Stabilizing the energy supply under growing shares of Renewables

Tokyo, 24th September 2019. On September 23th and 24th the 7th meeting of the German-Japanese Energy Transition Council (GJETC) was held in Tokyo. In addition, the council organized an Outreach Event on the afternoon of the second day to inform about the unbundling of electricity markets and management options.

Japan is restructuring its electricity market and competing energy suppliers, unbundling grid and competitive balancing markets are the results. Digitization can enable system operators, producers, traders, consumers and storage providers to co-operate and use the renewable power instead of wasting it. This hypothesis is the background for a study conducted by the GJETC. The Wuppertal Institute and the Institute of Energy Economics, Japan (IEEJ) as the scientific secretariats of the GJETC, analysed concepts of virtual power plants and their underlying business models as well as the use of Blockchain technology. The focus was set on case studies such as the German company Next Kraftwerke and the US energy supplier Pacific Gas & Electric. First results have been discussed at the 7th meeting of the council.

Group picture 7. Council meeting
Group picture of GJETC members and staff on the 7th council meeting in Tokyo.

The study shows that Virtual Power Plants (VPP) business models may be largely dependent upon the regulatory framework, renewable energy resources, the electricity supply system as well as the electricity market system. Experiences from Germany show that for example the gradual expiration of FIT (Feed-in Tariff), which is also the case for Japan, will create a favourable business environment for VPP. IT systems and market structure on the other hand currently do not seem to influence VPP models significantly. However, as Germany is the only country with fully commercialized VPP so far this might very well change in the future as maturing markets might lead to different developments and results in other countries.

At the Outreach Event held on September 24th, Prof. Dr. Klaus-Dieter Borchardt, Deputy Director of the Directorate-General for Energy of the European Commission, Dr. Boris Rigault, Head of the Field Industrial Steam Turbines at Siemens AG and Steffen Riediger, Director European Power Derivatives at European Energy Exchange (EEX) explained their efforts and achievements in trying to attain stabilized electric systems under growing shares of renewable energy.

Outreach Event Electricity Markets
External experts and council members at the Outreach Event on September 24th: Prof. Dr. Klaus-Dieter Borchardt (Deputy Director of the Directorate-General for Energy of the European Commission), Junichi Ogasawara (IEEJ), Dr. Boris Rigault (Head of the Field Industrial Steam Turbines at Siemens AG) and Steffen Riediger (Director European Power Derivatives at European Energy Exchange, short EEX).

“Experiences in Europe show that integrating a high share of renewable energy production into the electricity markets means providing flexibility on the generation and demand sides, as well as creating strong price signals”, said Prof. Dr. Klaus-Dieter Borchardt during the Event. The Outreach is intended to provide both strategic and in-depth insights on selected topics related to electricity markets and growing shares of renewable energy production in both countries.

The next scheduled council meeting will be held in Berlin on 18th and 19th March 2020. A video on the concept and work of the GJETC as well as study results, input papers, and a final report of the 1st phase (in English, summaries in Japanese and German) can be downloaded in the Publication section of the website.

Outreach: Unbundling of Electricity Markets and Management Options

Japan is in the process of restructuring its electricity market, e.g. introducing competition in supply, unbundling, and competitive balancing markets. Germany, as a member state of the European Union, has already restructured its power market in the years since 1998. Both countries, however, will have to develop their electricity markets further to master the energy transition. This concerns particularly the integration of large shares of generation based on mostly variable renewable energy.

Following the 7th GJETC Council Meeting on 23rd/24th September in Tokyo the GJETC is organizing an Outreach Event to discuss this issue with the public:

“Management Options for Unbundled & Secure Electricity Markets with Growing Shares of Renewable Energy –

Needs, Experiences, and Options for Japanese-German Cooperation”

Electricity Market

When? Tuesday, September 24th, 14:30-16:30

Where? Institute of Energy Economics Japan (IEEJ), Tokyo

The Outreach Event is intended to provide both strategic and in-depth insights on selected topics related to electricity markets and growing shares of renewable energy production in both countries. The invited experts represent a mix of government, science/academia and the private sector. The input presentations and discussion are intended to lead to a better understanding of the possibilities of bilateral collaboration on the Energy transition.

