fy 2014 global warming mitigation technology … 2014 global warming mitigation technology promotion...

FY 2014 Global Warming Mitigation Technology

Promotion Project

Report of Findings of Feasibility Study concerning JCM

Project through Introduction of

Container-type Data Centers in Laos

January 2015

Ministry of Economy, Trade and Industry

Service Providers: Toyota Tsusho Corporation

Internet Initiative Japan Inc.

DC Feasibility Operation

Contents

Introduction .................................................................................................... 1-1 Chapter 1

Background .................................................................................................... 2-1 Chapter 2

2.1 Current status of IT policies in Laos ..................................................................... 2-2

2.1.1 Initiatives being taken by the Lao government ............................................. 2-2

2.1.2 Network infrastructure environment in Laos ................................................. 2-4

2.2 Lao IT project plan ................................................................................................ 2-5

2.2.1 Building a project implementation structure and providing education .......... 2-5

2.3 Positioning of the project ...................................................................................... 2-6

2.3.1 Significance and advantages of this project ................................................. 2-6

2.3.2 Project progress ............................................................................................ 2-6

Edification of Government Personnel ............................................................ 3-1 Chapter 3

3.1 Overview ............................................................................................................... 3-1

3.2 Tours of Related Facilities in Japan ...................................................................... 3-2

3.3 Observation of High-Efficiency Container-type Data Center ................................ 3-2

3.4 Educational and Awareness-Raising Programs concerning High-Efficiency

Container-type DCs .............................................................................................. 3-6

3.4.1 Participation in Local Event (LAO TECHMART 2014) .................................. 3-6

3.4.2 Periodic Intergovernmental JCM Project Study Meeting Held...................... 3-9

3.4.3 Joint Evaluation Meeting Held with Ministry of Science and Technology ... 3-10

3.4.4 Opinion Exchange with LANIC .................................................................... 3-15

Evaluation of Project Plan ............................................................................. 4-1 Chapter 4

4.1 Evaluation of design specifications and cost balance suited to Laos .................. 4-1

4.1.1 Applicable technologies in project implementation ....................................... 4-1

4.2 Survey on the usage needs of government and private-sector corporations ...... 4-8

4.2.1 Usage needs survey (in cooperation with Laos Smart Green IT Project

Committee) .................................................................................................... 4-8

4.2.2 Evaluation of service categories ................................................................... 4-8

4.3 Evaluation of services provided ............................................................................ 4-9

4.3.1 Basic surveys on Laos .................................................................................. 4-9

4.3.2 Survey of land and real estate markets ...................................................... 4-12

4.3.3 Laos market research .................................................................................. 4-13

4.3.4 Survey of local system integrators (SIs) ..................................................... 4-16

4.3.5 Challenges for commercialization ............................................................... 4-16

4.3.6 Technical issues in adopting container-type data centers .......................... 4-17

4.4 Evaluation of appropriate locations for establishing DCs ................................... 4-19

4.4.1 Survey of transportation routes ................................................................... 4-19

4.4.2 Construction plan and management ........................................................... 4-19

Development of MRV Methodology and Estimation of GHG reductions ...... 5-1 Chapter 5

5.1 Development approach of the MRV methodology ................................................ 5-1

5.2 Development of the JCM methodology ................................................................ 5-9

F.2.Calculation of the reference amount of emission (1) .................................................. 5-14

5.3 Adequacy verification of the efficiency index ...................................................... 5-16

5.4 Test calculation of the quantity of GHG emission reduction ............................... 5-17

5.5 Consideration of a simple and accurate monitoring method/structure ............... 5-19

5.5.1 Monitoring method ....................................................................................... 5-19

5.5.2 Monitoring structure ..................................................................................... 5-19

Analysis of Economic Effects ........................................................................ 6-1 Chapter 6

6.1 Reduction of electricity rates and other operating costs through the

introduction of high-efficiency container-type data centers .................................. 6-1

6.1.1 Comparison of operating costs with building-type data centers ................... 6-1

6.1.2 Comparison of initial costs with building-type (prefabricated) DCs .............. 6-1

6.2 Development of IT-related industries in Laos ....................................................... 6-2

6.3 Utilizing IT to improve international competitiveness within the region ................ 6-3

Policy Suggestions ........................................................................................ 7-1 Chapter 7

7.1 Investigation of related policies and systems in Laos .......................................... 7-1

7.1.1 Investigation related to IT policy .................................................................... 7-1

7.1.2 Investigation related to judicial affairs ........................................................... 7-1

7.2 Investigation of trends in data centers in Japan and other countries ................... 7-2

7.2.1 Trends in the outside-air cooling system and container-type DCs ............... 7-2

7.2.2 Trends in electrical facilities .......................................................................... 7-3

7.2.3 Easing of temperature conditions ................................................................. 7-3

7.3 Development of energy conservation standards for the data center to be built

.............................................................................................................................. 7-3

7.4 Preferential treatment related to development of container-type data centers .... 7-5

7.5 Measures to promote relocation of end user systems to energy-conserving

data centers .......................................................................................................... 7-6

1-1

Introduction Chapter 1

The Project is intended to reduce greenhouse gas (GHG) emissions in the Lao People’s

Democratic Republic through the development of container-type data centers (DCs), a

world-class low-carbon technology from Japan. This study on the composition of such data

centers investigated the commercial feasibility of the Project through a feasibility study.

2-1

Background Chapter 2

In recent years, initiatives such as the smart city have been actively

implemented toward achieving a low-carbon society that utilizes information

technologies (IT), and the concept of green IT has become widely accepted,

making IT a powerful tool for combating global warming.

At the same time, IT equipment itself consumes energy. In particular, at the data

centers (DCs) that act as the hubs of computer networks and are essential for

the aforementioned green IT, the power required to run the large number of IT

devices and the energy consumed to cool them have become an international

problem. These types of power and energy consumption are expected to

continue increasing in the future.

In Laos, IT introduction and development have been lagging and there are no

DCs that can be securely used by national-level institutions or international

corporations. Even government workers are observed using private-sector

e-mail services such as Gmail or Hotmail, inadvertently contributing to the

obstacles to the implementation of measures such as green IT.

Given this situation, the government of Laos, which is located in the center of

east-west and north-south economic corridors, is aiming to build a national DC to

strengthen connectivity through IT. This project has become a major pillar of the

Master Plan on ASEAN Connectivity, an initiative to build an ASEAN community

by 2015.

In response, the Lao government (Ministry of Science and Technology) has

asked two Japanese corporations to provide support toward the realization of a

green IT park. Toyota Tsusho Corporation (Toyota Tsusho), one of the

companies, has been conducting various types of business operations in Laos,

while Internet Initiative Japan (IIJ), the other, has built and is operating the

Matsue Data Center Park, the first large-scale, commercial, container-type DC in

Japan. The two are continuing joint efforts to help achieve a green IT park

centered on an energy-saving container-type DC that will help combat global

warming.

In addition, this activity helps the Green Mekong Initiative, being promoted by the

Japanese government, and is expected to help Laos in its efforts to achieve

sustainable development. It was mentioned by Mr. Motegi, the Japanese

Minister for Economy, Trade and Industry, during his visit to Laos in April 2014.

The Lao Ministry of Science and Technology, which will oversee the park, was

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established in 2011 and is promoting advanced projects in the fields of IT,

biotechnology, energy, etc. The Ministry is also responsible for managing the

systems used by the Lao government and centrally coordinating its IT policies.

[Requests from Lao Government]

The following is a brief history of the interactions that have taken place between

Toyota Tsusho, etc. and the Ministry of Science and Technology regarding the

green IT park.

February 2014 Explained the project concept to the Lao Minister of

Science and Technology.

March 2014 The Lao Minister of Science and Technology visited Japan (to

tour IIJ’s Matsue Data Center Park, etc.).

April 2014 A memorandum of understanding (MoU) was concluded among

the Lao Ministry of Science and Technology, Toyota Tsusho, IIJ,

etc.

(A preliminary investigation began.)

August 2014 JCM Project Feasibility Investigation began (completed in

January 2015).

December 2014 Members of the Ministry of Science and Technology

visited Japan.

2.1 Current status of IT policies in Laos

Our investigation examined the current status of IT policies in Laos.

2.1.1 Initiatives being taken by the Lao government

Since announcing its IT strategic plan in 2010, the Lao government has been

working on creating a new communications/ICT law, an electronic transaction

law, and a broadcasting law, etc. The Information Technology Department

responsible for drafting IT-related policies as well as investigation and

development was set up inside the Ministry of Science and Technology, which

was established in December 2011. Currently, this Information Technology

Department is taking the leadership role in efforts to spread IT and encourage its

use in Laos, and has identified the establishment of a national DC and provision

of advanced IT services as the focal items in the next-phase plan.

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Figure 2.1-1 Office of the Information Technology Department of the

Ministry of Science and Technology

(1) Functions and missions of the Information Technology Department of the

Ministry of Science and Technology

The Information Technology Department of the Ministry of Science and

Technology lists the following as its four major roles and missions:

(i) Promotion of IT-related collaboration among the central government,

regional governments, and various ministries

(ii) Development of IT-related laws and regulations to help spread IT to

the private sector

(iii) Support for training, etc. to promote the use of IT and improve the IT

level

(iv) Conducting R&D on applications to promote industrialization and

modernization of Lao society

In all these areas, the DC planned as the foundation of this project is

considered to play an important role.

(2) Initiative to develop IT-related laws and regulations

One of the specific steps taken by the Information Technology

Department was the development of the Electronic Transaction Law

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(2012). Currently, the Bureau is also proceeding to develop a data

protection law and other IT-related laws and regulations in stages. The IT

infrastructure the government uses is also expected to require a high

level of security standards in the future.

(3) Outcome of IT-related R&D efforts

The outcome of the Information Technology Department’s R&D includes a

web conferencing system, open source office applications, and many

kinds of office-computerization programs. Use of the DC as the

infrastructure foundation for such R&D operations is also being

considered.

(4) Future plans

The Lao Ministry of Science and Technology has put forth a future plan to

build a national DC in collaboration with various other interested

ministries, and is currently positioning Toyota Tsusho, etc. among its most

powerful partners in the evaluation phase.

2.1.2 Network infrastructure environment in Laos

For the network infrastructure, one of the most important elements of this project,

the Lao government has been installing optical fiber networks throughout the

entire country. The total length of the optical fiber installation has now reached

4,469 km, covering the area in and around Vientiane and other major cities. The

plan calls for the installation of optical fibers in the city of Vientiane and its

surrounding areas in Phase 1, other major cities in Phase 2-A, and the areas

surrounding major cities in Phase 2-B. So far, the government has completed up

to Phase 2-A.

Currently, most Internet providers in Laos connect to overseas Internet via the

Laos National Internet Center (LANIC), which functions as an international

Internet gateway. Some providers, however, have established direct lines to

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overseas providers.

2.2 Lao IT project plan

We investigated the future IT project envisioned by the Lao government.

2.2.1 Building a project implementation structure and providing education

(1) Project overview

The DC envisioned in this project is an international-level DC that will

become the foundation of the electronic government being promoted by

the Lao Ministry of Science and Technology. Therefore, we consider it

desirable to build an operational structure that will be managed by the

Ministry of Science and Technology or a state-run company under the

Ministry’s jurisdiction. To build a sustainable operational structure, we will

provide DC operation training to Lao personnel beginning with this

verification project. Even after commercialization, we envision providing

ample technical support with the smallest contingent possible.

(2) Engineering education

At the Seventh Lao Party Congress held in March 2001, a declaration

was made about the importance of IT education and the intention to

revitalize the Lao economy by utilizing IT. A seminar entitled

“Industrialization and Modernization Implementation Policy in Laos” was

given to section chiefs and higher at all ministries and agencies in

January 2003, stressing the importance of IT education. The government

also stated its intention to revitalize the economy of the entire country by

introducing IT into all fields, including telecommunications, tourism,

transportation, health, and environment. Given this situation, the Japan

International Cooperation Agency, an independent administrative

institution, implemented the National University Project on Human

Resource Development in the IT Service Industry from 2008 to 2013, in

cooperation with the National University of Laos. At the same time, there

has been strong demand from the IT industry for the establishment of

institutions to train IT specialists in the database, network, and application

fields. However, most of the people actually working in these industries

2-6

are either foreigners or Laotians who returned to Laos after studying

abroad, and existing Lao educational institutions are still unable to

develop the kind of human resources required by these industries.

