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					            L ist of W ebsites of E nergy-related O rganizations

                                 Japanese Public Agencies
Agency for Natural Resources and Energy ÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅc
Ministry of Economy, Trade and Industry ÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅc
Nuclear and Industrial Safety Agency ÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅc
Atomic Energy Commission ÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅc
Nuclear Safety Commission of Japan ÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅc
Ministry of Education, Culture, Sports, Science and Technology ÅcÅcÅcÅcÅc
Ministry of the Environment ÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅc

                              Energy-related Organizations
General energy related organizations
The Institute of Energy Economics, Japan ÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅc
The Institute of Applied EnergyÅ@
The Information Center for Energy and Environment Education* ÅcÅcÅcÅcÅc
Energy conservation and alternative energy related organizations
New Energy and Industrial Technology Development Organization (NEDO)Åc
New Energy Foundation ÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅc
The Energy Conservation Center, Japan ÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅc
Oil-related organizations
Japan National Oil Corporation ÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅc
Petroleum Association of JapanÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅc
Coal and mineral resources-related organizations
Center for Coal Utilization, Japan ÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅc
Japan Coal Energy Center (JCOAL)ÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅc
Metal Mining Agency of Japan ÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅc
Nuclear power-related organizations
Nuclear Power Information NAVI*ÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅc
Nuclear Power Engineering CorporationÅ@
Japan Atomic Industrial Forum, Inc. ÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅc
Electricity and gas-related organizations
The Federation of Electric Power Companies of Japan*ÅcÅcÅcÅcÅcÅcÅcÅcÅcÅc
Electric Power Development Co., LTD.ÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅc
Central Research Institute of Electric Power Industry ÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅc
Japan Electrical Safety & Environment Technology Laboratories / JETÅcÅcÅc
The Japan Gas Association ÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅc
Japan Community Gas Association*ÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅcÅc
The Center for Promotion of Natural Gas*

                              *Asterisked websites are available in Japanese only.
             If you have any questions regarding this brochure, please contact the following division.

    Communications Office, Agency for Natural Resources and Energy,
               Ministry of Economy, Trade and Industry
            1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8931 TEL: 03-3501-1511 (switch board)
                                                                                                                               Agency of Natural Resources and Energy,
                                                                                                         100% recycled paper   Ministry of Economy, Trade and Industry
Energy in Japan

  1 Energy Demand in Japan

  2 Energy Supply in Japan

  3 Status of Energy in Japan
    The Fundamentals of
  4 Japanese Energy Policy

  5 Energy Conservation

                                          ..... ....

  6 New Energies
    Nuclear Power Generation and
  7 the Nuclear Fuel Cycle

  8 Natural Gas

  9 Coal

  10 Oi l

     Data Sheet
                           E nergy in J apan
    1                                                                                                                                                                                                                                                                                                                                                                                                                                                                    1

                            1 Energy Demand in Japan
Energy Demand in Japan

                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Energy Demand in Japan
                                                                                                                                                                                                                                       The two energy crises of the 1970s were turning points which saw
                                                                                                                                                                                                                                       Japan achieve considerable success in energy conservation. However,
                                            —Trends in Energy Use in Japan —                                                                                                                                                           more recently increased comfort and convenience in the lifestyles of the
                                                                                                                                                                                                                                       nation’s citizens have increased the demand for energy.
                                                                                                                                                                                                                                       After World War II, Japan set about reconstructing                                                                        commercial/residential sector (Figure 1-3). Energy
                                                                                                                                        The first oil crisis
                                                                                                                                                                                                                                       its economy. During the almost two decades of high                                                                        demand has also increased in the transport sector,
                                                                                                                                        Long queues formed at gas stations
                                                                                                                                        during the 1973 kerosene shortage                                          2000                economic growth between the 1950s and the 1970s,                                                                          with a higher rate of vehicle ownership and a
                                                                                                                                                                                                                                       the nation’s demand for energy increased                                                                                  decline in actual fuel economy (due in part to an
                                                                                                                                                                                                                                       continuously (Figure 1-1).                                                                                                increase in the number of new vehicles with large
                                                                                                                                                                                                                                                                                                                                                                 displacement engines being marketed).
                                                                                                                                                                                                                                       The two oil crises of the 1970s were severe shocks
                                                                                                                                                                                 1990                                                  to the Japanese economy, and brought the period of
                                                                                                                                                                                                                                       high economic growth to an end. The nation’s
                                                                                                                                                                                                                                                                                                                                                                 The industrial sector has succeeded in conserving energy
                                                                                                                                                                                                                                                                                                                                                                  (Figure 1-2) Trends in energy intensity
                                                                                                                                                                                                                                       industries henceforward proceeded seriously with                                                                           in the manufacturing industries
                                                                                                                                                                                                                                       the implementation of energy conservation                                                                                   (FY1973 = 100)
                                                                                                                                                                                                                                       measures, such as finding ways to use energy more
                                                                                                                                                                                                                                       effectively. These efforts were an enormous success,                                                                        110
                                                                                                                                                                                                                                       reducing energy intensity (energy consumption per
                                                      1970                                                                                 1980                                                                                        unit of production output) (Figure 1-2).

