weighted average per 12. DVD Recorders (※)two products are added in 2009 best standard product category value available in 74 the market (78) (84+83+79) / 3 = 82 ≧ 80 Target standards are subdivided according to the type and size, etc. In case of TV TV type Television size At the time Target year •Carbon lay tube TV, •Below 19V size of setting •Liquid crystal TV •19V ～32V the standard •Plasma TV •32size or larger Source: METI 29 GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 Top Runner Program (2) • There is obligation to comply with the standards. In case of failing to comply, recommendation, publication, order, penalty are imposed. • For each of the companies that manufacture or import machinery and equipment covered by the Top Runner Program. Possibility to application of legislation for importers in PPA In case of TV, manufacturers or importers whose total countries shipment volume is fewer than 10,000 units are exempted.

30 GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 Top Runner Program (3) Result s of energy efficiency improvement are beyond initial expectations.

Example of Air conditioner Transition of energy consumption Comparison of efficiency of top model

75.7% reduction COP

year Japan USA EU China Thai 31 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012 Overview of energy conservation measures (Regulation) Industrial Commercial & Residential Transportation Commercial Residential

Factory and business establishment Consigner (Annual energy use: 1500kl in crude oil [sender] and equivalent or larger) carrier (above Submit energy saving plan, a certain size) Periodical reporton the use of energy Energy saving plan, report on energy Regulation Owner of residence or building and client consumption (Energy for construction (above a certain size) conservation Submit notification of energy saving measures law) Top Runner Standard Stipulate energy conservation standards for house appliances and vehicles

Energy-saving labeling system Inform consumers of energy efficiency of house appliances

32 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012 Energy Saving labeling system (mainly for manufacturer)

Info -3 Info -4 Energy conservation standard achievement Annual Electricity percentage Consumption 108％ 175kWh/year Target year FY2006 Info -2

Info -1 Green: target is achieved, Orange: non-achieved

Energy conservation Label for the product's standard achievement Annual Electricity main unit percentage Consumption 91％ 206kWh/year Target year FY2006 Source: Agency for Natural Resources and Energy “ 33 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012 Energy Saving labeling system (mainly for retailer)

Info -1: year the label was prepared Info -2: CFC mark represents CFC-free refrigerators (*) CFC: chlorofluorocarbon

Info -3: Multi-stage rating system － energy saving performance is indicated 5 stages. Arrows are placed under the stars, showing achievement and non- achievement for top runner standard .

Info -4: the same information as Energy saving labeling system for manufacturer

Info -5: Expected annual electricity bill

Source: Agency for Natural Resources and Energy “2009 Energy Conservation Performance Catalogue Summer” 34 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012 National Government’s Subsidy System

n Eco-Point System ①CO2 reduction ②Vitalization of the economy Purposes ③Familiarization of TV sets for terrestrial digital broadcasting

Eligible Air conditioners, electric refrigerators and TV sets for terrestrial digital broadcasting equivalent to 4 stars ( ) or over ofthe Uniform products Energy Conservation Label.

Products for exchange

Source: Agency for Natural Resources and Energy “2009 Energy Conservation Performance Catalogue Summer” 35 35 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012

1.5 Subsidy and tax reduction, etc for supporting energy conservation

~ Model cases to consider the supporting policy for energy conservation measures ~

36 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012 Overview of energy conservation measures (Support) Industrial Commercial & Residential Transportation Commercial Residential

Subsidy for introduction of Eco point Subsidy for energy conservation facilities system for clean energy housing vehicles Support Tax reduction (special depreciation) (tax for introduction of energy Tax Tax reduction conservation facilities and for ecology car reduction, reduction for construction of energy saving building home subsidy, etc) renovation

Subsidy for developing energy conservation technology (high efficiency heat pump, high-efficiency heat insulating material, etc)

Provision of information related energy conservation

37 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012 Subsidy on support for building renovation aiming energy conservation

Overview and purpose Business Image ○In order to promote energy saving in the commercial and residential sector as one of the measures to mitigate tight supply and demand, subsidize equipment Air conditioner Heat Insulating introduction with a certain amount of energy saving ex) High efficiency Air ex) multi layer window, high performance glass effect to existing buildings. conditioner

○Specifically, (1)The targets of subsidy are limited to air-conditioning, water heater, lighting equipment, heat insulation equipment, etc in consideration on reduction effect of electricity consumption. (2)Although in case of introduction of only equipments, Hot water supply Lighting subsidy can be given if the following requirements are (High efficiency equipment heat source) satisfied.“replace more than half of equipments in the ex) High efficiency ex) High efficiency whole building”and “more than 10% energy saving light (including LED), heat pump, high illuminance sensor efficiency boiler, effect” cogeneration

○These measures contribute to reduce electricity consumption of commercial and residential sector by promoting equipment-only replacement in building which was not covered in former subsidy system.

○Subsidy rate 1/3 (for small businesses: 1/2) Source: METI 38 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012 Subsidy on support for business utility aiming rational use of energy

Overview and purpose Business Image

○Set the priority on subsidy to introduce “leading edge facility and technology”

○In order to promote energy saving investment, Next generation coke oven priority is given to small and medium-sized enterprises and energy intensive type businesses.

○Set priority on the business which has high performance for energy saving in order to help mitigation of tight supply and demand situation.

○ Subsidy rate 1/3 or less (business cooperation of different capital; 1/2 or less)

Source: METI 39 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012 Subsidy on promoting introduction for specified facility aiming rational use of energy Overview and purpose Business Image

Top runner facilities

Source: METI 40 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012 Subsidy on promoting introduction for energy saving measures Overview and purpose Business Image

○Diagnosis on possibility of introduction for energy saving technology is performed to business utilities. This subsidy promotes energy saving in factories and A sequence of energy office buildings, etc. conservation measures introduced to business ○In consideration of aftermath from the great East Japan earthquake, target business utility is expanded Plan Do from 2012.

Check Action

Source: METI 41 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012 Overview of energy conservation measures (Support)

Industrial Commercial & Residential Transportation Commercial Residential

Subsidy for introduction of Eco point Subsidy for energy conservation facilities system for clean energy housing vehicles Support Tax reduction (special depreciation) (tax for introduction of energy Tax Tax reduction conservation facilities and for ecology car reduction, reduction for construction of energy saving building home subsidy, etc) renovation

Subsidy for developing energy conservation technology (high efficiency heat pump, high-efficiency heat insulating material, etc)

Provision of information related energy conservation

42 GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 Information provision prescribed in Energy conservation law The obligation to make efforts to provide information about general consumer is prescribed to energy supply utilities.