Meanwhile, since the DC project requires stable operation over a long

period, local operation support is extremely important. For this reason,

training local engineers is essential, which should provide impetus to

efforts to improve the IT engineering education system in Laos.

2.3 Positioning of the project

This section describes the positioning of the project based on the preceding

section.

2.3.1 Significance and advantages of this project

In Laos, since there is currently no DC that can be securely utilized by

national-level institutions or international corporations, each institution is forced

to individually manage and operate its own IT equipment. Therefore, this

project has an extremely important position in the Lao government’s IT strategy,

and should greatly help improve information security and revitalize industries.

The electricity supply in Laos is recognized to be cheaper and more stable than

in neighboring countries. Furthermore, because Laos is located in the center of

the Mekong region and has few natural disasters, this project is receiving a

great deal of attention as a data-backup hub for the surrounding countries.

2.3.2 Project progress

The Lao Ministry of Science and Technology, together with Japanese

corporations (Toyota Tsusho and IIJ), has established the Laos Smart Green IT

Project Committee, whose objective is to validate the business feasibility of an

IT park centered around a DC under the Mekong Data Hub Concept. The

Committee is investigating the feasibility of an integrated business centered on

a DC, including the development of IT human resources and the creation of an

office environment in Laos.

Rather than as a simple DC operation business, Toyota Tsusho and its partner

regard this project as part of a green IT business that will actively adopt energy

conservation technologies. They are also promoting this project as a Joint

2-7

Crediting Mechanism (JCM) project, taking into consideration the wishes of the

Lao government, which agreed to promote a bilateral offset credit system with

the Japanese government in August 2013.

The following table provides an overview of the meeting held to explain

implementation of the feasibility study:

Overview of the meeting held to explain feasibility study implementation

Item Description

Date/time August 27, 2014 16:00 - 18:00

Location Lao Ministry of Science and Technology (Vientiane, Laos)

Purpose To report the fact that the Japanese side had been selected for the

project and to discuss policy for future activities

Agenda (i) The Japanese side explained their selection for the project

and its purpose. The Lao side indicated its agreement to the

start of the feasibility study and expressed appreciation for

the efforts of the Japanese side.

(ii) A proposal was made and an agreement reached to hold

regular information-exchange meetings between the

participants involved from the two sides once every month or

two, to share progress status and exchange information.

Future Progress review meetings will be held with the involved participants

from the Lao government to promote the project.

Furthermore, even during the feasibility study period, progress review meetings

have been held on an irregular basis to promote the project, along with study

meetings and evaluation meetings. For an overview of the study meetings and

evaluation meetings held, see the next chapter.

[Main agenda of the progress review meetings]

(1) Explanation of the current status of the feasibility study and request for

cooperation from the Lao government based thereon

(2) Adjustment to the future schedule and sharing of the work flow

(3) Holding of a JCM project study meeting

2-8

(4) Evaluation of the specific details of the National Data Center

(5) Ensuring thorough understanding of the situation by all involved, including

the Minister, Department Director, Section Chiefs, and persons in charge

(6) Promotion of stronger collaboration with the involved Lao ministries and

agencies

(7) Explanation of the project to the involved Lao government ministries and

agencies with which collaboration will be especially important

(8) Identification and resolution of other issues and questions

3-1

Edification of Government Personnel Chapter 3

As a part of this study, tours of related facilities in Japan by the Lao Ministry of Science and

Technology and other government agencies as well as study meetings, evaluation meetings,

and opinion exchanges by Lao government personnel were conducted to raise

understanding of the new modular DC concept.

3.1 Overview

Five broad categories of educational programs were undertaken (see Table 3.1-1). Through

each of these programs, efforts were made to increase the understanding of high-efficiency

container-type DCs among personnel from the Lao Ministry of Science and Technology and

the involved participants from the Lao government, gain cooperation with the verification

project, and obtain cooperation with and reach an agreement on future commercialization.

Table 3.1-1 List of Educational Programs

Program Type Implementation Period

(number of times conducted)

Understanding

Tours of related facilities in

Japan (Matsue Data Center Park

and others)

November 30 – December 3, 2014

Edification,

increasing

awareness

Participation in local event (Lao

TechMart 2014)

December 11 – 15, 2014

(Five days)

JCM Project Study Meeting

Lao Ministry of Science and

Technology

September 30 and November 4, 2014

(Two times)

Joint evaluation

Lao Ministry of Science and

Technology

September 29 – November 14, 2014

(Six times)

Opinion exchange Ministry of

Posts and Telecommunications,

Lao National Internet Center

(LANIC)

November 12 and 21, 2014

(Two times)

3-2

3.2 Tours of Related Facilities in Japan

The tours of related facilities in Japan included a visit to Internet Initiative Japan’s Matsue

Data Center Park, which is Japan’s first large-scale commercial container-type DC in

operation. The participants also had the opportunity to exchange opinions with personnel

from Japanese government agencies and companies that are conducting business in

Japan.

Table 3.2-1 Overview of Tours

Item Details

Tour dates November 30 – December 3, 2014

Tour site

Matsue Data Center Park (IIJ)

Ministry of Economy, Trade and Industry

Toyota Tsusho Tokyo head office

IIJ head office

Table 3.2-2 Tour Schedule

Date Itinerary Program

November

30

Travel Vientiane to Tokyo －

December 1

Travel Tokyo to Matsue －

Tour IIJ Matsue Data Center Park

(Item 3.3 of the overview)

Tour of container-type

DCs

Travel Matsue to Tokyo －

December 2

Visit Toyota Tsusho Tokyo head office Exchange of opinions

Visit IIJ head office Exchange of opinions

Visit Ministry of Economy, Trade and

Industry

Exchange of opinions

December 3 Travel Tokyo to Vientiane －

3.3 Observation of High-Efficiency Container-type Data Center

On December 1, 2014, the group visited the Matsue Data Center Park constructed and

currently operated by the IIJ in Matsue City, Shimane Prefecture and observed the

technologies used in high-efficiency container-type DCs and their operating status. A

3-3

summary of the visit is set forth below.

Summary of Visit Sites

The IIJ Matsue Data Center Park makes possible innovation that could not be achieved in

the past by building and operating DCs based on the concept of “establishing infrastructure

optimized for cloud computing that integrates facilities and IT equipment” in preparation for

the transformation of existing ideas and the cloud generation. A conceptual diagram concept

is below.

Figure 3.3-1 Conceptual diagram of the Matsue Data Center Park

To carry out the concept, a structure that integrates ducts for the introduction of external air

into the container body, something that is difficult to do with buildings, and other

technologies were introduced. During the tour, the main focus was on observing the actual

structures technologies. Exterior views of the DC and the facilities that comprise it as well as

its main specifications are below.

Current Cloud Period

“Cloud Base” which is fused “IT

equipment and facility”, cloud

owner’s asset

Cloud Owner’s

Asset Data

Center

IT Equipment

Construct on Cloud Base

Customer A

System

Customer B

System

Customer C

System

Customer A

System

Customer B

System

Customer C

System

Construction Individually

Customer’s Asset

DataCenter

Asset

IT Equipment IT Equipment IT Equipment

“Facility” which detains “IT

equipment” of customer’s asset

Data

Center

Data

Center

Data

Center

3-4

Figure 3.3-2 Overhead view of the Matsue Data Center Park

As of May 2014, thirty-two IZmo container modules were installed at the park and were in

operation as the basic infrastructure for IIJ’s GIO cloud service.

Figure 3.3-3 IZmo IT module and air conditioning module

Core Facility

Air-Conditioning

Module

IT Module

IZmo

Inside of IZmo: detain IT equipment high thickly

3-5

Site area: Approximately 8,000 m2

Buildings: Management building, electrical facility building (fire-proof building)

Module installation area: Maximum of 24 IT modules (maximum of 216 racks)

Earthquake Countermeasures

Site with stable ground: Developed land using excavated material and

confirmation of adequate N values (an indicator of ground strength) through

ground surveys. Buildings, IT modules, air conditioning modules, and other

facilties have structures that can withstand horizontal acceleration of 980 gal

(equivalent to seismic intensity 7) .

Water Damage Countermeasures

The site is not located in a flood zone on hazard maps.

Water leaks are detected using leak sensors.

Lightning Countermeasures

Lightning conductors and SPD are installed.

Networks

Connected to the IIJ backbone network by redundant 10 Gbps differential carrier

lines.

Electrical Facilities

Incoming power capacity: 2,000 kVA

Two power lines (active/standby), each from a different substation, provided by

Chugoku Electric Power

24-hour continuous operation emergency generator

UPS N+1 structure

Fire Extinguishing Equipment

Fire early warning and detection system (VESDA)

N2 gas fire extinguishing equipment

Security

Equipped with site intrusion detectors, monitoring cameras, and access control.

24-hour monitoring by security personnel

Certifications

ISMS

ISO 14001

SSAE 16 Type 2 (compliance planned)

FISC compliant

JDCC-FS001 Tier 3

Operational Organization and Management

3-6

24-hour manned operation, 365 days a year

Equipment power supply ON/OFF status, LED confirmation, and spare equipment

in the event of hardware failure

Monitoring and operating services including replacement of equipment is

available.

Scenes of the Observations

The group observed the main facilities that make up the DC including the interiors and

exteriors of various types of containers, the management building, and emergency

generators and listened to explanations of the technologies and operations. The group

confirmed the adaptability of the facilities to the inferior electric power supply conditions that

differ from those in Japan and the weather conditions in Laos, which are characterized by

high temperature, humidity, and dust levels. The participants asked about actual operations

including the hardware capacity of each container type, responses in the event of a fire,

ensuring security, and so on, and asked about operating conditions in the case of operation

in Laos.

3.4 Educational and Awareness-Raising Programs concerning

High-Efficiency Container-type DCs

Educational and awareness-raising programs included study meetings, joint evaluation

meetings, and opinion exchanges, and seminars primarily for Lao government personnel

affiliated with the Ministry of Science and Technology.

3.4.1 Participation in Local Event (LAO TECHMART 2014)

As a part of the container-type DC edification programs, Toyota Tsusho and IIJ had a joint

exhibit at the Lao TECHMART 2014 held in Vientiane. They also gave presentations at

seminars.

Overview of the Exhibition

- Dates: December 11 – 15, 2014 (five days)

- Site: Lao International Trade Exhibition and Convention Center (Lao ITECC)

- Sponsor: Ministry of Science and Technology

- Also held: Seminars

3-7

Background

The Lao government has given science and technology an extremely important role for

carrying out its national strategy on science and technology development up to 2025 and

vision for 2030. Science and technology are positioned as the driving force for Laos’s

National Socio-Economic Development Plan 2011-2015, for achieving the targets that the

government has set for 2020 including reduction of poverty, achieving the United Nations

Millennium Development Goals, industrialization, modernization, and advancing from the

developing country stage, and for preparing for joining the ASEAN Economic Community,

which is scheduled for 2015.

Science and technology applications in various fields will be important and essential for

supporting the development plans and targets discussed above. Particularly urgent tasks

include disseminating the results of research and so on and applying them to business,

manufacturing and production, and services, increasing productivity and quality through

transfers of technology (skills) , increasing the added value of products, and reducing

energy and raw material consumption, costs, and environmental impact (e.g., creating safe

and secure agricultural production systems) .

For the Ministry of Science and Technology, holding the LAO TECHMART 2014, which was

held for the first time, was an extremely important task from the perspective of disseminating

the result of research and so on and transferring technologies (skills).

The objectives of holding LAO TECHMART 2014 were to promote the application of more

efficient and advanced technologies to manufacturing, production, and services, contribute

to social and economic development, and enhance abilities to trade products in competition

in global markets.

