The Battle for Japan’s Energy Supply

By: Elizabeth Cutright

Last year, the devastating earthquake and tsunami that struck Japan resulted in the shutdown of the Fukushima Daiichi nuclear plant and a forced reduction in the nation’s overall energy use. Now, one year later, extreme energy efficiency is still the modus operandi, and many of Japan’s businesses and commercial interests are chafing under the strict use regulations.

With only two nuclear power plants in operation—out of the country’s 50 total plants—Japan’s energy sector is struggling to meet demand. Fossil imports have risen to record levels, but are not nearly enough to supply energy to the nations’ industrial and manufacturing facilities. Many fear that continued curtailment of energy resources could sabotage the world’s third largest economy.

A recent article in the Washington Post paints a detailed picture of what extreme energy efficiency looks like on the factory floor. Among the current hardships being faced by Japan’s commercial sector:

* In office buildings throughout the country, the new indoor room temperature standard is a balmy 82-degrees.
* Facilities keep their lights dimmed and their printers and other equipment turned off when not in use.
* When usage spikes, companies turn off the AC and even ask workers to pause their activities.
* Large manufacturers, like Panasonic and Nippon, have switched employee workweeks or mandated paid vacation in order to avoid peak hours.
* Onsite energy—like the 200 kVa generator in use at the Nichiryo factory—is picking up the slack, but at two to four times the cost of utility supplied electricity.

According to the Washington Post article, many Japanese companies are beginning to rebel against stringent energy efficiency measures. While the post-earthquake/tsunami landscape made extreme energy efficiency a necessity, many businesses are frustrated at what they see as government ineptitude and a failure to plan for the country’s energy future.

But the Japanese public is firmly behind the government’s decision to reduce dependence on nuclear energy. As the Washington Post reports, at public hearings held through the country, an overwhelming majority of citizens—70%—favored a complete elimination of nuclear power from Japan’s energy supply by 2030. The other two options being explored by the Japanese government still keep nuclear energy below 25% of the nation’s total energy supply (15–20% and 25%, respectively) by 2030. 

But moving away from nuclear energy does not come without ramifications, including increased dependence on fossil fuels and severely economic impacts. As the Washington Post reports, “A nuclear Japan, according to December 2011 projections from Tokyo-based Institute of Energy Economics, would have a GDP in 2012 roughly two points higher than a non-nuclear one, and experts say the difference could be even greater if oil prices spike.”

And unfortunately, extreme energy efficiency cannot completely bridge the gap between energy supply and power demands. While the energy savings protocols are not mandatory, the companies or ignore them risk losing power due to blackouts if demand exceeds the utilities capacity. Adding complication to the issue is the uncertainty surrounding the length of the energy austerity measures. And while continued investment in energy efficiency retrofits could help reduce demand while allowing facilities to do more with less, most businesses are reluctant to commit to additional capital expenditures.

So what do you think? Could energy efficiency impact demand enough to allow Japan to forgo—or greatly diminish its dependence on—nuclear power? Could increased investment in energy efficiency technologies help ease some of the pain for businesses struggling to operate under extreme energy austerity? And what lessons can the US learn by watching Japan struggle and adapt to an energy landscape where nuclear power is no longer seen as a safe and reliable energy source in light of our country’s dependence on fossil fuels?



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