Energy saving information to consumers Present situation Monthly energy consumption of the It has already provided on electricity bill corresponding month of last year used by general consumer Monthly energy consumption and charge for Information service on web has started in some past one year used by general consumers electric utilities. Rough indication on reduction of energy Energy-saving advice is indicated on electricity bill. consumption and charge by devising the usage The electric power used by individual equipment of equipments. is considered to offer through HEMS (Home energy management system) in the future. Performance and subsidy information for Information has already provided in HP of electric energy saving equipments utilities, etc. In the future, the further information dissemination is supposed as an energy management service by introduction of HEMS, etc.

Useful information like rough indication of Qualitative energy saving advice has already energy consumption according to contract or indicated on electricity bill. The quantitative and residential class, etc on energy saving by general detailed advice is supposed to become possible by consumers spread of smart meters. Source: METI 43 44 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012

Energy efficiency improvement business by utility

Taiichi Kaizuka The KANSAI Electric Power CO., INC.

45 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012

2.Energy efficiency improvement business by utility 2.1 Overview and scheme of ESCO 2.2 Application example of ESCO 2.3 Economic side of ESCO

3. Actual application of Energy efficiency improvement 3.1 America -EERS 3.2 France –Eco watt

46 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012

2.1 Overview and scheme of ESCO

47 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012 What is “ESCO”? Even if you want to start renovation work for energy-saving...... ・Financing of initial investment is difficult. ・Reduction of energy cost does not progress. ・The expense of equipment maintenance may occur suddenly and hard to control cash planning ・I do not want to have an excessive capital from the viewpoint of financial strength. ESCO:EnergyServiceCompany Customer gain ESCO expenses Customer gain - Interest E ne r g y on e ff ct Initial c on s e rv a ti m ent

Repay investment Utility charge payment ESCO operator shall Utility charge guarantee the Utility charge payment achievement. payment

Before introduction of the During implementation of After the contract term ESCO project the ESCO project completed

üESCO covers expense for energy saving renovation by its saving merits (reduction of fuel and light cost, etc). üESCO business company provides the comprehensive service like energy audit, design and construction for renovation work, operation and maintenance for facilities. üESCO is characterized by its performance contract by which ESCO business company guarantees the energy saving performance to customer. 48 GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 Spreading and promotion of the ESCO business ～ The ESCO market is expanding ～ ¡ ESCO-related markets have shown rapid growth since ESCO was introduced to Japan in the mid-1990s. ¡ However, market size in FY 2004 decreased from FY 2003 due to a decrease in the number of large- scale projects in the industrial sector. ¡ Market size increasedin FY 2005. In particular, the percentage of performance contracts increased.

(Unit: 100 m(il.億円 yen)) Trend省s エonネ enルergギy-sーavi改修工事の推移ng renovations in Japan（受注額） (orders received)

600 その他 Others 557 1Us$ = 80yen (2012.5) 診断Energy＋ audit省エ+ Eネner改修gy-savin工g事＋パ renovatioフn +ォ Pーerfoマrmンanスce co契約ntract 診断Energy＋ audit省エ+ Eネner改修gy-savin工事g renovation 515 497 500 省Eneエrgyネ-saving改修 re工no事のみvation 449

400 74 374 140 30303.3 bill億円ion yen,68% 68% 353 300 265 36 172 186 200 170 10 19

100

0 1998 1999 2000 2001 2002 2003 2004 2005 年度FY Source: JAESCO Ø Market size in the U.S. inFY 2000 was approximately 2 billion dollars. The Kansai has affiliate company offering ESCO business

(KENES: Kandenenergy solution). 49 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012 ESCO business provides comprehensive service General renovation work ESCO for energy saving CCoommpprreehheennssiiveve sseerrvviciceses ooff tthhee EESSCCOO pprroojejectct comprehensive service. ((1)1)EEnneerrggyy auditaudit aanndd ccoonnssuultaltattiioonn ffoorr fifinnddiinngg energy conservation measure Facility energy conservation measure Pre energy audit investigation ((22))PPlalannnniinngg,, ddeessigignn,, ccoonnssttrruucctitioonn andand ccoonnssttrruucctitioonn mmanaganagemeemenntt ffoorr iinntrtroodduucciinngg Energy audit Design & eenneerrggyy ccoonnsseerrvvatiatioonn mmeeaassuurreses Estimate ((33))MMeeaassuurreemmeenntt andand vveerrifiificcaatitioonn ooff eenneerrgygy c o n t r a ct Planning of an Ind iv i d u al ccoonnsseerrvvatiatioonn eeffffececttss aftafteerr iinnttrroodduucctitionon execution plan contract ((44))MaintMainteenannancece aandnd ooppeerratiatioonanall mmaananaggemeemenntt ooff iinnttrrooduducceedd fafacciilliititieess andand ssyyssttemsems ESCO service C o n t r a c t) contract ((55))PPrroojjeecctt fifinannancciinngg,, aarrrrangangeemmeennttss wwitithh fifinnanancciiaall iinnssttitituutteess,, eettc.c.

Renovation work ( t u r n key Renovation work c o n t r a ct

Measurement and Ind iv i d u al verification of the

C o n t r a ct In the case of a general energy saving energy-saving effect renovation work, it is difficult to guarantee energy saving effect because design

Operation, B la n ket contract, construction contract, and the maintenance, and operation operation & management contract for

inspection of c o n t r a ct facility Ind iv i d u al facilities become separate in usual cases.

Blanket contract Individual contract 50 Source: JAESCO GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 The feature of ESCO is performance contract

Contract Type Guaranteed savings contract Shared savings contract Item

Funds flow

Energy-saving renovation Customer ESCO Company costs covered by

Owner of energy-saving Customer ESCO Company facilities Service charge payment A certain amount of money or a certain percentage of energy saving gains (saving on utility bills) is paid. Division of profits after All energy saving gains (saving on utility bills) belong to customers. completion of the contract term 51 GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 The feature of ESCO is performance contract (cont.) Contract Type Guaranteed savings contract Shared savings contract Item

Cash flow

ØESCO business company guarantees the amount of energy-saving reduction by a performance contract. ØFor this reason, ESCO business company has incentives to executereliable renovation work to secure design performance. ØESCO business company has incentives for operation & maintenanceof facility, because three is merit also to ESCO company when energy reduction effect is better than it was guaranteed. 52 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012

2.2 Application example of ESCO

53 GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 Example of ESCO business (at a hospital)

Energy saving lighting Inverter control ■Reduced power for air ■Energy conserva省tionエネ wi照明th a three-step light-modulating conditioning fan/pump inverter stabilizer

Reduced water use when using the toilet F蛍光灯luorescent lights ■Steam drain used as Steam line 蒸気ライン gray water ■ Insulation■断熱, in、teg統合ration Gas driven absorption-type hot water system ■Updating to the latest Top P駐車場arking Runner qualified equipment Power Central disaster 電気室H冷温水機ot/cold Machine prevention room water 機械室room Boiler drain ボイラドレン水 monitoring center system Co-generation system ■Toilet using■中水 gra利y用 wa（トイterレ） ■Supply of electricity/heat ■Effective use of exhaust heat

Energy conservation effect from ESCO: approximately 25% 54 Source: METI GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 Example of ESCO service by KENES ESCO service： Guaranteed saving contract, Service start： April,2010, Customer: university

Overview of ESCO service

before After

before After before After

55 Source: KENES GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 Example of ESCO service by KENES (cont.)

【Downlightchanged to LED 】【Change to fluorescent light with inverter ballast】 Introduction of LED downlightwith long life, Fluorescent lights are exchanged to high efficient energy saving and merculy-less type and the motion sensors were introduced at halfplaces.

