Japan’s Energy Policy

September 2011

Ministry of Economy, Trade and Industry (METI)Director for Corporate Accounting Disclosure and CSR Policy Office

Nobuyuki Hiratsuka 　

TBLI CONFERENCETM ASIA 2011

Basic Perspective of Future Energy Policy Based on Earthquake Experience<Review of priority with due consideration given to “S+3E” and “timeframe”>

[From “3E” to “S+3E”]○Although the importance of the “3E” principles (Energy security, Economic Efficiency and Environmental

protection) remains unchanged, it is essential to recognize safety (S) as the very basic premise. Regarding nuclear power in particular, it is vital to ensure safety.

○Regarding energy security, it is necessary not only to reduce dependence on foreign resources but also to establish an energy supply system resilient to domestic emergencies, such as natural disasters. In doing so, it is important to create a multi-track, multi-layered system that incorporates distribution-type power sources and non-electricity energies.

○On the demand side, it is necessary to reorient the society that tolerates unlimited growth in energy consumption toward energy and electricity conservation, in addition to keeping the existing policy of making constant efforts to improve energy use efficiency through innovation of energy conservation technologies.

　 [Actions taken with a timeframe in mind] Short term (1-3 years): The top priority is to dispel concern over electricity supply. Policy measures will be

implemented with priority placed on ensuring a stable supply to support restoration and reconstruction work in the disaster areas and the revival of the Japanese economy.

Medium term (3-10 years): On the premise of a stable supply, the right balance between economic efficiency and environment protection will be ensured with a view to achieving sustainable

growth. Long term (10-20 years): The world’s strongest energy supply-demand structure will be established based on

the achievements of technology innovation.2

Future Challenges: “4 Pillars” and “3 Strategies”

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○ Based on the “S+3E” principles, renewable energies will be promoted as a new pillar on the supply side, along with fossil fuels and nuclear power, while energy conservation initiatives will be strengthened on the demand side.

○ Economic growth and the reform of the energy supply-demand structure will be accelerated through energy system reform, energy technology innovation and international strategy.

Fossil fuels Nuclear power Renewable energies

Energy conservation

Energy system reform（ Stable supply, competitiveness (participation of diverse entities), economic efficiency)

Energy technology innovation(Renewable energies, fossil fuels, energy conservation/low carbon)

International strategySecuring resources Contributing to the fight

against global warming International cooperation

Establishment of optimal supply-demand structure Establishment of energy- and electricity-saving supply-demand structure

–Reducing 　environmental impact

–Ensuring stable supply

–Ensuring the world’s highest level of safety

–Improving economic efficiency through technology innovation

–Making the most of the potential of natural resources

–Innovation of energy conservation technologies

–Shift to an economy and society oriented toward energy conservation

In order to enlarge to install renewable energy, “New FIT” are being set.

“New FIT” is the system to obligate electric power companies to purchase full amount of electricity generated by PVs (expansion to non-residential), Wind Power, Biomass, Small and Medium Hydraulic Power and Geothermal.

All consumers bear the cost of this system by paying the surcharge.

RPS plan to be abolished in principle when “New FIT” launched.

Development Measures of Renewable Energy(“New FIT Scheme”)

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