◇ The Energy White Paper is a report submitted to the Diet annually based on Article 11 of the Basic Act on Energy Policy outlining energy measures taken during the previous fiscal year.
◇ In addition to the routine topics explained every year (energy trends and measures taken during the previous fiscal year concerning energy supply and demand), the Energy White Paper 2014 seeks to deepen public understanding by explaining various energy-related problems with data and information based on the Strategic Energy Plan decided upon at the April 11, 2014 Cabinet meeting. As introduced in the Energy White Paper 2012, measures being taken in the aftermath of the accident at Tokyo Electric Power Company(TEPCO)’s Fukushima Daiichi Nuclear Power Plants(NPS) and trends in energy-related policies established thereafter are also introduced.
Part 1 Energy-Related Conditions and Key Measures
Chapter 1 Background situation to the Strategic Energy Plan
Section 1 Structural Issues Faced by Japan
Section 2 TEPCO’s Fukushima Nuclear Accident and Issues that Become
Apparent since the Time of the Accident
Chapter 2 The Great East Japan Earthquake and the Review of Japan’s Energy Policies
Section 1 Responses to the Great East Japan Earthquake and the Accident at TEPCO’s Fukushima
Nuclear Accident
Section 2 Key Energy-Related Measures Taken After the Great East Japan Earthquake and the Accident
at TEPCO’s Fukushima Nuclear Accident
Part 2 Energy Trends
(Collection of basic data outlining energy supply and demand within and outside Japan and primary and secondary energy trends)
Part 3 Measures Taken in FY2013 Concerning Energy Supply and Demand (Outline of Individual Measures and
Budgets, etc.)

Chapter 1 Background Situation to the Strategic Energy Plan
(1) Fundamental vulnerability of the energy supply system due to high dependency on overseas energy resources
○ Japan’s primary energy self-sufficiency rate has declined significantly compared to the level prior to the Great East Japan
Earthquake (2010: 19.9%), and was as low as 6.0% in 2012. This is the second lowest level among the 34 OECD countries.
First: Norway
Second: Australia
Third: Canada
Eighth: United States
14th: United Kingdom
15th: France
20th: Germany
27th: Spain
30th: South Korea
33rd: Japan
34th: Luxembourg
Comparison of Primary Energy Self-Sufficiency Rates of the OECD Countries (2012)
Crude oil Natural gas
Coal
25.8
％
40.1
％
60.7
％
52.9
％
677.4
％
Hydro power
166.2
235.4
％
％
Renewable energy, etc.
(geothermal power, solar power, etc.)
85.0
％
Nuclear power * The IEA includes nuclear power in primary energy self-sufficiency rates.
[Recent Changes in Japan’s Primary Energy Self-Sufficiency Rates]
Energy selfsufficiency rate
Coal
Crude oil
Natural gas
Nuclear power
2010
19.9
29th
－
0.1
0.6
15.0
2011
11.2
33th
－
0.2
0.7
5.8
2012
6.0
33th
－
0.1
0.7
0.6
18.0
％
2.9
6.0
％
％
[Source] Created based on the “Energy Balance of OECD
Countries 2013” (IEA) (data for 2012 are estimates)
Hydro power 1.4
1.6
Renewable energy, etc.
2.7
3.1
The mark “–” in the table means “very little.”
1.5
3.1
1

Chapter 1 Background Situation to the Strategic Energy Plan
(2) Mid- to long-term changes in the energy demand structure through population decrease and technological innovation, etc.
○ The Japanese population is projected to decline to approximately 97 million by 2050 and is also expected to age rapidly.
○ Mid- to long-term changes in the energy demand structure are also underway due to technological innovations, such as improving automobile fuel efficiency, the rational use of energy through the development of next-generation vehicles, and the expansion of usage of energy resources.
(Million people)
140.00
126.93
Changes in the Japanese Population and the Aging of the Population
126.60
116.62
120.00
36.1
Example of Improvement in Gasoline-Fueled Passenger Cars
Changes in Average Fuel Efficiency
38.8
(%)
45
Fuel efficiency (km/L)
40
35
100.00
80.00
26.8
31.6
107.28
97.08
30
25
Improved by approximately
74%
17.4
60.00
20
15
40.00
20.00
(2012)
Population: 127.52 million people
Elderly population ratio: 24.1%
Population
Elderly population ratio
10
5
0.00
0
2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050
○
Elderly population ratio: Percentage of total population aged 65 and over
[Source] Created based on Cabinet Office data
Fiscal year
○ Changes in the average 10-15 mode fuel efficiency of gasolin e fue led passenger cars
[Source] Created based on the data from the Ministry of Land, Infrastructure,
Transport and Tourism
2

Chapter 1 Background Situation to the Strategic Energy Plan
(3) Instability of resource prices due to increased energy demand in emerging countries, etc. [i]
○ Global energy demand is expected to expand mainly in developing countries and to increase by a factor of 1.3 from 2011 to
2035, with 90% or more of the demand increase attributable to growth in non-OECD countries such as China, India and Middle
East countries.
○ Resource prices have been on a long-term upward trend and have become more sensitive to changes in international circumstances as a result of demand fluctuations caused by the expansion of energy demand mainly in developing countries, regional conflicts and changes in economic conditions.
Expansion of Energy Demand in Emerging Countries
Billion tons
18
16
14
12
10
8
6
4
2
0
26%
5%
23%
10%
4%
5%
4%
5%
12%
6%
： Non-OECD countries
2000
9.799 billion tons
Worldwide
Approx. factor of 1.3
India
Approx. factor of 1.6
China
Approx. factor of 2.3
Japan
Approx. factor of 0.89
21%
4%
17%
10%
5%
5%
5%
6%
22%
6%
2011
12.71 billion tons
Worldwide
Approx. factor of 1.3
Others (Non-OECD countries)
12%
Latin America 6%
Africa 6%
Middle East 6%
India 9%
India
Approx. factor of 2.1
China
24%
China
Approx. factor of 1.5
Russia 5%
Japan
Approx. factor of 0.96
OECD countries (excl.
Japan and the US)
16%
Japan 3%
United States
13%
2035
16.9 billion tons
Non-OECD countries
Others (Non-OECD countries)
Latin America
Africa
Middle East
India
China
Russia
OECD countries (excl.
Japan and the US)
Japan
United States
[Source] Created based on the “World Energy Outlook 2013” (IEA)
Proven Recoverable Reserves of Oil, Natural Gas, and Coal
Proven recoverable reserves
Minable years
3
(Note) Proven recoverable reserves: Reserves proven to exist and considered to be economically recoverable
Minable years: Result of dividing proven recoverable reserves by annual production volume
[Source] Created based on the BP Statistical Review of World Energy
3

Chapter 1 Background Situation to the Strategic Energy Plan
○
Fluctuations in Crude Oil Prices
160
140
120
100
80
60
40
(US dollars/Barrel)
Arab Light OSP
Historic high (July 2008)
Closing price: 145.29 dollars (July 3)
Intermediate price: 147.27 dollars (July 11)
West Texas Intermediate Prices
Highest price at the time of the Second Oil Shock:
34 dollars
Highest price at the time of the First Oil Shock:
11.65 dollars
September 1980: Outbreak of the Iran-Iraq War
Highest price at the time of the Gulf War:
40.42 dollars (October
11, 1991)
August 2, 1990:
Iraq’s invasion of
Kuwait
October 1973:
Yom Kippur War
February 1979:
Establishment of the
Iranian Interim
Government
March 2003:
Commencement of the
US-led attack on Iraq
September 11, 2001:
Terrorist attacks in the United States
20
0
September
2008: Lehman
Shock
December
2010:
Jasmine
Revolution
2004 onward: Sharp demand increase in China
[Source] West Texas Intermediate (WTI) Prices are based on the CME Group’s Website and Arab Light Official Selling Prices are based on data released by Saudi Aramco.
4

