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Japanese government adopted a newly revised Energy Basic Plan at the cabinet meeting

- Jul 04, 2018 -

On July 3, the Japanese government adopted a newly revised "Energy Basic Plan" at the cabinet meeting. The new plan clearly targets renewable energy generation such as solar energy and wind energy as the “main power source”, and aims to increase the proportion of renewable energy generation in total power generation to 22% to 24% by 2030. In addition, for the controversial nuclear power after the accident at the Fukushima nuclear power plant, the new plan positioned it as “basic load power” and determined its proportion as 20% to 22%.

The new plan will determine the proportion of various power generation (power supply) in 2030 as 22% to 24% for renewable energy, 20% to 22% for nuclear power generation, 26% for coal power generation, and 3% for oil power generation. LNG power generation accounts for 27%. Among them, the renewable energy power generation plan pointed out that with the rapid decline of global renewable energy power generation costs, the problem of higher power generation costs is gradually disappearing. After Japan implemented the fixed price acquisition system in July 2012, solar power generation was rapidly spreading. In the future, in order to reduce the burden on nationals to use renewable energy, it is necessary to carry out institutional reforms.

In addition, the plan also proposes to achieve the goal of “renewable power generation” as a “main power source”, and it is required to make full use of existing transmission lines and promote the integration of renewable energy power generation.

Regarding nuclear power, the new plan indicates that as an important means of reducing carbon dioxide emissions, it is currently necessary to maintain the proportion of nuclear power generation at 20% to 22%. The plan pointed out that the long-term outage of nuclear power plants will lead to high thermal power tariffs. I am worried that the increase in domestic electricity tariffs will lead to a decline in the international competitiveness of enterprises. It is expected to maintain the low electricity tariffs by restarting the nuclear power plants that have stopped operating after the accident at the Fukushima nuclear power plant. The plan also proposes to reduce the holdings of plutonium extracted from nuclear fuel after use of nuclear power plants, and to respond to concerns of the international community, especially the United States, that Japan holds a large amount of nuclear materials.

As the Paris Agreement for the International Framework for Climate Change has entered into force, the new plan also includes an energy concept to 2050. The concept emphasizes the development of new generation technologies such as hydrogen and storage batteries while strengthening the progress of renewable energy, nuclear power and thermal power generation technologies. In addition, the energy concept until 2050 plans to conduct scientific assessments of the cost and development of various power sources every few years, making them reflected in the policy.

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