                                                                                                                                                                                                                                       Development of energy-conserving appliances                                                                                   90
                                                                                                                                                                                                                                       advanced simultaneously, and they progressively
                                                                                                                                                                                                                                       found their way into Japanese homes. The result
                            1960                                                                                                                                                                                                       was the continuation of economic growth without a                                                                             70
                                                                                                                                                                                                                                       consequent increase in the demand for energy.

                                                                                                                                                                                                                                       In the latter half of the 1980s, against a background                                                                         50
                                                                                                                                                                                                                                       of falling oil prices, lifestyle changes and an
                                                                                                                                                                                                                                       increased concern for comfort and convenience                                                                                 40
                                                                                                                                                                                                                                                                                                                                                                          73 75                80       85           90            95             00 01 (FY)
                         1950                                                                                                                                                                                                          among Japanese citizens, the demand for energy
                                                                                                                                                                                                                                       began once again to increase. More widespread use
                                                                                                                                                                                                                                                                                                                                                                   Note 1: Energy intensity is calculated as the final energy consumption per unit of
                                                                                                                                                                                                                                                                                                                                                                           production output for manufacturing industry IIP (value added-weighted), with
                                                                                                                                                                                                                                                                                                                                                                           FY1973 representing 100.

                                           Inauguration ceremony of the Tokaido Shinkansen
                                                                                                                                                                                                                                       of electrical appliances and the increased size and                                                                         Note 2: Although they are not shown on this graph, manufacturing industries also employ
                                                                                                                                                                                                                                                                                                                                                                           energy conservation measures such as waste heat recovery.
                                           (Tokyo Station, July 1964)                                                                                                                                                                  sophistication of these appliances have seen                                                                                Note 3: Before FY1989, a different method of formulating statistics was employed.
                                                                                                                                                                                                                                                                                                                                                                                                  Source: General Energy Statistics (Energy Balance Table) /

                            Energy consumption in Japan has increased in the commercial/residential and transport sectors
                                                                                                                                                                                                                                       significant increases in the demand for energy in the                                                                                                                Industrial Production Indices