Objectives

- Disseminate research achievements that will contribute to business in Laos. Raise the

productivity of manufacturers, improve processes and quality, increase the added value

of products, raise raw material and energy efficiency, cut costs, preserve the

environment, develop safe and secure agricultural production systems, and contribute to

IT

- Promote collaboration and dialogue on technology with ASEAN member countries

- Provide opportunities to businesses, manufacturers, students, and the public to have

contact with and learn about advanced technologies

Technology Fields

- Biotechnology, agriculture

3-8

- Information, communications, services

- Energy, new materials

- Engineering

- Healthcare

- Transportation

- Food processing, beverages

- Electronic and electric products

Exhibitors

Approximately 77 companies

Seminar Program

December 13, 2014, 10:00 a.m. – 4:30 p.m.

Track A: Biotechnology, agriculture

Track B: Renewable energy, new materials

December 14, 2014, 9:00 a.m. – 4:30 p.m.

Track A: Information, communications, services

Track B: Engineering, transportation

Presentations

Date & time: December 14, 2014, 9:30– 10:00 a.m.

Title: IIJ Company Overview and Container Datacenter

Details

1. Company overview

2. Business overview

3. Description of the Matsue Data Center Park

4. Comparison on container-type data center and building data centers

5. Features of modular data centers

A) Short construction time

B) Energy saving, low environmental impact

C) Remote maintenance systems

D) Tier 3 equivalent security

3-9

3.4.2 Periodic Intergovernmental JCM Project Study Meeting Held

Two study sessions for key and supporting personnel of the Lao Ministry of Science and

Technology were held to raise understanding of the JCM system and structure.

First JCM Project Study Meeting

Item Details

Date & time September 29, 2014, 8:30 – 9:30 a.m.


Participants From Laos: Total of approximately 14 members of the Ministry of Science

and Technology

Purpose Study meeting on the JCM project concept for the involved participants from

the Lao government

Agenda

1. Overview of NEDO

2. Roles of NEDO

3. Renewable energy

4. Overview of the verification test

5. Framework of the verification test

6. Examples of projects in Asia

7. Overview of JCM

8. JCM project cycle

9. Subject countries

10. Examples of JCM FS results by NEDO

11. Future process in the case where the JCM verification test is selected

12. Questions and answers

Going

forward

A second session will be held to explain the JCM project to persons who are

unable to attend and those who require further explanation.

Second JCM Project Study Meeting

Item Details

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Item Details

Date & time November 5, 2014, 10:00 - 11:00 a.m.


Participants From Laos: Total of 6 members of the Ministry of Science and Technology

Purpose Study meeting on the JCM project concept for the involved participants from

the Lao government

Agenda

1. Overview of NEDO

2. Roles of NEDO

3. Renewable energy

4. Overview of the verification test

5. Framework of the verification test

6. Examples of projects in Asia

7. Overview of JCM

8. JCM project cycle

9. Subject countries

10. Examples of JCM FS results by NEDO

11. Future process in the case where the JCM verification test is selected

12. Questions and answers

Going

forward

End of program

3.4.3 Joint Evaluation Meeting Held with Ministry of Science and

Technology

Joint evaluation meeting were held to share information on the status of the feasibility study,

make requests to the Lao government, and conduct consultations on an ongoing basis in

order to support complete implementation of the feasibility study supported by the Ministry of

Economy, Trade and Industry and facilitate steady progress towards later implementation of

a verification test.

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First Joint Evaluation Meeting

Item Details

Date and

time

September 16, 2014, 3:00 - 4:30 p.m.


Participants From Laos:

Ministry of Science and Technology and others for a total of eight persons

Purpose Confirm how to implement the feasibility study

Agenda - Details of feasibility study implementation

Explanation of the feasibility study details pursuant to support from METI

- Establish a consensus on details of the schedule

Explanation of the feasibility study schedule pursuant to support from METI

- Questions and answers and other discussion

Next

Session

Continue sharing information on the status of implementation of the

feasibility study and explain requests to the Lao government

Second Joint Evaluation Meeting

Item Details

Date and

time

September 29, 2014, 9:30 – 10:00 a.m.



Ministry of Science and Technology and others for a total of five persons

Purpose Feasibility study progress review meeting

Agenda - Share information on implementation of the feasibility study

Share information on the current status of progress

- Confirmation of issues

Confirmation of the status of understanding of the project within the Lao

government


3-12

Item Details

Next

Session

Continuation of the above and promotion of collaboration and sharing of

information with the Lao government

Third Joint Evaluation Meeting

Item Details

Date and

time

October 10, 2014, 3:00 - 4:00 p.m.



Ministry of Science and Technology and others for a total of four persons




- Requests to the Ministry of Science and Technology

Request to reinforce explanations and collaborations within the government.

In particular, request to promote understanding of the project in related

ministries and agencies.

Explanations to Lao government ministries and agencies concerning the

visits and request to accompany during those visits.


Next

Session

Continuation of the above and sharing of information on the status of

progress

Forth Joint Evaluation Meeting

Item Details

Date and

time

October 27, 2014, 1:00 - 2:00 p.m.



Ministry of Science and Technology and others for a total of three persons




3-13

Item Details


Next

Session

Continued collaboration with the Lao government

Fifth Joint Evaluation Meeting

Item Details

Date and

time

November 5, 2014, 11:00 a.m. – 12:00 noon



Ministry of Science and Technology and others for a total of six persons

Purpose Interim information sharing on the feasibility study

Agenda - Interim information sharing on the feasibility study


Next

Session

Continued collaboration with the Lao government

Sixth Joint Evaluation Meeting

Item Details

Date and

time

November 14, 2014, 8:30 – 10:00 a.m.



Ministry of Science and Technology and others for a total of approximately

20 persons





Next

Session

End

3-14

Seventh Joint Evaluation Meeting

Item Details

Date and

time

November 24, 2014, 2:00 – 2:30 p.m.








Next

Session

Continuation and collaboration with the Lao government

Eighth Joint Evaluation Meeting

Item Details

Date and

time

December 11, 2014, 5:00 – 5:30 p.m.

Location Vientiane ITTEC Site (Vientiane, Laos)


Ministry of Science and Technology and others for a total of five persons





Next

Session

Continuation and promotion of information sharing and collaboration

3-15

Ninth Joint Evaluation Meeting

Item Details

Date and

time

December 22, 2014, 4:00 – 5:00 p.m.






Report on completion of feasibility study in Laos

Next

Session

End of program

3.4.4 Opinion Exchange with LANIC

An opinion exchange was held to promote collaboration with the Ministry of Posts and

Telecommunications, which manages and oversees communications infrastructure, facilitate

efficient and effective use through the creation of national DCs, and strengthen ongoing

collaboration.

Opinion Exchange with the Ministry of Posts and Telecommunications

Item Details

Date and

time

November 12, 2014, 11:00 a.m. – 12:00 noon

Location Lao Ministry of Communication, Transport, Post and Construction(Vientiane,

Laos)


Ministry of Posts and Telecommunications for a total of two persons

Ministry of Science and Technology for a total of two persons

Purpose Opinion Exchange regarding national DCs

Agenda - Explanation of the feasibility study overview

- Exchange of opinions regarding construction of national DCs

3-16

Item Details

Going

forward

The parties agreed that they will continue to exchange information and

collaborate in the future.

Opinion Exchange with the Laos National Internet Center (LANIC)

Item Details

Date and

time

November 21, 2014, 1:30 – 2:30 p.m.

Location LANIC, Ministry of Posts and Telecommunications (Vientiane, Laos)


LANIC for a total of two persons

Purpose Opinion exchange regarding national DCs

Agenda - Explanation of the feasibility study overview

- Exchange of opinions regarding construction of national DCs

- Future collaboration

The parties agreed that they will continue to collaborate and exchange

opinions with the Ministry of Science and Technology and LANIC.

Going

forward

The parties agreed that they will continue to exchange information and

collaborate in the future.

4-1

Evaluation of Project Plan Chapter 4

We conducted an evaluation on the design specifications and draft project plans required to

introduce high-efficiency container-type DCs into Laos.

4.1 Evaluation of design specifications and cost balance suited to Laos

We conducted an evaluation of design specifications and cost balance appropriate for Laos,

from the perspective of technologies applied to container-type DCs. Each of the design

specifications are indicated below.

4.1.1 Applicable technologies in project implementation

Apply energy-conservation technologies in the following:

(1) Storage facilities (containers, dedicated buildings, computer rooms at each location,

etc.)

(2) IT equipment (primarily servers)

(3) Other (control)

(1) Containerization of storage facilities

The power usage effectiveness (PUE = (total power consumption of DC) / (power

consumption of IT equipment)) of most building-type DCs commonly used today is

about 2.0. However, because Laos has an environment of high temperature and

high humidity, and in most instances, servers are managed in a place like a

computer room, it is envisaged that the actual PUE here will be worse than this.

On the other hand, by using the method for calculating PUE prior to the introduction

of container-type DCs into the Matsue Data Center Park, the PUE of container-type

DCs has been estimated at about 1.2. Actual operations have also produced a

similar value. Thus, the containerization of storage facilities has the potential to

significantly reduce power consumption.

We will apply the following technologies during project implementation to realize

energy conservation.

1) Adoption of indirect outside-air cooling systems to reduce the load of cooling

equipment

Although direct outside-air cooling systems have been adopted at the Matsue Data

Center Park, they require strict management of humidity and dust particles, which in

turn, requires advanced operational skills. Furthermore, since the equipment is large

4-2

in size, there are concerns that transportation costs would soar. Indirect outside-air

cooling systems overcome these two challenges, and they achieve energy

conservation, and so will be adopted.

Table 4.1-1 Comparison of cooling systems

Direct outside-air cooling systems Indirect outside-air cooling systems

Mechanism Outside air is introduced directly into the

room and cooled

Heat is expelled from inside the room via

a heat exchanger, without introducing

any outside air into the room

Control of

humidity and

dust particles

Since outside air is brought directly into

the room, requires humidifiers, filters and

other equipment

Since air inside the room is circulated,

simple humidifiers and filters can be used

Features of

equipment

Difficult to install in existing buildings

because openings are required in server

rooms to let in outside air

Also, air-conditioning units are larger

because they require space for mixing

the inside air with the outside air

Server rooms do not require openings to

let in outside air

Air-conditioning units can be kept

compact in size because space is not

needed for mixing air

Length of time

outside air can

be used

Cooling using only outside air can be

done for long periods of time without the

use of chillers

Cooling using only outside air, without

the use of chillers, cannot be done for as

long as direct outside-air cooling systems

4-3

Figure 4.1-1 Configuration of equipment in indirect outside-air cooling

systems

Hot aisle

間接外気

熱交換機

Cold aisle

冷凍機 Refrigerating

Machine

Heat Exchanging

Machine

Indirect Air from

outside

4-4

Figure 4.1-2 Overview of control in indirect outside-air cooling

systems

2) Adoption of high-efficiency UPS

It will be possible to further enhance energy-conservation effects by adopting a

dual-conversion type of uninterruptible power supply (UPS) system, which is

used to counter failures of commercial power supply (momentary interruptions,

prolonged outages).

外気利用

( 不凍液循環 )

冬期

間接外気モード

（熱交換機のみ）

冷凍機夏期

冷凍機モード

（冷凍機のみ）

中間期（春、秋）

コンビネーションモード

（熱交換機 + 冷凍機）

外気の温湿度に応じて運転モードを自動制御 Auto Control Operation Mode for outside temperature/humidity

Middle Term (Spring, Autumn)

Combination Mode

(Heat Exchanging Machine + Refrigerator)

Winter Term

Indirection Outside Air Mode

(Heat Exchanging Machine Only)

Summer Term

Refrigerator Mode

(Refrigerator Only)

4-5

Table 4.1-2 Types of UPS and their respective characteristics

3) Reduction of conversion loss and power transmission loss

The standard power supply system used in Laos is the three-phase four-wire

system. Since it is capable of getting 200V from 380V–420V without a

transformer, it should be possible to reduce conversion loss. Also, by using bus

ducts for the wiring inside the containers, an exepcted benefit will be a greater

reduction in power transmission loss compared to individual wiring.

