Japan’s limited domestic energy resources
combined with its huge energy demand mean
that it must depend on foreign sources for
approximately 80% of its energy supply.
Imports of crude oil account for the largest
portion.
Except for the periods after the oil crises
of 1973 and 1979, energy consumption in
Japan has steadily increased. In the decades
since the oil crises, consumption of energy by
crises, consumption of energy by industry has
remained fairly steady while consumption for
Japan’s Current Energy
Profile
Web Japan
http://web-japan.org/
ENERGY AND RESOURCES
Energy saving and new energy sources within the context of
global environmental concerns
residential and commercial use and
passenger and freight transportation has
tended to increase, regardless of economic
trends.
Since the end of the 1980s, as oil imports
from such Asian countries as Indonesia and
China have decreased, Japan has been
relying to an ever greater degree on oil from
the Middle East, which now provides around
90% of Japan’s oil imports. Global energy
demand, especially that in Asia, is expected
to continue to increase, and oil is likely to
remain the world’s principal source of energy.
With oil reserves declining in some producing
regions, the world is likely to become even
more dependent on the huge oil production
1 ENERGY AND RESOURCES
A petrochemical complex
(Photo courtesy of AFLO)
that promotes a systematic, long-term,
comprehensive approach to policies
concerning energy supply and demand.
The greenhouse effect, which is mainly the
result of carbon dioxide emissions created
when fossil fuels such as petroleum and coal
are burned, has become a matter of serious
global concern. At the end of 1997, the Third
Session of the Conference of the Parties to
the United Nations Framework Convention on
Climate Change (COP3) was held in Kyoto.
In the quest for technologies and facilities
that lessen greenhouse gas emissions,
attention is naturally given to the potential of
both nuclear power and natural energy
sources. While nuclear power generation
does not produce carbon dioxide, the nuclear
power industry is encountering increasing
difficulty in securing sites for the construction
of new power plants and facilities for the
storage of spent nuclear fuel. Thus, the active
development of natural energy sources is
highly desirable, even though the diffusion
and popularization of these new energy
technologies still pose many problems.
Already in 1974, the Ministry of
International Trade and Industry (now the
Ministry of Economy, Trade and Industry)
announced its Sunshine Project for
developing new energy technologies aimed at
coping with the energy crisis and building a
society free of environmental pollution. In
1993, this project underwent fundamental
revisions that gave birth to the New Sunshine
Program, the objective of which is to develop
innovative technology to create sustainable
growth while solving energy and
environmental issues.
In the new energy sector, solar power
generation has been making steady strides
forward. Japan is one of the leaders in this
area, and until the end of 2004 it was the first
The Prevention of Global
Warming and New Energy
capacity that still exists in the Middle East.
Given that Japan already relies on the
Middle East for around 90% of its oil and also
depends on imports for most of its non-oil
energy resources, it is clear that the country’s
energy supply structure is even more fragile
than that of other industrial nations. Under
these conditions, reducing energy risk by
securing stable supplies will continue to be a
critical issue for Japan’s energy policy. To
reduce energy risks and to prepare for
emergency situations, Japan is pursuing
measures for stockpiling oil, encouraging
independent development of resources, and
promoting cooperation with oil producing
countries.
In 2002 the government passed the Basic
Law on Energy Policy in order to promote
comprehensive and integrated energy policies.
This law sets forth the basic energy policy
principles of “ensuring a stable energy
supply,” ”harmonization with the
environment,” and “utilization of market
mechanisms,” and it also mandates the
preparation of a “Basic Energy Plan”
2 ENERGY AND RESOURCES
A vehicle using
alternative fuel
Rechargeable electric
cars are expected to
reduce air pollution and
mitigate the effects of
global warming. (Photo
courtesy of NISSAN
MOTOR CO., LTD.)
place in the world for introducing solar energy.
As of 2009, Japan was ranked third in the
world with regard to solar electric capacity. In
January 2009, the government reintroduced a
system of subsidies for solar power
generation, and that same year the volume of
solar cell shipments within Japan began to
increase.