Language

Simultaneous translation German <> Japanese

Program

Program (English)

 

GJETC honored as role model for bilateral scientific cooperation

The Japan Society for the Promotion of Science (JSPS) has been promoting scientific exchange between Japan and Germany since the 1930s. The German Society of JSPS Fellows awarded the JACA Prize to Prof. Dr. Peter Hennicke, Senior Advisor at the Wuppertal Institute, at the German-Japanese symposium “Art, architecture and technology” in Vienna on May 24. The JSPS Alumni Club Award 2019 (“JACA Prize” for short) was given to Peter Hennicke for “his outstanding contribution to the realisation of scientific exchange between German-speaking countries and Japan”. The award also appreciates Peter Hennicke’s role as German Co-Chair of the German-Japanese Energy Transition Council (GJETC) and the GJETC’s three years of cooperation. The laudatio reads: “The JACA of 2019 honours Professor Hennicke representing the founding consortium of the worldwide unique GJETC”.

JACA_Hennicke_GJETC

Photo: JSPS-Chairman Prof. Heinrich Menkhaus (left) presenting the JACA Prize to GJETC Co-Chair Prof. Peter Hennicke. (© Valentin Jäger-Waldau)

In his acceptance speech, Hennicke also addressed the role of the cooperation model: “The award is a great honour and an enormous encouragement for me and for the entire team of the German Japanese Energy Transition Council. The aim of our cooperation with Japan is to demonstrate that the energy transition can succeed better, despite considerably different starting positions in Germany and Japan, if both countries learn from their strengths, but also try to make their weaknesses transparent in order to avoid them.”

Downloads:

Laudatory Speech

Acceptance Speech by GJETC Co-Chair Peter Hennicke

How to digitize the Energy Transition

Berlin, 7th March 2019. In the last two days the 6th meeting of the German-Japanese Energy Transition Council (GJETC) has been held in the Japanese-German Center Berlin. The first meeting in 2019 took place primarily with a focus on digitization. A new working group was set up to deal with the issue of “Digitization and the Energy Transition”. At the sidelines of the meeting, members of the GJETC also visited an outstanding sector coupling project that uses surplus energy for heating and cooling.

The GJETC has dedicated one of its newly established working groups to the subject of “Digitization and the Energy Transition”. The Wuppertal Institute and the Institute of Energy Economics, Japan (IEEJ) as the scientific secretariats of the GJETC are currently investigating concepts of virtual power plants and their underlying business models. The focus is on case studies such as the German company Next Kraftwerke and the US energy supplier Pacific Gas & Electric. In addition, the activities of German municipal utilities (“Stadtwerke”) in the field of digitization are of interest. The research group also puts an eye on the heat sector in terms of district heating storage and sector coupling.

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Digitization can enable system operators, producers, traders, consumers and storage providers to co-operate and use the renewable power instead of wasting it. “Utilization before limitation” is also the motto of the WindNODE showcase project within the SINTEG program of the German Economic Ministry (BMWi), which was presented on the 2nd day. The aim is to integrate as much renewable energy into the system as possible while also maintaining the grid stability. New flexibility options through sector coupling and regional power plants are tested to prevent congestions and ensure optimal use of green energy. Following the Council Meeting the German and Japanese experts visited a sector coupling project by GASAG Solutions on the EUREF-Campus, concerned with Power-to-Heat (P2H) and Power-to-Cold (P2C). The system enables the intelligent use of surplus electricity for heating with an electric heater and two storage tanks as well as cooling with two compression refrigerator machines. In addition, the connection to a bio methane CHP can compensate for low supply voltage and keep the system stable. The Japanese Council Members were impressed by the project: “Grid stabilization is always one of the most sensitive points when talking about renewable energy integration, especially in Japan. The intelligent combination of P2H, P2C and the CHP plant pose an interesting option for the energy supply of districts in the future”, said Prof. Yasumasa Fujii from the University of Tokyo.

