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Think about Energy

In Japan, where energy resources are limited, how can we achieve both stable supply and carbon neutrality? Let's think about the future of energy together.

Think about Energy
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Energy now: future demand issues

Energy now: future demand issues Energy now: future demand issues

Japan aims to achieve "carbon neutrality" by 2050.

Energy now: future demand issues(Figure 2) Energy now: future demand issues(Figure 2)

Source: Made with reference to "What is carbon neutrality? (Part 1)"
from the Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry

Carbon neutrality means reducing greenhouse gas emissions to "net zero". Japan has limited fossil fuel resources and is surrounded by the sea, with no pipelines or interconnections with neighboring countries. Therefore, it is important to advance energy policies based on the S+3E principles to achieve both carbon neutrality and stable energy supply.

  • What is S+3E?
  • S (Safety): Prioritize safety above all else
  • E (Energy Security): Ensure a stable energy supply
  • E (Economic): Securing energy at the lowest possible cost
  • E (Environment): Reduce carbon emissions to protect the global environment

In Japan, energy diversification progressed following the oil shocks of the 1970s. However, since the Fukushima Daiichi Nuclear Power Station accident in 2011, many nuclear power plants have stopped operating, resulting in a renewed reliance on thermal power generation using imported fossil fuels. Relying on overseas energy resources makes it difficult to ensure a stable supply due to international political situations. Recently, geopolitical tensions surrounding Ukraine have led to rising fuel prices and soaring electricity costs. Under these circumstances, many countries are beginning to rethink their energy policies.

データセンター・半導体工場の新増設に伴う個別織り込み最大受容電力 データセンター・半導体工場の新増設に伴う個別織り込み最大受容電力

Source: Made with reference to "Expected Demand Nationwide and by Supply Region, FY2024" from the website of the Organization for Cross-regional Coordination of Transmission Operators, Japan (OCCTO)

Meanwhile, electricity consumption is expected to increase further in the future. For example, as the digital transformation (DX) continues, more data centers and semiconductor factories will be built, requiring large amounts of electricity. In addition, the transition to zero-carbon energy (GX) is progressing, requiring new mechanisms for power supply.

So, what kind of energy should Japan use to overcome these challenges? To answer this question, it is important to first understand the current methods of power generation and their respective proportions in Japan.

Power generation and its roles

There are various methods of generating electricity, including thermal power generation, nuclear power generation, and renewable energy such as solar power, wind power, hydroelectric power, and geothermal power.

Thermal power generation

Thermal power generation

Thermal power generation, especially coal-fired power, has the disadvantage of emitting carbon dioxide. However, it has the advantage of producing large amounts of electricity and is easy to adjust the generated power, thereby making it central to Japan's energy supply. However, fossil fuel resources such as coal, oil, and natural gas are dependent on imports, which makes them vulnerable to global political situations that can cause significant price fluctuations.

Therefore, to achieve carbon neutrality by 2050, it is necessary to limit the use of thermal power generation using fossil fuels like coal to a certain extent, while ensuring stable supply as a prerequisite, and reduce its usage.

Renewable energy

Renewable energy

Renewable energy is a method of generating electricity using natural forces such as solar, wind, hydro, geothermal, and biomass. Since the Great East Japan Earthquake, the Japanese government set a policy to make renewable energy the main source of electricity in Japan. As a result, the share of renewable energy in electricity supply increased from about 9.5% in fiscal 2010 to 21.7% in fiscal 2022. In particular, the introduction of solar power has progressed, making Japan the third largest in the world in terms of installed capacity.

再生可能エネルギーの割合 再生可能エネルギーの割合

Source: Made with reference to "FY2022 Energy Supply and Demand Results (Revised Report)"
from the Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry

The biggest advantage of renewable energy is that it is a form of clean energy that does not produce carbon dioxide emissions, but as the use of renewable energy expands, there are some disadvantages as well. Solar and wind power generation fluctuates with the weather, so the development of storage batteries and the improvement of the power grid are required. Additionally, since large-scale solar and wind power generation requires vast areas of land, securing appropriate installation sites is a challenge.

Nuclear power generation

Nuclear power generation

Nuclear power generation does not emit carbon dioxide during electricity generation, so it has been attracting renewed attention worldwide in terms of its potential for combatting climate change. Nuclear power accounted for 25.1% of the electricity supply in fiscal 2010, but since the Fukushima Daiichi Nuclear Power Station accident in 2011, many nuclear power plants have stopped operating, and it remained at 5.5% in fiscal 2022. Today, there are 14 nuclear power plants in operation in Japan that have passed the new safety regulations enacted in 2013.

電子力発電の割合 電子力発電の割合

Source: Made with reference to "FY2022 Energy Supply and Demand Results (Revised Report)"
from the Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry

To achieve both stable energy supply and carbon neutrality, it is essential to maximize the use of nuclear power, along with renewable energy, as a highly effective source in decarbonization, on the premise of ensuring safety.

* As of April 2025

The best energy mix: future energy & our lives

The best energy mix: future energy & our lives The best energy mix: future energy & our lives

Source: Made with reference to "Understanding the Drastically Changing Energy Landscape of Today and Thinking About the Future: Energy Whitepaper 2023"
from the Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry

Electricity is essential for our daily lives. But there are many challenges that need to be addressed in order to ensure a stable, long-term supply of electricity.
Japan has few resources for generating electricity and relies heavily on imports from overseas. Japan's energy self-sufficiency rate, which includes renewable energy and nuclear power generation, is about 10%, the lowest among the G7 nations.

To improve this situation, Japan needs to build a mechanism to secure stable energy.

Japan's Energy Policy: "S+3E" and "Energy Mix"

Japan's Energy Policy: S+3E and Energy Mix Japan's Energy Policy: S+3E and Energy Mix

Japan's energy policy is based on the fundamental principle of S+3E. Security is the top priority when considering Japan's energy policy. On this basis, the goal is to simultaneously achieve stable supply (Energy Security), economic efficiency (Economic Efficiency), and environmental compatibility (Environment).

The key to achieving 'S+3E' is the concept of "Energy Mix" (Best Mix).
The energy mix is the balanced combination of various power generation methods such as thermal, hydro, nuclear and renewable energy for the production of electricity.
Unfortunately, there is no single energy source that excels in all aspects of S+3E. In addition, relying too heavily on a single energy source can cause unstable supply and significant price fluctuations.
Therefore, it is necessary for Japan to combine various methods of power generation.

2030年度におけるエネルギー需要の見通し(エネルギーミックス) 2030年度におけるエネルギー需要の見通し(エネルギーミックス)

Source: Made with reference to "Japan's Energy FY2023 Edition: 10 Questions to Learn About Energy Today"
from the Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry

For example, solar and wind power generation fluctuate depending on the weather, making it difficult to provide a stable supply of electricity. On the other hand, nuclear and thermal power generation can continuously supply large amounts of electricity regardless of weather conditions. Thus, it is important to balance the characteristics of each power generation method.

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