                                 (Figure 1-1) Trends in energy consumption in Japan
                                                                                                                                                                                                                                       The demand for more comfortable lifestyles is increasing household electricity consumption
                                 (Million kl crude oil equivalent)                                                                                                                  (Trillion yen)
                                                                                                                                                                                          600                                           (Figure 1-3) Trends in home electricity consumption by appliance
                                                                                                                                                                                                                                        (Billion kWh)                                                                                                        More than one
                                 400                                                                                                                                                        Increase in energy                                                                                                                                               air conditioner/
                                                                                                                                                                                                                                                  200                                                                                                        household
                                                                   Gross Domestic Product (Right-hand scale)                                                                            500 consumption (1973-2001)                                                                                                                                                                                          Total: 193.1 billion kWh
                                  Å@                                                                                                                                                                                                                                                                                                    More than 50% of
                                                                         First oil crisis        Second oil crisis                               Transport sector                                 2.2 times                                                                                                                             households own
                                                                                                                                                          Automobiles, rail,                                                                                                         More than one                                                                                                           Other appliances: 42.9 billion kWh (22.2%)
                                                                                                                                                                                                                                                                                     refrigerator/household                             a microwave oven
                                 300                                                                                                                  shipping, aviation, etc.          400
                                                                                                                                                                                                                                            Electricity consumption
                                                                                                                                                                                                                                                                      150                                              More than 50% of
                                                                                                                                                                                                                                                                                                                       households own
                                                                                                                                      Commercial/residential                                      2.3 times                                                                                                            two color televisions                                                                 Refrigerators: 31.9 billion kWh (16.5%)
                                                                                                                                                     sector                             300
                                                                                                                                                                                                                                                                                                         More than 50% of
                                 200                                                                                           Homes, stores, commercial buildings, etc.                                                                                                                                 households
                                                                                                                                                                                                                                                                                                         own an air
                                                                                                                                                                                                                                                                      100                                conditioner                                                                                         Lighting: 30.5 billion kWh (15.8%)
                                                                                                                                                                                                                                                                                                                                                                                                             Combined heating and cooling systems:
                                                                                                                                                 Industrial sector                                1.0 times                                                                                                                                                                                                  26.8 billion kWh (13.9%)
                                                                                                                                                             Factories, etc.
                                                                                                                                                                                        100                                                                                                                                                                                                                  Air conditioners: 20.3 billion kWh (10.5%)
                                                                                                                                                                                                                                                                                                                                                                                                                  Televisions: 18.5 billion kWh (9.6%)
                                                                                                                                                                                                                                                                                                                                                                                                                  Electric carpets: 7.7 billion kWh (4.0%)
                                   0                                                                                                                                                    0                                                                                                                                                                                                                         Toilets with “washlets”: 6.8 billion kWh (3.5%)
                                    1965               1970                1975                1980                  1985             1990                  1995                 2000 2001 (FY)                                                                                                                                                                                                                   Clothes dryers: 5.2 billion kWh (2.7%)
                                                                                                                                                                                                                                                                         0                                                                                                                                        Dishwashers/dryers: 2.5 billion kWh (1.3%)
                             Note 1: Crude oil equivalent is a figure generated by converting units of different energy sources (coal, natural gas,                                                                                                                      1972         1975                  1980                  1985                   1990                   1995                2000 2001(FY)
                                     etc.) to the amount of crude oil producing the same amount of energy.                                                                Source: General Energy Statistics (Energy Balance Table) /
                             Note 2: Before FY1989 (FY1979 in the case of GDP), a different method was used to formulate statistics.                                                                                                                                  Note: Electricity consumption is calculated on the basis of the metered rate (A/B) charged by nine electric companies.
                                                                                                                                                                                  National Accounts                                                                                                                                                                                                       Source: “Outline of Electricity Supply and Demand”
                                                                                                                                                                                                                                                                            Percentages in brackets are FY2001 estimates.

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                           2 Energy Supply in Japan
Energy Supply in Japan

                                                                                                                                                                                                                                                                                                                                                                                                                    Energy Supply in Japan
                                                                                                                                                                                                                      Before the oil crises, oil supplied approximately 80% of Japan’s energy
                                                                                                                                                                                                                      needs. The introduction of natural gas and nuclear power and the
                                           —Trends in Energy Provision in Japan —                                                                                                                                     increase in coal imports since that period has reduced the nation’s
                                                                                                                                                                                                                      dependence on oil for its energy to its present figure of approximately
                                                                                  Hydro Others                                                                                                                        50%. However, Japan’s energy self-sufficiency stands at a low figure of
                                                                                                                                                                                                                      around 4% (20% if nuclear power is included).