GJETC © JDZB (3)

For the second working phase which started in October 2018, the GJETC installed working groups including Council Members as well as external experts from industry and civil society in order to facilitate a more focused research on five specific topics („bottlenecks“) of energy transition identified in phase one. One of the newly implemented working groups of the GJETC accompanies a comparative study on “The Future Role of Hydrogen in the German and Japanese energy systems”. The study includes an analysis of the status quo, a meta-analysis of existing scenarios on the role of hydrogen in the Japanese and German energy systems, and an overview of standards and regulations.

Another working group discusses long-term scenarios of energy supply until 2050 and related review mechanisms, including a study of BDI (Association of German Industries) on “Climate Pathways of Germany”. The discussion on how Germany and Japan can close the implementation gaps of their GHG emission reduction goals they committed to come right in time as the future alignment of energy policy are intensively discussed in Germany as well as in Japan in the forerun to the G20 summit in Japan in June 2019. “Energy efficiency in buildings” is the main topic of another working group within GJETC. At the Council Meeting in Berlin, the GJETC members discussed with external experts about building politics in the Light of COP 24 results with external experts from the German Ministry for Interior, Building and Communication (BMI), German Industry Initiative for Energy Efficiency (DENEFF) as well as the Federal Institute for Research on Building, Urban Affairs and Spatial Development (BBSR).

The next scheduled Council meeting will be held Tokyo in September 2019.

GJETC 2.0 – Project enters next stage with new concept & new faces

After two years of successful work which culminated in an extensive 800 pages study program and a Final Report published in April 2018, the German-Japanese Energy Transition Council (GJETC) will continue its work in a 2nd phase from this fall. Thanks to the renewed support of the German Environment Foundation (DBU), the German Federal Foreign Office and the Japanese Ministry of Economy and Trade (METI), the Council will independently develop ideas and alternative options for a long-term and sustainable energy supply strategy in both countries in the next 2 years.

German-Japanese-Energy-Transition-Council-GJETC-GroupPhoto: GJETC 2.0 in Tokyo during 5th Council Meeting on 14th November

“The 2nd GJETC working phase comes just in the right timing as the long-term scenarios for the future alignment of energy policy are intensively discussed in Germany as well as in Japan. In the forerun to COP 24 in Poland and G20 summit in Japan, German and Japanese German governmental bodies and organizations intensified their consultations in several fields related to energy system of the future. For these discussions, the GJETC is a unique project of independent bilateral scientific cooperation, which aims to continue to give science-based impulses for the energy policy in both countries”, stated Prof. Peter Hennicke, German Co-Chair of the GJETC.

German-Japanese-Energy-Transition-Council-GJETC-Hennicke-Toyoda-METIPhoto: Prof. Masakazu Toyoda (center) reviewing the 1st phase together with his German counterpart Prof. Dr. Peter Hennicke (right) and Masayoshi Yamakage (left), Director Policy Planning Division, Energy Conservation and Renewable Energy Department of the Agency for Natural Resources and Energy (ANRE)

GJETC 2.0 will adopt a new working style. In addition to the biannual meetings, working groups including Council Members as well as external experts from industry and civil society will be installed to facilitate a more focused research on specific topics („bottlenecks“) of energy transition identified in phase 1. A special focus will be set on the review of German and Japanese long-term scenarios (for 2050) and their evaluation mechanisms as well as on building energy efficiency and heating/cooling. Furthermore, two fundamental studies on “H2 Society“ and the Role of „Digitization for the Energy Transition“ will be carried out and accompanied by the Council.

