Low Carbon Society Development under Collaboration between Bandung City and City

of Kawasaki: Introduction of EMS to Commercial Facilities under the JCM

Reporting Session for JCM Feasibility Studies in FY2015Feb 22nd 2016

Institute for Global Environmental Strategies (IGES)

City of Kawasaki

Oriental Consultants Global Co., Ltd.

Kowa Company Ltd.

Tokyo Rectifier Company Ltd.

Evaluation of feasibility on pilot projects under F/S titled “Developing a low carbon Society under

Collaboration between Bandung and Kawasaki” in JFY2014

• Project implementation plan development (e.g. financial arrangement)

• Site visit for estimation of potential for electricity consumption reduction

City-to-city collaboration between Bandung City and City of Kawasaki since 2006

e.g. - UNEP-IETC Ecotown Project (organized by UNEP-IETC)

- Asia-Pacific Eco Business Forum (hosted by City of Kawasaki)

Project field 1: Energy efficiency improvement

Previous efforts under city-to-city

collaboration

26年度事業First stage of project

formulation in JFY2014

Demonstration at ITB for dissemination of proposed technology under JICA partnership scheme

26年度事業F/S in JFY2015 for

further project formulation

Evaluation of CO2 emission reduction potential at shopping malls

Further consideration for project formulation in progress

Project for Low Carbon Society Development under Collaboration between Bandung City

and City of Kawasaki

Project field 2: Waste management

Evaluation on project potential for bio digester introduction

Project background

2

Further effort for implementation of formulated project

in JFY2016

F/S on EMS introduction in commercial facilities under the JCM

(*Ongoing)

Memorandum of Understanding

For city of Kawasaki & Bandung

Signed Feb 18th 2016

Overview of project activities

3

Joint project implementation by Japan and Bandung sides

under city-to-city collaboration between

City of Kawasaki and Bandung City

City of Kawasaki Bandung CityCity-to-city collaboration with low carbon technologies from Kawasaki City

Energy efficiency improvement in buildings under the city’s climate change action plan

LED lighting Energy saving cooling system

Solar power generation (Renewable energy)

Generate electricity

GHG emission

EMS in a commercial facility（provide energy consumption

trends, energy savings technology, demand control）

Introduction of direct current electricity supply technology

Replacement to energy saving equipment (i.e. LED, cooling)

Minimize use of electricity from

grid

Grid

Direct current (DC)* electricity supply

system

*cf. AC: Alternative current

Direct current electricity supply system with EMS and solar power generation

i.e. Electricity supply from solar power generation panels to energy saving equipment with minimized number of DC/AC and AC/DC conversion in system (Electricity supply with minimized electricity loss)

• LED lighting• Cooling system• Battery

Overall energy saving both at individual equipment and electricity supply system levels

Overview of Direct current electricity supply technology

Project example <BANK OFFICE>Comparison of Annual Electric Consumption at YACHIYO BANK, NOBORITO BRANCH

0

2,000

4,000

6,000

8,000

10,000

12,000

4月 5月 6月 7月 8月 9月 10月 11月 12月 1月 2月 3月

(kWh)

平成24年度 平成25年度 平成26年度

March, 2014Installed DC Supply System

電気使用量 April May June July August September October November December January February March TotalLast YearComparison

2012 – 2013 6,780 6,269 7,077 6,962 9,104 9,768 8,474 6,804 5,949 7,230 8,179 7,006 89,602

2013 - 2014 6,294 6,089 6,936 7,285 8,915 9,104 7,727 6,654 5,453 6,871 6,622 5,590 83,540 7%

2014 – 2015 4,731 3,462 3,759 4,788 6,014 5,880 4,494 3,977 3,667 6,032 5,930 5,342 58,076 30%

2015 - 2016

Installed DC Supply System

Projects on direct current electricity supply in Japan

6

Shopping Mall Government Bldg

Manufacturer

Hotel Conference Hall

Manufacturer

Manufacturer

University

Between 2015.9.21 ～ 2016.1.27

Bank

Site name Consultation result Challenges for project formulation for project formulation under MOEJ subsidy scheme

1) Investment cost 2) Estimated electricity

consumption reduction amount

3) Estimated GHGemissions reduction amount

1. Hotel Hotel did not agreed on investment for project formulation.

Necessity in investment by BTC side

1) Around 362 thousand USD2) 176,916kWh/year3) 144t-CO2/year

2. Textilemanufacturer

Manufacturer and MOEJ study team sides did not agreed on condition for project formulation including payout period.

a. Long project payout period

b. Difficulty in acquiring financial documents

1) Around 2,966 thousand USD2) 1,303,900kWh/year3) 1,061t-CO2/year

3. Bank Project formulation at the Bank is expected to be started after MoU between City of Kawasaki and Bandung City is signed in February 2016.

