Developing a Basic Energy Plan
SINCE APRIL 2003, the Basic Plan Subcommittee of the Advisory
Committee for Natural Resources and Energy to the Minister of
Economy, Trade and Industry has been holding meetings to discuss
a Basic Energy Plan. The Plan will be made in accordance with
the Basic Law on Energy Policy Making. Because such a comprehensive
and long-term-based energy law had not existed in Japan, the Diet
passed the law in June 2002, anticipating confirmation of energy
policy principles under advancing deregulation. The Basic Plan
has to be designed for consistent implementation of appropriate
policies according to three basic principles of the Basic Law:
1) Securing a Stable Supply,
2) Harmonization with the Environment and
3) Greater Use of Market Forces which should be coordinated with
the first two principles. The Basic Plan is intended to provide
guidance for the future direction of overall energy supply and
demand. Once the Economy, Trade and Industry Minister has received
a report from the Advisory Committee and listened to the views
of the heads of the relevant administrative agencies, a draft
Basic Plan for approximately the next ten years will be prepared,
endorsed by the Cabinet, and reported to the Diet. In order to
smoothly implement the plan, the government will take necessary
measures such as budget allocation every fiscal year.
Tokyo Electric Power Company, Kashiwazaki-Kariwa
Nuclear Power Station
Especially in terms of supply issues, it is expected that the
plan will include measures to promote the use of nuclear energy
as well as renewable energy and natural gas. Since the plan will
most probably aim to reduce dependence on oil as well as emissions
of carbon dioxide (CO2), FEPC believes that
the Basic Plan should confirm that nuclear energy contributes
to a stable supply of electricity and helps to meet environmental
standards. Nuclear energy is the focus of Japan's energy policy;
the need for nuclear power generation and the nuclear fuel cycle
remains unchanged. The Japanese energy supply system is vulnerable
because of its dependence on imported sources of energy, evidenced
by the fact that energy supply self-sufficiency — including
nuclear energy — is as low as 20 percent. Nuclear energy
helps to replace crude oil imports by as much as 30 percent, and
in terms of environmental gains, the use of nuclear power has
reduced the country's CO2 emissions by about
20 percent.
As deregulation of electric utilities proceeds, uncertainty arises
about the future of stable energy demand and long-term cost recovery.
In particular, back-end operations of nuclear businesses, such
as reprocessing of spent fuel and disposal of radioactive wastes,
take a significant amount of time, and uncertainty in policy planning
remains. We believe the private sector will find these operations
to be challenging.
This situation contrasts with other countries where public institutions
perform certain roles, such as managing overall operations. For
the private sector to progress with nuclear power generation and
the nuclear fuel cycle, we think public and private roles should
be reviewed and operational risks to private companies should
be taken into consideration. The government is requested by the
Diet to consider the question of specific systems and measures,
including economic ones, to take necessary steps by the end of
2004.
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