Yen/L
100
80
60
40
17 yen/L
(January 2000)
20
0
Chapter 1 Background Situation to the Strategic Energy Plan
92 yen/L
(August 2008)
70 yen/L
(March 2014)
Yen/t
Natural Gas (LNG)
81,089 yen/t
(September 2008)
Historic high
(CIF price):
90,048 yen/t
(January
2014)
88,098 yen/t
(March 2014)
+ 34,289 yen/t
+ 17 yen/L
53 yen/L
(March 2011)
53,809 yen/t
(March 2011)
Yen/1,000 kcal Changes in price for unit calorific value by fuel
Yen/t
[Source] Created based on the “Trade Statistics of Japan” (Ministry of Finance)
and data from the Institute of Energy Economics, Japan 5

Chapter 1 Background Situation to the Strategic Energy Plan
○
Global Emissions of Energy-Derived Carbon Dioxide (Actual Amounts and Forecast)
(Billion tons)
400
350
300
250
200
150
100
50
0
世界
Factor of 1.5 1.5
倍
0.6
0.6
2.5
6
0.6
2.3
6
2.2
1.2
インド
Factor of 3.0 3.0
倍
中国
Factor of 3.5 3.5
倍
日本
Factor of 1.1 1.1
倍
1990
203 億ｔ
年
2.8
1.1
1.0
1.6
1.7
28
16
17
世界
Factor of 1.2
1.2
倍
インド
Factor of 2.2 2.2
倍
4.3
1.6
1.4
2.4
3.9
43
16
14
24
39
8.0 80
China
中国
1.3
倍
10.2
102
1.6
2.0
3.7
1.2
16
20
37
12
5.3 53
Factor of 0.8
日本
0.8
倍
1.8
1.9
2.9
0.9
4.5
18
19
29
9
45
30 billion tons
300 億ｔ
2011 年 2035 2035 年
357 億ｔ countries)
Africa
Middle East
India
China
Russia
その他（非 OECD ）
中南米（非 OECD ）
アフリカ
中東
インド
中国
ロシア
OECD( 日米欧除く）
欧州（ OECD ）
Japan
日本
United States 米国
[Source] Created based on the “World Energy Outlook 2013” (IEA)
6

Chapter 1 Background Situation to the Strategic Energy Plan
Section 2 TEPCO’s Fukushima Nuclear Accident and Issues that Become Apparent since the Time of the Accident
(1) Concerns over serious damage caused by the TEPCO’s Fukushima Nuclear Accident and the safety of nuclear power generation
○ The Great East Japan Earthquake led to a serious accident at TEPCO’s Fukushima Nuclear Accident, making it impossible to cool nuclear reactors due the loss of power supply. Approximately 135,000 people who formerly lived in areas surrounding the nuclear power plants still cannot return to their homes.
[Total number of evacuees nationwaide]
Approx. 157,000 people Approx. 135,000 people
(December 2012)

(March 2014)
[Number of evacuees from areas subject to evacuation orders, etc.]
Approx. 110,000 people
(December 2012)
 Approx. 102,000 people
(March 2014)
[Development of temporary housing]
16,800 homes [demand fulfillment rate: 99.5%]
(March 2014)
[Management of disaster-related waste, etc. under direct control of the national government]
Disaster-related waste, etc. has been managed based on the Waste
Management Plan for Targeted Areas (partially revised in December 2013).
By the end of March 2014, disaster-related waste, which had been hindering the ability of displaced persons to return to their homes, had been completely removed and transferred to temporary storage sites as planned in Okuma town, Naraha town and Kawauchi village (excluding areas to which residents cannot return for the foreseeable future). The transfer of disaster-related waste was also completed as planned in Minamisoma city, with the exception of some areas.
[Source] Created based on data from the Ministry of the Environment, the Reconstruction Agency, and the Fukushima Prefectural Government
March 2011
November 2013
At the reactor building of Unit
4, debris was removed from the top floor and a cover with fuel handling equipment was installed. Removal of fuel from the spent fuel pool was commenced in November
2013 and is scheduled to be completed by the end of 2014.
Transferred fuel: 924 rods out of 1,533
(as of May 26, 2014)
[Material provided by TEPCO]
7

Chapter 1 Background Situation to the Strategic Energy Plan
Section 2 TEPCO’s Fukushima Nuclear Accident and Issues that Become Apparent since the Time of the Accident (cont.)
(2) Outflow of national wealth and increased supply instability due to higher dependency on fossil fuels [i]
○
Japan’s dependency on fossil fuels as a power source is currently 88%, higher than the level at the time of the First Oil Shock (80%).
○
Due to the nuclear power plant shutdown, an increase in fuel prices and exchange rate fluctuations, the value of fossil fuel imports increased to 27 trillion yen in 2013, 10 trillion yen more than prior to the earthquake, resulting in Japan’s largest ever trade deficit of 11.5 trillion yen.
FY1973
FY2010
Coal
Changes in Dependency on Fossil Fuels as a Power Source
Oil, etc.
Natural gas
Nuclear power
Hydro power
0.03
％
Dependency on fossil fuels
Dependency on imported fossil as a power source fuels (reference)
80
Renewable energy, etc.
8.5% 1.1%
％
62 ％
76%
62%
FY2013
8.5% 2.2% 88 ％
88%
(Note) “Oil, etc.” includes LPG and other gases. “Other gases” mainly refers to town gas, natural gas and coke-oven gas used for mixed combustion by power companies.
Changes in Current Account, Trade Balance, and Mineral Fuel Imports
[Source] Created based on the Agency for
Natural Resources and Energy’s “Outline of
Electric Power Development” and other data
(Trillion yen)
30.0 27
25.0
Current account 24.9
28
24
18.7
20.3
Mineral fuel imports
19.1
22
20.0
15.0
Trade balance
20
14.9
10.0
15
19
13.6
14
17
10.1
Increase in fuel imports: 10 trillion yen
4.7
5.0
3.2
0.0
-5.0
8.7
7.9
10.8
2.1
2.7
6.6
-10.0
-2.6
-15.0
-6.9
- 11.5
2005 2006 2007 2008 2009 2010 2011 2012 2013
* Mineral fuels include crude oil, LNG, coal, petroleum products, LPG, etc.
[Source] Trade balance (total exports – total imports), mineral fuel imports: “Trade Statistics of Japan” (Ministry of Finance); current account: “Balance of Payments” (Bank of Japan)
8