【High efficiency transformer】 Change to high efficiency oil- before after immersed transformer (300kVA ×１、200kVA×1)

56 Source: KENES GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012 Mechanism of heat pump (in case of cooling) ØHeat pump is technology which is made to move the heat which airand water have and is used for an air conditioning, hot-water supply, etc. ØElectricity is not directly used as a heat source like an electric heater, but electricity is used as a driving force for making heat transfer, and the heat filledin the atmosphere is used well.

Air conditioning utilizing“heat pump”technology Inflated & get expansion valve cold 16℃ 55℃ 45℃ 5℃ Temperature The room is difference causes Heat Pump Cycle cooled. spontaneous transfer of heat. ℃ 35℃ 26 Evaporator (Outdoor) 75℃ 10℃ Condenser (Indoor) compressed &get hot Compressor (driven by electricity) (1) Hot liquid refrigerant is cooled by outdoor air through heatexchanger. (2) Liquid refrigerant evaporates through valve and its temperature falls. (3) Cold gas refrigerant removes air heat indoor (air conditioning). (4) Compressor compresses and liquefy refrigerant. 57 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012

Mechanism of heat pump (in case of heating)

Refrigerant compressed by compressor raises temperature. E l ec tr i c ty

Compressor Heat absorption from the air Discharge of heat (1)+(5) =

Evaporator Condenser

Exterior Interior

Expansion valve Temperature falls by suddenly lowered pressure.

58 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012

2.3 Economic side of ESCO

59 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012 Economic Evaluation (1) • Lifecycle (or Lifetime) Cost (A) Introducing system of low initial cost and low efficiency(=high energy cost) Total owning cost of period for use = I + E ×( Period of use ) Initial cost (machine and its installation)

*Lifecycle Cost for 10yrs IA Annual energy cost E A × yr LCCA=IA + EA 10 (B) Introducing system of high initial cost and high efficiency(=low energy cost)

LCCB=IB + EB×10

I B (A)(B)

E *Not in consideration of interest or discount rate for simple B yr 60 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012 Economic Evaluation (2) • Payback Period for Introducing Higher Efficiency System

(A) (A) Accumulated Cost

Initialcost (machine and its installation) (B)

IA Payback Period Annual energy cost

EA yr (B)

EB yr yr Comparing (B) to (A), payback period

= (IB-IA)/(EA-EB)

(when just replacing newer system, IA=0)

*Not in consideration of interest or discount rate for simple 61 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012 Economic Evaluation (3) • Annual Equivalent Cost *Annual Equivalent Cost for Lifetime of 10yrs

AECA=IA /10 + EA (=LCCA/10) (A)

Initialcost (machine and its installation)

IA Annual energy cost

EA yr (B) AECA=IA /10 + EA (=LCCA/10)

E B yr

*Not in consideration of interest or discount rate for simple 62 GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 How to compare the present value and future value?

In consideration of opportunity cost, ○Present value It is discounted at the same time point. Present 100$ ＞ 1 year later 100$

110/1.1=100 121/1.1/1.1=100

Present 100$ ＝ 110$ in 1 year later Present 100$ ＝ 2 years later 121$ 414 132+184+189=505, is not correct answer 142 184 189

152 132/1.1=120 132 184/1.1/1.1＝152 189/1.1/1.1/1.1＝142 120 120 + 152 + 142 = 414

present 1year later 2years later 3years later

The project cost must be discounted at the same time point 63 GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 Example for ESCO Service charge (1)

Facility installation expenses 9150 In case of Removal 910, and other expenses 50% of a grant rate with a subsidy is spread into annual basis 100$/year Maintenance 245 Customer’s merit Customer’s merit Water 135 Reduction 920 Reduction 1,600 Expense 1,990 ESCO Charge 1,990 for Light Heavy fuel ESCO Charge oil 1,070 390 Heating 2,230 Water 24 Water 24 Water Light Electricity Electricity 906 Electricity 906 Heating 310 water before 1~15 years later 16~20 years later

Customer’s merit Maintenance 245 Customer’s merit Water 135 730 1,410 Expense Reduction Reduction Heavy fuel 1,799 ESCO Charge 1,799 for Light ESCO Charge oil 1,070 Heating 2,230 390 Water Water 24 Water 24 Light Electricity Electricity 1,096 Electricity 1,096 Heating 310 water 1~15 years later before 16~20 years later ESCO service charge in case $45.7mil subsidy 64 GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 Example for ESCO Service charge (2)

Actual application of Energy efficiency improvement

Taiichi Kaizuka The KANSAI Electric Power CO., INC.

67 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012

2.Energy efficiency improvement business by utility 2.1 Overview and scheme of ESCO 2.2 Application example of ESCO 2.3 Economic side of ESCO

3. Actual application of Energy efficiency improvement 3.1 America -EERS 3.2 France –Eco watt

68 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012

3.1 America -EERS

69 GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 Policy on energy efficiency improvement to electric utilities (U.S.) ØIn the U.S., the state law which defines the amount of energy-saving duty (EERS: Energy Efficiency Resources Standard) to future electricity sales has become widespread. ØCurbing electric power sales is made compulsory not to consumers or public institutions but to electric utilities.(From the side of electric utilities, it will exactly be that the income reductionby curbing electricity sales is forced.) As an incentive to electric utilities, cost recovery for energy saving program, lost revenue recovery, performance incentive, etc. ØIt was first introduced to Texas in 1999, and 26 states have already introduced as of January 2011. Legislation on performance incentive Legislation on EERS for energy saving investment

Combined Performance Under EERS Voluntary Under Source: IEE goal consideration EERS/RES Incentive investigation Source: ACEEE 70 GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 Incentive scheme to support energy efficiency improvement (1)