In order to cover all the diverse topics while preserving the core of the Council, some new members have been introduced: Prof. Dr. Andreas Loeschel, Chair of Microeconomics at the University of Muenster and Member of the German Governmental Energy Transition Monitoring Expert Group; Dr. Harry Lehmann, General Director at the Federal Environmental Agency (UBA); Dr. Carsten Rolle, Head of Department for Energy and Climate Policy at the Federation of German Industries (BDI); Prof. Kazuhiko Takeuchi, President of the renowned Institute for Global Environmental Strategies (IGES).

The next Council meetings are held in Tokyo on November 14/15, 2018 and in Berlin on March 6/7, 2019. A video on the concept and work of the GJETC as well as the study results, input papers, and final report of the 1st phase (in English, summaries in Japanese and German) can be downloaded from the GJETC website.

Outreach: Presentation of GJETC 1st Phase Results (Tokyo Edition)

In the face of the paltry ambitious global implementation of the Paris Agreement Japan and Germany, as leading industrialized nations, have a special responsibility to contribute towards a global decarbonization. The vivid – and sometimes also controversial dialogue – on ways and means for the energy transition is more important than ever.

GJETC Cover JP

Within the framework of the “German-Japanese Energy Transition Council” (GJETC) experts from Germany and Japan have been working on analyzing the challenges of the energy transition in Germany and Japan in the past 2 years in order to develop policy advice how the energy transition in both countries can be accelerated by collaborative learning.

The mutual recommendations for the different stakeholders from politics, industry and civil society will be presented and discussed by the Council from German and Japanese side in a public Outreach event together with the question of the role of such a form of binational cooperation in the international context.

The Importance of International Cooperation under Disruptive Changes:

Recommendations & Lessons Learnt from a Fruitful German-Japanese Dialogue on the Energy Transition

Monday, 10th September 2018, 13:30 to 15:00

Conference Center (11th Floor), Institute of Energy Economics Japan (IEEJ), Tokyo

The program can be found here

The German-Japanese Energy Transition Council presents results of its two-year work

Energy Transition: Disruptive change requires international cooperation

Berlin/ Tokyo Friday, 20th April 2018. The challenges and also potentials of the energy transition are tremendous in Germany, as well as in Japan. Sometimes, structures of the old energy world need “creative destruction” to clear the way for innovations for a decarbonized, low-risk energy system. In these times of disruptive changes, a constructive and sometimes controversial dialog within leading industrial nation as Japan and Germany over the energy transition is even more important. The German-Japanese Energy Transition Council (GJETC) today released results of two years of fruitful dialogue.

The German-Japanese Energy Transition Council is an international model project to strengthen the exchange of knowledge over technologies, policies and the effects of the energy transition. The concept is based on the conviction that joint solutions accelerate the realization of the energy transition, if national differences, different interests, motivations and values between the partner are made transparent, clearly articulated and respected. This can also serve as an example for other countries.

GJETC Report 2018

Besides the 800 pages of study results of the German-Japanese research consortia on core subjects of the energy transition, the council also published a row of strategical input papers. In three stakeholder dialogues with the industry, with producers and users of energy efficiency technologies and with decentralized actors of the energy transition, as well as in two outreach events with 100 participants each the Council continuously searched for a broad discussion with the public.

Today, the council presented a summarizing report for the first project phase. It includes jointly formulated recommendations for politics as well as a controversial dialogue part. Around 80 experts from ministries, industry and academia as well as parliamentarians and NGOs attended the presentation of the report in the Press and Visitors’ Center of the Federal Government in Berlin.

The Council jointly states and recommends that:

  • Ambitious long-term targets and strategies for a low-carbon energy system must be defined and ambitiously implemented; Germany and Japan as high technology countries need to take the leadership.
  • Both countries will have to restructure their energy systems substantially until 2050 while maintaining their competitiveness and securing energy supply.
  • Highest priority is given to the forced implementation of efficiency technologies and renewable energies, despite different views on nuclear energy.
  • In both countries all relevant stakeholders – but above all the decision-makers on all levels of energy policy – need to increase their efforts for a successful implementation of the energy transition.
  • Design of the electricity market needs more incentives for flexibility options and for the extensive expansion of variable power generation, alongside with strategies for cost reduction for electricity from photovoltaic and wind energy.
  • The implementation gap of the energy efficiency needs to be closed by an innovative energy policy package to promote the principle of “Energy Efficiency First”.
  • Synergies and co-benefits of an enhanced energy and resource efficiency policy need to be realized.
  • Co-existence of central infrastructure and the growing diversity of the activities for decentralization (citizens funding, energy cooperatives, establishment of public utility companies) should be supported.
  • Scientific cooperation can be intensified by a joint working group for scenarios and by the establishment of an academic exchange program.

