Electric Vehicles in Japan Akihisa Sono Research Associate JEPIC Japan Electric Power Information Center, Inc. Good morning, this is Akihisa Sono at Japan Electric Power Information Center, JEPIC. Thank you very much for your time for hearing my presentation. Today, I would like to introduce the situation of electric vehicles in Japan. Let me start my presentation now. All Rights Reserved. Copyright ⓒ Japan Electric Power Information Center, Inc. 2009

Content Overview of JEPIC Electric Power Industry in Japan Electric Vehicles in Japan My presentation has three parts. First, let me explain the overview of JEPIC and the electric power industry in Japan in brief. Then let me introduce the situation of EVs in Japan. All Rights Reserved. Copyright ⓒ Japan Electric Power Information Center, Inc. 2009

Overview of JEPIC The overview of JEPIC All Rights Reserved. Copyright ⓒ Japan Electric Power Information Center, Inc. 2009

Overview of ＪＥＰＩＣ Establishment Characteristics Member Companies 1958 Characteristics Non-profit Association Member Companies 10 EPCOs, J-Power, Japan Atomic Power Company Offices Tokyo (Headquarters) Washington, D.C. / Paris / Beijing Staff About 100 staff members (Including those temporarily transferred from the member companies) Foreign Electric Industry Exchange & Cooperative Program Research and Information activities JEPIC is a non-profit association established by the power utilities in Japan. We have around 100 staffs including those temporarily transferred from the member companies and I myself is seconded from Tokyo Electric Power Company, TEPCO the largest utility in Japan. JEPIC is involved in many activities as shown in the presentation. I myself is a researcher and so I am researching on the various topics of foreign electric industries. Publications International Cooperation All Rights Reserved. Copyright ⓒ Japan Electric Power Information Center, Inc. 2009

Electric Power Industry in Japan Next, let me talk a little about Electric Power Industry in Japan. All Rights Reserved. Copyright ⓒ Japan Electric Power Information Center, Inc. 2009

Demand and Supply The demand and supply in Japan are shown on this sheet. I can say that about 70% is thermal power, 20% is nuclear, 10% is hydro power, and only less than 1% is renewable. FY 2007 FY 2007 Source: JEPIC All Rights Reserved. Copyright ⓒ Japan Electric Power Information Center, Inc. 2009

Electric Power Industry System Wholesale Electric Utilities & Suppliers Other Utilities PPS Special Electric Utilities Self- Generators Vertically Integrated Utilities Generation Wholesale Power Exchange (Unregulated and Private) Other Utilities PPSs Network Wheeling Service Regarding the liberalization of market, not likely to EU countries, customers who have a supply contract of greater than or equal to 50KWs are the only liberalized market in Japan. So, the low voltage electricity users like household users must be supplied with their power from the incumbent power companies which are vertically integrated. Customers in specified service area Customers with Contract Demand <50kW Customers with Contract Demand ≧50KW Retail Self-consumption Regulated Market Liberalized Market Source: JEPIC All Rights Reserved. Copyright ⓒ Japan Electric Power Information Center, Inc. 2009

Electric Vehicles in Japan 1. General Information 2. Activities for Promoting EVs 3. Commercialization Now, let me talk about the electric vehicles in Japan. All Rights Reserved. Copyright ⓒ Japan Electric Power Information Center, Inc. 2009

The Number of EVs Issues on Promoting EVs Present Incentives 1. General Information The Number of EVs Issues on Promoting EVs Present Incentives Let me start with the general information of EVs in Japan All Rights Reserved. Copyright ⓒ Japan Electric Power Information Center, Inc. 2009

The Number of EVs In this presentation, BEV stands for 100% battery powered electric vehicle. BEV can be divided into two categories. Regular BEV is normal four wheel vehicle. Other BEV is Scooters or Golf Carts. And HEV stands for Hybrid electric vehicle. The total number of all kind of EVs with right axis has been growing constantly but that because only HEVs are growing rapidly. The number of regular BEVs is even decreasing and there are only around 400 regular BEVs as of year 2007. Source: JARI All Rights Reserved. Copyright ⓒ Japan Electric Power Information Center, Inc. 2009

Issues on Promoting EVs The past poor achievement gives EVs the image of being tricky to use Insufficiency of battery capacity The distance EVs could run was shorter than the distance written in the catalog High cost for battery exchange Present issues Still very high initial cost Scarce installation of the infrastructure Let me introduce the general issues on promoting EVs. We used to promote EVs in the past, but the poor achievement in the past gives EVs the image of being tricky to use right now. The elements are: insufficiency of battery capacity, the actual per charge distance capacity was shorter than catalog data, and the high cost for battery exchange, etc. Also, there are concerns of the still very high initial cost and scarce installation of the infrastructure. All Rights Reserved. Copyright ⓒ Japan Electric Power Information Center, Inc. 2009