What is “Throughput incentive”? The main schemesfor making electric utilities •An electric power supplier as well as other promote energy efficient measures isas follows. manufacturers pursues profits by increasing goods, i.e.,electricity sales. (1) Cost recovery for energy saving program •That is, it is natural to think that corporate (2) Lost revenue recovery activity seeking more electricity sales is induced. (3) Performance incentive •When discussing promotion of an energy- saving measure, thisis called “throughput incentive”works. (1) Cost recovery for energy saving program Cost recovery for energy saving program like energy saving education, subsidy for replacement from electric bulb to FL (fluorescent light) is the minimum condition. Recovery schemes are •include in rate base and collect as electricity charge •collect by adding extra charge (ex. surcharge) to electricity charge •recover from funds collected proportionally to electricity consumption aiming at public-interest use like subsidy to low income group (SBC:System Benefits Charge)

(2) Lost revenue recovery (2-1) Direct compensation •Recover decrease in electricity sales due to energy saving by adding extra charge (ex. surcharge) to electricity charge •Weak point of direct compensation is that accurate method for measuring energy saving effect doesn’t exist. Few states have introduced. •Moreover, since there is no mechanism of collecting the exceedingsales from an electric utilities in case of electricity salesincrease, it does not lead to prevention of throughput incentive. 71 GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012

Incentive scheme to support energy efficiency improvement (2)

(2-2) Decoupling •The basic scheme is separation of relation between sales revenueand amount of electricity sales. •That is, a fixed sales revenue guaranteed irrespective of amountof electricity sales. •It is also applied to demand fluctuation resulting from weather condition or economic trends. • If the electricity sales revenue is less than overall cost which is applied at rate revision, collets deficit by raising electricity rate and vice versa. Therefore, throughput incentive does not work. •Since adjustment is done not by the amount of energy saving achievement but by sales revenue, measurement of the energy saving effect isunnecessary which results in becoming operational under relatively simple scheme. •Since In order that a circulation income may aim at profits increase in the fixed bottom, •Since pursuing profit is restricted under the fixed electric sales, electric utilities have incentives for cost reduction. •Large quantity consumer organization (Industrial Energy Consumers of America) expresses concern over decoupling as this scheme hangs the consumer side on the risk of electric sales reduction.

72 GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 Incentive scheme to support energy efficiency improvement (3)

Principle of Decoupling Rate FY A B C(A/B) D E(D/B) F G(E×F) H(G-A) I(D-G) revi Full Expected Unit Price Approved Applied Actual Actual Difference Balance sion cost($) sales ($/MWh) revenue unit Price sales revenue account (MWh) 1 100.0 1000 0.100 100.0 0.100 1100 110.00 10.00 ▼10.00 1st 2 100.0 1000 0.100 90.0 0.090 990 89.10 ▼10.90 0.90

2nd 3 111.1 1010 0.110 112.0 0.111 1010 112.00 0.90 0.00

The principal of filling lost profit Direct filling decoupling The usual charge design Charge income Charge income Charge income Full cost Full cost Full cost

Assumption volume of sales Assumption volume of sales Assumption volume of sales Expected Expected Expected sales sales sales 73 GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 Incentive scheme to support energy efficiency improvement (4)

•Specifically, there invented three kinds of schemes. ①Performance target incentives Reward can be obtained in proportional to achievement degree of energy saving against the target prescribed in every fiscal year by the regulating authority. ②Shared savings incentives There generated the merits like reduction of fuel procurement orelimination of construction cost for electricity supplying facilities by energy saving measures. The part of merits converted into financial value is allocated to electric utilities on the basis of its degree of energy saving effort. The rest of merits is deemed to give back to consumer side. ③Rate of return incentives Return rate for energy saving investment is set higher than the other investments.

74 GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 Introductory situation of incentive scheme by state

Cost recovery for energy saving Lost revenue recovery Performance Save a State Direct rate base SBC surchargedecoupling incentive watt compensation Alabama Yes Alaska Arizona Yes Yes Yes Arkansas Yes California Yes Yes Yes Yes Colorado Yes Yes Yes Connecticut Yes Yes Yes Delaware Yes Pending District of Columbia Yes Florida Yes Pending Georgia Yes Yes Hawaii Yes Pending Idaho Yes Yes Pending Illinois Yes Indiana Yes Pending Iowa Yes Yes Kansas Yes Pending Kentucky Yes Yes Yes Pending Louisiana Maine Yes Maryland Yes Yes Massachusetts Yes Yes Yes Michigan Yes Yes Minnesota Yes Yes Yes Mississippi Yes Missouri Pending As of 2009, Source: ACEEE 75 GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 Introductory situation of incentive scheme by state (cont.) Cost recovery for energy saving Lost revenue recovery Performance Save a State Direct rate base SBC surchargedecoupling incentive watt compensation Montana Yes Pending Nebraska Nevada Yes Yes New Hampshire Yes Pending Yes New Jersey Yes Yes New Mexico Yes New York Yes Yes Pending North Carolina Yes Pending North Dakota Ohio Yes Yes Yes Oklahoma Yes Yes Oregon Yes Yes Pennsylvania Yes Rhode Island Yes Yes South Carolina Yes Pending South Dakota Tennessee Texas Yes Yes Utah Yes Yes Vermont Yes Yes Yes Virginia Washington Yes Yes West Virginia Wisconsin Yes Yes Yes Yes Wyoming As of 2009, Source: ACEEE 76 GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 State EERS targets 25%

20%

15%

10%

5% C u m l a t i v e S n g s % o f Re tail es

0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Ten geographically dispersed states have committed to long-term targets to achieve over 10% cumulative annual savings by 2020 Source: ACEEE 77 GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 Cumulative Electricity Savings of State EERS Policies Extrapolated to 2020

*Savings beginning in 2009 extrapolated out to 2020 based on final year of annual savings required

Source: ACEEE 78 GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 Savings vs. Targets in 2010 P e r ce n t S a v i g s C o m pa d R ta l al es

*Reference year for savings is 2009

Source: ACEEE 79 GSEP/PPA Energy efficiency improvement Workshop GuamAugust 20-24, 2012

3.2 France –Eco watt

80 GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 Power saving campaign in the Bretagne district -Eco Watt (1)

ØIn the Bretagne district of northwestern France, the consumer participation type power-saving campaign “Eco Watt" was started in 2008. ØThis campaign is taken place in winter season (Nov -Mar) when electricity demand reaches a peak. ØThis campaign has been hosted by RTE (power transmission subsidiary of EDF), in addition, local government bodies, ADEME (environment and energy-saving agency), and ERDf(power distribution subsidiary of EDF) have cooperated. ØElectric supply and demand situation of the day and next day is informed on the web. ØIf power consumption exceeds a fixed level, "alarm" will be sent through an E-mail etc. to the "cooperator" who registered in advance to urge power-saving action. ØAccording to estimate by RTE, it is thought to be about (in the case in the Bretagne district) 2~3% effective to peak demand. 81 GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 Power saving campaign in the Bretagne district -Eco Watt (2) Map of Bretagne 400kV transmission system （as of March,2008）