Chapter 1 Background Situation to the Strategic Energy Plan
Section 2 TEPCO’s Fukushima Nuclear Accident and Issues that Become Apparent since the Time of the Accident (cont.)
○
Electricity production before the earthquake
(FY2008 to FY2010 average)
Renewable energy, etc.
Thermal power
Estimated Increase Fuel Costs Due to
Shutdown of Nuclear Power Plants
[i] FY2013 operations
Renewable energy, etc.
Thermal power
[ii] When using nuclear power as a base-load
power source in FY2013 to a degree similar to before the earthquake
(FY2008 to FY2010 average)
Increased fuel costs due to
shutdown of nuclear
power plants
FY2013: 3.6 trillion yen
[Breakdown]
LNG: +1.9 trillion yen
Oil: +1.8 trillion yen
Coal: +0.1 trillion yen
Uranium: -0.3 trillion yen
Renewable energy, etc.
Thermal power
Nuclear power:
274.8 billion kWh
Nuclear power:
9.3 billion kWh 265.5 billion kWh
Nuclear power
[Source] Estimated by the Agency for Natural Resources and Energy
9

Chapter 1 Background Situation to the Strategic Energy Plan
Section 2 TEPCO’s Fukushima Nuclear Accident and Issues that Become Apparent since the Time of the Accident (cont.)
○
(%)
Changes in Mineral Fuel Imports (as a Percentage of GDP)
1980
6.6
1974
5.4
Mineral fuels
2008
5.5
2013
5.7
LNG
Crude oil
Coal
Year
[Source] Created based on the “National Accounts” (Cabinet Office) and the “Trade Statistics of Japan” (Ministry of Finance)
10

Chapter 1 Background Situation to the Strategic Energy Plan
Section 2 TEPCO’s Fukushima Nuclear Accident and Issues that Become Apparent since the Time of the Accident (cont.)
○
(Yen/kWh)
Changes in Electricity Charges
Increased
19.4%
Increased
28.4%
Electric lighting
Electric power
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Fiscal year
[Source] Created based on the “Electricity Demand Report” (Federation of Electric Power Companies in Japan) and the materials concerning the power companies’ final settlement reports, etc.
11

Chapter 1 Background Situation to the Strategic Energy Plan
8.00
6.00
4.00
2.00
0.00
18.00
16.00
14.00
12.00
10.00
Section 2 TEPCO’s Fukushima Nuclear Accident and Issues that Become Apparent since the Time of the Accident (cont.)
(3) Higher electricity bills due to a change in the power source mix, and the impact of the international regional differences in energy prices on the macro economy, industry and household economies [ii]
○
Japan’s LNG import price is US$16.6 /MMBTU, higher than that of US$4.5/MMBTU for the United States (Henry Hub Price) and US$9.4/MMBTU for Europe (National Balancing Point). (In contrast to U.S. domestic natural gas prices, Japan’s LNG import price is more closely linked to the import price of crude oil and includes liquefaction and transportation costs.
(Note) )
(Note) The liquefaction cost is estimated to be US$3~4/MMBTU and the cost of transportation from the United States is estimated to be
US$3/MMBTU.
○ These regional disparities in energy prices may bring about significant changes not only in the field of energy but also in industrial activities in various business fields, and may significantly affect economic growth and industrial structures worldwide.
(Dollars/MMBTU*)
20.00
Changes in Natural Gas Prices
Great East Japan Earthquake
(March 2011)
LNG import price (Japan)
NBP** (Europe)
Henry Hub Price (United States)
16.6
9.4
4.5
* MMBTU: British thermal unit ** NBP: National Balancing Point (British market price) [Source] Created based on the “Trade Statistics of Japan” and data from the NYMEX and the ICE, etc.
12

Chapter 1 Background Situation to the Strategic Energy Plan
Section 2 TEPCO’s Fukushima Nuclear Accident and Issues that Become Apparent since the Time of the Accident (cont.)
(4) Rapid increase in greenhouse gas emissions in Japan
○ As a result of the shutdown of nuclear power plants, greenhouse gas emissions from the power sector have increased by 112 million tons compared to FY2010. The increase is equivalent to approximately 10% of Japan’s total greenhouse gas emissions. In the meantime, greenhouse gas emissions from other sectors have decreased by 27 million tons compared to FY2010.
Changes in Greenhouse Gas Emissions
FY2008 FY2009
* Emission volume
“for electricity” means emission volume by general electricity utilities.
Emissions volume from energy production of which, for electricity*
(Million t-CO
2
)
Or which, except for electricity
1,138
395
743
1,075
353
722
FY2010
1,123
374
FY2011
＋ 50
＋ 65
FY2012
1,173
＋ 85
439
＋ 112
1,208
486
749
-15
734
-27
722
Emissions of greenhouse gases other than CO2 from energy production
(5.5 gas)
(+1.6% from FY1990)
(-4.4% from FY1990) (-0.4% from FY1990)
(+3.6% from FY1990)
(+6.5% from FY1990)
Emission of CO2 from energy production
(From FY2010)
+65
(From FY2010)
+112
FY1990
[base year]
CO
2
emissions by general electricity utilities
FY2008 FY2009 FY2010 FY2011 FY2012
[Source] Created based on the “Japan’s Greenhouse Gas Emissions” (Ministry of the Environment) and the “Environmental Action Plan for Electric Power
13

Chapter 1 Background Situation to the Strategic Energy Plan
Section 2 TEPCO’s Fukushima Nuclear Accident and Issues that Become Apparent since the Time of the Accident (cont.)
(5) Exposed defects related to supply systems, including power interchange and emergency supply between eastern and western Japan [i]
○ The Great East Japan Earthquake caused the shutdown of many power generation plants located on the Pacific coast, making it impossible to sufficiently conduct the broad-area operation of power grids. Due to the inability to make up for the power shortage, rolling blackouts were implemented in the service area of TEPCO.
Power Supply and Demand Immediately after the Earthquake (March 14, 2011)
On March 14, 2011, immediately after the Great East Japan Earthquake, a power shortage of 10 million kW was expected even with power transferred from power companies in the Chubu region and from western Japan to TEPCO via frequency converters (FC; total capacity: million kW). Therefore, rolling blackouts were implemented for the first time (power companies in the Chubu region and western Japan reserved a margin of 14.28 million kW even when transferring power to TEPCO via FCs).
Starting on March 14, rolling blackouts were implemented 32 times in total for about ten days in the service area of TEPCO.
(Million kW)
Tokyo (forecast on March 14)
Chubu and western
Japan (performance on March 14)
Chubu
Electric
Power
Company
Kansai Electric
Power Company
Hokuriku
Electric Power
Company
Chugoku
Electric Power
Company
Shikoku Electric
Power Company
Kyushu Electric
Power Company
Supply capability
31.00 80.95 21.91 24.45 5.06 11.28 4.70 13.55
Demand *(See
Note)
41.00 66.67 18.36 20.37 4.00 8.36 3.98 11.60
Supply capability –
Demand, etc.
(margin)
-10.00 (after power transfer via FCs)
14.28 3.55 4.08 1.06 2.92
Capability margin
-24.4% 21.4% 19.4% 20.0% 26.5% 34.9%
(Note) Thanks to rolling blackouts, etc., power demand in the service area of TEPCO on March 14 was 29.14 million kW, and the capability margin was 1.86 million kW (6.4%).
0.72
18.1%
Trade and Industry
1.95
16.8%

