Electricity Japan's energy sector Natural Gas, LNG Renewable energy

Japan’s new energy strategy: much more than nuclear exit

Japan’s Cabinet released Japan’s new “Innovative Energy and Environmental Strategy”

Japan’s new energy strategy

Last Friday, September 14, 2012, Japan’s Cabinet released Japan’s new “Innovative Energy and Environmental Strategy”, which the Cabinet is required to produce by law, and which actually contains much more than the plan to work towards a future nuclear power free society.

We have analyzed the full official “Innovative Energy and Environmental Strategy” in the original Japanese version, and we have prepared a 19 page English language summary which you can find on pages 5-23 of our “Japan Electrical Energy Landscape” report

Most English language press reports have focused on the three principles to work towards a nuclear free society

  1. strictly limit the operation of nuclear power plants to 40 years age
  2. restart those nuclear power plants, where the safety has been assured by the Nuclear Safety Commission
  3. no new construction or expansion of nuclear power stations

These principles – if maintained – may lead to the last nuclear power station in Japan to be switched off around 2052, ie about 40 years from now.

However, Japan’s new energy strategy framework paper contains much more

  • five policy packages concerning: the nuclear fuel cycle, human resources and technology development, cooperation with the global community, regional measures, the nuclear industry system and system for compensation of damages
  • measures for reducing electricity and energy consumption with targets until 2030 for two different economic growth scenarios
  • measures for promoting investment in renewable energy, with renewable energy generation targets until 2030
  • targets for electricity cogeneration until 2030
  • electricity power system reform, including unbundling of generation, transport and retail with the promotion of vibrant electricity markets
  • opening, strengthening and neutral electricity grid network, fair and accessible to all electricity producers
  • and most of all, a planned transition from passive electricity bill paying consumers to aware and active market participants who as much as possible generate their own electricity, and who instead of paying electricity bills, earn money from electricity they generate

In particular, the strategy plan states explicitly:

“…. it is indispensable, that electricity grid networks can be used by anyone, and to have competitive electricity markets”.

When trying to predict the far future, whether Japan will actually go completely non-nuclear or not, keep in mind that Sweden has decided to go non-nuclear in the 1980s, and has reversed this decision around 2010.

Currently only two of Japan’s remaining 50 nuclear reactors are in operation. It will be interesting to see if and when the safety of additional reactors are approved, and how rapidly the announcement dramatic deregulation and structural reform of Japan’s electricity system will be implemented, and how much of the announced policy steps might be reversed – or accelerated – by future Governments.

The strategy plan announced on September 14, 2012 has not yet created any irreversible facts.
Subscribe to our report series on Japan’s electricity industry landscape and our report on renewable energy in Japan.

Copyright·©2013 ·Eurotechnology Japan KK·All Rights Reserved·