The Energy Dimension of the Kitakyushu Model: The Smart Regional Energy Strategy in the New Decade

MI Consulting Group CEO

Kitakyushu City Asian Center for Low Carbon Society, Executive Ａｄｖｉｓｅｒ

Ritsumeikan University, MBA Visiting Professor

University of Tokyo, Executive Management Program Adviser

Fumio Ohue

July 11, 2014

1960s

Present

Ｃｉｔｙ Ｐｒｏｆｉｌｅ ～Location and Characteristic～

2

Government-run Yawata Steel Works

Industrial Wastewater Exhaust Emission

Kitakyushu has developed as an Industrial City

Aggravation of Pollution Problems

Women's Movement against Environmental Pollution

Establishment of “KITA” (1980)

City GovernmentOrganizational Arrangement, Ordinance, andPollution Control Agreement with Companies

Private EnterpriseCleaner Production Improvement of Production Process Treatment of Pollutant, Tree Planting

Kitakyushu Eco-Town (1998 )

Environmental Preservation and Industrial Promotion

Environmental International

Cooperation (1988～)

Grand design on World Capital of Sustainable Development (2004)

Agenda 21 Kitakyushu (1996)

1901

1950

1960's

Reduction of Domestic Wasteby Introducing New System and Citizen Participation (First one at Designated Cities)

Overcoming Environmental Pollution

Decision of EstablishingPCB Treatment Facility (2001)

Johannesburg Summit (2002) identifiedKitakyushu Initiative for a Clean Environment

1980's

Implementation and Evaluation of Practical Activities

Pollution ControlPolicy

Local DiplomacyPolicy

Resource-CirculatingSociety Policy

Sustainable Society Policy

Low Carbon Society Policy

Eco-Model City (2008), Future City (2011), “Green Asian” International Strategic Integrated Zone (2011) of Japan, and Model City of OECD’s Green Cities Programme (2011)

Creation of Local and Global Sustainable Society

KITA: Kitakyushu International Techno-cooperative Association

2002

2008

History of the first heavy industry city in AsiaChronology of Kitakyushu’s Environmental Policy ～Green Frontier～

Coals 27%

64,000 TJ

Electricity 44%

104,000 TJ

Utility gas5%

12,000 TJ

Oils24%

56,000 TJ

236,000 TJ Kitakyushu

3

Energy consumption in Kitakyushu is 236 thousand TJ in FY 2010, which

1.6 % of 14,970 thousand TJ, whole energy demand in Japan.

Energy consumption by industry accounts for 68 % in total amount of energy

consumption in Kitakyushu, meanwhile, residential, commercial and

transportation account for 8%, 13% and 11% respectively.

Electricity accounts for 44% (10.9 billion kWh) in energy consumption in

Kitakyushu by energy source.

State of energy demand in Kitakyushu & Japan

Energy consumption by sector

*Source: Deriving from Kitakyushu City *As of FY 2010

Energy consumption by energy source

Kitakyushu is the industrial city even today

1. HELP Asian developing cities to be

environmentally better while

reducing CO2

KITAKYUSHU MODEL

2. ATTACK Industry sector

SMART REGIONAL

ENERGY

Two ways to reduce CO2

1. HELP Asian developing cities to be

environmentally better while

reducing CO2

KITAKYUSHU MODEL

2. ATTACK Industry sector

SMART REGIONAL

ENERGY

Two ways to reduce CO2

What is Methodology and Kitakyushu Model

6

Methodology is to…

Systematize the procedures for projects, and define 3 major elements (role, process, deliverable)

Share the information and support the quality of projects

Proceed the project with the common recognition and definition of words for communications

among various stakeholders

Who?

how? What?

Kitakyushu Model

Kitakyushu city developed Kitakyushu Model, with its experience and expertise based on the global

standard in urban planning provided by Arup, a leading urban planning and constructing company

Role

Process Deliverable

Kitakyushu ModelGlobal Standard

By ArupExperience and Expertise

from Kitakyushu

Model Evolution in Geography

7

Kitakyushu Model Methodology(process) is universal not only in Japan but in Asia. The model will

evolve to X(any specific city) model if X case and tool are organized.

Haiphong Model

(Vietnam)

Rayong Model

(Thailand)

Surabaya Model

(Indonesia)

Kitakyushu Model

(Universal Knowledge Base)

Indonesian Cities

Vietnamese Cities

Thai Cities

http://asiangreencamp.net/eng/active3.html

More information about Kitakyushu Model

1. HELP Asian developing cities to be

environmentally better while

reducing CO2

KITAKYUSHU MODEL

2. ATTACK Industry sector

SMART REGIONAL

ENERGY

Two ways to reduce CO2

10

Kitakyushu’s Chronicle of Developing Energy Base

・Kitakyushu City has developed as a pioneer city of Energy technology and industry since starting

the operation of Yawata Steel Works in 1901.