Electric Supply Method

Constitution Curcuit

offline Line Interactive Double Conversion Double Conversion

(Technic with Fuji Electronic Licensed)

Normal Invertor Method Normal Commercial Method

Switch

Invertor Battery Battery Invertor

Switch Invertor

Battery Battery

Convertor Direct

Convertor Parallel

Convertor

Voltage Security

Energy Security

Stable output of the double conversion equivalency by 20% of energy security

Efficiency

Switch Duration

Voltage

Fluctuation

Function

Evaluation

Total Evaluation

Normal

Power Outage

Power Stable

Save Energy

Uninterrupted Uninterrupted

◎

Balance high efficiency with the stability of the output power

supply

○

Stability of the output power supply

×

Voltage Secured with high efficiency, but outage is occurred

×

High efficiency, but outage is occurred

4-6

Figure 4.1-3 Power supply system

(2) Introduction of high-efficiency IT equipment (primarily servers)

In developed countries, servers are ordinarily replaced after about five years, but in

developing countries, it would appear that outdated servers are often continuing to

be used. Therefore, based on the following perspectives, we will examine the

reduction effects if high-efficiency IT equipment was installed in container-type DCs

and conventional servers were replaced.

1) Integration effect as a result of improved processing power

The processing power of servers has evolved with rapid progress. Consequently,

there are high hopes for energy-conservation effects by building container-type

DCs and aiming to replace outdated servers that are currently dispersed. When

replacing old outdated servers with the latest models, it is possible to calculate

the CO2 reduction effect from the percentage improvement in CPU performance.

According to past surveys, when comparing the same processing power, it has

sometimes been reported that servers from five years ago consume more than

ten times electricity than that consumed by latest model servers.

2) Energy conservation as a result of introducing high-temperature equipment

It has also been reported that electricity costs can be reduced by 4–5% for each one

Busway system + 3-phase 4-wire system

AC400V/230V

commercial power

三相4線方式+バスダクト

ServerA/D

…

commercial power

…

Rack

IT module

ServerA/DRack

IT module

ServerA/DRack

IT module

ServerA/DRack

IT module

ServerA/DRack

IT module

ServerA/DRack

IT module

A/D D/A

BAT

A/D D/A

BAT

A/D D/A

BAT

A/D D/A

BAT

AC420VAC420V 3-phase 3-wire system

AC210V

single-phase two-wire systemAC210V

single-phase two-wire systemAC230V

AC420V

トランスレス化バスダクト化

三相３線方式Three aspects 3 line method

Three aspects 4 line method

+ Busway

Trans-Less Busway

4-7

degree Fahrenheit rise in the intake temperature of servers. Thus, a key point in

reducing power consumption is the temperature setting of DCs.

In recent years, IT equipment has been developed which takes advantage of various

technologies to raise the operable temperature range. Utilizing this equipment, it is

expected that the temperature setting of DCs will be able to be raised, thus

achieving reductions in power consumption. Below are examples of

high-temperature servers.

With container-type systems, it is possible to change the temperature setting for

each individual unit, and so high-temperature equipment could be housed

separately from other equipment.

(3) Other (virtualization, control, etc.)

1) Introduction of virtualization technology

Virtualization technology is the virtual creation of multiple servers on a single

physical server. Recently, the technology has also been used by businesses.

According to the FY2012 Communications Usage Trend Survey, the percentage of

businesses that answered that they were using cloud services in at least some

business divisions had risen to 28.2%, 6.6 points up from 21.6% at the end of 2011.

Since systems can be aggregated, it is possible to achieve an improvement in the

utilization rate of physical servers, and as a consequence of this, a decrease in

power consumption and a decrease in the cooling load due to a reduction in the

number of physical servers.

2) Introduction of facilities software control

By introducing a centralized control system for IT equipment, air conditioning and

other components, which was developed by IIJ as part of the Project for the

Development of Software-Controlled Cloud System Technology—a project under

Japan’s Ministry of Economy, Trade and Industry FY2013 subsidies for business

expenditure in the practical development of industrial technologies—even further

energy conservation is expected to be achieved.

4-8

4.2 Survey on the usage needs of government and private-sector

corporations

The Lao government and private-sector corporations in Laos were surveyed about their

needs for IT services.

4.2.1 Usage needs survey (in cooperation with Laos Smart Green IT

Project Committee)

The Department of Information Technology within the Ministry of Science and

Technology surveyed each of the government organizations targeted in the Project

as well as the number of personnel under their respective control.

4.2.2 Evaluation of service categories

(1) IT services for government

Based on the plan promoting the use if IT services, which was formulated by the

Ministry of Science and Technology’s Department of Information Technology, two IT

services for government were provisionally defined: (1) email services, and

(2) storage services.

(2) Evaluation of services for the private sector

With regard to IT services for the private sector, consideration was given to the

“email services” and “storage services” defined for the IT services for government.

Readily available data was aggregated for 16 companies which had been selected

from a broad range of industries from among the companies in Laos subject to the

needs survey. This data was used to assess the current usage situation and to

evaluate needs.

Breakdown of relevant companies:

5 IT-related companies, 2 trading firms, 3 banks, 1 insurance company,

2 retailers, 1 manufacturer, 2 hotels

Breakdown of capital funding:

70% domestic capital, 30% foreign capital

① Summary of interview results

The table below shows the results of the current forms of systems used for email, file

4-9

sharing and web servers, classified by the number of employees. With respect to

email services, the current situation is that the majority utilize the services of IT

vendors in places like Thailand and Vietnam.

Table 4.2-1 Summary of interview results

Number of employees

Number of companies interviewed

Email File Sharing Web Server

Clo

ud

On

-pre

mis

e

No

t used

Clo

ud

On

-pre

mis

e

No

t used

Clo

ud

On

-pre

mis

e

No

t used

Less than 49 6 4 2 0 0 5 1 5 1 0

50–99 2 1 1 0 0 2 0 1 1 0

100–199 1 0 1 0 0 1 0 1 0 0

200–299 5 3 2 0 0 4 1 5 0 0

300 or more 2 1 1 0 0 2 0 1 1 0

Total 16 9 7 0 0 14 2 13 3 0

4.3 Evaluation of services provided

Based on the results of surveys on various trends in Laos, we evaluated the services to

be provided through the Project.

4.3.1 Basic surveys on Laos

(1) Survey on the Internet

The Internet penetration rate in Laos is 12.50% (end of 2012), and viewed on an

international comparison, Laos ranks 164th out of 209 countries. The Internet has

shown strong growth since 2007, and is expected to continue spreading. As for the

penetration rate for mobile phones, not all people own mobile phones, but some

people own multiple prepaid SIM cards, and so this has resulted in a high penetration

rate for mobile phones. Furthermore, although 3G has been established, the number

of subscribers is low, at about 320,000 or 4.8% of all mobile phones.

4-10

Table 4.3-1 Basic data on the Internet

Item Data

1) Internet 810,000 people (2012)

Penetration rate 12.50% (2012)

2) Broadband 93,000 people (2012)


3) Mobile phones 6,490,000 people (2012)


4) Size of IT market USD 150 million (2012)

5) Number of ICT-related

enterprises

200 (2010)

6) IT personnel 4,000 (2010)

(2) Survey on Internet connections

We interviewed four major carriers about the Project with respect to the Internet

connection necessary for a DC project. We then performed a cost comparison of

cabling costs and monthly fees.

Table 4.3-2 Comparison of Internet connections in Laos

Carrier Company A Company B Company C Company D

Cabling

cost JPY 100,000 JPY 50,000 JPY 40,000 No tariff

Monthly

fee / line JPY 1,210,000 JPY 910,000 JPY 1,820,000 No tariff

Additional

information

Conversion rate: LAK 800,000 = JPY 10,000 (2014.11.30)

Conditions for cabling cost are redundancy configuration and within

Vientiane city

In addition to LANIC IIX, all four companies interviewed above also have

their own IIX.

Some carriers only use LANIC IIX.

4-11

(3) International comparison of costs for Internet connections

At present, the price of Internet connections are higher in Laos than in other

countries.

Table 4.3-3 International comparison of costs for Internet connections

Country Laos Thailand Singapore Japan

Cabling cost USD 1,000 USD 1,300 USD 1,000 USD 1,000

Monthly fee USD 12,000 USD 7,000 USD 8,000 USD 10,000

(4) Survey on electricity rates

We interviewed the state-owned power company about the Project with respect to the

electricity rates necessary for a DC project. We then conducted a cost study.

Table 4.3-4 Electricity rates in Laos

Year 2014 2015 2016 2017

Price for

government JPY 10.30 JPY 10.51 JPY 10.72 JPY 10.94

Price for

private-sector

corporations

JPY 13.11 JPY 13.38 JPY 13.64 JPY 13.92

Price for factories

and plants JPY 9.28 JPY 9.47 JPY 9.66 JPY 9.85

Notes

Conversion rate: LAK 7,909 = JPY 100 (referenced

2014.5.30)

The above unit prices are the price per 1Kwh

The applicable price is determined according to the business

scheme and details.

The same prices apply to both the Vientiane area and the

Savannakhet area.

4-12

(5) International comparison of electricity rates

At present, Laos has an advantage over other countries in terms of electricity rates.

However, its competitive edge will change due to its future upward-trending prices.

Table 4.3-5 International comparison of electricity rates

Country Laos Thailand Singapore Japan

Electricit

y rate

USD 99.5

(rate for

government

organizations)

USD 194

(peak rate for

private sector)

USD 113.6

(off-peak rate

for private

sector)

* An additional

basic monthly

charge is also

payable

USD 103.5

(rate for

government

organizations)

USD 138.4

(rate for private

sector)

USD 147.5

(summer rate for

private sector)

4.3.2 Survey of land and real estate markets

(1) Average unit land prices in Vientiane and Savannakhet

Based on interviews with local businesses, we tentatively calculated the unit prices

of land on which to construct a DC.

Table 4.3-6 Unit land prices

Area Average unit price

Vientiane USD 10,000 / m

2 (central commercial district)

USD 7,000 / m2 (government facilities district)

Savannakhet USD 1,500 / m2

4-13

(2) Real estate market data

We interviewed local real estate agencies about the costs of renting office spaces in

Vientiane. Office leases are characterized by a broad price range depending on the

area and property.

Table 4.3-7 Real estate properties (examples)

Location of property Price

In Vientiane city

Near ITEC USD 4,000 / month

In Vientiane city

Near PIZZA COMPANY USD 3,000 / month

About 2km from central

Vientiane USD 2,000 / month

In Vientiane city

Near government facilities USD 6,800 / month

In Vientiane city

Near government facilities

USD 1,800 / month

2,500 m2

Vientiane

Near Wattay Airport

USD 2,500 / month

4,000 m2

4.3.3 Laos market research

(1) Survey on IT personnel

We conducted research on IT-related personnel expenses with respect to the Project

and interviews with local recruitment agencies. It should be noted that the legal

minimum wage in Laos is USD 78 (approximately JPY 9,300, as of January 2015).

4-14

Table 4.3-8 Monthly salaries of IT personnel (per person, per month)

(Unit: JPY)

Category Junior

(25 years old on average)

Senior

(30 years old on average)

Programming 19,000 36,000

Networking 23,000 46,000

Database Admin 26,000 56,000

HW & SW Support 22,000 36,000

Graphic Designer 30,000 42,000

Web Design 32,000 41,000

Others 19,000 36,000

(2) Other market data

Studies of economic indicators and other general market data for Laos are listed below.

These were referred to in evaluating the feasibility of the Project.

1) Domestic economy (growth rate and economic structure)

Laos has maintained a high economic growth rate, achieving average real annual

growth of at least 8% since 2010. Growth in the industry sector has been

outstanding.

2) Domestic economy (inflation rate)

The inflation rate has remained in single digits since 2003, and is expected to stay

stable.

3) Domestic economy (shift in the current budget)

The budget deficit is widening as expenditure increases. Currently, efforts are being

strengthened to control annual expenditure and increase annual revenue.

4) Trade (shift in imports and exports)

Exports have roughly tripled in the past eight years since 2005, whereas imports

4-15

have grown by a factor of about 3.5.