                            Nuclear power                                                                                         Coal
                                                                                                                                                                                                                      As the domestic coal industry lost its
                                                                                                                                                                                                                      competitiveness, oil took the place of coal as the
                                                                                                                                                                                                                                                                                                              now supplies 13% of the nation’s energy needs,
                                                                                                                                                                                                                                                                                                              diversifying the energy sources upon which Japan
                                                                                                                                                                                                                      energy source fuelling Japan’s high economic                                            depends (Figure 2-1).
                                                                                                                                                                                                                      growth. Oil was produced in tremendous quantities
                                                                                                                                                                                                                      during this period, and Japan imported large                                            However, both natural gas and the uranium used in
                                                                                                                                                                                                                      amounts at low costs. In FY1973, oil supplied 77%                                       nuclear power generation are imported from
                                                                                                                                                                                                                      of the nation’s energy requirements.                                                    overseas, and Japan’s energy self-sufficiency is a
                                                                                                                                                                                                                                                                                                              low 4%. Even if uranium is considered as a
                                                                                                                                                                                                                      When the first oil crisis occurred in 1973 after the                                    domestic energy source, given that it can be utilized
                                Natural gas                                                                                                                                                                           outbreak of the fourth Arab-Israeli War, crude oil                                      for some years after importation, energy self-
                                                                                                                                                                                                                      prices soared and supply was threatened with                                            sufficiency increases to only 20%, still a low figure
                                                                                                                                                                                                                      interruptions. To stabilize its energy supply, Japan                                    when compared to other countries (Figure 2-2).
                                                                                                                                                                                                                      endeavored to reduce its dependence on oil through
                                                                                                                                                                                                                      the introduction of nuclear power and natural gas.                                      Electric power is safe, clean, and easy to use, and
                                                                                                                                                                                                                      Crude oil prices once again increased dramatically                                      demand therefore continues to increase. The ratio of
                                                                                                                                                                                                                      during the second oil crisis in 1979, accelerating the                                  electricity consumption to the total primary energy
                                                                                                                                                                                                                      process of introduction of nuclear power and natural                                    supply grew from 25.8% in FY1970 to 41.6% in
                                                                                                                                                                                                                      gas, and propelling the development of alternative                                      FY2001 (Figure 2-1), and this trend is expected to
                                                                                                                                                                                                                      sources of energy.                                                                      increase in strength in the future. The transition
                                                                                                                                                                                                                                                                                                              from the use of oil to nuclear power and natural gas
                                                                                                                                                                                                                      Japan’s present level of oil-dependence is high at                                      in the generation of electricity has made significant
                                                                                                                                                                                                                      49%, but represents a significant improvement over                                      progress, and in FY2002 these were the major
                                                                                                                                                                                                                      the figure of 77% at the time of the first oil crisis.                                  power sources, with nuclear power supplying 31.2%
                                                                                                                                                                                                                      The use of nuclear power and natural gas has                                            and natural gas 26.6% of the nation’s electricity
                                                                                                                Oil                                                                                                   increased to provide alternatives to oil, and each                                      (Figure 2-3).

                                                                                                                                                                                                                      Japan’s energy self-sufficiency is low in comparison                                    The use of nuclear power and natural gas is increasing
                                                                                                                                                                                                                      to other nations                                                                        in the power generation sector
                           The introduction of nuclear power and natural gas has reduced Japan’s dependence on oil
                                                                                                                                                                                                                      (Figure 2-2) Energy self-sufficiency of major countries (2000)                          (Figure 2-3) Trends in power generation
                            (Figure 2-1) Trends in primary energy supply in Japan (By energy source)                                                                                                                                                                                                          (Billion kWh)
                                                                                                                                                                                                                       (%)                                                                                                                                                                 Geothermal and
                                                                                                                                                                                                                                                                                                               1000                                                                        new energies
                              (Million kl crude oil equivalent)                                             Others (Recovery of waste heat, etc.) 1%                      New energies, etc. 1%                        160                                                                      149%                                                                                       0.8%
                            600                                                                                                                                   60%                                                                                                                                                                                                                      Oil, etc. 10.2%
                                                                                                                                                                                 Geothermal energy 0.1%                                                                                                          800
                                                           First oil crisis     Second oil crisis                                                                                                                                                                                    117%
                                                                                                                                                                                                                                                                                                                                                                                           Hydro 9.0%
                                                                                                                                                                                 Hydro 3%                              120
                            500                                                                                                                                                                                                                                                      108%
                                                                                                                                                                                 Nuclear power 13%
                                                                                                                                                                                                                       100                                                                                                                                                                 Coal 22.2%
                                                                                                                                                                                 Natural gas 13%
                            400                                                                                                                                   40%
                                                                                                                                                                                                                        80                                                73%
                                                                                                                                                                                                                                                                          64%                                                                                                              Liquid natural
                                                                                                                                                                                                                        60                                    51Åì%                                              400                                                                       gas (LNG)
                            300                                                                                                                                                                                                                                                                                                                                                            26.6%
                                                                                                                                                                                 Oil 49%                                                            40%
                                                                                                                                                                                                                                        20%                                                                      200
                            200                                                                                                                                   20%                                                          16%
                                                                                                            Change in ratio of electricity consumption                                                                                   4%
                                                                                                                                                                                                                                                               9%                                                                                                                          Nuclear
                                                                                                            to primary energy supply (Right-hand scale)                                                                                                                                                                                                                                    power 31.2%
                            100                                                                                                                                                                                               Italy    Japan Germany France              U.S.        U.K.     Canada                0
                                                                                                                                                                                 Coal 19%                                                                                                                               1970 1975 1980 1985 1990 1995 2002 (FY)
                                                                                                                                                                                                                             Energy self-sufficiency (Including nuclear power)                                 ÅùLNG includes natural gas, fuel cells and methanol.
                                0                                                                                                                              0%                                                            Energy self-sufficiency (Not including nuclear power)                               Oil,
                                                                                                                                                                                                                                                                                                               Åù etc. includes LPG, other gases and bituminous compounds.
                                    1965             1970               1975              1980              1985           1990           1995            2000 2001 (FY)                                                                                                                                       ÅùNew energies refers to energy generated by waste materials, solar power and wind power.
                                                                                                                                                                                                                                                                Figures in excess of 100% indicate exports.    *Figures have been rounded off, and percentages may not total 100.
                                Note: Before FY1989, a different method was used to formulate statistics.                                                  Source: General Energy Statistics (Energy Balance Table)                           Source: IEA/ENERGY BALANCES OF OECD COUNTRIES (1999-2000)                                                          Source: “Outline of Electric Power Development”