Chapter 1 Background Situation to the Strategic Energy Plan
Section 2 TEPCO’s Fukushima Nuclear Accident and Issues that Become Apparent since the Time of the Accident (cont.)
(5) Exposed defects related to supply systems, including power interchange and emergency supply between eastern and western Japan [ii]
○ The Great East Japan Earthquake disrupted the supply of city gas and it became necessary to make up for the shortfall with oil and LPG. However, problems hindered the smooth supply of oil and LPG to disaster-stricken areas.
Supply of Oil and LPG at the Time of the Earthquake
[Transportation system]
・ There was no prior agreement on a scheme under which oil and LPG companies would respond to fuel supply requests from disaster-stricken areas or on oil terminals to be shared in such an event.
・ It was difficult to obtain information and ascertain damage, stock, and operating conditions for equipment.
[Supply facilities]
・ Damage and breakdowns at refineries and service stations, etc. due to the earthquake and tsunami
◇ One refinery in the Tohoku region and two refineries in the Kanto region sustained severe damage to their docks, pipes, tanks and tanker shipping points.
◇ Service stations suffered oil filling equipment shutdowns due to large-scale blackouts and a lack of stock due to interruption of the supply chain. As a result, fuel supply was hindered in disaster-stricken areas and other areas.
◇ Many of the LPG import bases were damaged and shipment of LPG to disaster-stricken areas became difficult.
・ Shortage of independent power generators to enable shipment and supplying of oil even in the event of a blackout
・ Shortage of equipment to transport oil from refineries to drums for shipment
[Storage]
・ The Oil Stockpiling Act did not have any provisions to enable [i] the release of oil from national oil stockpiles and [ii] the release of oil from private stockpiles under the initiative of the national government (without waiting for applications to be filed by private business operators).
・ National oil stockpiles mostly consist of crude oil and are insufficient as preparation for possible deterioration in the production of petroleum products due to a disaster or damage to a long-distance distribution network.
[Examples of Securing Gasoline and Gas Oil Supplies in
Disaster-stricken Areas and in the Kanto Region]
－ Emergency measures to secure supply and setting of
expanded transportation routes －
Production increases enabled by increasing operating capacity ratios were transferred to the Tohoku region (approx. 20,000 kl/day)
Decrease in exports and demand control
Increase of operating capacity ratios to over 95% at refineries in western Japan
・ Use of a large number of tankers
・ Securing rail transportation routes
Product stock at refineries in western Japan was released and transferred to the Kanto region (50,000 kl within three days)
Stable supply to the Kanto region
Development of hub service stations
Restoration of functions of
Shiogama oil terminal
・
Important base for supplying oil
Tohoku region
・ Storage: 25,000 kl
・
Shipment capacity: Approx. 5,00
* Total capacity including all type
・
Release of product stock at refineries in the Kanto region (approx. 30,000 kl)
・ Smooth supply system by collaboration among business operators
(Created by the Agency for Natural Resources and Energy)
15

Chapter 1 Background Situation to the Strategic Energy Plan
Section 2 TEPCO’s Fukushima Nuclear Accident and Issues that Become Apparent since the Time of the Accident (cont.)
(6) Reduced confidence in the government and business operators involved in energy supply
○ Since before the TEPCO’s Fukushima
, public distrust of energy-related administrative organizations and business operators have grown due to many troubles and scheduling delays related to nuclear energy policy.
○ In addition, while handling the TEPCO’s Fukushima Nuclear Accident and its aftermath, the government and business operators came under heavy criticism for their inadequate information sharing and lack of awareness about the need for communications with the local communities concerned, resulting in a significant decline in public trust in them.
・
・
・
16

Chapter 1 Background Situation to the Strategic Energy Plan
Section 2 TEPCO’s Fukushima Nuclear Accident and Issues that Become Apparent since the Time of the Accident (cont.)
(7) Changes in the demand trend - increased introduction of cogeneration and changes in power saving action
○ After the Great East Japan Earthquake, the Japanese economy showed growth, but electric power consumption declined by 8.0% from 2010 to 2012.
○ After the earthquake, energy saving awareness was broadly disseminated and approximately 16.67 million kW of power was saved during the summer of FY2013 when compared with the level in FY2010 (equivalent to 9.3% of the maximum power demand in the summer of FY2010).
Changes in Power Consumption in Japan
Changes in Reasonable Power Conservation during the Summer (July to September)
(TWh = Billion kWh)
1,400
512
0.34% increase
514
(Trillion yen; prices in 2005)
550
0.66% increase 518
Real GDP
(right scale)
(Million kW)
17.00
(9.2
% )
16.55
(9.3
% )
16.67
1,200 500 16.50
8.0% decrease
996 TWh
1,000
800
6.2% decrease
934 TWh
2.0% decrease
916 TWh
450
（ 18TWh ）
400
16.00
15.50
（
359TWh
）
(8.4
% )
15.15
600 350
15.00
400 （ 287TWh ） 300
14.50
200 250
（
252TWh
）
0
2010 2011 2012
200
(Fiscal year)
(Note) Values for final energy consumption in the tertiary industry sector and part of the primary and secondary industries sector
(non-manufacturing industry, food manufacturing industry, and small and medium-sized manufacturing industry in other fields) are estimates based on the input-output table and National Accounts, etc. Short-term consumption declines in the tertiary industry sector after the earthquake are not fully reflected due to technical factors in the statistics.
[Source] Created based on the “Comprehensive Energy Statistics” (electric power consumption out of final energy consumption) and the “Annual Report on National Accounts.”
14.00
FY 2011 FY 2012 FY 2013
* Reasonable power conservation: Power conservation with lower stress and cost or from which investment recovery is expected
* Values in parentheses were obtained by dividing the amount of reasonable power conservation by the maximum power demand in the summer of FY2010 (179.87 million kW).
[Source] Created based on the materials for the fifth meeting of the Electricity Supply-Demand Verification
Subcommittee of the Strategic Policy Committee, the Advisory Committee for Natural Resources and Energy
(April 17, 2014).
17

Chapter 1 Background Situation to the Strategic Energy Plan
Section 2 TEPCO’s Fukushima Nuclear Accident and Issues that Become Apparent since the Time of the Accident (cont.)
(8) Change in the geopolitical structure of resource-supplying regions, including instability in the Middle Eastern and
North African regions
○ Recent moves in the Middle Eastern and North African regions, such as the so-called “Arab Spring,” have destabilized the political and social structures of these regions, and concerns over the possibility of a crude oil supply shortage have led to instability in the crude oil market.
Major Incidents in the Middle East and Changes in the
Price of Crude Oil
(Dollars / Barrel)
[Maximum closing price] 140.60 dollars (July 4, 2008)
January 2012
The EU agreed on an
Iranian crude oil embargo.
January 2013
Hostage crisis in Algeria (January
16)
Anti-government demonstration in Egypt (January 25)
Israeli air attack on Syria
(January 30)
December 2010
The Jasmine Revolution in Tunisia triggered antigovernment movements in the Middle East and
North Africa.
March 2011
Suspension of the
Libyan crude oil supply
“Arab Spring”
* The Libyan crude oil supply actually suspended.
Global trade 38.60 [million barrels/day]
Middle East 17.65 (45.7%)
North Africa 2.14 (5.5%)
July 2013
Unrest in Egypt
(starting July 1)
Total from both regions 19.79 (51.3%) intervention in Syria by the United States and
Europe (August 27)
July 2012
Escalation of civil war in Syria
August 2013
Concern over military Middle East: Saudi Arabia, Iran, Iraq, Kuwait, UAE, Qatar, and Oman
North Africa: Algeria, Egypt, and Libya
[Source] Created based on the “BP Statistics 2013”
Circumstances in the Middle East region have been further destabilized by the Iranian nuclear issue, civil war in Syria and other factors.
January 2010 July 2010 January 2011 July 2011
【出典】日経ドバイを基に作成
[Source] Created based on data from Nikkei Dubai
January 2012 July 2012 January 2013 July 2013 January 2014
18