１９０１

Governmental

operated Yawata Stell

Works

１９６３

J-Power Wakamatsu Thermal

Power Plant

２００２

High efficiency coal fired

power generation technology

(EAGLE project)

１９７３

Mitsui Mining Co. Ltd

（Nippon Coke &

Engineering Co., Ltd）

１９９６

Shirashima Oil

Storage Base

２００３

Wind Power Generation

in Hibikinada

２００８

Hibikinada Solar

Power Station

２０１３

Off-shore Wind Power

Station

11

Kitakyushu’s characteristics from energy point of view 1/2

There is a big focal point of primary energy by being located storage bases for coal, natural gas and oil

* Primary energy: energy before utilization by consumers （coal, oil and natural gas etc）

Status quo of energy supply #1: Primary energy

Nippon Coke & Engineering Co., Ltd

supplies imported coal and cokes to

domestic facilities.

Annual amount of supply: 5.3 million ton (3

million ton for cokes inclusive)

【Coal】 【Natural gas】Kitakyushu LNG Co., Ltd

supplies imported LNG to Kyushu

Electric Power Co., Ltd, Nippon

Steel and Sumitomo Metal, Tobata

Cooperative Thermal Power

Company and Saibugas after

gasification.

Capacity of storage: 60, 000 kL x 8

Hibiki LNG Co., Ltd,

is being started operation in November 2014

Capacity 180,000 kL x 2

【Oil】

Shirashima Oil Storage Base

is one of 10 national oil

storage in Japan, storing as

crude oil.

Capacity: 5,6 million kL

【Natural gas】

12

There are large amount of capacity in Kitakyushu by 2 big power plants and 1 big gas plant, which

supply electricity and Utility gas as secondary energy

*Secondary energy: usable form of energy transformed from primary energy, such as electricity, utility gas and gasoline

Shin-Kokura Thermal Power Plant,

Kyushu Electric Power Co., Ltd

Power generation capacity

LNG: 600,000 kW x 3

Total: 1,800,000 kW

Annual power generation: 10 billion kWh

Tobata Cooperative Thermal Power

Plant

Power generation Capacity

LNG: 250,000 kW x 1

375,000 kW x 1

Coal 156,000 kW x 1

110,000 kW x 1

Total : 891,000 kW x 1

Annual power generation: 6 billion kWh

【Electricity】

Kitakyushu Works

Saibugas Co., Ltd

Annual production

capacity: 1.3 billion m3

Annual supply: 0.3 billin m3

【Utility gas】

Kitakyushu’s characteristics from energy point of view 2/2

Status quo of energy supply #2: Secondary energy

13

Promotion of Renewable Energy

A large amount of PV and wind turbines is

installed by good wind condition and plenty of

vacant space along coastal area.

Promoting installment by utilizing city’s potential

2012 2030 2050

100MW

1730MW

780MW

20MW

200MW

500MW

PV

Wind Power

14

State of installment of PV

Total：104,491kW as of FY 2013

Residential: 44,601kW

（11,128 households）Commercial and services：59,890kW

（1,558 facilities）

【Supporting program】 Subsidy for PV at household: 4,964 households

from FY2007～2012

Mega solar (commercial base power plant) :

consultation for construction

Promotion of Renewable Energy

15

Large size wind turbine in Kitakyushu

【on-shore】・1,500kW ｘ 10・1,990kW ｘ 1・2,700kW ｘ 1

【off-shore】・2,000kW ｘ 1

【Supporting program】・Consultation for construction

Total：21,690kW

Promotion of Renewable Energy

State of installment of wind power

16

Total:1,708kW

Masubuchi dam: 520kW

Aburagi dam : 780kW

Tonda Water Storage : 68kW

Rikimaru dam : 340kW

Total:65,840kW

Shinmoji： 23,500kW

Kogasaki： 36,340kW

Hiagari ： 6,000kW

Promotion of Renewable Energy

State of installment of small sized hydraulic power

State of installment of Energy from Waste

17

Mar. 2012: installing turbine, taking data

Dec. 2012: installing LED illumination powered

by generated electricity

Oct. 2013: Completion of taking data,

Dismantlement of devices

Mar. 2014: Briefing session of outcome

Mar. 2014: Installing monument made from

turbine blade

Spec capacity: 1.4 kW, actual power: 0.8 kW

Operation rate: 20 %

Illumination powered by tidal wave at

flower bed in front of Nikka Whiskey

Moji Plant

Tidal power generation

Promotion of Renewable Energy Demonstration project was implemented utilizing

powerful tide at Kanmon Strait

It is a project that hydrogen produced at a neighboring factory and supply it to

fuel cells at households and commercial and governmental facilities. It is the first

community sized demonstration project in the world.