(Figures for 2013/14 are nine-month statistics.)

5) Foreign direct investment (FDI)

Although China, Thailand and Vietnam account for the majority of investment in

Laos, the amount of investment from Japan has also been increasing in recent

years.

6) Expansion of Japanese-owned enterprises

The total number of Japanese-owned businesses making inroads into Laos was

basically flat for the five years leading up to 2012. Since then, in the one-year period

to 2013, the number increased by half, and has continued to rise again in 2014.

7) Development of road infrastructure

Laos borders five different countries, and has the potential to become a hub of

distribution in the inland area of the Mekong Delta. The distribution of goods in

inland Indochina is also expected to increase in activity as a consequence of the

2015 ASEAN economic integration. In addition, a meeting on the East-West

Economic Corridor is held every year, attended by the vice ministers of foreign

affairs from Laos, Vietnam, Thailand and Myanmar, with discussions being held on

the future development of road networks. The East-West Economic Corridor (Route

9) is an important arterial road connecting Laos, Vietnam, Thailand and Myanmar.

8) Demographics

Laos’ population structure shows a high proportion of younger age groups relative,

not only to developed countries, but also to its neighboring countries. Its future

working population is also on the rise.

9) Urban population

Following its economic development of recent years, Laos also appears to

becoming more and more urbanized.

4-16

4.3.4 Survey of local system integrators (SIs)

As part of the Project, SI vendors were surveyed to act as local maintenance

partners in Laos. Three firms located in Vientiane were selected and compared.

Table 4.3-9 Comparison of local SI vendors

Company

name Company A Company B Company C

Business type General corporate and

consumer SI services,

hosting, training

center

General corporate SI

services

General corporate SI

services

Number of

engineers

20 7 5

Onsite Yes Yes Yes

SendBack Yes Yes Yes

English

support

Yes Yes No

Thai support Yes Yes, but with

conditions

Yes, but with

conditions

4.3.5 Challenges for commercialization

There are two issues for commercialization: incorporation and acquisition of business

licenses. In this study, we made inquiries with the relevant ministries and agencies about

each of these issues, and clarified the relevant processes.

(1) Company registration

In general, registration is possible with 100% foreign capital (minimum capital: at

least 100 million kip). However, it is not possible to get an accurate response without

details such as the business description, size and business plan. There also seems

to be cases where decisions are made at the discretion of the competent ministry or

agency. Company registration follows the same procedure whether the company is

a government joint venture, private-sector joint venture or 100% foreign ownership.

4-17

(1) Submit necessary documents for registration to the Ministry of Industry and

Commerce.

(2) The Ministry of Industry and Commerce applies to the Ministry of Posts and

Telecommunications or to the Ministry of Science and Technology (responsible

department).

(3) If reviewed and approved, register is issued by the Ministry of Industry and

Commerce.

(2) Business licenses

For projects that require a communications license or application for a business

license to provide IT services, separate approval will again be required from each of

the relevant ministries or agencies (Ministry of Posts and Telecommunications).

Currently, there are no strict restrictions on foreign ownership in this area, and so

depending on the business details, decisions on licenses will be made after

consultation with and approval by the relevant ministry or agency.

4.3.6 Technical issues in adopting container-type data centers

(1) Behavior of container-type DCs in an environment of high temperature and

high humidity

Unlike Japan, high temperatures and high humidity continue all year round in Laos.

Although we have confirmed on paper that, even under these conditions, energy

conservation can be achieved, since we have no actual operational results, the

energy-conservation performance needs to be verified by operating in an actual

environment all year round (for at least one year).

4-18

Table 4.3-10 Temperature and humidity data from

Tokyo, Vientiane and Savannakhet (2013)

(2) Behavior in a situation where electricity supply is considered unstable

Electricity supply in Laos is more stable compared to neighboring countries, but

compared to Japan, there are still unstable aspects, such as frequent momentary

interruptions of power caused by lightning strikes. Data is unavailable which

quantitatively shows the degree of instability, and so it needs to be verified in an

actual environment whether generators, UPS and other electrical equipment can

operate stably.

Laos is made up of four separate power networks: Northern, Central 1, Central 2

and Southern. In order to improve reliability, two locations belonging to two different

power networks have been identified as candidate sites to set up DCs. Vientiane is

located in Central 1 and Savannakhet in Central 2. Consideration needs to be given,

through verification, whether equipment configuration ought to be changed to match

the characteristics of each power network.

0

5

10

15

20

25

30

35

40

J…

F…

M…

A…

M…

J…

J…

A…

S…

O…

N…

D…

Vientiane (H)

Vientiane (L)

Savannakhet (H)

Savannakhet (L)

Tokyo (H)

Tokyo (L)

Temperature (°C)

Month

4-19

4.4 Evaluation of appropriate locations for establishing DCs

In this Study, we conducted a field survey in Laos, and evaluated appropriate locations for

establishing DCs.

4.4.1 Survey of transportation routes

We confirmed that there are no problems in transporting by trucks and trailers.

4.4.2 Construction plan and management

(1) Construction plan

Producing the container-type DCs will require about half a year. After local handover,

it is anticipated that installation and adjustment will take about one month before

operations start up.

(2) Operations management

DC operations can be viewed divided into three broad layers. Each layer is regarded

as having aspects that can be handled locally and aspects that will require remote

support from Japan. The following describes each category and the roles and

operational scheme currently being considered.

(3) Verification of introduced technologies in “high-efficiency container-type

DCs”

1) Analysis and assessment of current DCs in Laos (case example in Laos)

As of January 2015, we have not been able to confirm that there are any commercial

DCs in Laos. It appears that, at many companies, IT equipment is installed in part of

the office.

2) Comparison of CO2 emissions against conventional building-type DCs (case

examples in other countries)

Assuming power consumed by IT equipment is the same, then the smaller the PUE,

the fewer the CO2 emissions. We therefore surveyed examples of the PUE of

conventional building-type DCs in other countries.

4-20

3) Establishment of methods for calculating reference emissions and project emissions

Reference PUE has been calculated as 2.0 and project PUE as 1.24, as per F.

Establishment and selection of reference emissions and G. Calculation of project

emissions in Chapter 5.

4) Calculation of the reduction effect based on the above calculation method

The annual reduction effect can be tentatively calculated as 7,414.004 tCO2, as per

5.4 Estimating the reduction in greenhouse gas emissions.

5-1

Development of MRV Methodology and Estimation Chapter 5

of GHG reductions

After the study on methodology suitable and applicable to container-type data centers in

Laos, will determine the required data and estimate the GHG reduction effect using this

methodology. Specifically,

- Examination of eligibility requirements that take advantage of high efficiency

container-type data center characteristics.

- Examination of simple and accurate monitoring methods and systems.

- Collection and estimation of data required for calculation of reference emissions and

project emissions.

- Creation of draft methodology and estimation of GHG reductions using the methodology.

5.1 Development approach of the MRV methodology

There are following two for existing approved MRV methodology having high correlation

for main investigation, but there is not the adaptation achievement to the project which is

concrete as for which methodology, and it is indicated that an action is the field that it is

difficult with the existing institution.

(1) J-credit institution methodology EN-S-031 (ver1.0) "update of the server arrangement"

http://japancredit.go.jp/pdf/methodology/EN-S-031.pdf

(2) CDM methodology AM0105 (Version 1.0.0) "Energy efficiency in data centres through

dynamic power management" (energy efficiency in data center (DC) through the dynamic

elecric power management)

http://cdm.unfccc.int/UserManagement/FileStorage/H3S7N04OCDEG8MJXP5ZLB2TAY96FQ

K

The description of the all quarters argumental content of the doctrine of Buddhism is

shown below.

(1) EN-S-031 (ver1.0) "update of the server arrangement"

http://japancredit.go.jp/pdf/methodology/EN-S-031.pdf

http://cdm.unfccc.int/UserManagement/FileStorage/H3S7N04OCDEG8MJXP5ZLB2TAY96FQK

http://cdm.unfccc.int/UserManagement/FileStorage/H3S7N04OCDEG8MJXP5ZLB2TAY96FQK

5-2

Target

activity

I intend for an emission reduction activity to reduce electric power used

amount by updating it to server facility of the electric power saving.

Applied

condition

When all of next conditions are met, it can be applied.

Condition 1 update it to server facility of the electric power saving than server

facility before the project enforcement.

When it is less than it

－a condition is not met.

1 When there are not 9312, information of the facility before the update

2 When facility before the update cannot be used by 9313, a fault or

deterioration continuously or when double of the statutory useful life is

exceeded from introduction even if available continuously

In addition, condition 1 will not be met when the purpose of use of the

server is performed a change (the cases that operating time increases with

a change of the modi operandi of the server are included in the change of

the purpose of use) of in approximately project enforcement either.

It is electric power used amount in the server facility before the project

enforcement and the thing that, as a general rule, one-year accumulated

value before the project enforcement can grasp about operating time

condition 2.

When it is less than it →, I am recognized.

When the fluctuation of the electricity usage unit requirement can show few

things by sampling data reasonably through the year, it may be grasped by

the accumulated value data during the shorter period.

Base line

amount of

emission

The base line discharge does operating time after the project enforcement

and equal time with the CO2 amount of emission that is assumed when the

server facility of the base line is operated.

TBL = TPJ

Parameter Definition Unit

TBL Operating time of the server facility of the base line

h / year

TPJ Operating time of the server facility after the project enforcement

h / year

5-3

Base line amount of emission calculation type

EMBL = TBL * BUBL * CEFelectricity,t

where:

BUBL = ELbefore / Tbefore


EMBL Amount of emission of the base line tCO2 / year

TBL Operating time of the server facility of the base line

h / year

BUBL Electricity usage unit requirement of the server facility of the base line

kWh /h

CEFelectricity,t CO2 emission factor of the electric power tCO2 /kWh

ELbefore Electric power used amount in the server facility before the project enforcement

kWh / year

Tbefore Operating time of the server facility before the project enforcement

h / year

TPJ Operating time of the server facility after the project enforcement

h / year

It is amount

of emission

after project

enforcemen

t

EMPJ = ELPJ * CEFelectricity,t


EMPJ It is amount of emission after project enforcement

tCO2 / year

ELPJ Electric power used amount in the server facility after the project enforcement

kWh / year

CEFelectricity,t CO2 emission factor of the electric power

tCO2 /kWh

Calculation

of the

quantity of

emission

reduction

ER = EMBL - EMPJ


ER Quantity of emission reduction tCO2 / year

EMBL Base line amount of emission tCO2 / year

EMPJ It is amount of emission after project

enforcement

tCO2 / year

5-4

Monitoring 1) Project active mass

Monitoring item Remarks

TPJ Operating time in the server arrangement after the project enforcement (h / year)

・ It is calculated based on an operation record

・ It is totaled in a target period

ELPJ Electric power used amount (kWh / year) in the server facility after the project enforcement

・ It is calculated based on the bill from the electric power company

・ Instrumentation with the wattmeter

・ It is totaled in a target period

Tbefore Operating time of the server arrangement before the project enforcement (h / year)

・ It is calculated based on an operation record

・ [request frequency] total the results more than principle, project initiation most recent one year

ELbefore Electric power used amount (kWh / year) in the server facility before the project enforcement

・ It is calculated based on the bill from the electric power company

・ Instrumentation with the wattmeter

・ [request frequency] total the results more than principle, project initiation most recent one year

2)Various coefficients

Monitoring item Remarks

CEFelectricity,t Quantity of CO2 emission factor of the electric power (tCO2 /kWh)

・ Use of default value ・ Based on the application

from a project enforcer, all power supply CO2 emission factor is applied

・ [request frequency] apply the latest thing to a verification newborn baby

Validation

test method

Confirmation of meeting condition 1 *Data (specification form) which understand facility description of the server facility after the project enforcement *Data (specification form) which know facility description or age of service of the server facility before the project enforcement *The data which know the use plan of the server after the operational record of the server before the project enforcement and the project enforcement Confirmation of meeting condition 2

*Electric power used amount before project enforcement of one year and

operating time

5-5

(2) AM0105 (Version 1.0.0) "Energy efficiency in data centres through dynamic power

management" (energy efficiency in the DC through the dynamic elecric power management)

Target

activity

A server load in the existing DC and electricity consumption optimization

system (Dynamic Power Management: I am applied to an electricity

consumption reduction activity of the existing DC using DPM).

