The policy proposal by Urban Heat Energy Committee of Advisory Committee for Natural Resources and Energy (English version) On July 15, the Urban Heat Energy Committee of the Advisory Committee for Natural Resources and Energy, an advisory body to the Ministry of Economy, Trade and Industry, came up with a draft policy proposal entitled "Desirable Gas Utility Business in Law-Carbon Society *." To identify problems facing the gas industry and look into specific policy options to achieve a low carbon society by 2050, The Study Group for the Direction of the Japanese Gas Utility Business in a Low Carbon Society was set up within the Electricity and Gas Industry Department of the Agency of Natural Resources and Energy in April last year. Based on an interim report compiled by this study group on June 30, this policy proposal was prepared by the Urban Heat Energy Committee and represents its views. The policy proposal emphasizes the necessity of using natural gas as the primary energy carrier in a smooth transition to a low carbon society by the year 2050 and, in order to make a low carbon society a reality, urges gas utilities to carry out the following medium- and long-term measures by 2050 through the more efficient use of natural gas: (1) Deploying distributed energy systems; (2) Conducting business with a view to a hydrogen-based society; (3) Promoting advanced use of natural gas in industry; and (4) Introducing renewable energy sources. The following is an English version of a summary report entitled "Desirable Gas Utility Business in Law-Carbon Society" >>> Policy proposal by Urban Heat Energy Committee of Advisory Committee for Natural Resources and Energy >>> Reference Materials * The policy proposal entitled "Desirable Gas Utility Business in Law-Carbon Society" translated by METI is the same as the policy recommendation entitled "The Goals of the Gas Industry in a Low Carbon Society" that was introduced in JGA Newsletter No.10. Related story: October 2009 Newsletter No. 10 "The Study Group for the Direction of the Japanese Gas Utility Business in a Low Carbon Society"

Working Committee 5 (WOC5) meeting held A meeting of the Working Committee 5 (WOC5) was held in Osaka and Kyoto from January 31 to February 3. WOC5 is one of the ten International Gas Union (IGU) committees, is responsible for conducting surveys and studies on gas utilization, and issues a report on the results of its activities at the World Gas Conference held every three years. Currently, the committee is chaired by Mr. Tatsuo Kume of Osaka Gas. The recent committee meeting discussed the details of WOC5's activities in preparation for the Kuala Lumpur World Gas Conference in 2012. The meeting was attended by Mr. Ho Sook Wah, Chairman of the Coordination Committee, who outlined IGU's activities during the Malaysian triennium. Managing Director Hirofumi Kyutoku of the Japan Gas Association made a presentation on "The Role of the Japanese Gas Industry in a Low Carbon Society." On the sidelines of WOC5, participants toured Osaka Gas' Senboku LNG Receiving Terminal and Osaka Gas Energy Technology Center, factories of Japanese gas appliance manufacturers and the biogasification plants etc. The upcoming WOC5 meeting is scheduled to take place in Opatija, Croatia, in May this year. For further information, a report presented by Managing Director Kyutoku of the Japan Gas Association is given below: >>> The Role of the Japanese Gas Industry in a Low Carbon Society

A program for purchasing surplus electricity from photovoltaic power generation and a double power generation campaign Starting on November 1, 2009, a new program for purchasing surplus electricity from photovoltaic power generation was initiated. This program requires power utilities to purchase surplus power produced by photovoltaic power generation systems at certain prices. The purchase prices are set at ¥48/kWh for electricity generated by residential photovoltaic power generation systems and at ¥24/kWh for that produced by non-residential systems. Along with the introduction of this program, Tokyo Gas and Osaka Gas launched a new campaign seeking to promote the sale of "double power generation" homes. Double power generation means power generation by a combination of photovoltaic power generation systems and residential gas engine cogeneration (Eco-Will) or residential fuel cells (ENE-FARM). Under the double power generation project, the purchase price that power utilities are required to pay is ¥39 per kWh, which is ¥9 lower than the purchase price for power generated by photovoltaic power generation systems alone. The campaign promotes the double power generation approach on its environmental acceptability and cost-performance advantages over the single photovoltaic power generation strategy. Both gas utilities intend to continue their campaigns until March 2011. Of those ratepayers who wish to install both photovoltaic power generation systems and ENE-FARM or Eco-Will, those customers who have applied to install these systems by the end of this campaign period will receive a certain amount of money in proportion to the surplus power purchased over a ten-year period. The amount is set at ¥10 per kWh that Tokyo Gas pays to these customers. Osaka Gas will pay ¥9 per kWh of energy purchased to the customers who have applied by the end of March 2010. The amount to be paid thereafter has not yet been decided. The gas utilities will pay off in full once a year. Related Story: October 2009 Newsletter No. 10 "ENE-FARM Brand Fuel Cells Selling Strongly" City gas sales volume for December of fiscal 2009 and for the third quarter of the year The gas volume sold by 211 gas utilities across the country in December 2009 totaled 2,982 million m3 (41.8605 MJ/m3 equivalent), a 1.0% increase over the year. This is the second consecutive month of year-on-year increase in gas sales volume since November 2009. By sector: - Sales volume for residential sector decreased by 2.0% year on year due to several factors, such as a warmer November than a year ago and fewer meter-reading days by leading gas utilities. (Sales volume for residential sector decreased for the first time in five months.) - Sales volume of gas for industrial sector increased by 3.1% from the previous year due mainly to the increased utilization rate of customers' facilities. However, the sales volume in December of the previous year, which is the subject of the comparison, was lower than the level recorded the year before last due principally to the recession. (Sales volume for industrial sector increased for the second consecutive month.) - As for the commercial sector and other sectors (hospitals, public facilities, etc.), sales volume for commercial sector decreased by 0.4% from a year ago due chiefly to the lower utilization rate of customers' facilities while sales volume for other sectors increased by 2.0% year-on-year thanks mainly to stronger demand. (Sales volume for commercial sector decreased for the eighth consecutive month, while sales volume for other sectors increased for the second consecutive month.) By region: - Compared with a year earlier, sales volume was +4.2% in the Hokkaido region, +0.1% in the Tohoku region, +1.1% in the Kanto-Koshinetsu region, +2.6% in the Chubu-Hokuriku region, -1.0% in the Kinki region, +13.8% in the Chugoku region, +4.4% in the Shikoku region, and -4.1% in the Kyushu-Okinawa region. The number of customers reached 28,700 thousand households, up 0.7% from the previous year. It should be noted that total gas sales volume during the third quarter (from April to December 2009) decreased by 6.2% over the year to 23,349 million m3, which can be broken down into: 5,869 million m3 for residential sector (down 0.9% over the year); 12,129 million m3 for industrial sector (down 10.0%), 3,382 million m3 for commercial sector (down 4.2%), and 1,970 million m3 for other sectors (up 0.2%). (Total figures may not add up due to rounding.) Gas Facts in Japan 2009 If you have any requests or inquiries about this e-mail, or if you would like to unsubscribe, please contact: newsletter@gas.or.jp Please put "JGA Inquiry", "JGA Request", or "JGA Comment" at the beginning of the subject line of your e-mail for administrative purposes. Your comments on this e-mail are always welcome.

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