18

Pipeline

DIY store

1kW by a FC

Kitakyushu Hydrogen Station

3kW by a FC

Eco House

1kW by a FC

Kitakyushu Museum of

Natural History and Human History

100kW by a FC

Hydrogen demonstration

apartment

1kW x 7 FCs

Eco Club House

1kW x 2 FCs

Kitakyushu Hydrogen Town since 2012

Utilization of Energy from Hydrogen

Hydrogen produced at steel works is utilized at town as well

as at factories

Kitakyushu Hydrogen Station is an off-site station where

hydrogen is directly provided by pipeline.

It is the first site in Japan and third ones in the world, which

adopted pipeline supply system

19

Kitakyushu Hydrogen Station since 2009

Utilization of Energy from Hydrogen

Kitakyushu City Office has not only used FCV （Fuel cell vehicles ）as

office cars but also displayed at exhibitions and taking it for test a drive.

20

Utilization of FCV in City Hall since 2009

Utilization of Energy from Hydrogen

1. Objectives(1) Country

Cultivate smart grids as a new industry that leads the future Japanese economic growth. In order to do so, we have been deploying the demonstration project by selecting 4 areas in the country.(2) City of Kitakyushu

Cultivate it as a new industry that leads the economic growth of Kitakyushu in the same manner as the country. Furthermore, we will promote initiatives that would lead to the creation of a new city that could improve citizens’ lives and solve community issues, such as establishment of a new traffic system and lifestyle reform, etc., through this project.

2. Implementation body67 companies/organizations

3. Area of implementationHigashida district, Yahata-Higashi ward (Approximately 120 ha)

4. Period of implementationFY2010 – FY2014 (5 years)

5. Project scale 38 projects16.3 billion yen

Kitakyushu Smart Community Creation Project

[Smart meter]Receive notifications for power pricing, etc. and send power consumption through bi-directional communication with CEMS

[CEMS](CEMS: Cluster Energy Management System)Promotes optimal energy management by connecting with renewable energy in the community, BEMS, HEMS, and backbone power via IT network

[HEMS](HEMS: Home Energy Management System)Coordinates with CEMS and automatically provides power control for households

[BEMS](BEMS: Building Energy Management System)Coordinates with CEMS and automatically provides power control for buildings

[FEMS](FEMS: Factory Energy Management System)Coordinates with CEMS and absorbs natural energy and energy fluctuations unique to factories in order to secure power stability

Higashida Cogeneration

Storage battery

Solar power generation

IT network

Building Regular household

Smart meter In-house display

LoadPower storage/ heat storage

Power generation

A/C

Lighting

Load Power storage/ heat storage

Power generation

A/C

Lighting

Cluster Energy Management System (CEMS)

Kitakyushu Smart Community Creation Project

23

This sign mark each Smart Sport, and lists its key features.

Human Media Creation Center/ Kyushu

CEMS

ENEOS Smart

Enerrgy Station

FamilyMart Co.,

Ltd

Environment Museum

Kitakyushu Eco House

KITAKYUSHU

MUSEUM OF

NATURAL HISTORY

& HUMAN HISTORY

NIPPON STEEL &

SUMIKIN ENGINEERING

CO., LTD

Kitakyushu Dormitory

Higashida Eco

Club HouseHigashida

H2

Kitakyushu Telecom

Center, Bldg. No. 2

HIGASHIDA

CLINIC

Community Energy

Storage System

NITTETSU ELEX CO., LTD.

Takamiya Corporation

Smart

Icon

CEMS HEMS BEMS FEMS Hydrogen

powered

Photovoltaic

power Solar thermal

powerGeothermal

power

Wind

power

Private energy

storageCommunity energy

storage

Electric

vehicles

Car Sharing Bicycle sharing Greenecy Water

utilizationKnowledge center

Kitakyushu Smart Community Creation Project

In Kitakyushu Smart Community Creation Project, consumers, such as citizens and businesses, etc., will change from mere consumers of energy into prosumers through the establishment of solar power, etc. and voluntary energy-saving efforts. (Participation of citizens)

Cluster Energy Management System (CEMS) and smart meters, which are the keys of

this demonstration, are means to “discover/share/utilize” community energy, including byproduct hydrogen and waste heat from nearby factories, in addition to solar power and wind power. Through these means, we will establish a new energy system in which citizens and businesses, who are the prosumers, “think” and “participate” in

addition to the existing energy suppliers. (Hardware establishment)

Specifically, we will establish a system in which actions of citizens and businesses that also produce profit for themselves would also contribute to the community energy system at the same time by “aggregating/visualizing” community energy information and introducing dynamic pricing, etc. as drivers for citizens and businesses to “think”

and “participate”. (Social systems)

Target social vision

Kitakyushu Smart Community Creation Project

● Deployment in the Advanced Low-carbon Model Block (Jono district)

● Promotion Council for the Low Carbon Cities- Leadership in low carbon urban planning -

Established with the objective of deploying the great activities conducted by 13 environmental model cities in all of Japan and transmitting the information to the rest of the world, etc. (The project has 168 participating organizations, including municipalities all over Japan.)