1. Electric situation in Bretagne ØIn Bretagne, construction plan of "Plogoffnuclear power plant" which was expected to become main power sources was abandoned in late 1970s, because of the strongopposition from local residents. ØIt is not easy to realize power plant project (not only nuclear,but the other sources like wind power) in Bretagne where ecologists have great influence. As a result, generation capacity in Bretagne can supply only 8 –10 % of local consumption. ØPower supply in Bretagne depends on the generation sources located in the east. ØSince it is supplied from the considerably distant nuclear and thermal power plant, the transmission capacity approaches its limit at peak hours and blackout risk increases.

The effect expected by Eco Watt 1.Energy conservation effecti under tight supply and demand situation 2.Energy saving as everyday behaviors

3.Educational role for power saving and energy saving is fairly important 82 GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 Power saving campaign in the Bretagne district -Eco Watt (3) 2. How Eco Watt works? ØPower supply and demand situation of that day and the next day is shown by 3 colors, green, orange, and red on the website (www.ecowatt-bretagne.fr). ØSimultaneously, “cooperators”are sought to participate Eco Watt. Alarm is sent through e-mail and RSS feed, etc to “cooperators”who had registered in website in advance in case of tight supply and demand situation. ØAs a "cooperator", three categories of individual, company, and local government body and public institution are assumed. ØThe guidance "suitable action (bonsgestes)“including information for expected power saving in winter peak hours (morning and 18:00-20:00) are on the website classified into above three categories. Ø The local government bodies and companies are provided "Eco Watt oath charter“and choose concrete plan (power saving behaviors such as putting off lightsin office, recommendation of Eco Watt registration to personnel) and sign. ØParticipating organization makes public on its website and each cooperative organization appeals by displaying Eco Watt posters and adding Eco Watt logo to e-mail signature and aims image enhancement and popularization. ØApproach methods are devised according to target. Seminar for companies and educational DVD for children was made under the cooperation of the chamber of commerce and the board of education.

3. The result of Eco Watt campaign ・08-09 year： Cooperator 9000, Alarm 9 times, effect of power saving was unknown ・09-10 year： Cooperator 18500, Alarm 11times, max power saving ：1.5% of peak demand ・10-11 year： Cooperator 30800, Alarm 7times, max power saving ：2.0% of peak demand ・11-12 year：Cooperator 45000, Alarm7 times, max power saving ：2.0%～3.0% of peak demand （max power saving is estimate by RTE based on questionnaire result and power consumption data, etc.) 83 GSEP/PPA Energy efficiency improvement Workshop Guam August 20-24, 2012 Power saving campaign in the Bretagne district -Eco Watt (4)

The field survey bythe Kansai Electric Power team ：Local Newspaper（Ouest France） 3/16/3/2012

4. Result of questionnaire about Eco Watt ØIn February 2011, RTE carried out the questionnaire toward "cooperators“, “local government bodies”, and “local residents" in the Brittany. ØThe result proves the visibility and high evaluation of Eco Watt. ØQ. Have you heard "Eco Watt"? -Local residents 72%-YES Local governments 92%-YES ØQ. Do you evaluate Eco Watt positively? –Cooperators 100%-YES Local governments 96%-YES Local residents 97%-YES Ø93% Cooperator is satisfied with alarm system. Ø97% Cooperator answers that they will save power in case of receive alarm and try to save power in everyday basis.

5. Others "Provence AzurEco Watt campaign" was started in the Provence Azurdistrict of south France in autumn of 2010. 84 PPrroovvididiingng TTrarainiininngg ffoorr EEnneerrgygy MMaannaaggeemementnt