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                               3 Status of Energy in Japan
Energy Conditions in Japan

                                                                                                                                                                                                                                                                                                                                                                                             Energy Conditions in Japan
                                                                                                                                                                                                Japan’s efforts towards increase the use of nuclear                                               new oil fields may be discovered in the future, oil
                                                                                                                                                                                                power and natural gas, introduce energy conserva-                                                 must be considered a finite resource (Figure 3-3).
                                                                                                                                                                                                tion measures, and maintain oil reserves have                                                     The consumption of oil is expected to increase more
                                                                                                                                                                                                ensured the stability of the nation’s energy supply,                                              than that of any other resource. This resource is
                               As world demand for energy continues to increase, resource-poor Japan                                                                                            and, on the surface at least, its energy situation
                                                                                                                                                                                                appears calm in comparison to the situation in the
                                                                                                                                                                                                                                                                                                  most abundant in the politically volatile Middle
                                                                                                                                                                                                                                                                                                  East, and future increases in global demand will be
                               faces the possibility of being seriously affected by future changes in the                                                                                       1970s.                                                                                            supplied by large-scale imports from this region,
                               global energy situation. We are also required to reduce emissions of                                                                                                                                                                                               leaving the global energy situation vulnerable to
                                                                                                                                                                                                However, future global economic growth, and                                                       impacts emerging from the regional political
                               CO2 produced by energy consumption in order to prevent global                                                                                                    particularly growth in developing countries such as                                               situation (Figure 3-4, Table 3-1). In addition, the
                               warming. In addition, Japan’s high energy prices must be reduced to                                                                                              China and other Asian nations, is predicted to                                                    dwindling of reserves of oil and natural gas could
                                                                                                                                                                                                dramatically increase demand for fossil fuels (Oil,                                               send energy prices spiraling, and Japan would face
                               enhance the international competitiveness of its industries.                                                                                                     coal and natural gas are all fossil fuels. These fuels                                            potential serious difficulties in securing its energy
                                                                                                                                                                                                were produced by the fossilization of animals and                                                 supply. Japan is poor in resources and remains
                                                                                                                                                                                                plants which died millions of years ago) (Figures 3-                                              dependent on oil and other fossil fuels for the
                                                                                                                                                                                                1 and 3-2). Coal reserves are abundant, but                                                       greater part of its energy supply, and these factors
                                                                                                                                                                                                exploitable oil reserves will only last another 41                                                make the nation extremely sensitive to changes in
                                                                                                                                                                                                years. The figure is 61 years for natural gas. While                                              the global energy situation.

