Energy & Power

ASIA

Japan Seeking Energy Security in Uncertain Times

EP Desk

Japan’s enormous appetite for energy and lack of resources to satisfy it internally is becoming a major energy security concern for the country. In this article, Frost & Sullivan analyzes the current energy situation in Japan and puts forth options for attaining energy security in the country.

Japan, the fourth largest consumer of energy in the world, relies heavily on oil as a resource of energy. In 2004, over 50 percent of energy requirements in the country were catered to by oil alone. In Japan even surpasses Russia (the third largest consumer of energy) and falls behind USA and china.

The matter of concern here is not only the high consumption of energy or the high proportion of oil as a source, but rather the lack of readily available resources. Resources thus relies heavily on imports of all kinds of fossil fuels, be it crude oil, natural gas, or even, uranium for its nuclear power plants, In 2004, the country’s dependence on fossil fuel imports for primary energy stood at an astounding 80 percent.

As much as 80 percent of Japan’s oil demand is satisfied by OPEC, particularly Persian Gulf countries like the United Arab Emirates, Saudi Arabia, Kuwait, Qatar, and Iran, Japan has been constantly trying to diversify its oil import sources away from the Middle East, but with relatively little success. Japan is also looking for alternate source of energy to reduce oil dependence on the whole.

What is the Japanese Government doing about it?
In light of the above situation, serious actions by the government are imperative n both in terms of diversifying sources of oil and also in terms of exploring other sources of energy. As a move towards this, the government of Japan adopted, in September 1998 the `` Long-term Outlook for Energy Supply and Demand” which aimed at simultaneously achieving the three E’s (Energy security, Environmental protection and Economic growth).

In subsequent efforts, the government emphasized increased use of natural gas and other alternatives to oil while retaining nuclear energy as core energy (METI) plans to lower oil imports to 46 percent of total supply from the current 50 percent, by 2010. It plans to do so by increasing the use of other energy sources-although coal’s share will remain at 18 percent. In addition to these efforts, the government is also trying to develop a petroleum stockpile system, initiate an environment tax. and work toward importing oil from Russia and Iran as alternative sources of supply.

Nuclear generation is being looked as the most effective measure to curb dependence on fossil fuels, Government is speeding up efforts to increase nuclear infrastructure. As of 2004, there were 52 commercial reactors in operation in Japan generating 45,740 MW of electricity. 3 more units are under construction with a fourth planned for start-up by fiscal 2010. METI plans to build six more by 2030.

Environmental Aspects-Into the Future...
Besides the inclination towards nuclear power generation, the Japanese government has also chalked out a long-term energy plan which calls for a threefold increase in the use of renewable energy sources, including solar and wind energy, 2010 though a `Green Credit System’ designed to give electricity producers incentives to purchase renewable energy by providing financial assistance to businesses. The government has set a target to increase its total to 3.000 MW by 2010.

The government also set targets to increase solar photovoltaic power to 4,820 MW by 2010 fro its 1999 level of 209 MW (the world’s largest and to increase power generated from waste to 4,107 MW from the 1999 level of 900 MW.

In Conclusion...
To sum up, Japan’s energy situation is not one which most countries would like to be in, and even though government is putting up a good fight by enforcing efficient policies and promoting alternative resources, there still seems to be a long road ahead towards attaining energy security.

Source: Power Asia