DDrr,, HHererbberertt WadeWade

Energy Efficiency Improvement Workshop Guam August20-24,2012 GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Customer EnrgyMaagTring Customer EnrgyMaagTring GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Larger hotels,governmedepaentsand somelarge Energy MaamtPicples Energy MaamtPicples become ssentialyheorganizion’sr gy maner responibilty forcontrongenergyua d they comerial establishntsgivtffper son –Training enerymageentbascs s neded § efficiency outrach Utilty mayofferssst ance asprtofenergy GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Mode ofTrainng Mode ofTrainng •May betherequesofbuildingwner orcompany •For Comercialbudngs,ybethrou h theChamber •For Hotelsandourimfciliie,ybe through he •In thecaseofgovermt,rainigyb e simultaneou and oe-n-ne of Cmmerce local ssoiation for alldepartmenalergyagers GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Components ofTraing Components ofTraing •Go toonefheac ilities mangedbyoneofhe •Spend halfadaygoingthrouhepric iples ofenergy •Provide apper/textboudoingcoman y energ helping the m withaalkhroug h audit particpants andeah particpantswhaolookforby manageent inclassrooviroent manageent priorohecourse –Demonstrat heus e ofwatmers,kWh measuring devcand IRthermoeers GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Trainng Content Trainng Content •Different classesofustmers –All classesneedtolkahebuidingts elf § § § § windo type Window locationre ive tosolarenryand Wal colour Roof insulation Roof colour GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 –Different focusaccordingdiene rgy useof the majorcegoriesofuers § § § extrior lighing Commercial: Airondi tionng, inerirllghing extrior lighing food preparationciliies,wmngol , Hotels: Televisn,Aircondingrefrige ration, lighting Governmet: Aircondiiong,pus, GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Energy UsingqupmtDatabase Energy UsingqupmtDatabase •Managers eedtoprepareinvenory f allenergy using deveundertheirmanant –Comments (hasph antom loadproble,shouldibe –Approximate hours per dayofuse –Watts foropetion –Location –Type ofdevice(e.glaserprntr) replaced bymoreffi cient unit,age,.) GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Device Managemnt Device Managemnt •Prepare osalforreplacmentine fficient energy using devcebaedontheinory –Prioritseaccordng opoenialvngs –Ned toshwcfnviandst imated energy savigperear GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 User ManagemtGuides User ManagemtGuides •Managers toprepareguidforheene y eficientus of eachtypeenergusingdeviinhe inventory –Turn ofpowertequipmenaght –Timer onhotelsw ming polups –Set A/Cohigere mperature nighorurnoff –Adjust comptersgoleeaft15 inutes of inactvty § Avoids phantomloads GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Managers toprepareprpoalforbuild g modificatns Building Modfcatons Building Modfcatons to reduceA/C,venilaionandlighngds –Show expctedinvstmentandannuals avings GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Energy mangerseedtobeparfhe ew quipment Advise forPurchasng Advise forPurchasng energy. purchasing proesswthequpmen ill beusng –Advise mangentofheproble rgy costfor –Propose pecifatnhaenurehgh efficiency proposed newpurcha ses of energyuse GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Temperature sttingforA/C Set EquipmentOperatingStandards Set EquipmentOperatingStandards –For offices,aninitalmpraurf25C when much energy after anhourto28Cminscforbu save peole cmtwork(andrighafterlun ) raised GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Set imersforhoelwmmngpoolpu s tohudown •For hotels,reducxteriorighngafterm idnight or opens when poolisnotinuandstaranhourb efore pool ceases whenevr thepoolandoutsidefandrin k vending GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Where tereiscenralairondionngfor officesand usally behutdownfterhours comerial budngs,hillersirulat g pumscan –Be awreofspecialituaionuh needto server. provide coolingforahghpermnnet work GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Monthly checksinaneergmagen t programme Trainng forWlkThroughAudts Trainng forWlkThroughAudts –Notes changinheequipmenvory –Check A/tempra ture settings § § § May benewlpurchsedndistalled office May bemovedtorfronherdepartm ent or user ofpractions Note violainsfen rgy guidelnesannotf GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Note anyproblmsnoprevioued, e.g annual the directsunfromwi ndows change isun’potoauednewar eas tobin –Note equipmnproblms –Note anyidasfor olutions § Refer ormaintnancreplaent GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Refrigeaton Walk ThroughAudits: Refrigeaton Walk ThroughAudits: refrigerators and“walkin”reezers. freezers, homererigeratorcial“w alk in” residence forrgeaton.Thainlu s A/C,home Easily thelargestenrguageforgovern ment, hotlsand GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Cooling withElectricty Cooling withElectricty •How refrigeratin/aircondiorks –Can useahtour ce (agasflamorxpe)to –Requirs easyaborptionofheain pace tobe –Heat isaborbedinhepacobeoole d and drive thecycleoraco mpressor. outside cooled andeasyelim inaton fheheainspac pumped toanareatsidehaspace GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Coefficient ofPerormane(OP) A/C EnergyfficRatngs •Energy EfficiencyRatng(ER) •Seasonal EnergyEff iciency Ratng(SEER) A/C EnergyfficRatngs Different a differentairempera tures (heapump) Computed asandardirerar(A /C) Units ofheatenergypumped (Equals COPX3.413) Units ofWorkDne SEER BTU/hour BTU/hour Watts Watts ≅ ER X 0.9 GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Window ArCondtoneUnit Window ArCondtoneUnit GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Refrigeaton EffcnyFactors Refrigeaton EffcnyFactors •Surface areaandtypeoheadeliv ery surface for thecondenser(ouideheaexchanger) –Ambient emprature ofhespa ce whrheatis –Direct contawihoutsideairsbetterhan indirect –Large aebetterthansmll delivred contact § § Copper isbettthanAlum inum Open coilsandfinareb tter thanfzsuacskin GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Surface reandtypeoheateliverysur face orthe evaportor (insidhxchanger) –Larger arebettert han smaler –Temperature sttingofheunihighapra ctical –Frost onitsurfaceredhransfer –Metal surfcbetterhanpstic GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Efficiency oftheheamvngpress –Temperatu ofheou side arandthecondener –Working fluid –Pipng arrngementandworkfludpath –Quality ofcmpressandor § Sun shouldnothinere ctly onheondenseruface GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Rate oflowheainhecledspa fromthe warmer outsidearea –Warm airentyino thecooledspace –Ambient epraureofheoutsideea –Sun heatingonhecompents –Insulatio blockconductionfheat § § § and freeze rs Type andl ocatin fdorsonre frigerators Seals arounddoor nd otherpenings Opening ofdoorst he warmoutsidearea GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 DSM measures DSM measures •Improved locatin f condensertoaidinha •Improved aintnancofxistingquip ent moveent heouts ide air –A/C and large refrigerationcond enser haden –Good ventilainarou nd condenserforA/C –Clear spacound refrigeratorandreezrs –Maint godorselonrefriera s and –Cleanig ofA/ilters –Cleanig ofvaportordcser urfaces in coolarea freezers GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Residental WndowUit GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Government A/CUi(spliye) Government A/CUi(spliye) GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 TTrarainiininngg ffoorr GoGoververnnmmeentnt aanndd CCoommemmercrciiaall EEnnerergygy MMaannaaggeersrs DDrr.. HHererbberertt AA.. WWaadede