Another strategic technology in the
development of new energy sources is
hydrogen fuel cells. These fuel cells have a
wide range of applications, the most
conspicuous being use as an automobile
power source. Several Japanese companies
are already producing fuel-cell-powered
automobiles. However, many issues
surrounding hydrogen-fueled vehicles remain
to be resolved, such as the high
manufacturing costs and the release of
carbon dioxide during the process for the
production of hydrogen. In 2004, Japanese
companies developed a new electric motor
known as the “in wheel motor” which brought
the electric vehicle much closer to realization.
As electric vehicles themselves have the
capacity to store energy, they are a promising
technology for solving energy issues and
preserving the environment.
Given the present-day difficulties involved in
ensuring the reliability and large-scale supply
of new energy, nuclear energy cannot help
but have an important role as a type of energy
that does not produce carbon dioxide.
Nuclear power is a key source of energy for
Japan, a country with few natural
underground resources, since the technology
enables the country to produce electricity
domestically. This was the stance of the
Japanese government as it took measures to
improve self sufficiency and diversify the
types of energy and supply sources in order
to bolster energy safety and security. Nuclear
power was promoted as a way of reducing
Nuclear Energy
3 ENERGY AND RESOURCES
reliance on oil, and the Japanese government
worked to assure the safety of atomic energy.
However, the Great East Japan Earthquake
and the tsunami in March 2011 caused an
accident at Tokyo Electric Power Company’s
Fukushima Dai-ichi (Number 1) Nuclear
Power Plant. Several explosions thought to
be hydrogen explosions occurred, damaging
the plant facility, resulting in a leak of
radioactive substances into the atmosphere
and an accumulation and leak of
contaminated water. The accident at the
Fukushima Daiichi Nuclear Power Plant, as
well as the stoppage at the thermal power
stations, decimated the power supply to east
Japan in one stroke.
These events once again brought to the
fore the issues of the vulnerability of the
domestic energy supply system against
natural disasters and the safety of atomic
power. The government set out to reconsider
its Basic Energy Plan to create a more robust
energy supply and demand structure. Five
months after the disaster in August 2011, a
law was passed to promote the introduction of
renewable energy sources such as solar,
wind and geo-thermal energy.
In recent years, there has been a steady
easing of regulations in Japan’s energy
industry. In the case of oil-related businesses,
the importation of crude oil to be refined into
gasoline, light oil, and fuel oil had earlier been
almost wholly monopolized by the oil
refineries. Since April 1996, however, such
imports have been possible by any enterprise
so long as it meets certain standards of safe
storage and quality control. In April 1998 the
prohibition of self-service pumps at gasoline
stations was lifted. As part of a series of
deregulation measures, in January 2002
regulations controlling the supply-demand
balance were eliminated and a new system
Deregulation in the
Energy Industry
4 ENERGY AND RESOURCES
Solar energy in use
A row of houses equipped with
solar panels. (Photo courtesy of
Getty Images)
was implemented for ongoing collection of
information to be used in the event of an
emergency. Such deregulation measures are
helping to spur the reorganization of Japan’s
domestic oil industry through corporate
mergers and alliances.
Deregulation is also taking place in the
electricity sector. In accordance with a
revision to the Electricity Utilities Industry Law,
since December 1995 competition has been
introduced into the market for the generation
and supply of electricity. The introduction of a
wholesale electric power bidding system in
1996 made it possible for companies other
than electric power companies to sell the
electricity that they generate to the electric
power companies. In March 2000 the sale of
electricity was deregulated, with an aim to
ensure stable supply and help counter global
warming. Subsequently systematic reforms of
the electric power industry were also
implemented, which has contributed to a
steady increase in the amount of electricity
sold by providers other than electric power
companies.
In response to the accident at the Tokyo
Electric Power Company's Fukushima Dai-ichi
Nuclear Power Plant caused by the Great
East Japan Earthquake and tsunami in March
2011, the government has started reviewing
its Basic Energy Plan and has been
considering further liberalization of regulations
for the energy industry.