Chapter 1 Background Situation to the Strategic Energy Plan
Section 2 TEPCO’s Fukushima Nuclear Accident and Issues that Become Apparent since the Time of the Accident (cont.)
(9) Signs of a change in the global energy supply-demand structure caused by the shale revolution in North America
○ The shale revolution has freed the United States from the global fossil fuel supply system centered on the Middle East. As a result, the Middle East expanded its oil supplies to Asia, where energy demand is growing. The global energy supply-demand structure has thus been significantly changing.
Changes in the Global Energy Supply-
Demand Structure Caused by the Shale
Revolution
[Russia]
・
Pressure to reduce natural gas prices in Europe and stagnation in the gas supply
・
Cultivation of the Japanese,
Chinese and Korean markets
・ Phenomena that have occurred
・ Phenomena that are likely to occur or gain momentum in the future
Potential gas exports to be examined in the future
Potential crude oil exports to be examined in the future
[Europe]
・ Decline in gas demand due to increased coal consumption
・ Expansion of gas imports from the
Middle East and decrease in gas imports from Russia
・ Introduction of various pricing methods
・ Energy security enhancement efforts
Coal imports from North America
・ Possibility of increased exports resulting from conventional and unconventional crude oil development
[China]
・
Increased natural gas imports from Turkmenistan
・
Acquisition of upstream interests in North America
・ Increase in crude oil imports from the Middle East
[Japan]
・ Diversification of natural gas suppliers
・ Ensuring the existence of other options, including coal, etc.
Gas-related incidents
Crude oil-related incidents
Changes in crude oil export forecasts (million barrels per day) from 2012 to
2018 are indicated in parentheses.
* Cited from the “Medium-Term Market Report 2013” (IEA)
[North America (the United
States and Canada)]
・
Increased natural gas supply
・
Surplus coal exports to Europe
・
Shift to net exporter of gas
Coal exports to Europe
[Africa]
・ Decrease in crude oil exports to the United States
[Middle East (Qatar, etc.)]
・ Further cultivation of the European and Asian markets
・
Increased oil production
・
Reduction in dependence on the Middle East (from 2.7 mbd to 1.7 mbd) due to the shale revolution
(1.1mbd→0.3mbd)
・ Possibility of crude oil (light oil) from Algeria and Nigeria supplying the European and
・
Decreased crude oil exports to the United States
(2.7mbd→1.7mbd)
・
Further expansion of crude oil exports to Asia (mainly China and India) (to China: from 2.6 mbd to 2.9 mbd)
[Australia]
Cultivation of supply destinations and the need to engage in price negotiations
[South America]
・
Possibility of production increases and crude oil exports resulting from development by Argentina (shale oil) and Venezuela (extra heavy oil)
Indian markets
[Mozambique]
Cultivation of supply destinations
[Source] Created based on the “Medium-term Market Report 2013” (IEA)
[G7 Energy Ministers Meeting: May 5 and 6, 2014]
Issued a joint communique which mentioned the significance of further promoting flexible gas markets through the relaxation of destination provisions and talks between producers and consumers 19

Chapter 1 Background Situation to the Strategic Energy Plan
Section 2 TEPCO’s Fukushima Nuclear Accident and Issues that Become Apparent since the Time of the Accident (cont.)
○
Worldwide 2030 Nuclear Power Generation Forecast (as estimated by the IAEA)
Western Europe
(114 million kW → 68 million kW (0.6 times) /
124 million kW (1.1 times))
East Asia
(83 million kW → 147 million kW (1.8 times) /
268 million kW (3.2 times))
North America
(116 million kW → 101 million kW (0.87 times) /
143 million kW (1.2 times))
Eastern Europe
(49 million kW →79 million kW (1.6 times) /
104 million kW (2.1 times))
South East Asia and Pacific region
(0 kW → 0 kW / 4 million kW)
Middle East and South Asia
(6 million kW → 27 million kW (4.5 times) / 54 million kW (9 times))
South America
(4 million kW → 7 million kW (1.8 times) /
15 million kW (3.8 times))
Africa
(2 million kW → 5 million kW (2.5 times) / 10 million kW (5 times))
(Note) Nuclear power generation capacity is an IAEA estimate (August 2013).
World Nuclear Power Generation Capacity
(Current capacity → Low-end forecast / High-end forecast)
As of 2012: 373 million kW
2030 (High-end forecast): 722 million kW (1.9 times)
2030 (Low-end forecast): 435 million kW (1.2 times)
[Source] Created based on the “Energy, Electricity and Nuclear Power Estimates for the Period up to 2050, 2013 Edition” (IAEA)
20

Part1 Chapter 2 The Great East Japan Earthquake and the Review of Japan’s Energy Policies
Section 1 Responses to the Great East Japan Earthquake and TEPCO’s Fukushima Nuclear Accident
(1) Initiatives for Decommissioning Fukushima Daiichi Nuclear Power Station Units 1-4
(i) Revision of the roadmap
・ The revision of the Mid- and Long-term Roadmap, including the acceleration of the schedule, was conducted in June 2013 so as to commence removal of the fuel from the spent fuel pool and of fuel debris as soon as possible.
(ii) Measures taken in response to contaminated water issue
・ The Basic Guidelines for the Contaminated Water Issue at TEPCO’s Fukushima Nuclear Accident was decided by the Nuclear Emergency
Response Headquarters in September 2013, and the Contaminated Water and Decommissioning Issues Team was established the same month.
・ Additional Measures for Contaminated Water and Decommissioning Issues at TEPCO’s Fukushima Daiichi Nuclear Power Station were decided upon by the Nuclear Emergency Response Headquarters in December 2013, compiling preventive and multilayered measures
for the contaminated water issue, including the acceleration of the construction of welded-type tanks and the verification of purification technologies.
・ The functions of the conning tower in relation to contaminated water and decommissioning issues were integrated by consolidating the Council for the Decommissioning of TEPCO’s Fukushima Daiichi Nuclear Power Station into the Inter-Ministerial Council for Contaminated Water and Decommissioning Issues.
(iii) Partial revision of the Nuclear Damage Compensation Facilitation Corporation Act
A bill to partially revise the Nuclear Damage Compensation Facilitation Corporation Act was submitted to the ordinary session of the Diet
in February 2014 with the aim of adding the assistance in the decommissioning of damaged reactors to the services to be conducted by the
Nuclear Damage Compensation Facilitation Corporation.
(iv) Removal of fuel from the spent fuel pool at Unit 4
The removal was commenced in November 2013. It is intended that work will be completed by the end of 2014.
(2) Nuclear Damage Compensation
(i) Interim guidelines for determining the scope of nuclear damage by the Dispute Reconciliation Committee for Nuclear Damage Compensation
The fourth supplement to the interim guidelines was compiled in December 2013. The supplement clarifies the scope of compensation for houses and the coverage of non-economic damages where evacuation orders are not lifted for a prolonged period of time.
(ii) Approval of partial alteration of the Comprehensive Special Business Plan
In January 2014, the national government approved the New Comprehensive Special Business Plan, which incorporates nuclear damage compensation by the entirety of the Tokyo Electric Power Company Group, implementation of Fukushima reconstruction initiatives through such means as a project to dispatch 100,000 working staff members, and measures for the stable restoration
and decommissioning of damaged reactors. As of May 2014, TEPCO has paid a total of approximately 3.8 trillion yen in compensation.
21