Energy Efficiency Improvement Workshop Guam August20-24,2012 GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Lightng GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Efficency beneftsnreaewihhe percentage Benefit creaseswihlighusage Benefit creaseswihlighusage of thedayhalighingsued –Upgrading theeffciencyofsreelights hat areon only onforaewhoursday upgrading smlarlghtporfciliie hat are all nightwlhaveamucgrrbef an § candidates fo r enegyfficmeasu res areas wheetislittl active usrnogood sevral houday.Light s incloet,rageoomand Focus prgammeminl y onlightsharefolea GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Lux isthemeaureoflighalling oneach •Lightng effcencysuuallymeaured in Lightng Effcency Lightng Effcency for allbutveryde iled, specialiwork. work areasinabr ghtly liofficeandsuen square metreofaurce.400luxi typicalfor the oallighcomingfromsoure. Lumens perWatt.arethemea sure of –Incandescent lights convertonlyabou2%ofinpu energy tov isible light.Therest s deliverdaheat GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Florescent lightsconverfromabou15% to30% I n aircondtoneds paces, theatfromlighing lightng bilsbua o air-conditinngbills. that improvedligh ing effcenylowrsnoton has tobermvd by theaircondonmning visible lightwheredelidaheat GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Technologies Efficeny ofLghtng Technologies Efficeny ofLghtng LED lamps Induction Lamps Metal HideLmp LP SodiumVapour HP SodiumVapour Mercury Vapo Compact Flurescen(L) Electroni Ballsfuosc Iron balstfuoescen Halogen icdescent Incadescent Lightng Technology Per Watt Lumens 100-200 80-100 45-150 70-105 30-60 50-80 30-60 40-85 45-75 10-24 6-15 Fair toGod Only orage Good toVG Good toVG Good toVG Poor toFair Poor toVG Very Good Very Good Very Good renditon Colour Good 50000-1 10000-125 12000-2 12000-2 Rated Life 200-400 750-2000 60000 15000 18000 25000 12000 GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Critcal ElemntsLghng Critcal ElemntsLghng •Location ofhelighng •Level oflightingishask –Surfaces intheield ofvisionhuldnotbe –Light sourcehouldnobeinhnormal fieldo reflecting thelighsour ce andausingglre vision ofthewrkers. GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Colourf theighng •Coverag fthelihing –Preferenc isorligh t hadoesnochangehe –Lightng eedsolycverheworkarea athe perception ofolour rom thaofdaylight level ofilluminatonndorhawk. § conditions area lightinandcanprovdebeerwork Task lightingsgeneralymoreeffcienhan GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Types oflighting Types oflighting •Outdoor arealighng –Stree lighinglevelusualyonlhaobe sufficient lightin eergyus.10-50lux level oflightingftncanbeamsor wer for saelygettingaroundtheliarea.Lower ing the § higer intenstylighing maybeneeded100lux area outdoorlighin (e.g atwharf)here Exceptions beingo rts fieldlighingandwork GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Task lightingsnendedoprvdebriillu minaton over •Indoor aealightingneedsobeuffcen get aroundhe this purpoe.500-1000 lux being undertaken.CFL andLEDlightingarebogoodf a narrowreaheet ask (e.gswingoradi) space. 50-500lux lighting nsmallpaceanddschrgeypel ps inlarge tube lighswihelcroniballabefo his typeof space andtodonon-dailedwrk.CFLfl uorescent GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •In generalthemosteficienlighingorho mes and areas wheredetiledorkbeingdoe. space plubrightbumaarklighin g forthose offices mbnlwlevelaralightingfor theoverall GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Light ntesyrequed Light ntesyrequed General OficeWork(computr) General OficeWork(rdng&Wtg) Home livingr om Art anddwingclssoms General clssooms Hotel Lbies Sales roms Stairwys, codorsageeadnngeas Highly detaedwork(jrmking,pcsssby) Detailed workrea Purpose fthelighting Intensity Need 50-100 (Lux) 1000 500 300 100 500 100 500 100 300 GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Lightng echnologsforStree ting Streetlighing –Florescent ubelights –Sodium vapourlights –Mercury vapourligh ts § § § § § § § § § Low lightngevsocragepeliow Inexpensive, goodffcenyolour Tend tobebulkyandreaivlyxpens where colouisapobm(.gtlighng) Yelow-Orange counotsuiabfealighng High effcncy warehouses) Also uedfr largeeaindoolightng (e.g Tend tobebulkyandrea tively xpensve vapour lights Some clourdistonbu t muchbeerhansodi Good efficency GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •LED lightng •Metal Hideghts –Best formalleak lightingandsgnlumnaonbu –High Effcency –Very Longlifandlowm aintenance –Low colourdiston –Expensive onaperWatbais –Compact bulbs –Long life –Very lowcoudiston –Availbe nowrttgsthaodumc ury vapour –Low maintenance –Good efficency requiement f or maintenaceandhgh efficency be costeff tive nsomcaeddu theirveylow can beusedforteligh ting andlargeealighng.Can lights GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Lightng conrolledbysenors DSM throughlighingconrols DSM throughlighingconrols –Llightsenor oligh ting surnedonoradjustedin –Timers olightsareautacallyurned ofat –Heat senorolightsareonlyonwh here isa –Activty senorolightsareonlonwhe n thereis from othersources brightness olywhen thereisnoufcienligh designated mes warm bodyinthespace activty inhespace GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 DSM byusingdalght DSM byusingdalght •Daylighting –Lightng provdedfromhesun. § § § Doesn’t workveylla night….. Windows hadedfrmd ect sunlighenry Skylights (ncludng“unnes”} s May bringnheatswell as light GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Office Equpment Office Equpment GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Energy isuedby: DSM forComputers DSM forComputers –The computeritself –Screen –Printers § § § § § main energyuseotces Varies dmtcllywhheupan.Oof e newer flatypesceens Much ighersewtoldbukyCRTpeeen than Fairly constnenegyuewhenopeng standby mod e betweenprintjobs especially for newerlaspinth havealowpor Duty cleisamjorf r inptegyus ink-jet orhmalprs Laser pinthavmuch higherenegydemandtan GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Network equipment •UPS •Scanners –Switches and wirelesrouter also on24/7but –Servers arehighne rgy userincethearefull –Modest butconinspowerage –Big differencbetwenpowusduring –Modest pwerrequirement modest ind ivdual powerrequire ments operating cmpuers 100% oftheime scanning andwhenstnd-by GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •In airconditionedspa,energyneeed toakehe •New computingqinendsbe uch more amount pprching tha ofhecmpuerselves represnt aignific t energyuse,omian from coputersandperihealouhe pace may energy fficienthanqupmen2orore ears old GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Install andusedisconectwitcheha urn ofall DSM measures DSM measures when notinuse go home.Nquipentreainsconnected tohegrid computing equpenaanloysdesk when they –UPS unitswillnotbe damagedbyturningofheir –Phantom powerusecanbeigf.S witching they wilr tokeephepweron if powersremovedb y adisconnectswitchine input powerbuheym ust beindivdalyturedoff an extrnaldisconc t switchilldohat entirely urnhemoff,onlpuingplug or having screens, printersandcompuerffdoe s NOT GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Ensure thaalll ser printareeo •Replace llodstyCRTscreenwi th new between prinjobs automaically gon to lwpoersandby flat screenunits –Better ontheeysandmuchbe energy usage GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •“All inone”computers tendobemreenegyfficenhan •When upgradingcomputequpensel t unishaare •All computershouldhavinnattngad justed for units hahaveepar monitorsandCPUbxes. highly “gren”ated. more automaic powereduonhennusf 15minutesor GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Use laptoptypecmuerinsteadf“de sk-top”units •Use ink-jetprinerf or persnalpriting.Newklaer where practical printers forhighvlum e printing –Often 1/0hheenergyuseoroffictype work GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Building Envelope Building Envelope GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Roof Roof •Attic areashouldbe welventilaed •Should havereflectioiltypenstion (radiant •Roof needstobewhieorbrighmallc. barrie) undertheroof –Special hghlyeatreflectvpantsare vaibleto reduce mtalroofheaing GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Best istohavearndharuheb ilding. Provides •Light colour(preferablywhie)orbuidng wallareas Exterior Exterior both rainproectionandsun north andsouifnohaded directly inthesun(eaandwpecia y butalso Colour Colour GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Windows Windows •Attach shadinglouv ers outsideeastandwtindo •Non A/Cspacehouldhavargepn blewindos, •Air conditionedspaehoulhavigh y fiting •Windows thaarenohadedhouldv e reflectiv to prevendirectsola heating louvers preferred windos, notlouveredws films applied(70%-9relectve) GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Switching oflightsshuldbeetupbygroup s, notalla •Attach shadinglouverorwningadd veranda once heating outside astandwndoopreven direct sola GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 TTrarainiininngg UsUseersrs ffoorr HHoottelel aandnd RResesidideennttiialal EEnnerergygy MMaannaaggeemmeentnt DDrr.. HHererbberertt WadeWade