The members of the Council jointly determined that “the GJETC has created a format and role model, that enables science-based policy advice, close to politics but independent from political interference.“ The members of the Council therefore agreed that the successful work of the GJETC should be continued and raised to a new level in a second phase (2018-2020).

Outreach: Presentation of GJETC 1st Phase Results (Berlin Edition)

In the face of the paltry ambitious global implementation of the Paris Agreement Japan and Germany, as leading industrialized nations, have a special responsibility to contribute towards a global decarbonization. The vivid – and sometimes also controversial dialogue – on ways and means for the energy transition is more important than ever.

IMG_4794

Within the framework of the “German-Japanese Energy Transition Council” (GJETC) experts from Germany and Japan have been working on analyzing the challenges of the energy transition in Germany and Japan in the past 2 years in order to develop policy advice how the energy transition in both countries can be accelerated by collaborative learning.

The mutual recommendations for the different stakeholders from politics, industry and civil society will be presented and discussed by the Council from German and Japanese side in a public Outreach event together with the question of the role of such a form of binational cooperation in the international context.

The Importance of International Cooperation under Disruptive Changes:

Recommendations & Lessons Learnt from a Fruitful German-Japanese Dialogue on the Energy Transition

Friday, 20th April 2018, 14:00 to 16:00

Press and Visitors’ Center of the Federal Government (PBZ) in Berlin

Presentations

“Two years of cooperation in the GJETC – Recommendation and Critical Dialogue
(Prof. Dr. Peter Hennicke, German Co-Chair GJETC; Prof. Dr. Jun Arima, GJETC Council Member)

“Energy situation in Japan, policy review and NEDO’s activities”
(Takashi Omote, New Energy & Industrial Technology Development Organization, NEDO)

“A resource efficient pathway towards a greenhouse gas neutral Germany”
(Dr. Harry Lehmann, Federal Environmental Agency, UBA)

 

Outreach: Energy Transition in Germany & Japan: Consensus and Controversy

MdB Sylvia Kotting-Uhl  MdB Klaus Mindrup

GJETC Outreach Panel GJETC Outreach Q&A Session

 

How can a long-term and risk-minimizing energy strategy which protects the climate and natural resources and at the same time creates jobs and drives the economy be realized? This is a challenge where international cooperation is more important than ever. As leading industrialized nations, Germany and Japan have a special responsibility to take the lead for implementing the “Paris Agreement” and to contribute as much as possible to a global deep decarbonization pathway. Since its foundation in May 2016, the German-Japanese Energy Transition Council (GJETC) has been working on strategic and systemic analysis to develop policy advice for new and long-term perspectives on the way to an ambitious energy transition.

 

At the Outreach event of GJETC in Berlin, the co-chairs and members of the GJETC shared the results and first recommendations of the Council and discussed it with a broader audience. Around 100 participants attended the 2-hour event at the Conference Center in the Federal Press Conference just around the corner of the German Reichstag. After opening remarks by MdB Sylvia Kotting-Uhl (Chairwoman of the Committee for Environment, Nature Conservation, Building and Nuclear Safety of the German Bundestag) and MdB Klaus Mindrup (Member of the German-Japanese Parliamentary Group), the two co-chairs of the GJETC, Prof. Dr. Peter Hennicke and Prof. Masakazu Toyoda, presented the results of the study program including first recommendations.

