Japan
Major achievements and challenges
Japan is currently facing many challenges, such as reducing greenhouse gas emissions and deregulating the electricity retailing sector.
At the third Conference of the Parties to the United Nations Framework Convention on Climate Change held in Kyoto in December 1997, the Government agreed to cut greenhouse gas emissions to 6 per cent below 1990 levels by the period from 2008 to 2012. Japan ratified the Kyoto Protocol in June 2002.
In line with this pledge, the Government announced its Long-Term Energy Supply and Demand Outlook in June 1998 and the revised the Outlook in July 2001.
Future energy demand in the industrial sector is expected to rise marginally, while the energy demand growth for households and transportation is likely to remain relatively high.
The Energy Savings Law of 1999 calls on the central Government and local governments to offer effective economic incentives to promote the wider use of environmentally friendly products and technologies, including solar cells and lower-emission and multi-fuel vehicles.
On the supply side, the Government expects to build 20 new nuclear power plants by 2010. However, potential locations for nuclear power plants are difficult to find because of strong public opposition after a recent series of incidents and accidents at nuclear facilities. It is also expected that coal will be presented as a fuel of lower priority, especially when compared with less-polluting fossil fuels, such as liquefied natural gas (LNG).
In December 1996, the Government announced its economic restructuring pledge, which includes lowering the energy (electricity and gas), transportation and telecommunications costs to internationally competitive levels by 2001. For the structural reform of the power industry, many issues need to be considered, including universal service, long-term energy security and environmental protection.
After the Electricity Utilities Law was amended, retailing to large, extra-high tension business customers was liberalized in March 2000, accounting for 26 per cent of the entire electricity market. Deregulation will be expanded by April 2005 to midsize factories and supermarkets (high-tension customers), accounting for 37 per cent of the market.
Discussions will start by April 2007 on liberalizing low-tension customers, such as households and small stores, which make up 37 per cent of the electricity market. The Electricity Utilities Law was amended in 2003 to facilitate this strategy.
National energy plan
Targets and goals
Environment
Japan has seen numerous advances in environmental protection over the past four decades.
With the rapid economic growth of the 1960s, the public became more aware of environmental conservation and pollution issues. The Government and industry are still wrestling with these problems.
The oil shocks of the 1970s forced Japan to streamline heavy industrial production and to reorient its economy toward less energy intensive-industries. Today, Japan is one of the leading countries in the development and implementation of pollution control and energy efficiency technologies.
Japan committed itself to reducing its total carbon emissions under the 1997 Kyoto Protocol. In Japan, one fourth of carbon dioxide emissions come from power-generating activities. Therefore, it is very important to change the composition of power sources and to reduce power consumption. Carbon dioxide emissions in the generating sector have to be cut by 9 per cent from the 1999 level of 76 million tons to 69 million tons by 2010.
Self-sufficiency and fuel diversification
Since the two oil crises of the 1970s, nuclear, coal and LNG power technologies have been the preferred alternatives to oil-fired power plants. The Government considers it very important to have the best mix of these various technologies, taking into account fuel security, economy and environmental characteristics.
Fossil fuels still account for around 80 per cent of Japans energy consumption. Japan maintains a strong commitment to the use of nuclear power in addition to the reprocessing of spent nuclear fuel and the use of plutonium as fuel for fast breeder reactors. The mixed plutonium and uranium oxide fuel programme is seen as the sole option for light water reactors.
In addition to nuclear power, Japan is looking to increase its share of wind, hydro and other carbon-free, non-polluting renewable energy sources.
Renewable energy
By 2010, the Government has set a goal to have an installed capacity of 4,820 MW of solar power, 3,000 MW of wind power, a 4,170 MW capacity to burn waste, and a 330 MW capacity to burn biomass.
In addition, the development of 2,100 MW of fuel cell capacity will be set as a demand-side measure.
Efficiency measures
Demand side management
The Government identifies load levelling or demand-side management as a key measure for electricity supply cost reduction. It is estimated that Japans 10 major electric power companies (EPCos) could cut their total costs by approximately 1 per cent if they improve the annual load factor by 1 per cent. Load levelling is also expected to be an effective measure for reducing carbon dioxide emissions, as it decreases the usage of power generated by oil-fired facilities during the day and increases the usage of electricity generated by nuclear or hydropower plants at night.
Thermal efficiency
The average efficiency of the thermal power plants of nine EPCos was greatly improved from 18.9 per cent in 1951, when the framework for the current electric supply industry was established. After levelling to about 38 per cent, the efficiency has been gradually improving to 40 per cent because of the commissioning of many LNG combined-cycle plants with higher efficiencies.
Combined heat and power
According to the Long-Term Energy Demand and Supply Outlook, combined heat and power using natural gas will be increased from 1,520 MW in 1999 to 4,640 MW in 2010.
Environmental impact
The Environmental Impact Assessment Law took effect in June 1999. Under the new system, an environmental impact assessment is required by law rather than being suggested under administrative guidance. Environmental impact assessments undertaken for new power plants are now governed by this law as well as the Electricity Utilities Law.
Financial aspects
Japan has a long history of private sector involvement in electricity supply. More than 90 per cent of the generating facilities are owned and operated by the private sector.
Stakeholders
Government of Japan
Ministry of Economy, Trade and Industry (METI)
http://www.meti.go.jp/ Natural Resources and Energy Agency of METI
http://www.enecho.meti.go.jp/ Ministry of the Environment
http://www.env.go.jp/en/
Regional vertically integrated electric utilities (10 EPCos)
Hokkaido EPCo
http://www.hepco.co.jp/ Tohoku EPCo
http://www.tohoku-epco.co.jp/ Tokyo EPCo
http://www.tepco.co.jp/ Hokuriku EPCo
http://www.rikuden.co.jp/ Chubu EPCo
http://www.chuden.co.jp/ Kansai EPCo
http://www.kepco.co.jp/ Chugoku EPCo
http://www.energia.co.jp/ Shikoku EPCo
http://www.yonden.co.jp/ Kyushu EPCo
http://www.kyuden.co.jp/ Okinawa EPCo
http://www.okiden.co.jp/ Federation of Electric Power Companies
http://www.fepc.or.jp/english/ Major Wholesalers Electric Power Development Co
http://www.jpower.co.jp/english/index.html The Japan Atomic Power Co
http://www.japc.co.jp/
Additional information
Federation of Electric Power Companies, Japan
http://www.fepc.or.jp/english/ Electricity Review Japan
http://www.fepc.or.jp/erj/index-e.html Energy and the Environment
http://www.fepc.or.jp/english/info/ energyandenv/front.html New Energy Foundation
http://www.nef.or.jp/english/index.html International Energy Agency (IEA)
http://www.iea.org United Nations Framework Convention on Climate Change (UNFCCC) http://unfccc.int/2860.php