                                                                                                                                                                                                                                                                                                  Global warming, one of the most critical
                                                                                                                                                                                                Energy resources are finite, and oil is the most limited.                                         environmental problems facing the world, must also
                                                                                                                                                                                                (Figure 3-3) Years of future availability of world energy                                         be taken into consideration. Future increases in
                                                                                                                                                                                                resources (2002)                                                                                  temperature and the level of the oceans will have
                                                                                                                                                                                                (Year) 250                                                                                        overwhelmingly grave effects on food supplies and
                                                                                                                                                                    Melting glaciers                                                                      204 years                               living environments. In an attempt to prevent the
                                                                                                                                                                                                                                                                                                  realization of these fears, numerous nations around
                                                                                                                                                                                                        150                                                                                       the world have committed themselves to controlling
                                                                                                                                                                                                                                                                                                  emissions of greenhouse gases by becoming
                                                                                                                                                                                                                                                                             61.1 years
                                                                                                                                                                                                                                                                                                  signatories to the Kyoto Protocol in 1997. Japan has
                                                                                                                                                                                                                                       60.7 years
                                                                                                                                                                                                          50     40.6 years                                                                       made a commitment to reduce its total average
                                                                                                                                                                                                                                                                                                  greenhouse gas emissions by 6% against 1990
                                                                                                                                                                                                                      Oil              Natural gas           Coal              Uranium            levels between 2008 and 2012, and to control its
                                                                                                                                                                                                 Note: Figures for uranium are as of
                                                                                                                                                                                                                                                                                                  CO2 emissions (produced by energy consumption
                                                                                                                                                                                                       Other figures are as of 2002.     Source: BP Statistics 2003 (Oil, natural gas and coal)
                                                                                                                                                                                                                                                 OECD/NEA, IAEA URANIUM 2001 (Uranium)            and accounting for 90% of greenhouse gas
                                                                                                                                                                                                                                                                                                  emissions) to FY1990 levels in FY2010 (Figure 3-
                               Shanghai, in central Eastern China, is developing into                                   Withered forest (Near Fuji Skyline Tollway)
                               a world center of high-tech manufacturing.

                               The increase in world energy demand will center on China and the Asian region more generally                                                                     In the future, demand for fossil fuels such as oil, coal and natural gas will increase globally
                                (Figure 3-1) Forecast for trends in world energy demand by region                Figures in [ ] indicates 2030/2000
                                                                                                                                                                                                (Figure 3-2) Forecasts for trends in world energy demand by fuel                                                         Figures in [ ] show 2030/2000
                                (Billion kl crude 18                                                                                                                                              (Billion kl crude         18                                                                    4%
                                oil equivalent)                                                      164.9       Total [1.7 times]                                                                oil equivalent)                                                                                 2%     164.9      Total [1.7 times]
                                                 16                                                                                                                                                                                                                                               5%                Renewable energy, etc. [2.7 times]
                                                                                                                                                                                                                                                                                                                    Hydro [1.6 times]
                                                                                    142.2                                                                                                                                                                              4%          142.2                            Nuclear power [1.0 times]
                                                 14                                                                                                                                                                         14                                         3%
                                                                                                       47%       OECD [1.3 times]                                                                                                                                                    6%
                                                 12                                                                                                                                                                         12                                                                            28%       Natural gas [2.0 times]

                                                             99.1                   51%
                                                                                                                                                                                                                                              99.1                                  27%
                                                 10                                                                                                                                                                         10
                                                                                                       5%        Middle East [2.0 times]                                                                                               7%
                                                  8                          4%                                                                                                                                              8                                                                            24%       Coal [1.5 times]
                                                                                                       5%        Africa [2.8 times]                                                                                                            23%
                                                             59%                        5%             6%        Central and South America [2.4 times]                                                                                                                              24%
                                                  6                                                                                                                                                                          6
                                                                                        5%             10%       Former Soviet Union [1.5 times]                                                                                               26%
                                                       4%                               11%
                                                  4                                                                                                                                                                          4
                                                                                                       14%       China [2.2 times]                                                                                                                                                                        38%       Oil [1.6 times]
                                                       4%    11%                    13%                                                                                                                                                                                             38%
                                                  2                                                                                                                                                                          2                 39%
                                                             11%                                       13%       Asia (Excluding China) [2.6 times]
                                                  0          9%                                                              Source: Figures have been converted on the basis of the                                        0
                                                                                                                                      IEA/World Energy Outlook 2002
                                                             2000                   2020              2030          (Year)   *Figures for the OECD represent totals for the 30 member nations                                                 2000                                2020                   2030          (Year)          Source: Figures are converted on the basis of
                                                                                                                                                                                                                                                                                                                                               IEA/World Energy Outlook 2002
                                                        (Actual figures)          (Forecast)        (Forecast)               of the Organization for Economic Cooperation and Development                                                (Actual figures)                       (Forecast)             (Forecast)