Energy Efficiency Improvement Workshop Guam August20-24,2012 GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Telvison andatellireceirs •A/C andLightingarehesameproble as Governmet Hotel EnergyMamtTring Hotel EnergyMamtTring and Commercilbugs –Phantom lds –Small roorefriger ators noencloed –Modern flatscreenLCDorEtype(no t Plasma) § § § Vacant Roms,urnfhewall Turn ofwheromisv acant efficient Condesr heatha o leaveasilyorless GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Ceiling fasareuulvA/ed . Cansethe •Turn ofA/Cadpe n balconydoorswidohen •Have stffpre-colroomst25 occupants. temperaur high(e.28 unoccupied –Tendency tovercolherwise –Staf urnhemowenunccpied –Can usekytourn ofA/Cwhenrmisunoccuped –Reducs odoraw ell asvenergy ° C insteadof25) ° C beforarrivalo GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Low VltageEDig hts forpatwaymrking •Swimng Poolciruationprunsonl y whenpolis •Tennis courtlightsonlyonwhhereare players •Exterior lighingreducedaftosfbar s andpool open. GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Drapes houldhavwhitorreflect backing tha •Exterior glassincludesreflectvilmha reflects70%to goes againthewdoorlidngd 90%. –Reducs olarhatinginheroom –Reduc solarentry and resultanA/Cloading GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 School ProgrammesToupportR esidental Training HomeUser s forEnergyfficency Energy fficcy GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Why Scools? Why Scools? •By includingactvtieshaehepar ents andwhol •Knowing abuteneryandhse intelligeny will family, thelessonsgecarriedbyondsc hool learned now be increasinglymportanfheuureo it needsobe GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Concept Concept •Add teachingmodulesabouenergya energy efficiency tohexstingscholurriuum –Combine wthrene able enrgystudies –Increasigly tehni al modulesforlateryears –Star abouForm1(age0-1)wihsud ies about home nergyuse GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Curriculum Adopton Curriculum Adopton •Most schoolsystem s haveperiodcurriulmreiew •Diffcult andslowhangeheurrium andew •Departmn ofEducaionustproval l pubicschoo modules programmestha invol ve insertingnwachig and revisos,tha he besttimeopresen materils curriula inmostoutries GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Present anouliofhepredeach ing modulethe Prepa ConcetforhModule Prepa ConcetforhModule existing sciencurriulum Departmn ofEducaionorapprvaladdi tion ohe –Note whaxrnl resourc maybevailbleto –Estimate henuberofdaysneededor the –Note anyspecialqupmenneeded support hemodulede velopmnt andprsenaion complet dule GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Devlop TxtualMaerisforheeachin g module Program Requirnts Program Requirnts –Funding maybene ed forgraphicsartstsand –Done bythepartmenfEducaionsp ecialists wth printing experts the echnialassistnofuilityorher energy GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Train theTeacrs Train theTeacrs •Utilty staforoherexernalpertsrain the eachers for theprograme. using theconeninextshavb developed –Typicall nomrethan oneortwodays GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Sample choo Sample choo Programme Programme Concept Concept GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Middle SchooHomEnrgyAudts Middle SchooHomEnrgyAudts •Focused n10-12yaroldstents –The levelatwhic echnology startsbeaughin –Shown tbeheagegrouphaismli kely to school ienceproga ms invole parentsschactites GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Genral Concept Genral Concept •They do,withhelpofheirarents, home nergy •Teach themabouowdobasi e enrgyaudit •Teach hildrenaboutenergyinhehome audit GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •On thedayofaudipresenaions,r epresntaiv •The studentsbringbacktoclasaudi ts theyhave or twohigefciency lightbulbsforhemoakehoe. from theuilitygives“adior”cer ate andon home tiprvenergyffciency done anddiscussthehingshaneedbe doneintheir GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Technical Schoo •Most countrieshaveahnilschool t includes Technical Schoo elctrical tradsinstruion –Work withheschooloinroduceenrgy eficiency course modulethexistngprgramme Programmes Programmes GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 •Introducig ewoursmoduleineriar y schools Schools Curriculum DevelopmentforTrade Schools Curriculum DevelopmentforTrade typically ismuhplerthaninblsc ols. –For smallschools,theprincipalyk e the –Often acurriulumoitteeheschoo l makes decison the decison GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Creating Modules Creating Modules •Determin whaskillsareobeaughin he curriulum module –Energy Auditinsacomfor n added trade schoolcoursemdule § § § as well having effcientequp ment Explains the importanceofener gy maneent improved in sbuildgneer placing feiencystobe Explains howtodeer mine fexstingequpnt equipment andhowsdeerned difference betweniientandn Neds toxplainnrgyficiecyandhe GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Trainng ofers Trainng ofers •Teachers atheschoolreeivranngin thenew course module –Utilty personel –External epts GSEP / PPA Energy Efficiency Improvement Guam August 20-24, 2012 Support Equipment Support Equipment •Equipment foreachingheenergyaud course modul will nedtobepurchasedforschool –Samples ofradiant barrier insulation –Illuminoeters –Infra redthermoers –portable wamersndhourers 1. Why does roof colour make a difference in air conditioning use? What is the best colour?

2. How can energy use for swimming pools be made more efficient?

3. Why should the outdoor portion of an air-conditioner be kept in the shade?

4. If it is true that an incandescent light converts only 2% of the electricity to light, how does that have an effect on air-conditioning energy needs?

5. Name two advantages of LED lighting. Name one disadvantage.

Advantages:

Disadvantage:

6. You go into a government office and measure the general lighting level as 950 Lux. What can you immediately do to increase energy efficiency for that office?

7. Which is more energy efficient, an ink jet printer or a Laser printer?

8. What is meant by a Phantom load? Give an example for one often found in a kitchen.

9. If the Phantom load of a TV is 3 watts and the phantom load of a DVD player is 2 watts and electricity is $0.50 a kWh, what is the expected annual cost of that phantom load? Show your calculations.

Do you think that is good value for the money?

If you want to save that money what can you do?

10. Name three reasons that teaching energy efficiency to 10-13 year old students is a good way to improve residential energy efficiency>