Environment
One fourth of CO2 emissions stem from power generation. Therefore,
it is important to change the composition of power sources as
well as to limit electricity consumption. According to discussions
in an advisory committee of METI, CO2 emissions from power generation
must be cut by 9 percent from 76 million tons in FY 1999 to
69 million tons by FY 2010.
Renewable
Energy
The Japanese government has set a goal on "new energy"
development by 2010 as follows:
- Solar 4,820 MW (209 MW as of March 2000)
- Wind 3,000 MW (83 MW as of March 2000)
- Waste incineration 4,170 MW
- Biomass incineration 330 MW
In addition, 2,100 MW of fuel cells is set as a demand-side
measure.
Self-sufficiency
and fuel diversification
Since the two oil crises in the 1970’s, nuclear, coal
and LNG power technologies have been promoted as alternatives
to oil-fired power plants. It is important to obtain the best
mix of technologies, after consideration of fuel security, economy,
and environmental characteristics.
Financial incentives
In October 2000, the Green Power Fund was introduced to promote
the use of wind power. The fund allows individual consumers
to contribute a fixed amount to promote the dissemination of
wind power, with the Electric Power Companies contributing matching
funds. The fund also responds to the needs of companies that
wish to purchase electric power generated by wind turbine.

Demand-side measures (DSM)
The government identifies load levelling as a key measure for
cost-of-supply reduction. It is estimated that the Electric
Power Companies (EPCo’s) could cut their total costs by
approximately 1 percent through 1 percent improvement of annual
load factor. Load levelling or DSM is also expected as a measure
to reduce CO2, because it decreases oil-fired generation during
daytime and increases usage of electricity generated by nuclear
or hydro plants during nighttime.
Thermal
efficiency
The average thermal efficiency of thermal power plants of
9 EPCo’s was 18.9 per cent in 1951, when the framework
of present electric supply industry was established. After
gradual improvements to about 38 percent, the average efficiency
is now 40 percent, mainly because many LNG combined-cycle
plants with high efficiency have been commissioned.
Combined
heat and power (CHP)
According to the Long-Term Energy Demand & Supply Outlook,
CHP using natural gas is expected to increase from 1,520 MW
in FY1999 to 4,640 MW in FY2010.

Japan has a long history of private sector involvement in
electricity supply. More than 90 percent of the generating
facilities is owned and operated by the private sector such
as the 10 vertically integrated power companies.

The Environmental
Impact Assessment Law was promulgated in June 1997, and came
into effect in June 1999. Under the new system, environmental
impact assessments are required by law rather than suggested
under administrative guidance. Environmental impact assessments
undertaken for new power plants fall under the jurisdiction
of the Environmental Impact Assessment Law as well as the
Electricity Utilities Law.
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