Present Incentives Government Municipalities Subsidies to purchasers of EVs and installation of battery chargers (half of the difference in price) Tax breaks on acquisition tax and circulation tax of EVs and fixed asset tax of battery chargers Municipalities Additional subsidies and tax breaks Exemption or reduction at road tolls and parking fares The government gives subsidies to purchasers of EVs and installation of battery chargers. In this scheme, the EV purchaser gets a half of the difference in price between EVs and the base fuel car. The government also gives tax breaks on acquisition tax and circulation tax of EVs and fixed asset tax of battery chargers. Some municipalities add some more subsidies and tax breaks on the governmental aid. Some also give EVs an exemption or price reduction at road tolls and parking fares. All Rights Reserved. Copyright ⓒ Japan Electric Power Information Center, Inc. 2009

2. Activities for Promoting EVs Energy Policy related to EVs Activities of Government Activities of Municipalities Activities of Electric Utilities Now, let me explain the energy policy and the various activities in Japan All Rights Reserved. Copyright ⓒ Japan Electric Power Information Center, Inc. 2009

Energy Policy related to EVs The New National Energy Strategy (METI, May 2006) Reduction in the dependence on fossil fuels in transport sector (98% in 2000 to 80% in 2030) Initiative for Next Generation Vehicles and Fuels （METI, May 2007） Aiming for the cost of a battery to be 1/2 by 2010, cost 1/7 & capacity 1.5 times greater by 2015 compared with the present battery The Action Plan for achieving a Low-Carbon Society (Cabinet, July 2008) Aiming for half of cars sold to be next-generation vehicles by 2020 Cool Earth - Innovative Energy Technology Program (METI March 2008) Promoting the technology of FC vehicles, EV, and PHEV and the batteries. The Japanese government promotes EVs for the reason of securing energy security and as a countermeasure against the climate change issues. They made several policies shown in this slide. The main targets are: /Reduction in the dependence on fossil fuel in transport sector to 80% in 2030 /Reduction on the cost of battery and increase of its capacity /Aiming for half of cars sold to be next-generation vehicles by 2020 /Promoting the technology of EV and battery All Rights Reserved. Copyright ⓒ Japan Electric Power Information Center, Inc. 2009

Activities of Government Framework for EV/pHV Town (METI, August 2008) Concentrated subsidies and assistance to the municipalities selected to initiate the promotion of EVs from small areas firstly Creation of initial demand, installation of battery chargers, educating the public, checking and reviewing the framework 8 Municipalities are selected on the end of March, 2009 E.g. plan of Tokyo Metropolitan Promoting 15,000 EVs in 5 years, large amount of normal chargers, 80 fast chargers. introducing car sharing and subsidy and discount on fares Field Test Project for EVs (MOE, December 2008) Large scale field test starts in FY 2009 Participant: 5 Automakers, 6 Municipalities, 2 Large companies with a fleet of cars 50 EVs would be tested in this project There are two activities of the government. One is Framework for EV/pHV Town initiated by METI in August 2008. This project has started with the concept to promote the EVs in a small urban area firstly by creating the initial demand of EVs, installing battery chargers, showing EVs to the public as well as checking and reviewing the framework. Municipalities applies to this project and 8 are selected in the end of March this year. For example, the plan of Tokyo Metropolitan is to promote 15,000 EVs in 5 years, to install large amount of normal chargers and 80 fast chargers. Also, Tokyo plans to introduce car sharing and subsidy and discount on fares. The other project is initiated by Ministry of Environment in December 2008 and it is field test. It is planned to start in 2009 Fiscal Year, and the participants are 5 automakers, 6 municipalities and 2 large companies with a fleet of cars. 50 EVs would be tested in this project. All Rights Reserved. Copyright ⓒ Japan Electric Power Information Center, Inc. 2009

Activities of Municipalities E.g City of Yokohama YOKOHAMA Mobility “Project Zero” MoU signed with Nissan in March 2009 The project started since Yokohama had been selected as an Eco-Model City by the government, under the policy of promoting a low-emission society Main Scope of the projects are not only for promotion of EVs, but the total solution for city transport. Promote Eco-Drive and reduce traffic congestion Promote EVs by Building infrastructure and Subsidies Idea of “public private partnership” Nissan, Tokyo University, and any other firms are welcomed Benefit for Yokohama Provide clean environment for citizens Value of environment leads to investment in Yokohama There are several activities of municipalities. For example, the City of Yokohama, which is in Kanagawa Prefecture that is next to Tokyo Metropolitan, has initiated Yokohama mobility “Project Zero”. The project started since City of Yokohama had been selected as an Eco-Model City by the government and so this project is not only for promotion of EVs, but also for the total solution for city transport. This is brings benefit to Yokohama city with clean environment for citizens and value of environment leads to investment in Yokohama. All Rights Reserved. Copyright ⓒ Japan Electric Power Information Center, Inc. 2009