The MoU has not yet been signed.(To be signed in Kawasaki on 18 February 2016.)

Result of consultation with building/ facility owners in Bandung in 2015 JFY

7

Site name Consultation result Challenges for project formulationfor project formulation under MOEJ subsidy scheme

1) Investment cost 2) Estimated electricity

consumption reduction amount

3) Estimated GHG emissions reduction amount

4. University MOEJ study team and university will elaborate to formulate project under JICA scheme.

1) Around 500 thousand USD2) 134,730kWh/year3) 120.6t-CO2/year

5. Manufacturer

MOEJ study team will elaborate to formulate project with Manufacturer under a scheme other than MOEJ subsidy scheme.

Small amount of investment cost

1) Around 250-260 thousand USD2) 100,800kWh/year(Provisional)3) 82t-CO2/year (Provisional)

6.Manufacturer

MOEJ study team will elaborate to formulate project with Manufacturerunder a scheme other than MOEJ subsidy scheme.

Small amount of investment cost

1) Around 100 or 127 thousand USD2) 89,740 or 100,800kWh/year3) 73 or 82 t-CO2/year

Result of consultation with building/ facility owners in Bandung in 2015 JFY

8

<Methodology>

With reference to the Joint Crediting Mechanism Guidelines for Developing Proposed

Methodology）(JCM_ID_GL_PM_ver01.0) a draft MRV methodology was developed.

- Direct current supply system:

MN_AM001 Installation of energy-saving transmission lines in the Mongolian Grid

- LED lightings

ID_AM005 Installation of LED lighting for groceries

- Air-conditioning:

ID A004 Installation of Inverter-Type Air Conditioning System for Cooling for

Grocery Store (Ver 1.0)

<Eligibility Criteria>

<Reference scenario>

A system using the conventional distribution switchboard as an alternative for the Direct Current

Supply System, non energy efficient appliances and no solar power generator.

Number Criteria

Criterion 1 The direct current supply systems and a solar power generator will be used

Criterion 2 Power supplied by the solar power generator will be used as the alternative for grid-based electricity

Criterion 3 Electricity consumed, watts, ampere and consumed length of time, electricity consumed by the lighting fixtures and the air-conditioners, electricity purchased from the grid, and the solar power generator are all factors that can be monitored using the energy management system

Research result of MRV methodology

10

Regulation (s) and Policies

The EMS will contribute to 1) Indonesia’s energy mix target for renewables

23% in 2025 31% in 2050 (reference: KEN by MEMR, 2014)

2) Solar based power generation target of 7GW by 2020. (reference: RUPTL 2011-2020 by PNL, 2011)

Others 1) SNI (Indonesian National Standard) Certification: Required for the Direct Current Electricity Supplier

2) Green Building Certification: The Mayor has defined all new infrastructure should be certified as “green buildings” when applying for the “IzinMendirikan Bangunan (IMB)” (city building certification)

3) Finance Ministry implements tax and customs law for renewable energy (2010 PMK.011-21） gives benefits to renewable deployment - Tax depreciation for 30% of the investment amount, shorter depreciation period for assets, no customs, preferential tax treatment, etc.

11

Capacity Building to the Host Country

February 17th -19th 2016

Nine representatives including the Bandung Mayor missionKawasaki hosted event

- Kawasaki International Eco-Tech Fair - Kawasaki Asia-Pacific Eco-Business Forum- Information exchange “energy savings initiatives by the government”- Information exchange “public private partnerships for hydrogen energy” - Site visit to energy management system installed site

Bandung and Kawasaki City have signed an MOU on low carbon and sustainable city development which will expand the current collaboration. Am looking for the next source of funding for implementation of the projects as a result of this Feasibility Study

Conclusion and Next Steps

Terima kasih banyak!