Page 8 - AsiaElec Annual Review 2021

AsiaElec MARCH AsiaElec

Japan needs hydrogen, innovation

and market reforms

Japan needs totake quick action now if it is to build on its recent success in making its
energy system more resilient and sustainable and achieve its 2050 net-zero goals

JAPAN JAPAN needs to move quickly if it is to have any achieve a true level playing field for all market
hope of cutting emissions sufficiently to meet its participants.
WHAT: self-declared target of carbon-neutrality by 2050. Additional regulatory reforms will be impor-
Innovation, investment The International Energy Agency (IEA) tant to encourage investments in zero-emissions
and hydrogen are key to warned in its recent review of Japan’s energy sec- electricity and to improve power system flexibil-
Japan’s green future tor that despite major reforms since the Fukus- ity, the report warned.
hima disaster in 2011, fossil fuels still provided The IEA was keen to stress that the market
WHY: 88% of its energy. The country is still among regulator must be strong and independent and
Tokyo is starting from a the most carbon-intensive economies of IEA not be influenced by the government or the
poor position, with 88% members. country’s powerful state-owned utilities.
of energy consumption The report highlighted that Japan had made However, all this could be held back by grid
still being met by fossil real progress towards zero emissions, and was constraints. The country needs to improve the
fuels developing an efficient, resilient and sustainable operational efficiency of the electricity system in
energy system. order to connect more green capacity.
WHAT NEXT: Energy-related CO2 emissions have fallen A recent cold snap in January showed how
Tokyo must quickly continuously since their peak in 2013, thanks low the country’s reserve margins were, espe-
implement its energy to the expansion of renewable energy, a partial cially as regional interconnections were weak.
plans, and set out, and in nuclear restart and energy efficiency gains. By The IEA welcomes the government’s recent
future adjust, clear road 2018, Japan’s emissions had declined to a level announcement to phase out inefficient coal
maps to achieve the 2050 last seen in 2009. plants by 2030. This will further improve the
goals “Japan needs to accelerate the deployment already high efficiency of Japan’s thermal power
of low-carbon technologies, remove regula- fleet.
tory barriers and increase competition in its However, Japan is still building its final gen-
energy markets if it is to reach carbon-neutral- eration of new coal plants, and IEA has urged
ity by 2050,” said Fatih Birol, the IEA’s executive Tokyo to retrofit and repurpose coal plants to
director. other fuels.

Reforms Hydrogen
The report found that Japan had made important The IEA report praised Japan’s strong innovation
strides in reforming its domestic electricity and and technology base, especially for hydrogen.
natural gas markets. Increasing competition was The latter can play a vital role in developing the
encouraging, but further reforms are needed to technologies needed to achieve its 2050 energy

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