Applied

condition

When I am accompanied by new equipment introduction, for reduction of the

electricity consumption due to high efficiency is excluded. In the next

condition, the methodology concerned can be applied.

(a) The project activities are carried out in DC, and which function of the hand

regulation of the use mode of the server to reduce 1 DPM system, system

regulating server capacity depending on 2 electricity demand, 3 electricity

consumption before project enforcement do not be equipped with.

(b) TOE (Turn-off-events:) must be distributed between all servers in project

boundary based on only the use of the server and the operation of the

DPM system at the time when a server becomes completely off by the

introduction of the DPM system.

(c) It is necessary for the applied condition established in "the emission factor

calculation tool of the electric power system" and "a compound tool for the

identification of the base line scenario and addition-related credential" to

meet a CDM tool.

(d) When the persuasive (most plausible) base line scenario is "the

continuation of the present Always On model" (the situation that a server

is operated with a constant mode regardless of demand for 24 hours a

day).

5-6

Identificatio

n of the

base line

scenario

The base line amount of emission becomes a target of the base argumental

content of the doctrine of Buddhism only when follows are examined as a

substitute scenario, and a base line scenario is judged with "the continuation

of the Always On model (the situation that a server is operated with a

constant mode regardless of demand for 24 hours a day) of the (e) present

conditions" by "a compound tool for the identification of the base line scenario

and addition-related credential".

(a) DPM system introduction project is carried out without CDM

(b) DPM system introduction project is carried out without CDM in the future

(c) The technique except the DPM system is adopted, and the server load of

the DC is managed

(d) Manual operation adjusts a server load by turning off the electric power

supply of the server in a specific time zone (the night) and a specific

season

(e) Continuation of the present Always On model

Addition-rel

ated

credential

Addition characteristics are proved based on "a compound tool for the

identification of the base line scenario and addition-related proof".

・ A thing for all DC that are comparable in the examination of First of its

kind (have never met you with the kind) in the distributor road concerned.

・ In the examination of the barrier analysis, provide reliable grounds about

follows.

(a) A plan of the approach to the insurance company for the purpose of

the risk cover when DPM system introduction project is performed

without CDM.

(b) Estimation of the financial loss with the risk by the project

enforcement barrier without the CDM

(c) Premium (based on the claim of the insurance company) necessary

for risk filling

・ In the examination of the investment analysis, take a cost shaving with

the electricity consumption reduction into consideration.

・ In the examination of the common practice analysis, investigate it

whether Always On model is used by local other DC (including the local

DC more than 10 concerned) concerned in the past, the present.

5-7

Base line

amount of

emission

Discharge with electricity consumption with the operation of the server and

the electricity consumption with the use of air conditioner in the server facility

is included in base line amount of emission.

COPEFECBE yELyBLy

11,,


BEy Base line amount of emission tCO2 / year

ECBL,y Electricity consumption in idle mode MWh / year

EFEL,y CO2 amount of emission with the electricity consumption

tCO2 /MWh

COP In the case of conservative air conditioner COP, a vapor compression cooling system, it is 1/COP=0 other than COP = 6, it

-

The current consumption of each server is multiplied by it in each annual TOE

time, and electricity consumption when there is not DPM system is calculated.

1000

)( ,,,,

,

i

yioffyiidle

yyBL

OHPR

DFEC


ECBL,y Electricity consumption in idle mode MWh /

year

PRidle,i,y Power capacity necessary for the use of the existing and substitute server in idle mode

kW

OHoff,i,y The total TOE time for existing and substitute server (except the time when a server stops by maintenance, permutation, electric outage)

h / year

DFy Discount factor Ratio※

There is the

indication of the

5-8

setting requireme

nt of PRidle,i,y.

y

yidlePJ

idleBL

y MSOH

OHDF

11,min

max,,,

max,,


DFy Discount factor Ratio

OHBL,idle,max,y idle mode time for standard server before the project enforcement

h / year

OHPJ,idle,max,y idle mode or off mode time for standard server after the project enforcement

h / year

MSy Penetration ratio of the DPM system Ratio

It is amount

of emission

after project

enforcemen

t

Discharge with the electricity consumption in accumulation TOE of all existing

servers that and it was substituted after the project enforcement is included in

base line amount of emission.

)1

1(,,COP

EFECPE yELyoffy


PEy Project amount of emission tCO2 / year

ECoff,y Electricity consumption in off mode MWh / year

EFEL,y CO2 amount of emission with the electricity consumption

tCO2 /MWh

COP In the case of conservative air conditioner COP, a vapor compression cooling system, it is 1/COP=0 other than COP = 6, it

-

1000

)( ,,,,

,

yioff

i

yioff

yoff

OHPR

EC


ECoff,y Electricity consumption in Off mode MWh /

year

PRoff,i,y Power capacity necessary for the use of the existing and substitute server in Off mode

kW

OHoff,i,y The total TOE time for existing and substitute server.(except the time when a server stops by maintenance, permutation, electric outage)

h / year ※There is

the indication of setting,

the adjustment

5-9

requirement of

PRoff,i,y.

Calculation

of the

quantity of

emission

reduction

ER = BEｙ – PEｙ


ER Quantity of emission reduction tCO2 / year

BEｙ Base line amount of emission tCO2 / year

PEｙ It is amount of emission after project

enforcement

tCO2 / year

It suffers from both methodology a premise ahead of implementation that existing server

facility does presence (operation), and the project to found DC like main investigation

becomes inapplicable.

I pay the attention only to energy consumption of the IT equipment, and basics concept is

different from this business to plan power saving efficiency improvement of the whole DC in

the calculation of the amount of emission, but refers to the logic of such an existing

methodology to put the introduction of the high performance IT equipment in field of view

with the efficiency of the whole DC.

By the main investigation, development of the methodology that is applicable to the level

that can be recognized globally and main investigation and the GHG reduction effect are

calculated with reference to these existing methodologies.

5.2 Development of the JCM methodology

In this clause, outline about a construction of the MRV methodology to think to deserve an

5-10

application of the main investigation and each section is performed along latest JCM

Proposed Methodology Form of JCM guidelines.

Cover sheet of the suggestion methodology form

Description of the suggestion methodology to submit it to

Host country The Lao People's Democratic Republic

Methodology proponent name submitting

this book

Toyota Tsusho Corporation

Internet initiative Co., Ltd.

The sector range that suggestion

methodology applies

3. Energy need (Energy demand)

A title of the suggestion methodology and

version number

Methodology - Ver-0.0 for energy saving

business by the construction of the high

performance container type data center (DC) in

Laos

A list of documents attached to this book

(checking it):Attached draft JCM-PDD:

Additional information

Completion date 03/2015

It is "methodology for energy saving business by the constructions of the high

performance container type data center (DC) in Laos", and the base argumental content of

the doctrine of Buddhism plans GHG abatement of emission because demand for promotes

energy saving of the side. I was developed as Toyota Tsusho Corporation, a common

enterprise of the Internet initiative Co., Ltd., and Mitsubishi UFJ Morgan Stanley securities

Co., Ltd. supported the draft. History of the suggestion methodology

Version Date Modified history

A. Title of the methodology

Methodology for energy saving business by the construction of the high performance container type

data center (DC) in Laos

B. Vocabulary and definition

5-11

Vocabulary Definition

Container type DC In a container for the transportation of the ISO standard, it

is the DC that incorporated a server rack, a power supply,

communication electric wiring, an air conditioner, fire

extinguishing equipment. During initial investment less

than conventional DC, a short construction period, I have a

space-saving, high air conditioning efficiency, a

characteristic to be movable.

PUE PUE (Power Usage Effectiveness) is an index mark

expressing electricity usage efficiency of the DC and is

calculated by the following expressions.

Consumption power of the consumption power /IT

equipment of the whole expression) PUE = DC

Ambient air cooling air

conditioning system

Fresh air is used as a cold source, and, without the

operation such as refrigerators, perform cooling to meet

DC recommendation conditions of temperature.

Remote management system The system which measures temperature-humidity, power

consumption in the container type DC, and controls the

equipment such as air conditioning or the electric

installation.

DC recommendation

conditions of temperature

The temperature that IT equipment in the DC works without

a hang-up.

C. Description of the methodology

Item Description

Instrumentation of the quantity

of GHG emission reduction

Reduction of the GHG amount of emission with the reduction of

the electricity consumption by the introduction of the high

performance container type DC is measured.

Calculation of the reference

amount of emission

By ratio of the efficiency (PUE level) of a reference scenario

and the project scenario, drawback crosses emission factor of

the grid electric power in done electricity consumption, and

the calculation of the reference amount of emission calculates

it for measured value of the electric power used amount after

5-12

the project introduction.

Calculation of the project

amount of emission

The calculation of the amount of emission based on the electricity

consumption by the project crosses emission factor of the grid

electric power to electric power used amount to be targeted for

monitoring and calculates it.

Monitoring parameter Electricity consumption by the project DC

Efficiency (PUE level of the container type DC) of the project DC

Efficiency (PUE level of the reference type DC) of the reference

DC

The monitoring parameter of the main investigation calculates project discharge based on

measured value of 1 with power consumption by the 2 project DC, efficiency (PUE level of

the container type DC) of the 3 project DC, three of the efficiency (PUE level of the reference

type DC) of the 1 reference DC and arrives at reference discharge because drawback does

reference electric power used amount by percentage of 2 and 3.

It thinks that it is constituted the logic modifying the adequacy of the index (PUE level) to

express DC efficiency and the default value setting of the reference to become a target of

the argument in the approval process of the base argumental content of the doctrine of

Buddhism. With this book, international positioning of PUE is mentioned later, and the

adequacy is mentioned, and a setting technique of the default PUE value of the reference

type DC is spoken.

D. Competent requirement

The base argumental content of the doctrine of Buddhism is applicable to a project to

satisfy all the following requirements.

Competent

requirement 1

Being high performance, a project to build high airtight container type DC

newly.

Competent

requirement 2

Adopting air-conditioning system of the ambient air cooling method.

Competent

requirement 3

Adopting a formula to introduce a remote management system, and to

plan stable use of the DC, and to reduce an energy loss by the

maintenance.

Competent

requirement 4

Adopting IT/ air conditioning built-in module.

5-13

The base argumental content of the doctrine of Buddhism sets the competent requirement

that should satisfy four. It is built newly, and the container-shaped DC to build by business is

not repair and a change of the existing facility. In addition, it is demanded that it is business

to realize power saving by adopting the introduction of introduction and the remote

management system of the air-conditioning system of the ambient air cooling method, IT/ air

conditioning built-in module.

E. Emission source and GHG type

Reference discharge

Emission source GHG type

Energy consumption in the reference DC CO2

Project discharge

Emission source GHG type

Energy consumption in the project DC CO2

F. The foundation and calculation of the reference amount of emission

F.1.The foundation of the reference amount of emission

Emission factor of the grid electric power is crossed, and, as for the reference amount of emission, it

is calculated drawback by ratio of the efficiency of a reference scenario and the project scenario for

measured value of the electric power used amount after the project introduction by done electricity

consumption.

In the base argumental content of the doctrine of Buddhism, the PUE value that is the index that

expressed use of electric power efficiency of the spreading DC globally most that American trade

group The Green Grid Association announced is adopted as efficiency of each DC of the project /

reference.

The efficiency in the reference scenario (DC of the building type) does more conservative numeric

value (2.0) with default value in consideration of the effect of the investigation performed in

Singapore having weather condition like Laos.12

The PUE level of the facility introduced by main investigation compares the subsequent calculation

effect based on the observed value with the theoretical value (1.24) and, in consideration of

1 Data Centre Energy Efficiency Benchmarking, National Environment Agency (NEA)As for the IT exploitation for

information economization in the Asian field, it is support project report, corporate judicial person electronic intelligence Engineering Industries Association in 2010

2 2010 fiscal IT utilization, etc. support business report for the knowledge economy in Asia, Japan Electronics and

Information Technology Industries Association

5-14

maintainability, adopts inefficient (the PUE level high) value.

