Geothermal Energy Annual Report 2004

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Geothermal Energy Annual Report 2004 ( geothermal-energy-annual-report-2004 )

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III. NATIONAL ACTIVITIES JAPAN Table 3.2 Direct Use of Geothermal Energy in Japan as of March 2002. Utilization Capacity (MWt) 41.49 Annual Mean Utilization (TJ/y) 404.11 212.34 1.48 30.07 40.86 3.60 715.16 125.15 564.33 128.05 250.22 672.64 448.60 1,542.11 5,138.71 Source: Results of the survey conducted by Geothermal Energy Development Center, New Energy Foundation Geothermal Energy Vol.27, No.4 *: It must be noted that data for "Accommodation" in this table includes only swimming pool and not bathing. *: It must be noted that geothermal heat pump data is not included 55 areas as at the end of 2004. Since 1999, NEDO has been carrying out Survey C intensively, aiming at a further reduction of survey risks and development lead-time for private sector companies to construct geothermal power plants based on those preliminary results. Therefore, geothermal reservoir evaluation using large-bore production wells for long-term production tests is included. For this purpose, one area; Kirishimaeboshi-dake was to be surveyed in FY2004 as Program C-1 (Figure 13.4). On the other hand, three areas; Obama, Ten’ei and Minase were surveyed as Program C-2 based on a new concept of “local energy for local area”. (Figure 13.4, Figure 13.5 and Figure 13.6). 13.4.1.2 Subsidy System The Japanese government has taken a leading role in the development of geothermal energy resources. The government has introduced a compensation system for geothermal developers that provides compensation for interest on bank credits to support developers undertaking well drilling, a process that requires a large investment at an early stage. There are two types of subsidies for companies developing power plants, one aimed at the drilling of exploration wells, with a subsidy ratio of 50%; and the other for the construction of production and reinjection wells, and facilities on the ground, with a subsidy ratio of 20%. These systems started in 1983. Beginning in 2002, binary facilities in geothermal power generation systems are rewarded with a subsidy ratio of 30%. Actual subsidy record for FY 2004: • Exploration well: nothing. • Production wells : Kakkonda 1 well; Yanaizu-Nishiyama 1well and Hatchobaru 1 well. • Reinjection well: Sumikawa 1 well, Kakkonda 1 well; Hatchobaru 1well; Takigami 1well and Ogiri 1 well. • Facilities (including new pipe laying, etc.): Sumikawa, Kakkonda, Yanaizu-Nishiyama. • Binary Facilities: nothing. Greenhouse heating Aquaculture Stockbreeding (Space heating) Agriculture (Paddy warming, Washing crops) Industry 16.91 0.14 2.12 1.52 0.16 49.43 13.79 27.50 10.59 17.25 39.53 133.26 55.70 Total 409.38 Food processing Accommodation (Space heating, Hot water) Tourism (Cooking, Pool) Housing (Space heating, Hot water) Medical treatment (Space heating, Hot water) Welfare (Space heating, Hot water, Pool) Public service (Space heating, Hot water) Snow melting Other (Hot water supply) IEA Geothermal R&T Annual Report 2004.doc 81

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