The Agency for Natural Resources and Energy aiming in the Revised Energy Conservation Act for non-fossil ratio of the electricity for electric furnaces to be 59% in FY2030
On Dec. 23rd, 2022, the Agency for Natural Resources and Energy (ANRE) of the Ministry of Economy, Trade and Industry (METI) decided to aim for a non-fossil ratio of electricity used by electric furnace manufacturers in FY2030 to be 59%; a measure based on the Revised Energy Conservation Act. ANRE sets a standard for a non-fossil ratio of externally procured electricity at 59% for some business operators of the chemical industry (petrochemical and soda industries) and paper industry.The demand side also aims for a non-fossil power ratio in the energy mix stated in the 6th Basic Energy Plan. Business operators will promote a non-fossilization of externally procured electricity through offsite PPA (Power Purchase Agreement) for solar power, etc. and direct purchase of certificate, and so on.
This will be reported at the Energy Efficiency and Conservation Subcommittee scheduled in February toward enforcement of the Revised Energy Conservation Act on April 1.
The Revised Energy Conservation Act established in June 2022 puts an emphasis on shift to non-fossil energy by business operators. It demands a higher use ratio of non-fossil energy as to energy used at the factories, etc. In addition, it demands business operators greater than a certain scale to prepare a medium- and long-term plan for shift to non-fossil energy.
The target of usage-ratio of non-fossil energy are specified for energy-intensive industries such as steel industry, chemical industry, cement manufacturing industry, paper industry and automobile manufacturing industry. Each business operator sets a goal based on the guide ratio and reports annual progress to the national government. If shift to non-fossil energy leaves a lot to be desired based on the guide and each business operator’s goal, there will be recommendations or publications by the national government.
So far, the Working Group has had a policy to specify the FY2030 guide non-fossil ratio of electricity used by the automobile manufacturing industry to be 59% combining externally procured and self-generated power. This time, it has been also decided to apply an identical guide to electric furnace manufacturers.
The chemical industry and paper industry generate electricity and heat by coal-fired in-house power generation boilers. From such a viewpoint, the FY2030 guide usage of coal has been specified to be 30% lower than FY2013. Coal usage is reduced by fuel shift, introduction of self-generated wind power and solar power, and so on. On the other hand, 59% is specified as the FY2030 guide non-fossil ratio of externally procured electricity, targeting business operators not using such coal-fired boilers.