Part1 Chapter 2 The Great East Japan Earthquake and the Review of Japan’s Energy Policies
Section 1 Responses to the Great East Japan Earthquake and TEPCO’s Fukushima Nuclear Accident
(3) Assistance for Nuclear Disaster Victims
(i) Measures to ensure returnees’ safety and security
The Cabinet Decision entitled “For Accelerating the Reconstruction of Fukushima after the Nuclear Disaster” (December 2013)
specifies comprehensive and multilayered measures to support residents’ voluntary activities.
(ii) Decontamination
Based on the plan for decontamination of special areas, decontamination work has been completed in four out of ten cities and
municipalities (as of March 2014). Regarding areas in which municipalities are to take the initiative in decontamination work, 94 municipalities
in eight prefectures established implementation plans and have carried out decontamination (as of March 2014).
(iii) Fukushima International Research Industry Hub Scheme Workshop (“Fukushima Innovation Coast” Scheme Workshop)
The Fukushima International Research Industry Hub Scheme Workshop was established to discuss the possibility of local economies,
research and development necessary for the decommissioning, and the creation of new industry and job opportunities for the purpose of
building industrial clusters and reconstructing industrial infrastructure in the Hamadori area of Fukushima.
(4) Nuclear regulation
(i) Initiatives to restore the public trust in nuclear regulation administration
In March 2014, the Japan Nuclear Energy Safety Organization was integrated with the Nuclear Regulation Authority to enhance the
expertise of the latter. The number of officials increased from 473 (in March 2013) to 1,025 (in March 2014).
(ii) Review of the regulatory standards based on the Nuclear Reactor, etc. Regulation Act and compliance examinations
New regulatory standards for nuclear reactors were established and enacted in July 2013, together with strengthened measures to be taken
in the event of severe accidents and the introduction of a system incorporating the latest technical knowledge. Compliance with the
new regulatory standards is mandatory for both newly constructed and existing facilities (backfitting).
Compliance examinations based on the new regulatory standards for nuclear reactors have commenced, and applications have been filed by
10 nuclear entities for 17 plants.
(*)
* On May 20, 2014, the Japan Atomic Power Company filed an application for verification of compliance with the new regulatory
standards for its Tokai No. 2 Power Station with the Nuclear Regulation Authority. This means that as of May 21, 2014, applications had
been filed by 11 nuclear entities for 18 plants.
(iii) Crisis management (emergency response initiatives)
In October 2013, the national government, nuclear business operators, and local communities jointly conducted the Comprehensive
Nuclear Emergency Drill, targeting the Sendai Nuclear Power Station.
22

Part1 Chapter 2 The Great East Japan Earthquake and the Review of Japan’s Energy Policies
Section 2 Key Energy-Related Measures Taken After the Great East Japan Earthquake and TEPCO’s Fukushima Nuclear Accident
(1) Comprehensive policy with the goal of securing a stable supply of resources
(i) Reinforcement of relations with resource-supplying nations and promotion of participation in upstream projects
・ In light of the urgent need to reduce fuel costs, the Immediate Action Plan for Fuel Cost Reduction was compiled in April 2013.
・
As a result of resource diplomacy led by the Prime Minister, all LNG projects, involving Japanese firms obtained approval from the U.S. government.
・
Relations with resource-supplying nations in Africa have been reinforced through the Japan-Africa Ministerial Meeting for
Resources Development and TICAD V, held in May and June 2013, respectively.
・
The national government offers support by providing funding for highly profitable but highly risky projects through the Japan Oil, Gas
and Metals National Corporation (JOGMEC), for projects such as the shale gas project in Canada.
(ii) Promotion of development of domestic resources
・ Based on the “Basic Plan on Ocean Policy” (April 2013 Cabinet decision), the Plan for the Development of Marine Energy and
Mineral Resources was revised in December 2013.
・ Regarding the deep methane hydrate, the results of the methane hydrate gas production experiment at sea conducted in March 2013 were
analyzed and efforts have been made to address technical challenges, such as a means for long-term stable production. Regarding the shallow
methane hydrate, a wide-area survey to assess the reserve amount was commenced in FY2013 and 225 locations where this type of
methane hydrate is likely to exist were confirmed off the coast of Joetsu and the west of Noto Peninsula.
(2) Realization of an advanced energy-conserving society
The tight electricity supply after the Great East Japan Earthquake taught us the significance of promoting energy conservation measures to maintain balance between supply and demand, such as measures to handle peak electricity demand, and energy conservation measures targeting the consumer (commercial and residential) sector in which energy consumption is increasing rapidly. Against this background, the Act on the
Rational Use of Energy was revised in May 2013 to add the following.
(i) Introduction of the Top Runner Program for construction materials
The coverage of the Top Runner Program was expanded to include construction materials (insulation materials, windows, etc.) capable
of contributing to improving energy conservation by buildings to promote energy conservation in buildings and houses where significant
energy conservation effects are expected.
(ii) Introduction of a system to facilitate demand side measures to handle peak electricity demand
A system was put in place to enable proper evaluation under the Act on the Rational Use of Energy of measures taken on the demand side
to handle peak electricity demand, such as the utilization of storage batteries or the Building Energy Management System (BEMS), in
addition to conventional energy saving measures.
23

