Burning ice: methane hydrate - a promising new energy (Photo: National Institute of Advanced Industrial Science and Technology)

We are now faced with a tough situation caused by the highest oil prices since the oil crisis of the 1970s. The world energy market is undergoing substantial structural change on the back of the increasing demand for energy spurred by the sharp economic growth of China and India. In view of this situation, the United States, China and other countries are fast revising or reinforcing their energy policies. Finding the means to deal with global environmental problems also poses an important challenge. Given these difficult energy situation worldwide, last year the Agency for Natural Resources and Energy set forth Japan's New National Energy Strategy. The Agency is actively working to realize this strategy.

Hasaki Wind Farm (photo courtesy of Eco Power Co.) *Top runner method: the concept of elevating the energy-conservation standards applicable to motor vehicles, electric products, etc., to levels equal to or higher than the highest energy-saving performance of currently marketed products.

Since the 1970s, Japan's industrial energy demand has remained more or less flat. But demand has been increasing in the consumer sector, and in recent years it has been gradually declining in the transportation sector. Therefore, to conserve energy, the Agency is steadily implementing the revised Rationalization in Energy Use Law (expanding energy-saving measures to the transportation and housing sectors), promoting the Top Runner method*, supporting the adoption and dissemination of energy-saving equipment and systems, and encouraging technological development.

As for new energy measures, in fields such as solar energy, storage, and biomass, the Agency works on technical development for improved efficiency, supports adoption, and fosters new energy industries.

World energy demand by region: past changes and future outlook Click to view large image

Final energy consumption by sector (since FY 1965) Click to view large image

Nuclear power is a key source of electricity, accounting for about 30% of Japan's total power generation. Furthermore, the promotion of nuclear power, including the nuclear fuel cycle, is vital for integrating the strategic issues of establishing Japan's energy security while addressing global warming. This is because, compared with petroleum, a more stable supply of uranium can be expected and because nuclear power is a clean energy that does not emit CO2 in the electricity generation process. In addition, spent fuel can be recycled, so nuclear power can supply energy over the long term.

Genkai Nuclear Power Plant, Kyushu Electric Power Co.

The Nuclear Energy National Plan aims to generate a higher percentage of energy from nuclear power after 2030 than is generated today. In accordance with the Plan, with safety as the initial premise, the Agency is working to obtain public understanding and cooperation. In specific terms, it is steadily working to build and expand nuclear power plants, quickly establish the nuclear fuel cycle including plutonium-thermal plants, swiftly make the fast breeder reactor cycle practical, and promote measures to handle radioactive waste.

Drilling facilities at the Ichthys gas field, Australia

Japan's current energy self-efficiency rate is only 4%, and no more than 20% even if nuclear power is included. Moreover, we depend on oil for more than 50% of our energy supply, importing about 90% of our oil from the Middle East. Against the background of this weak domestic energy supply structure, the International Energy Agency estimates that world demand for energy in 2030 will increase by 60% from the current level, mainly in Asia, which will lead to ever-intensifying global competition for energy.

Fossil fuels, principally oil, will continue to be valuable resources that support the greater part of our energy supply.

The Agency will continue to pursue a comprehensive resource strategy, such as independent oil development in strategic areas and the strengthening of multilateral relationships with oil- and gas-producing countries.

We are addressing global energy issues to respond to the increasing demand for energy in the Asian region spurred by the rapid economic growth of China and India.

The Agency will promote the adoption in Asia of Japan's excellent technologies and systems by cooperating on building energy-saving systems and related technologies, supporting the introduction of new energy, disseminating clean-coal technology, and providing support for oil stockpiling programs.

Asian region spurred by the rapid economic growth of China and India.

Diagram of Nuclear Fuel Cycle