 

 

Downloads
GJETC Outreach: Introduction GJETC & Results ST1
(Prof. Dr. Peter Hennicke, German Co-Chair GJETC)
GJETC Outreach: Results ST2 & ST3
(Prof. Masakazu Toyoda, Japanese Co-Chair GJETC)
GJETC Outreach: Results ST4
(Prof. Dr. Peter Hennicke, German Co-Chair GJETC)

 

Contact
ECOS Consult
Tel: +49-541-911 909-93
Fax: +49-541-911 909-99
E-Mail: ntemmen@ecos.eu

 

Institute of Energy Economics, Japan (IEEJ)
Tel: +81-3-5547-0211
Fax: +81-3-5547-0223
E-Mail: contact-ieej@tky.ieej.or.jp

 

More joint impulses for the energy transition: Recommendations of the GJETC for Germany and Japan

Berlin/Tokyo, 16 February 2018. After two years of extensive research and internal and public discussion, the German-Japanese Energy Transition Council (GJETC) this week in Berlin discussed joint recommendations to politics, industry and civil society in the two high-tech countries. This resulted in the first draft of a final report. The final version of the report, which will include all the results of the joint Council’s work, will be published in March 2018. However, four key recommendations for a successful energy transition are already visible:

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Intensive discussion on the Council’s results (from l. to r.): Dagmar Dehmer (Journalist/Moderation), Prof. Masakazu Toyoda (GJETC Co-Chair), Prof. Dr. Peter Hennicke (GJETC Co-Chair), Prof. Dr. Miranda Schreurs (TU Munich), Prof. Koji Nomura (Keio Economic Observatory), Dr. Karsten Sach (BMUB)

  • Germany and Japan will have to restructure their energy systems over the next 30 years. Through the continuous exchange of knowledge and experience, the transformation process can be accelerated and made more effective.
  • The objectives of climate protection, security of supply, competitiveness and social acceptance can be achieved at the same time. To this end, long-term targets and strategies for a low-carbon energy system must be defined and ambitiously implemented by 2050. Bilateral cooperation in the creation of scenarios and cost/benefit analyses improve the basis for decision-making.
  • Germany and Japan are the leaders in energy efficiency. Nevertheless, both countries still have great, undeveloped potential. The implementation gap to the ambitious energy saving targets is large and must be closed quickly in order to exploit the enormous advantages of energy saving. To achieve this, the principle of “Efficiency First” must be implemented in an extended and effective energy-saving governance system.
  • The liberalisation of the electricity (and gas) sector is to be pursued ambitiously in order to achieve fair market conditions for a large number of diversified suppliers and innovative technologies. New business and consumer concepts such as prosumer, municipal utilities and energy cooperations must be promoted.

“Despite the different circumstances and starting positions, Japan and Germany can learn a lot from each other in the energy transition. This has been clearly demonstrated by the Council’s work over the last two years and is reflected in our recommendations”, said Masakazu Toyoda, GJETC’s Japanese Co-Chairman, in the course of the 4th Council Meeting at the Japanese-German Centre in Berlin. The results and recommendations come from four comprehensive studies on the energy transition in Germany and Japan commissioned by the Council at the end of 2016.

The possibilities for a successful energy transition are available. But the objectives and strategies, for example with regard to energy efficiency and the expansion of renewable energies, are not always consistent. This was also discussed repeatedly during the four council meetings. “Joint solutions for the energy transition can only be found if the different interests and political objectives of both partners are clearly articulated and respected. The work of the GJETC has contributed to strengthening the trusting, scientific dialogue between Germany and Japan”, said Prof. Dr. Peter Hennicke, German Co-Chairman of the GJETC.

On the occasion of the 4th Council Meeting, the GJETC hosted an Outreach event at the House of Federal Press Conference in Berlin on 16 February 2018. About 100 participants, among them energy experts, ministerial representatives, parliamentarians and NGOs, informed themselves about the current status of the Council’s work and discussed the first results and recommendations with the members of the GJETC. Another public event is already planned for 20th April 2018 in Berlin.