Does regulation of energy management systems work? A case study of the Energy Conservation Law in Japan

Panel: 5. The role of energy management systems, education, outreach and training

This is a peer-reviewed paper.

Authors:
Osamu Kimura, Central Research Institute of Electric Power Industry, Japan
Fuyuhiko Noda, Noda Energy Management Office, Japan

Abstract

This paper examines the Japanese experience of regulating energy management in industrial and commercial facilities with the aim to provide insights for current debates concerning energy management systems (EnMSs). The Energy Conservation Law (ECL) in Japan is a mandatory regulation concerning energy management that applies to the approximately 12,000 companies that consume more than 1,500 kL of crude oil equivalent per year. Requirements of the regulation include annual reporting of energy use, the appointment of qualified energy managers, the development of long-term energy efficiency investment plans, and the establishment of energy management manuals for major energy-consuming equipment. Compared with ISO 50001, an international EnMS standard, the ECL is unique in several ways, such as the inclusion of performance standards i.e. a 1% improvement in energy intensity per year. Based on literature review and interview surveys of regulated firms in Japan, the paper argues that, while the regulation has played an important role in establishing basic EnMSs, in many cases it has not been effective in promoting tangible energy efficiency activities beyond mere compliance with the regulation. The paper concludes that programs aiming to enhance EnMSs need to be supplemented with a more informational approach, such as energy audits and customized advice, that supports firms that lack the ability to make use of their EnMSs.