The IEA CHP and DHC Collaborative (Japan)

The IEA CHP and DHC Collaborative (Japan)
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Edition: 2013
36 pages

Combined heat and power (CHP) deployment in Japan has increased over the past two decades, driven by government support, including subsidies and tax benefits. However, CHP development has slowed in recent years as a result of the adverse evolution of energy prices and a shift of policy focus towards residential micro-CHP. The Great Earthquake of March 2011 has led to re-evaluation of nuclear power within the electricity sector, which could shift attention towards other power generation sources, including renewables and natural gas (including gas-fired CHP).

Looking forward, the market for CHP and DHC is likely to develop around the possible introduction of new policy incentives, the continued focus on micro-CHP, and the likely relevant role of ‘flexible’ CHP systems that can provide electricity system balancing as smart energy networks evolve. This could include an emerging role for district heating and cooling (DHC).

Overall, the scope of this report is to summarise the current status of CHP and DHC applications in Japan, to review the impact that government policies have had on CHP and DHC uptake, and to offer possible solutions to any identified barriers currently being faced by the industry.