Part1 Chapter 2 The Great East Japan Earthquake and the Review of Japan’s Energy Policies
Section 2 Key Energy-related Measures Taken After the Great East Japan Earthquake and TEPCO’s Fukushima Nuclear Accident
(3) Acceleration of the introduction of renewable energy:
(i) Use of renewable energy in FY2013
The adoption of the feed-in-tariff system in 2012 facilitated a steady introduction of renewable energy, and renewable energy
equipment generating a total of 6.381 million kW (up 29% from the previous fiscal year) had begun operating by the end of
February 2014. The charge under the FY2013 feed-in-tariff system was 0.40 yen/kWh, totaling 350 billion yen.
(ii) Developments and conclusion of the deliberations on the FY2014 procurement price by the Procurement Price Calculation Committee
Regarding photovoltaic power generation, the procurement price for FY2014 for the non-residential sector was reduced from 36 yen/kWh
to 32 yen/kWh to reflect a decrease in system costs (solar panels, power conditioners, etc.), and the procurement price for the residential
sector was also reduced by one yen to 37 yen/kWh. As offshore wind power generation is more costly than onshore wind power generation
and has inherent risks, the purchase price for offshore wind power generation was newly determined to be 36 yen/kWh (before tax).
(iii) Establishment of the Renewable Energy Ministerial Meeting
The Renewable Energy Ministerial Meeting was established to strengthen the national government’s “conning tower” functions and
promote collaboration between the relevant ministries and agencies. The first meeting was held on April 11, 2014.
(4) Re-establishment of the nuclear energy policy
(i) Final disposal
・
The Radioactive Wastes WG was established in May 2013 to discuss initiatives for the final disposal of high-level radioactive waste, and
the Geological Disposal Technology WG was established in October 2013 to verify and reevaluate the technological reliability of
geological disposal. In addition, the Final Disposal Ministerial Meeting was held in December 2013. As a result, it was decided the national government would lead initiatives to promote the disposal of high-level radioactive waste.
・
The national government is committed to resolving the problem of the final disposal of high-level radioactive waste to avoid leaving
the burden to future generations. While promoting efforts assuming geological disposal, the government will secure reversibility and
retrievability so that future generations will be able to select the best disposal method if a better solution is found in the future.
Additionally, the government will seek understanding on the site selection by suggesting locations that are scientifically considered to be
better suited.
(ii) To ensure continued voluntary nuclear safety improvement efforts
At meetings of the WG on Voluntary Efforts & Continuous Improvement of Nuclear Safety held from July 2013 to March 2014,
discussions were held regarding continued voluntary nuclear safety improvement efforts. The WG compiled its recommendations, stating
that correct understanding of accident risks and implementation of necessary countermeasures must be the top managerial issues for the
nuclear business and the establishment of a risk management system to enable such actions should be the basic premise for operating a
nuclear business.
* See Part 1, Chapter 2, Section 1 (pp. 21–22) for other matters concerning the re-establishment of the nuclear energy policy. 24

Part1 Chapter 2 The Great East Japan Earthquake and the Review of Japan’s Energy Policies
Section 2 Key Energy-related Measures Taken After the Great East Japan Earthquake and TEPCO’s Fukushima Nuclear Accident
(5) Environmental arrangement for efficient and stable use of fossil fuels
(i) Improvement of power generation efficiency
The national government is promoting technological development aimed at achieving world leadership in power generation
efficiency (advanced ultra-supercritical power generation technology, coal gasification cogeneration, etc.) with due consideration for
the environment.
(ii) Bid tendering required in principle for new construction, expansion or replacement of power sources
Based on discussions by the WG on Tendering Systems of Thermal Power Supply, which was established in 2012, the Guidelines for
the Operation of New Thermal Power Supply Tendering Systems were revised to improve the efficiency and transparency of
tendering procedures.
(iii) Expediting and clarifying environmental assessments
The required period for an environmental assessment for the replacement of a power source was reduced by around one year,
and environmental assessments for new construction or expansion of power sources are also carried out in such a way as to reduce
the required period.
(6) Promotion of reforms in the supply structure
(i) Electricity system reform
Electricity system reform has been promoted as a three stage process aimed at achieving three purposes: the securing of a
stable electricity supply, suppressing electricity rates to the maximum extent possible, and the expansion of customer options and business opportunities.
The amended Electricity Business Act was enacted at the 185th extraordinary session of the Diet. The revision specifies measures necessary for the expansion of the cross-regional coordination of transmission operators, first stage of the reforms, and roadmap related to electricity system reform that are to be achieved by 2020.
A bill for the Act for Partial Revision of the Electricity Business Act that specifies measures necessary for the full retail competition, the second stage of the reforms, was submitted to the 186th ordinary session of the Diet.
(ii) Gas system reform
In November 2013, the Gas System Reform Subcommittee was established under the Strategic Policy Committee of the
Advisory Committee for Natural Resources and Energy with the goal of building a gas system that ensures a low-cost, safe, and
stable supply of gas and of presenting various options, including new services, to customers.
The Subcommittee had held six meetings by March 2014 and obtained the opinions of gas companies on such topics as the expansion
of the liberalization of the retail business, and improvement of access to and promotion of the development of supply infrastructure.
25

Part1 Chapter 2 The Great East Japan Earthquake and the Review of Japan’s Energy Policies
Section 2 Key Energy-related Measures Taken After the Great East Japan Earthquake and TEPCO’s Fukushima Nuclear Accident
(7) Enhancement of resilience of the domestic energy supply networks
The national government will take measures with regard to both software and hardware in an effort to minimize damage in the event
of a large-scale disaster and achieve early restoration of oil and LPG supplies.
(i) Initiatives to strengthen the hardware side
・ Assistance in strengthening the disaster response capabilities of oil supply bases and increasing the national stockpile of
petroleum products (introduction of emergency generators, etc. at refineries and core service stations, reinforcement of
shipping facilities for petroleum products against earthquakes and countermeasures against tsunamis, etc.)
・ Deployment of mobile power generator vehicles to LPG import bases and secondary bases and development of core LPG
stations, etc. (to supply LPG locally in the event of a disaster)
(ii) Initiatives on the software side
・
The Cabinet Office and oil companies jointly conducted a drill concerning the Oil Supply Coordination Plan in Case of a
Disaster (prepared by oil companies based on the Oil Stockpiling Act) (June 2013).
(8) Other
(i) Examination of electricity rate increases
Power companies’ applications for electricity rate increases in the regulatory sector are strictly examined during a neutral and objective review
by the Expert Committee on Reviewing Electricity Rates to determine whether said power companies made their utmost efforts to
streamline operations before filing applications.
<Applications for electricity rate increases filed by power companies (FY2013)>
Tohoku (application for an increase of 11.41% in February 2013; approval of an increase of 8.94% in August 2013; implementation on
September 1, 2013); Shikoku (application for an increase of 10.94% in February 2013; approval of an increase of 7.80% in
August 2013; implementation on September 1, 2013); Hokkaido (application for an increase of 10.20% in April 2013; approval of an increase
of 7.73% in August 2013; implementation on September 1, 2013); Chubu (application for an increase of 4.95% in October 2013; approval of
an increase of 3.77% in April 2014; implementation on May 1, 2014)
(ii) Electricity supply and demand measures
Although all power companies expected that they would be able to ensure capability margins exceeding 3% during the summer of FY2013,
nine power companies, excluding the Okinawa Electric Power Company, took such measures as requesting power conservation without
a numerical target in preparation for possible tight electricity supplies in the event of a large-scale power outage.
All power companies also expected that they would be able to ensure capability margins exceeding 3% during the winter of FY2013, but
there were risks of unexpected blackouts or constraints in power interchanges. Therefore, nine power companies, excluding the Okinawa
Electric Power Company, took such measures as requesting power conservation without a numerical target in preparation for a tight
electricity supply. The Hokkaido Electric Power Company further requested power conservation in its service area with a numerical target of
a decrease of 6% or more from the level in FY2010. 26

