PV plus electricity storage, a Japanese case

Izumi KAIZUKA, kaizuka@rts-pv.com

IEA PVPS Task1 Expert, JapanRTS Corporation

Contents

PV Market in Japan

Residential PV plus Storage

Storage for PV power plant

Outlook of PV plus Storage Market in Japan

PV Market in Japan

10.8GW

IEA INTERNATIONAL ENERGY AGENCY

PHOTOVOLTAIC POWER SYSTEMS PROGRAMME

Storages for 2 Distinct PV Worlds Distributed PV

Centralized PVProsumers

ProducersGrid injection, PPA,

competition with utilities generation business Self-consumption,

energy effiency, grid parity, competition with utilities distribution business

One technology

Subsidy for LiB & ZEH

Subsidy for utilities（demonstaion） & IPPｓ

National Support for Distributed PV+Storage

• FY 2014: Subsidy for Li-ion batteries� 13 billion Yen (110 Million €) � Subsidy : 1/3 cost (average)� 130 MWh storage batteries introduced� PV is not requirement but most of

suppliers offer PV+Storage

FY 2016: Subsidy for Net Zero Energy House (ZEH)

• 11 billion Yen (85 Million €) � Objective:

� Majority of new houses to be ZEH by FY 2020

� Recipient� Subsidy for Zero Energy House builders

� Subsidy for storage batteries� 50,000 Yen / kWh (~426 Euro/kWh)� Limit of subsidy:

1/3 cost or 500,000 Yen (~4,260 Euro)

Typucal operation mode (Example of Sekisui House Product )

https://www.sekisuihouse.co.jp/company/.../20150514_2_1.pd

Night Daytime Night

Battery

Battery

Battery

Surplus power to grid

Self consumption

Self consumption

Surplus power the battery

Surplus power the battery

Consumption

Consumption

Consumption

Batterydischarging

Batterydischarging

Batterydischarging

Night Night

Blackout in night

Chargingwith grid power

Blackout in daytimeBlackout in

night

Curtailment in daytime

Usual modeSaving electricity charge using cheaper electricity from grid in the night (time-of-day rate contract)

Using grid power

Using grid power

Curtailment In case of curtailment, charging the battery with PV power and use the electricity in the night time

Blackout In case of blackout, the system switches to islanding operation

Example of simple payback time

• Storage battery without PV : 25.3 years– Capacity: 7.2kWh (Available capacity 80%, charge-

discharge efficiency 94%)

– Monthly electricity fee : 10,000 Yen （€ 84）– Ratio of daytime electricity consumption: 20%

– Cost of battery with subsidy: 940,000 Yen （€ ７９００）– Night time electricity charge: 12 Yen/kWh （ € 0.10）– Daytime electricity charge: 32 Yen/kWh （ € 0.27）

Daytime electricity fee – night time electricity for charging = annual saving59,445 Yen - 22,292 Yen = 37,154 Yen

Cost of battery / annual saving = 940,000 Yen/ 37,154 yen = 25.3

http://www.solar-partners.jp/storage-battery-26872.html?mm=mm20160502

�Storage battery + PV : 13.4 years– Capacity: 7.2kWh (Available capacity 80%, charge-

discharge efficiency 94%)– Monthly electricity fee : 10,000 Yen– Ratio of daytime electricity consumption: 20%– Cost of battery with subsidy: 940,000 Yen

– Night time electricity charge: 12 Yen/kWh （ € 0.10）– Daytime electricity charge: 32 Yen/kWh （ € 0.27）– PV system capacity: 6kW– PV system cost: 2,280,000 Yen

– FIT for PV power (<10kW): 35 Yen/kWh (€ 0.29）

http://www.solar-partners.jp/storage-battery-26872.html?mm=mm20160502

Residential PV + Storage after 2019 : uptake of PV storage market may happen

• FIT program for residential PV system started in 2009 (FIT : 40 Yen/kWh (€0.33), surplus power only)

• Purchase term : 10 years � end in 2019• Options after 2019

- selling surplus power at lower price at 11 Yen/kWh (estimated price by a committee under METI)

- selling surplus power at higher price to aggregator - introducing storage battery for self-consumption-

IEA INTERNATIONAL ENERGY AGENCY

PHOTOVOLTAIC POWER SYSTEMS PROGRAMME

Storages for 2 Distinct PV Worlds Distributed PV

Centralized PVProsumers

ProducersGrid injection, PPA,

competition with utilities generation business Self-consumption,

energy effiency, grid parity, competition with utilities distribution business

One technology

Subsidy for LiB & ZEH

Subsidy for utilities（demonstaion） & IPPs

Demonstration project for grid stabilization by utility companies

Utility Company(Site)

Hokkaido (Minami Hayakita)

Tohoku (Nishi-sendai)

Kyushu(TushimaIsland)

Main topic Measure for frequency fluctuation

Measure for frequency fluctuation + balancing

Stailization of grid in an island

Storage Redox flow Li-ion Li-ion

BatterySupplier

SumitomoElectric Industry

Toshiba GS Yuasa

Capacity 60,000 kWh 20,000 kWh9 1,616 kWh

Output 15,000kW 20,000kW(40,000kW)

~5,000kW

Demonstration term

2015-2017 2015-2017 2015-2017

Emergency responses to suspension of grid connection of renewable energy (subsidy for storage batteries, control technology, etc.)

• Eligible technology: PV and wind power

• Subdisy for IPPs (Business, individuals) • Subsidy amount: 30,0000 Yen/kW （€2.524）• Subsidy can be used for PV projects under the FIT program to

address output curtailment and requirement for PPAs

In case of.5 MW PV power plant with 9MWｈ batteries: Subsidy amount: €5.35 million

Source:sii.or.jp

Budget ：74.4 BJPY (€8.84 million)

Maximum hosting capacity, approved capacity and commissioned capacity as of the end of September 2016

Source： Forecasting PV installed capacity in Japan toward FY 2020 and FY 2030

7 utility companies:Extensive output

curtailment

14

RTS Outlook for Japanese PV battery market

0

500

1,000

1,500

2,000

2,500

3,000

2014 2015 2016 2017 2018 2019 2020

電力系統

風力発電

太陽光発電

MWh

Grid

Wind

PV

Summary

• PV + storage for residential PV– Subsidy driven market at now � several optioncs will

be emerged after 2019– Community Storage + aggregation business may

emerge with the electricity market reform• PV +storage for centralized application

– Subsidy for utility companies – Subsidy for IPPs to conclude grid connection contract

(Hokkaido and other islands, storage batteries required for PPA)

• Cost reduction is expected with the growth of the market • Other solutions such as effective curtailment, DSM, etc.

should be implemented together with storages

Acknowledgement for the support of PVPS activities

Contact : Izumi KAIZUKA, RTS Corporation, kaizuka@rts-pv.com

Revision of the FIT program in Japan： on Thursday, 7DO.14.1