ＳＴＥＰ１ ＳＴＥＰ２

● Kitakyushu Asian Center for Low-carbon SocietyThe results produced in this demonstration project will be transferred chiefly to Asian regions on a business basis.

● Demonstration at Yahata Higashida

ＳＴＥＰ３● Deployment in the entire municipal area

Kitakyushu Smart Community

To all of Japan and to Asia

北九州スマートコミュニティで得られたノウハウ・成果をビジネスベースで構築

スマートグリッド

太陽光発電

ＬＥＤ

EＶ(電気自動車)

水素利用技術

パワーエレクトロニクス

グリーンＩＴ

ＩＴ

The know-how and results obtained by the Kitakyushu Smart Community will be formed on a business basis

Smart grid

Solar power generation

LED

EV (electric vehicle)

Hydrogen utilization technology

Power electronics

Green IT

IT

Transfer of low-carbon technology to Asia

Kitakyushu Asian

Center for Low-carbon

Society

Kitakyu

shu

Dalian

ChongqingKunming

Huhhot

Cebu

SurabayaSemarang

Chelyabinsk

State of GujaratPhnom Penh

Tianjin

Ho Chi Minh

Hai Phong

Qingdao

Deployed in packages as solutions with high added values

Kitakyushu Smart Community Creation ProjectTransmission of achievements

1. Sustainably Industrialized

2. Traditional Powers

3. Rich Renewable energy

4. Hydrogen

5. Smart Community

+

Fukushima Disaster

5 + 1 Major Factors to lead to the Smart Regional Energy

27

Background & Objectives

Kitakyushu City fulfills certain responsibility for supplying energy stably and inexpensively to support local residents and industry after the circumstance in which they have suffered energy problems meanwhile the city implemented energy saving program and promoting renewable energy to tackle global warming.

Kitakyushu City has promoted Kitakyushu Regional Energy Base Project as one of leading projects in Kitakyushu Master Plan at Hibikinada area through some studies since 2012

This project is indispensable for supporting growth of Kitakyushu with targets of stable and low carbon energy supply as well as contributing to all Kyushu consumers through potentials in Kitakyushu

Kitakyushu Regional Energy Base Project

28

Potential of Kitakyushu

Good location for renewable energy and high efficient power plant construction

Good wind condition

Large scale coal storage

Large scale LNG storage

Large vacant space

Key concept…

Only Region can optimize Energy

by Sharing among Stakeholders

Kitakyushu Regional Energy Base

29

Target vision: Realize energy of low carbon, in stable supply and in inexpensive

price, Stimulating local economy and Contribution to all Kyushu consumers

Regional

Energy

Management

PV

Wind Power

（existed）

Consumers

in

Kitakyushu

To all

Kyushu

consumers

Municipal incineration

plant (energy from

waste)

(1) Realizing energy supply and demand by taking full advantage of those variety of energy (realizing best energy mix at regional level)

(2) Fully utilizing privately owned power generator and promoting energy saving (realizing energy saving society by empowered consumers )

(3) Downsizing power plant through peak cu t by consumers and decentralized power supply (Optimizing suppliers)

(4) Contribution to stable energy supply , efficient power generation and higher installation of renewable energy for all consumers in Kyushu

(5) Co-prosperity with local stakeholders

Kitakyushu Regional Energy Base

Off-shore wind power

High efficient coal fired

plant

(5)

(4)

(4)

(4) (1)

(1)

(1)

(1)

(1)

(3)

(2)

30

Issues to be studied (for power generation)

Short-term target: Total 800,000kW by medium sized thermal power plants: 300,000 kW and off-shore wind power stations: 500,000 kW Construction as soon as possible by utilizing existing infrastructures

Long-term target: Large scaled thermal plants Infrastructures should be reinforced i.e. takes more time Supporting high-value added industry such as material

industry at upstream of Japanese manufacturingContribution to all Kyushu consumers

Kitakyushu City provides one-stop consultation service and coordinating stakeholders to interested companies for building power

Kitakyushu Regional Energy Base

31

Kitakyushu Regional Energy Company

Issues to be studied towads NewCo

NewCo are indispensable to secure stable and inexpensive energy supply for local consumers

Following issues should be studiedMission of Regional Energy CompanyStakeholder’s Requirements ProfitabilityEarly Adaptation

Thank you very

much!

City of Kitakyushu, Japan

Black

‘Ego greedy’ Teitan

White

‘Eco cooperative’ Teitan