Agency for Natural Resources and Energy

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

The Industrial Revolution caused human beings to use heat energy as power for the first time. Until then, we used energy only for heating purposes, obtaining it by burning firewood, but ever since the 18th century, energy has been playing an essential role in industrial development. In Japan, the Agency for Natural Resources and Energy was established in 1973. On its heels came the first oil crisis, bringing energy to the fore as a key policy issue. Japan continues to face many energy problems as fuel oil prices skyrocket amid worldwide competition for energy resources, and global environmental issues emerge. The Agency for Natural Resources and Energy is meeting these challenges with a comprehensive energy policy, laying the foundations for economic activities and daily life.

>	Promoting independent development and diversifying sources

Japan's current energy self-sufficiency rate is just 4%, and no more than the 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.
In view of such circumstances, the Agency for Natural Resources and Energy promotes independent energy development and diversification of supply sources, and seeks to secure a stable energy supply through increased oil stockpiling. We also take the lead among Asian nations in calling for cooperation to implement oil stockpiling programs as well as energy-saving efforts.

Oil drilling facilities at Ixis gas field, Australia

Final energy consumption by sector (since FY 1965)

Source: Comprehensive energy statistics
Click here to enlarge. >>

>	Environment and economy going hand in hand

With the Russian ratification of the Kyoto Protocol at the end of last year, the global warming issue will now be addressed for the first time on a worldwide scale. Japan is required to cut greenhouse gases by 6% relative to the base year* on an annual average between 2008 and 2012. Since some 90% of greenhouse gases are energy-originated, measures preventing global warming and energy policies are really two sides of the same coin.

*Base years specified in the Kyoto Protocol are 1990 for CO2, CH4 and NOX; and 1990 or 1995 for HFC, PFC and SF6.

To reduce greenhouse gases, it is essential that we strive for cleaner supply and saving of energy. The Agency for Natural Resources and Energy is developing and using nuclear power and other new types of energy that emit no greenhouse gases in the process of electricity generation, and expanding the use of natural gas, which is more environmentally friendly than many fossil fuels and is expected to be a leading source of hydrogen supply for fuel cells. Thus, the Agency is pushing ahead with drastic energy-saving efforts targeting civil use and transportation where energy consumption is growing.

>	Distribution and diversification of energy

Tomamae Winvilla Wind Park operated by KK Dream Up Tomamae

Excessive dependence on one type of energy will diminish our adaptability to changing circumstances. The Agency has so far been promoting an oil-substitution energy policy in an effort to diversify energy supplies. Substitution requires an optimal combination of diverse energy supplies, or the "best energy mix."
Among feasible substitute energy supplies, nuclear power is a clean energy that does not emit any greenhouse gases in the electricity generation process, and the uranium used as fuel is obtained from politically stable countries, which ensures steady supply. Furthermore, efforts are being made to establish a "nuclear fuel cycle" using recycled fuel, in order to further increase supply stability.

Ikata Nuclear Power Station, Shikoku Electric Power Co., Inc.

Mihama Nuclear Power Station, Kansai Electric Power Co., Inc

We sometimes hear of a "hydrogen society," meaning a society using diversified energy supplies mainly based on hydrogen. After years of effort, fuel cells are now being put to practical use; however, it will still be many years before fuel cells are widely used as a daily means of energy supply. The Agency is keeping an eye on these new sources of energy and is working towards the development and use of diverse energy supplies.

>	Building a strong, flexible energy supply system

Outline of the Electricity System form April 2005(Overview)

The redeveloped Roppongi Hills district has successfully cut CO2 by 27% by adopting a natural gas-based, area-wide air conditioning system.
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In a series of electricity and gas supply system reforms from 1995, retail choice has been introduced, beginning with large-scale customers and gradually expanding to others. In the electricity industry, retail choice was expanded to some 60% of customers in April this year. Under such circumstances, many regions are now seeing the emergence of new energy suppliers such as highly efficient, natural gas-based cogeneration (simultaneous supply of heat and energy) and regional energy supply businesses. If properly combined with large-scale centralized energy supply systems of mainstream power generation companies, these new decentralized energy supply systems will further stabilize the energy supply, complementing the existing large-scale centralized supply system.
In view of these changing circumstances, the Agency is also testing the use of new energy supply systems. For example, the Japan Pavilion at Nagakute (site of the 2005 EXPO Aichi) uses electricity supplied entirely by new energy. The pavilion appropriately combines unstable energy sources for power generation such as wind power and solar power, and effectively controls the combination by a regulating system. This combined new energy supply system serves as an experimental study of a decentralized, independent energy system with minimal impact on the existing electric power system.