Examples of Column Topics
Steps toward realization of a hydrogen society (1)
Expansion of the introduction of stationery fuel cells
A stationary fuel cell generates electricity using hydrogen extracted from town gas and LPG and utilizes the heat generated in that process to heat rooms and supply hot water. The device is one of the best distributed energy systems available due to its high energy efficiency and contributes to effective energy conservation and reduction of CO
2
emissions.
○
Fuel cells for residential use (Ene-Farm)
Dissemination and performance upgrades
Ene-Farm, the first fuel cell for domestic use in the world, was launched in 2009 and achieves in excess of 90% energy efficiency by effectively utilizing electricity and heat generated in the process of power generation. Various efforts have been made to achieve the goal of introducing 5.3 million units by 2030, and overseas business expansion commenced in April 2014.
○ Fuel cells for business and industrial use
Fuel cells for residential use
(Ene-Farm)
Development and demonstration
Development of large fuel cells to be used at tertiary industry offices and primary and secondary industries’ facilities have also been promoted, utilizing technology developed during the process of developing fuel cells for residential use.
Demonstration of commercialization is now underway and products will be brought to market within several years.
Fuel cells for business use (Mitsubishi
Hitachi Power Systems, Ltd.)
Steps toward realization of a hydrogen society (2)
Efforts to bring about the most rapid dissemination of fuel cell vehicles in the world
Fuel cell vehicles, which are scheduled to be launched in 2015, are promising nextgeneration vehicles that will contribute to the improvement of energy security and reduction of environmental loads with their long ranges and shorter fill times, in addition to offering the same performance as existing gasoline-fueled vehicles.
○
Launch of fuel cell vehicles and development of hydrogen refueling stations
Development and ― demonstration
Dissemination and performance upgrades
Japanese auto manufacturers have been unveiling their respective concept cars and accelerating their preparations for the launch of their fuel cell vehicle models in
2015. The development of hydrogen refueling stations to supply hydrogen fuel also began in FY2013 ahead of the launch of the fuel cell vehicles.
Concept cars unveiled (from left, Toyota’s, Honda’s, and Nissan’s concept car)
○
Expansion of usage
Development and demonstration
The development of fuel cell buses and forklifts is also underway utilizing fuel cell technologies used for fuel cell vehicles. The 2020 Tokyo
Olympic and Paralympic Games are the best opportunity to show the potential of hydrogen energy, and efforts will be steadily promoted to take advantage of this opportunity.
Fuel cell bus
Fuel cell forklift 27

Examples of Column Topics
Steps toward realization of a hydrogen society (3)
Expectations for hydrogen power generation
The use of hydrogen energy is expected to expand to hydrogen power generation, not only limited to fuel cells for domestic use, which were launched in advance of the rest of the world in 2009, and fuel cell vehicles scheduled to be launched in 2015. To achieve this, technological development is being promoted in various ways to ensure a massive supply of hydrogen at low cost.
○ Development of hydrogen storage and transportation technologies
Organic chemical hydride method
Applied research
―
Development and demonstration
Technology to harness the reaction between hydrogen and toluene, thereby enabling storage and transportation of hydrogen in a liquid state at normal temperature and pressure
Hydrogen liquefaction method
Applied research
― Development and demonstration
Organic chemical hydride method demonstration plant
Technology to liquefy hydrogen at cryogenic temperatures, thereby enabling storage and transportation of hydrogen in a liquid state Artist’s rendering of a liquefied hydrogen carrier
Offshore wind power generation
Floating offshore wind power generation off the coast of Fukushima prefecture
Development and demonstration
At present, a demonstration research project regarding a large floating offshore wind power generation system is ongoing off the coast of Fukushima Prefecture .
This project aims to build a safe, reliable and highly economical floating offshore wind power generation system suited to Japan’s weather and hydrographic conditions and find means of coexisting with the fisheries industry, thereby creating the world’s first floating offshore wind farm.
○ Progress so far
In November 2013, as the first stage of the construction work, one 2 MW floating offshore wind power generation equipment unit and a floating offshore substation
(transformer unit) were installed and demonstration operations commenced (approx. 20 km off the coast of Fukushima
Prefecture).
○ Future plans
In the second stage of construction work, two 7 MW floating offshore wind power generation equipment units, which will be the largest in the world with a diameter of 160 meters, are scheduled to be installed by FY2015.
Floating offshore substation (transformer unit)
2 MW floating offshore wind power generation equipment
28

Examples of Column Topics
Development of biomass fuel production
○ Development of production technologies for algae-derived fuels
Basic ― Applied
High expectations are placed on research research industrial production of liquid fuel utilizing algae as a new raw material, free from competition with food production.
At present, a large-scale culturing experiment is underway utilizing a complete aeration process under outdoor sunlight. Efforts will be continued to achieve mass production of algae-derived fuels using less energy at low cost in the future.
Cultures
○ Production of bio jet fuel using wood-based biomass
Applied research
―
Development and demonstration
Technological development for the production of liquid fuel using biomass has been promoted, with the aim of building a low-cost production process for bio jet fuel through the combined development of gasification furnaces for biomass burning and catalysts suited to jet fuel synthesis.
バイオジェット燃料製造装置
Regional efforts utilizing waste oil
Development of biodiesel fuels using waste oil and dissemination thereof
Biodiesel fuels that can be produced from a wide range of raw materials, such as waste oil and rape seeds, are expected to be utilized as locally produced recyclable energy for local consumption.
○ Efforts of Obihiro city in
Hokkaido
Development and demonstration
― Dissemination and performance upgrades
Obihiro City in Hokkaido has been engaged in a biodiesel production project, seeking to develop distribution infrastructure and ensure distribution routes for raw materials
(waste oil) and products (biodiesel), with the assistance of the national government.
The city set the following numerical targets for distribution of biodiesel-fuel-blended light oil (B5 light oil)
－ Performance in 2012: Approx. 800kL
－ Target for 2015: 5,000kL
－ Target for 2020: 20,000kL
The city has been making serious efforts to increase the amounts collected by introducing large waste oil collection
Waste oil collection base vehicles and installing bases for collection of small amounts in various locations.
Fuel pump solely for biodiesel fuel (B5 light oil) (left)
29

Development of innovative storage batteries
Development of innovative storage batteries
Lithium-ion batteries are widely utilized in smartphones, tablet computers, electric vehicles, etc. but have performance limitations in terms of energy density and durability. Therefore, development of innovative storage battery technologies beyond the extension of conventional ones will be furthered with the aim of applying said technologies to electric vehicles in the future to achieve a range equivalent to that of gasoline-fueled vehicles.
○ Experimental research at the SPring-8 and J-PARC
Basic research
As a result of experiments at the SPring-8, the world’s top performance synchrotron radiation facility, and the Japan Proton
Accelerator Research Complex (J-PARC) conducted to understand the basic principle of electrochemical reactions in storage batteries, Japan has become the first country in the world to observe changes in the crystalline structures of electrode materials.
Based on this knowledge, efforts will continue to be made to develop innovative storage batteries by 2030.
Synchrotron radiation beam line (SPring-8)
Neutron beam line (J-PARC)
Examples of Column Topics
Utilization of large storage batteries for the operation of power grids
Demonstration project using large storage batteries to be installed at substations in Hokkaido and the Tohoku Region
Development and demonstration
Japan has the world’s most advanced large storage battery technologies.
Strategic utilization of such technologies may make it possible to absorb power variations inherent to photovoltaic and wind power generation. A demonstration project commenced in FY2013 to thoroughly verify the possible expansion of the feasible amount of renewable energy by utilizing the world’s largest storage batteries at power companies’ substations in power grids.
○ In Hokkaido, a 60,000 kWh-level storage battery (redox flow battery) will be installed at the Minamihayakita Substation.
○ In the Tohoku region, a 20,000 kWh-level storage battery (lithium-ion battery) will be installed at the Nishisendai Substation.
Cell stack
Electrolyte tank
Large storage battery to be installed at a substation in Hokkaido
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