ENERGY SECURITY IN JAPAN

THE QUESTION OF NUCLEAR ENERGY

QUESTION AND RESPONSE

Is nuclear power the most reasonable source of energy for Japan?

“This report will discuss the topic of Japan’s energy security program and the vitality of nuclear energy for Japanese development. Socioeconomic issues related to the initiation of the nuclear program will also be highlighted to further explain Japan’s current stance toward nuclear technology as a whole. The case study of Fukushima will be used to illustrate the most recent developments regarding nuclear energy and finally a proposed solution will be offered that may (at the very least) help mitigate the energy problem in Japan”

JAPAN’S CURRENT ENERGY SOURCES

THE NATURE OF NUCLEAR POWERAdvantages of nuclear power generation:

• Low amounts of carbon dioxide (CO2), thus the contribution of nuclear power plants to global warming small

• This technology is readily available, it does not have to be developed first

• It is possible to generate a high amount of electrical energy in one single plant

Disadvantages of nuclear power generation:

• The problem of radioactive waste is still an unsolved one. The waste from nuclear energy is extremely dangerous and it has to be carefully looked after for several thousand years (10'000 years according to United States Environmental Protection Agency standards).

• High risks: Despite a generally high security standard, accidents can still happen. It is technically impossible to build a plant with 100% security. A small probability of failure will always last. The consequences of an accident would be absolutely devastating both for human being as for the nature. The more nuclear power plants (and nuclear waste storage shelters) are built, the higher is the probability of a disastrous failure somewhere in the world.

• The question of terrorism

• The energy source for nuclear energy is Uranium. Uranium is a scarce resource, its supply is estimated to last only for the next 30 to 60 years depending on the actual demand.

• The time frame needed for formalities, planning and building of a new nuclear power generation plant is in the range of 20 to 30 years.

Source: http://timeforchange.org/pros-and-cons-of-nuclear-power-and-sustainability

JAPAN’S NUCLEAR HISTORY• Hiroshima and Nagasaki explosions during World War

II: Fat man and little boy

• Ironically, in 1954 Japan had budgeted 230 million yen for nuclear energy, which officially marked the beginning of its intense nuclear program

• On April 18, 2007, Japan and the United States signed the United States-Japan Joint Nuclear Energy Action Plan. This plan placed a framework for the joint research and development of nuclear energy technology, which included safe guards and physical protection

• Since then Japan has built over 50 plants that have only recently been sustained or shut down

PUBLIC DISCONTENT

THE FUKUSHIMA DAIICHI NUCLEAR DISASTER:TIMELINE• March 11, 2011

• Catastrophic failure of reactor 1

• Meltdown of three of the six power plants

• No immediate fatalities

• 300,000 people evacuated from their homes

• Reactors were shut down automatically because of the earthquake

• Tsumani caused the meltdown

THE FUKUSHIMA DAIICHI NUCLEAR DISASTER: TIMELINE

• March 12, 2011

• Radioactive Material started to leak out to the surrounding areas

• Batteries ran out of energy

• SCRAM system failed due to tsunami

• March 13-15, 2011

• Multiple hydrogen explosions occured

• Release of nuclear material into the air

THE FUKUSHIMA DAIICHI NUCLEAR DISASTER

THE FUKUSHIMA DAIICHI NUCLEAR DISASTER

THE FUKUSHIMA DAIICHI NUCLEAR DISASTER

THE FUKUSHIMA DAIICHI NUCLEAR DISASTER

THE FUKUSHIMA DAIICHI NUCLEAR DISASTER: AFTERMATH• Immediate shutdown of nuclear power plants

• Sharp increase in LNG prices due to increased demand

• Higher electricity prices

• Power Shortages

• Radioactive water in Pacific Ocean

• Building freeze on nuclear reactors

• People might not be able to return for a number of decades

• Highlighted the danger of nuclear energy

• Many countries abandoned nuclear projects

STRATEGIC ENERGY PLAN 2014

• Opens the path for restart of approved nuclear reactors

• Describes nuclear energy as an “important base-load power source” which ensures:

• Stability and self-sufficiency of energy supply and greater efficiency

• Low and stable operational cost

• Free from carbon emissions

• Condition: Nuclear reactors meet stringent post-Fukuyama safety regulations

• Gradual phase out of nuclear power will continue through energy saving, introduction of renewable energy and improvement in efficiency of thermal power generation

PROBLEMS IN THE ELECTRICITY SECTOR• 10 big regional Electric Power Companies (EPCOs)

• These are vertically integrated and involved in power generation as well as transmission

• Share of non-EPCO power producers and suppliers: 3.6%

Consequences:

• Lack of system to transmit electricity beyond regions

• Little competition and strong price control

• Limit in digesting the change in energy mix including the increase in renewables

ELECTRICITY MARKET REFORMS 2013• Introduction of a national grid that will be operational by 2015 with the power over regional EPCOs

• Increased retail competition in the retail sector to reduce prices

• Legal unbundling of transmission/distribution sector to reduce vertical integration and monopoly.

RENEWABLE ENERGY• Renewable energy target for 2030 is 20% of total energy production

• Environmental tax of 289 JPY/t of CO2 goes toward deployment and efficiency of renewable enery

• Feed-in tariffs (FITs) used to encourage investment and drive down costs in the long run.

• Expected generation to rise from 61 GW (2012) to 96 GW (2018)

Solar• Solar has the highest FIT value due to high cost of production (higher than intl markets)

• This has led to growth in solar capacity from 2.0 GW (2012) to 6.9 GW (2013)

• As of April 2013, Ministry of Economy, Trade and Industry (METI) has approved 7.4 GW of new projects out of which 90% are solar.

• Cost of production has started to decrease due to competition and international entrants.

Wind• Significant generation capacity in Hokkaida and Tohoku

• However, these locations have low demand and are currently not integrated with high demand areas

• Government has initiated plans to extend grid to these locations

• However, it has made no provisions to integrate wind energy

• Investment in wind fell in 2010 due to government’s decision to phase-out capital expenditure subsidies.

• Accounts for only 8% of new power generation approved by METI

POLICY RECOMENDATIONS

• Nuclear Energy should continue

• Short term solution since Nuclear power makes 30% of the country‘s power

• Create a national powergrid

• Solves problems of monopoly and energy shortages

• Exploration of alternative forms of energy

• Tidal Power