The setting technique of the PUE level is shown below.

1. Determination of reference PUE level

a) 2.0 is adopted as default value.

2. Determination of project PUE level

a) Before project enforcement, quantity of GHG emission reduction is calculated as a test using

theoretical value 1.24 of the container type DC to intend for by main investigation.

b) After project enforcement, a PUE level of the JCM project is calculated based on location survey

data.

c) a), b) are compared, and a high price is assumed a project PUE level.

F.2.Calculation of the reference amount of emission (1)

elec

REF

PJn

i

piPJp EFECRE

1

,,

Here

REp REp = Reference amount of emission [tCO2 /p] in the p period

ECPJ,i,p ECPJ,i,p = Electric power used amount [MWh /p] during p period in DCi

n n = Amount [dimensionless] of the container type DC measured with a

wattmeter

i i = Index of the container type DC individual

PJ PJ = Energy efficiency [dimensionless] of the project DC3

REF REF = Energy efficiency [dimensionless] of the reference DC4

EFelec EFelec = Grid electric power CO2 emission factor [tCO2 /MWh]

Emission factor of the grid electric power is crossed, and, as for the reference amount of

emission, it is calculated drawback by ratio of the efficiency (PUE level) of a reference

scenario and the project scenario for measured value of the electric power used amount

after the project introduction by done electricity consumption.

3 PUE level of the project DC to prescribe to Section F1

4 PUE level of the reference DC to prescribe to Section F1

5-15

G. Calculation of the project amount of emission(2)

elec

n

1ip,i,PJp EFECPE

Here

PEp = Project amount of emission [tCO2 /p] in the p period

ECPJ,i,p = Electric power used amount [MWh /p] during p period in DCi

EFelec = Grid electric power CO2 emission factor [tCO2 /MWh]

H. Calculation of the quantity of emission reduction

ppp PEREER (3)

Here

ERp = Quantity of emission reduction [tCO2 /p] in the p period

REp = Reference amount of emission [tCO2 /p] in the p period


I. Data established beforehand and parameter

Each data which should be established beforehand and parameter sources are listed

below.

Parameter Explanation of data Source of release

PJ Energy efficiency of the project DC

REF Energy efficiency of the reference DC

EFelec Grid electric power CO2 emission factor

When, in a project site, private power generation does not exist; emission factor [EFgrid] of the latest Laotian country power network [EFcaptive] to decide in subsequent monitoring period when private power generation is enabled during a validation period

[EFgrid] Water Resources and Environment Administration of Lao (WREA), DNA for CDM unless otherwise instructed by the Joint Committee. [EFcaptive] CDM approved small scale methodology:AMS-I.A

5-16

When private power generation exists in a project site, [EFcaptive] is chosen conservatively and is decided in subsequent monitoring period EFelec = min(EFgrid, EFcaptive) EFcaptive = 0.576 tCO2 /MWh*

n Amount of the container type DC measured

with a wattmeter

It is decided by a project

proponent

5.3 Adequacy verification of the efficiency index

By the methodology concerned, PUE is adopted for an index indicating the efficiency of

the DC. Here, the adequacy as the efficiency index to use by the JCM methodology of the

PUE level is inspected.

Energy efficiency of the DC is proposed as an index to measure in 2008 by an American

engineer, and PUE is used as the now energy-saving degree, an index indicating the energy

efficiency performance widely. The copyright of PUE is maintained by The Green Grid

Association which is global trade group promoting energy saving of the DC.5

In a medium determining International Standard in conjunction with the DC, there are the

International Organization for Standardization (International Organization for

Standardization) and the International Electrotechnical Commission (International

Electotechnical Commission:IEC), and the first combination technical committee (Joint

Technical Committee 1: JTC1) starts as a collaboration body of both.

DC reference standard during drafting examination is summarized in table 6.3-1 as a KP

candidate of the ISO now.PUE is going to be authorized for an index indicating the energy

efficiency of the DC by an international standard to understand it here and thinks that there

is adequacy in what is used for GHG emission reduction quantity calculation of the JCM

methodology.

Table 5.3-1 The international standard candidate who is sent on JTC1 ISO world

examination by the 1SC39 section

30131 Resource Efficient Data Centres (definition of the data center resource efficiency)

30133 Information Technology -Data Centres- Guidelines for Resource Efficient Data Centre (guide

of the data center resource efficiency)

5 IT frontier May, 2014 issue, pp14-17, "Japanese contribution - to international standardization - international standard

development of the special feature "contribution data center energy conservation barometer" to green IT"

5-17

30134-1

Information Technology -Data Centres- Key Performance Indicators Part 1 Overview and

General Requirements (a contour and requirement to examine data center resource

efficiency):

30134-2 Information Technology -Data Centres- Key Performance Indicators Part 2 Power Usage

Effectiveness (PUE) (ISO international standard PUE index):

*As for the number, 30134-n consecutive numbers, Part n are dumped in reference number, new KPI.

Source: IT frontier May, 2014 issue, Japanese contribution - to the international standardization - international standard

development of the pp17, “ special feature "contribution data center energy saving index to green IT"

If it is the value that divided aggregate consumption electric energy of the DC by

aggregate consumption electric energy of the IT apparatus, and configuration and electric

system, air conditioning of the building, power consumption except the IT apparatus

including the illumination are promoted efficiency of, PUE converges to maximum efficiency

value and done "1".The PUE level of the general DC is said to be around 3.0 from 2.0, and

bad DC of the energy efficiency more than 3.0 exists much.

There is no presence of the DC that is a high level and, in Laos, is not an arguing stage of

the efficiency now. Therefore, it is asked a lot about the opinion called the valid to still do a

lot of existing 3.0 with default value in the developed country including Japan. However, by

the main investigation, 2.0 was assumed the default value of the reference scenario in

conformity with the concept of the security of the maintainability of JCM based on a PUE

level investigation into existing DC report.

The PUE level referred to an investigation report in Singapore where the weather

condition was near to be greatly influenced by a load of the air conditioning.

5.4 Test calculation of the quantity of GHG emission reduction

Based on the methodology of the foregoing paragraph, the quantity of GHG emission

reduction is calculated as a test. On the occasion of a test calculation, project description to

assume is done as follows.

IT electric power load:40kW per 1 container

The number of the introduction containers:5 containers

A PUE level of the introduction container:1.24

[Project amount of emission](2)

5-18

elec

n

1ip,i,PJp EFECPE

Here




ECPJ,i,p = 40kW x 50 container x 1.24 x 360 x 24 = 21,427.2MWh/p

PEp = 21,427.2 x 0.5764 = 12,506.38tCO2/year

[Reference amount of emission](1)

elec

REF

PJn

1ip,i,PJp EFECRE

Here



n = Amount [dimensionless] of the container type DC measured with a

wattmeter

i = Index of the container type DC individual

PJ = Energy efficiency [dimensionless] of the project DC6

REF = Energy efficiency [dimensionless] of the reference DC7


REp = 21,427.2 x 2.0/1.24 x 0.5764 = 19,920.384tCO2

6 PUE level of the project DC to prescribe to Section F1

7 PUE level of the reference DC to prescribe to Section F1

5-19

ppp PEREER (3)

Here

ERp = Quantity of emission reduction [tCO2 /p] in the p period



ERp = 19,920.384 - 12,506.38 =7,414.004 tCO2

Year 2016 7,414.004 tCO2 7,414.004 tCO2

Year 2017 7,414.004 tCO2 14,828.008 tCO2

Year 2018 7,414.004 tCO2 22,242.012 tCO2

Year 2019 7,414.004 tCO2 29,656.016 tCO2

Year 2020 7,414.004 tCO2 37,070.02 tCO2

In this way, the quantity of GHG emission reduction with the business operation

concerned is calculated as a test with 37,070.02 tCO2 in 7,414.004 a year tCO2, five years

until 2020.

5.5 Consideration of a simple and accurate monitoring method/structure

A simple and accurate monitoring method/structure was considered and determined as described

below.

5.5.1 Monitoring method

Through constant remote monitoring of the electricity consumption using the remote control

system “co-ISM (co-IZmo Smart Manager)” developed by IIJ for remotely and centrally

managing container-type DCs, we are measuring electricity usage, a parameter necessary for

calculating the emissions from the project. The measured electricity consumption will be saved

in logs until the monitoring period ends.

5.5.2 Monitoring structure

The remote control system co-ISM makes it possible to remotely assess the operation status of

the container-type DCs. IIJ personnel monitor the status 24 hours a day, 365 days a year and

take necessary actions remotely through co-ISM, even if an unforeseen event occurs.

6-1

Analysis of Economic Effects Chapter 6

6.1 Reduction of electricity rates and other operating costs through the

introduction of high-efficiency container-type data centers

We conducted a survey on electricity rates and other operating costs that could be reduced

when introducing a high-efficiency container-type DC.

6.1.1 Comparison of operating costs with building-type data centers

We compared cost aspects between container-type DCs and building-type DCs. ■■■■

■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■

■■■■■■■■■■■■■■■■■■■

Table 6.1-1 Comparison of operating costs with building-type DCs

No Item Container-type DC Building-type DC

1 PUE ■■■■■■■ ■■■■■■■

2 IT electrical load ■■■■■■■ ■■■■■■■

3 Total load

(item 1 × item 2) ■■■■■■■ ■■■■■■■

4 Unit price of electricity

(kw/h) ■■■■■■■ ■■■■■■■

5

Annual electricity charges

(item 3 × 365 days × 24 hours × item 4)

■■■■■■■ ■■■■■■■

6.1.2 Comparison of initial costs with building-type (prefabricated) DCs

In terms of initial expenses, we compared the materials and construction costs for the

building components (not including transportation costs), excluding items such as air

conditioning and electrical equipment. The unit cost per rack was less expensive for

container-type DCs compared to building-type DCs. Assuming the DC was installed in Laos,

local construction costs and the costs for transporting the DC from Japan would need to be

added. However, in regard to the container-type DC envisaged in this Project, there would

be no need for local assembly work or to separately pack each component and material for

transporting. Therefore, even in Laos, it is expected that the cost for a container-type DC

would be less than that for a building-type DC.

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Table 6.1-2 Comparison of initial costs with building-type (prefabricated) DCs

Compared item Container-type Building-type (prefabricated)

Structure

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Cost per rack ■■■■■■■ ■■■■■■■

Item comparison ■■■■■■■

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6.2 Development of IT-related industries in Laos

When it comes to DCs, it would seem that Laos has the following advantages over

neighboring countries.

(i) Inexpensive electricity

In Laos, hydroelectric power generation is thriving, and is one of the country’s key

export items. As shown in Chapter 6, Laos has an advantage, with electricity prices

cheaper than other countries. Since DCs consume a considerable amount of

electricity, such as for operating IT equipment and for cooling, inexpensive electricity

is a significant advantage for Laos.

(ii) Inexpensive labor force

Although personnel expenses have risen steeply due to development in the ASEAN

region, labor costs in Laos are still comparatively low.

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(iii) Geopolitical advantage

Laos is a landlocked country with no coastline borders. Not being able to use

shipping as a means of transportation was traditionally an obstacle to economic

development, but in the field of information and communications, being landlocked

does not present any major problems. Conversely, being located in virtually the

center of the Mekong region, and having borders with Thailand, Cambodia, Vietnam,

China and Myanmar means that Laos appears naturally placed to serve as a hub in

the field of information and communications.

(iv) Shift from other countries

In recent years, there has been an increasing number of companies launching into

Laos because of the above-mentioned surging labor costs and political and disaster

risks (such as the Thailand floods) in surrounding countries. Furthermore, since the

language in neighboring Thailand is close to Lao, possibilities for creating new

industries will also emerge for Laos, such as the offshore development of software.