Activities of Electric Utilities Federation of Electric Power Companies of Japan (FEPC) Set a target of 10 EPCOs to introducing 10,000 EVs to their commercial vehicles by 2020(Half of their vehicles) Individual Utilities Operating field tests Development of battery chargers Electric utilities are also promoting EVs. Federation of Electric Power Companies of Japan (FEPC), which is the association of Japanese utilities sat a target of 10 EPCOs to introducing 10,000 EVs to their commercial vehicles by 2020(Half of their vehicles). And individual utilities operate field tests and develop battery chargers. All Rights Reserved. Copyright ⓒ Japan Electric Power Information Center, Inc. 2009

Activities of TEPCO Collaborative development of EVs with Fuji Heavy Industry Ltd. and Mitsubishi (R1e and iMieV) Operation of field tests in its branch offices Development of fast battery chargers Assist and take part in the activities of municipalities Now, let me introduce the activities of TEPCO as an example. TEPCO involved developing EVs together with Fuji Heavy Industry Ltd. and Mitsubishi (R1e and iMieV). And operates field tests in its branch offices and developed fast battery chargers. Also, TEPCO assists and takes part in the activities of municipalities. All Rights Reserved. Copyright ⓒ Japan Electric Power Information Center, Inc. 2009

Developed Fast Charger Type: Switching type, constant current power supply - Input: 3-phase 200V - Maximum DC output power: 50kW - Maximum DC output voltage: 500V - Maximum DC output current: 100A Vehicle (master) Communicate to recharge Permission signal Current value Operating status Quick charger (slave) The specification of TEPCO’s fast charger is showed in this presentation. Input is 3-phase 200V and the maximum DC output power is up to 50kW. The charger supplies DC current following continuous demand from EV battery unit. ECU 3-phase 200V AC Battery DC current Conductive connector Source: TEPCO All Rights Reserved. Copyright ⓒ Japan Electric Power Information Center, Inc. 2009

Vehicle Specifications Commercialization Schedule Now, let me explain the commercialization in Japan All Rights Reserved. Copyright ⓒ Japan Electric Power Information Center, Inc. 2009

Vehicle Specifications (BEV) Name iMiEV Stella Manufacturer Mitsubishi Motors Corp. Fuji Heavy Industry Ltd. Length-Width-Height 3,395-1,475-1,600 (mm) 3,395-1,475-1,660 (mm) Weight 1,080 kg 1,010 kg Passengers 4 Max. Power 47 kW Max. Speed 130 km/h 100 km/h Cruising Range 160 km 80 km Type of Battery Li-ion Battery Capacity 16 kWh 9 kWh Time to Recharge Normal AC100/200 Fast Charger Normal 14h / 7h Fast 15min (Up to 50% SOC) 30min (Up to 80% SOC) Normal 8h / 6h Fast 15min(Up to 80% SOC) other Prototype, Based on R1e The developed EVs are shown in this slide. The maximum speed is 100 to 130 km per hour, and the cruising range is up to 160 km. They are equipped with Lithium ion. Source: the automakers respectively All Rights Reserved. Copyright ⓒ Japan Electric Power Information Center, Inc. 2009

Commercialization Schedule Type Automakers FY 2009 FY 2010 FY 2011 & after BEV Mitsubishi Motors Corp. July, 2009 (2,000 EVs) Fuji Heavy Industry Ltd. (170 EVs) Nissan Motor Co., Ltd. In FY2010 Toyota Motor Corporation In 2012 PHEV End of 2009 A Large amount of commercialized EVs is going to be sold in this year as a first time. Mitsubishi and Subaru announced that they will sell EVs from July 2009, and the number of EVs going to be sold are 2,000 and 170 respectively. It is said that most of the EVs are reserved to be sold to the large companies with a fleet of cars. Regarding PHEV, Toyota may start to sell them in the end of this year. As a conclusion of my presentation, though the environment for promoting EVs are not enough arranged at this moment, we as Japanese have prepared as much as we could, so I believe the introduction of commercialized EVs would be successful. I think it would be very interesting for you to know what it might be and so please keep your eyes on the situation of Japan. Source: press releases All Rights Reserved. Copyright ⓒ Japan Electric Power Information Center, Inc. 2009

Thank you In closing, I would like to thank you all for listening so attentively. Thank you very much. All Rights Reserved. Copyright ⓒ Japan Electric Power Information Center, Inc. 2009