Despite having advantages like those above, Laos is lagging in the introduction and

development of the IT field, and it is feared that the gap with neighboring countries in

utilizing IT to stimulate the economy will further widen. Energy conservation container-type

DCs, though, will enable low-cost DC operations, and it is expected that the resultant

provision of inexpensive computer resources will encourage growth in various industries,

including the IT sector.

6.3 Utilizing IT to improve international competitiveness within the region

The above-mentioned National Strategy on Climate Change (NSCC), which was formulated

in 2010, describes mitigation options in seven sectors listed in the table below.

Table 6.3-1 Mitigation options in the National Strategy on Climate Change

Agriculture and

food security

Reducing methane emissions from rice paddies

Reducing methane emissions from enteric fermentation (cow

belches)

Reducing methane emissions from livestock manure

Promoting new technology transfers

Forestry and

land use change

Slash and burn agriculture, off-site burning, forest fires

Including effective mapping and planning

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Examining utilization of carbon markets

Energy and

transport

Rural electrification

Renewable energy

Clean energy

Energy conservation

Low-carbon transport

Improving public awareness for energy conservation

Promoting the development of renewable energy, using CDM or other

flexible mechanisms

Industry Conserving energy during the production process

Reducing wood waste through improvement of furniture

manufacturing techniques and methods

Promoting the use of energy from biomass waste or agricultural

residues

Urban

development

Applying the 3Rs to reduce GHG emissions from solid waste

Improving garbage collection to prevent garbage incineration and

decomposition outdoors

Composting organic contents

Appropriately managing sewage sludge

Developing landfill sites capable of capturing methane gas, and

improving existing landfill sites

Promoting sustainable urban development that integrates waste

management and low-carbon transport

Encouraging the participation of the private sector and international

partners in the reduction of GHG emissions from waste

IGES Market Mechanisms Country Fact Sheet (from the March 2014 version)

http://pub.iges.or.jp/modules/envirolib/upload/984/attach/cfs_booklet.pdf

By making use of computer resources in container-type DCs, it would also be possible to

reduce greenhouse gases more efficiently in the above sectors. By way of example, in the

energy and transport sector, it would be possible formulate various policies aimed at

realizing a low-carbon society, such as smart cities, smart grids, power management,

EV/PHV promotion and telematics. Examples are shown below.

(i) Smart city infrastructure

In the process of forming a smart city with a view to realizing a low-carbon society,

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by utilizing DCs and cloud services as the basic IT infrastructure of various

measures, a low-carbon society would be achieved.

(ii) Use in smart grids and power management

By promoting related measures utilizing DCs and the cloud, such as power demand

management systems management systems aimed at the efficient management

and trade of electric power, load leveling (staggering of peak usage times) would be

achieved, the environmental load would be reduced, and electricity prices would be

optimized.

(iii) Use in EVs/PHVs and telematics

The current situation in Laos’ balance of trade is that oil imports are bringing

pressure to bear on public finances. Although cars, which account for much of that

oil consumption and are a major cause of CO2 emissions, have been shifting toward

EVs and PHVs in recent years, with unresolved issues relating to their efficient

operation, they have not increased in popularity as a means of transport.

To resolve this issue, related measures will need to be promoted which utilize DCs

as an information management infrastructure for telematics and transportation

systems. Doing so will lead to a reduction in fossil fuels, and in turn, realization of a

low-carbon-emissions society.

(iv) Development of IT human resources

Through operating high-efficiency container-type DCs, it will be possible to nurture

talented people who have knowledge in IT and in the environment.

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Policy Suggestions Chapter 7

[Basic approach]

When considering the possibility of popularizing the technologies and systems that have

been evaluated in Laos and spreading them to other countries, we believe it will be

more effective to suggest them packaged together with policy suggestions for the target

government.

7.1 Investigation of related policies and systems in Laos

In the process of considering policy suggestions, we investigated the IT-related policies

and systems the Lao PDR is currently working on.

7.1.1 Investigation related to IT policy

Within the Lao PDR, the following two ministries have jurisdiction over IT-related

policies: the Ministry of Science and Technology and the Ministry of Posts and

Telecommunications. At present, IT services are overseen by the Ministry of Science

and Technology and network infrastructure by the Ministry of Posts and

Telecommunications. Thus, because the data center in the project also includes IT

services in its scope, it comes under the jurisdiction of the Ministry of Science and

Technology. Nevertheless, collaboration between the two ministries is essential.

7.1.2 Investigation related to judicial affairs

The following table lists the laws related to IT and the project.

Table 7.1-1 IT-related laws in Laos

Law name Remarks

Law on Telecommunication (Amended)

(2012)

(According to a Ministry of National

Defense personnel officer,), this law

should be referenced when

addressing information security

issues.

Laos Law Electronic Transactions Prime Minister’s order

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Table 7.1-2 Other related laws

Law name

Decree on the implementation of the investment law (2011)

Investment and Promotion Law (2009)

Law on Electricity (2008)

Law on Electricity _Decree (1997)

Law on Enterprises (2005)

Law on Telecommunication (Amended) (2012)

Law on the Industrial Processing _Decree (1999)

Law on Urban Plans (1999)

7.2 Investigation of trends in data centers in Japan and other countries

In the process of considering policy suggestions, we investigated the recent DC-related

trends in Japan and other countries.

7.2.1 Trends in the outside-air cooling system and container-type DCs

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7.2.2 Trends in electrical facilities

The electrical facilities installed at the DCs of cloud operators in the U.S. use the three

technologies listed below to reduce power loss. In Japan, efforts are underway to

develop high-voltage direct current (HVDC) electrical power transmission systems,

which are expected to become widely used as the number of compatible IT devices

increases.

(i) High-voltage electric power supply

(ii) Reduction in the number of D/A (DC/AC) conversions

(iii) Distributed positioning of UPSs

7.2.3 Easing of temperature conditions

In order to promote energy conservation at DCs, Technical Committee (TC) 9.9 of the

American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE) in

2008 expanded the recommended values for temperature and humidity conditions at intake

ports of servers, making it easier to control servers than at the previously allowed values

and promoting introduction of the outside-air cooling. Then in 2011, ASHRAE set up four

stages of allowable values (A1, A2, A3, and A4) to be used as guidelines for developing IT

devices capable of operating even in high-temperature environments. IT devices complying

with these specifications are being provided by both domestic and foreign vendors, helping

to establish an environment for achieving reductions in the power consumption of air

conditioners by allowing higher room temperatures in DCs.

[Specific policy proposal]

7.3 Development of energy conservation standards for the data center to

be built

(1) Climate change-related policies and organizations in Laos

In 2010, Laos developed its National Strategy on Climate Change (NSCC) as its climate

change-related policy. It also considered introduction of energy-efficient electrical

appliances, as well as utilization of new mechanisms such as CDM and a carbon trading

market. Then, in August 2013, Laos signed a document related to a bilateral offset credit

system (or a joint crediting mechanism (JCM)) with Japan. The following figure shows

the JCM-related organizational structure in Laos.

The Ministry of Science and Technology, which is the lead agency targeted by the

project we have been investigating, is also a JCM member and promotion of this project

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is expected to greatly help advance JCM in Laos.

(2) Trends in emissions in the IT field

The NSCC positions various fields as important fields in which to improve energy

efficiency and is expected to become the driving force behind the promotion of green IT

projects in Laos.

At the same time, however, IT devices themselves can become GHG generation

sources. As these devices become more popular, the CO2 emissions traceable to IT

devices have been rising steadily all over the world as shown in the figure below.

Therefore, the recent explosive spread of IT device technologies in developing nations

such as Laos is attracting attention.

Regarding the trends in Laos, the data announced by the Ministry of Posts and

Telecommunications at the International Telecommunication Union (ITU) meeting in

Kuala Lumpur in 2012 showed that the mobile phone penetration rate had reached 83%

in Laos. On the other hand, the Internet penetration rate was only around 10%

(according to ITU statistics). However, this rate is expected to grow rapidly in the future

as the mobile phone penetration rate did, further fueling the demand for IT devices.

Additionally, since announcing its IT strategic plan in 2010, the Lao PDR has been

working on creating a new communications/ICT law, an electronic transaction law, and a

broadcasting law, etc. Therefore, there are concerns about future increases in GHG

emissions traceable to electricity consumption by IT-related devices.

In Laos in particular, there is currently no DC that can be securely utilized by

national-level institutions or international corporations, and government agencies and

corporations that handle lots of data are usually managing and operating outdated

servers in rooms in buildings. These servers are less efficient than DC-based servers

and have become a major factor in CO2 emissions increases.

(3) Encouragement to ratify standards

In order to solve the issues described in (2) above, this project plans to utilize Japan’s

excellent energy conservation technologies and could play an important role in

promoting energy conservation in many of the DC and green IT businesses that will be

advanced in the future.

Globally, indexes such as PUE (Power consumption by the entire DC / Power

consumption of IT equipment) are being widely used as energy conservation standards

7-5

and therefore, we decided to use PUE in our investigation as explained in Chapter 5. In

the future, we will propose a quantitative measurement method based on the results of

our investigation and encourage the Lao PDR to adopt it to measure itself against a

numeric goal.

7.4 Preferential treatment related to development of container-type data

centers

Container-type DCs are considered more energy efficient than conventional

building-based DCs and therefore, active introduction of container-type DCs is desirable.

Furthermore, if container-type data units are not considered buildings, as is the case in

Japan, a relaxation can be expected of the application of various types of regulations,

possibly reducing taxes, for example. Although these issues have not yet arisen in Laos,

we need to be able to provide appropriate advice should the situation change. IIJ holds

the record for being the first company in Japan to build a container-type DC and

obtaining relaxed application of regulations. The following table shows the history

behind it.

Table 7.4-1 History of easing of regulations related to container-type data centers

in Japan

June 2012 IIJ’s Matsue Data Center Park was approved as Japan’s first

container-type DC, not housed in a building, by Matsue City,

Shimane Prefecture.

March 2014 Based on the success of the Matsue Data Center Park, Japan’s

Ministry of Land, Infrastructure, Transport and Tourism issued the

opinion that a container for DC is not considered a building, thereby

relaxing the regulations nationally.

(Reference: Excerpted from a document issued by the Ministry of

Land, Infrastructure, Transport and Tourism (MLIT) (For the original

document, see the technical advice (Ordinance No. 4933),

"Following the Building Standards Act with regard to container data

centers" released by MLIT on March 25, 2011)

Among container-type data centers installed as free-standing

structures on land, those that contain only the main server

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equipment, other equipment necessary for functioning as a data

server, air-conditioning ducts, along with the minimum amount of

space necessary for the container to function as a data server, are

unmanned during operations and no one enters them except when

a serious equipment failure occurs. These centers are not

considered buildings but rather are considered storage tanks or the

like, as specified in Section 1, Article 2 of the Building Standards

Act.

Additionally, we believe it will be effective to suggest a policy of promoting the

introduction of energy-conserving, container-type DCs through preferential treatment in

terms of policy, such as setting a more advantageous accounting depreciation method

to be used for them than that used for building-type DCs, and measures such as

providing a discounted electricity rate.

7.5 Measures to promote relocation of end user systems to

energy-conserving data centers

As explained above, developing nations, including Laos, currently have no DCs that can

be securely utilized by national-level institutions or international corporations and, in

most cases, each user is operating a server installed in a room in its own building.

Because these organizations continue to use outdated equipment possessing poor

cooling efficiency and poor computing power relative to the power consumed, the

amount of energy consumed by their servers is large. However, we can assist in efforts

to conserve energy by installing the latest servers in container-type DCs, virtualizing

them through computer resource virtualization, and popularizing technologies that can

improve server efficiency. The following figure shows the concept of efficiency

improvement through virtualization.

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Figure 7.5-1 Concept of efficiency improvement through virtualization

Since we can expect to reduce GHG emissions by transferring the conventional

individual systems to computer resources installed in low-carbon, container-type DCs, it

would be effective for governments to actively promote such a transfer.

Specific policies that could be effective include financial assistance, such as buyout of

inefficient equipment and providing subsidies to help with the expenses associated with

the transfer.

Physical Server Usage Virtual Server(VM) Usage

Hypervisor

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APL APL

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