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                                                                                                                                                                                                                                       4 The Fundamentals of
Energy Conditions in Japan

                                                                                                                                                                                                                                                                                                                                                     The Fundamentals of Japanese Energy Policy
                               While the employment of different methods of                                                           Many countries have liberalized their energy
                               analysis makes direct international comparison                                                         markets to increase efficiency through the
                               impossible, Japan’s electricity and gas prices are                                                     introduction of competition, and these measures
                               relatively high by international standards. There are
                               various reasons for this. In addition to structural
                               factors specific to Japan, such as geographical
                                                                                                                                      appear to have produced positive results.

                                                                                                                                      Japan is therefore implementing systemic reforms,
                                                                                                                                                                                                                                              Japanese Energy Policy
                               conditions and high wages and land prices, the                                                         with stability of supply and conservation of the
                               system of regional monopolies on electricity and                                                       environment as the major watchwords, to increase
                                                                                                                                                                                                                                       Japan’s energy policy is based on market principles, but at the same
                               gas supply, while ensuring stable supply, also                                                         the efficiency of its provision of electricity and gas                                           time seeks to ensure a stable supply and environmentally friendly
                               suppresses the development of competition in the                                                       and the international competitiveness of its
                               market.                                                                                                industries (Figures 3-6 and 3-7).
                                                                                                                                                                                                                                       production and consumption of energy. The following are important
                               The large reserves of oil in the Middle East mean that dependence on the region for oil will increase in the future
                                                                                                                                                                                                                                       practical measures based on these underlying goals:
                                (Figure 3-4) Outlook for world oil supply by region

                                                              2000                                                                             2030                                                                                       Promoting energy conservation measures
                                                                                                                                                                                                                                        • More efficient use of energy and reduction of      stability of the energy supply, but will be a
                                                                                                                                  Asia 3%
                                                                                                                                                    Others                                                                                energy consumption will reduce the amount of       significant factor in preventing global warming
                                                          Asia 8%                 OPEC                                                                                                                                                    energy required by the nation. Increased           by reducing the level of CO2 emissions
                                                                                members 29%                OPEC
                                                       Soviet                                              in total 40%                                                                                                                   application of energy conservation measures        produced by burning fossil fuels.
                                                                                                                                    Former Soviet
                                                      Union 11%
                                                                                     Other OPEC                                      Union 14%                    Middle Eastern
                                                                                                                                                                                                in total 61%
                                                                                                                                                                                                                                          will not only contribute to ensuring the
                                                                                      members                                                                   OPEC members 48%
                                                                    OECD29Åì             11%
                                                                                                                                                                                                                                          Ensuring a stable supply of oil
                                                               Total amount supplied:                                                             Other OPEC
                                                                                                                                                   members                                 Total amount supplied:
                                                                                                                                                                                                                                        • Oil provides approximately half of Japan’s         appropriate price an important focus of energy
                                                               72 million barrels/day
                                                                                                                                                      13%                                  106.8 million barrels/day                      energy needs, and is predicted to continue to      policy. Of particular importance in this respect
                                                                                                                                                                                                                                          maintain its centrality to Japan’s energy          are efforts to ensure domestic reserves of oil
                                                                                Note: Asia includes China, the ASEAN nations, India, Taiwan, etc.                                            Source: IEA/World Energy Outlook 2002        supply.                                            and independently exploit oil fields.
                               Global dependence on oil imports will increase                                                         Increasing CO2 emissions from the consumption of                                                  • This centrality makes the securing of a stable
                               in the future                                                                                          energy must be reduced to FY1990 levels in FY2010                                                   supply of the required quantities of oil at an
                                (Table 3-1) Changes in demand for oil and                                                               (Figure 3-5) Actual figures for CO2 emissions produced
                                import-dependence by region                                                                             by energy consumption in Japan and target for FY2010
                                                                                        North        Europe          Asia               (Million tons carbon equivalent)                                                                  Development and introduction of diverse sources of energy
                                                                                       America                                                                                                 Approx. 6% increase
                                               Demand                                                                                                                                317
                                               (Million barrels/day)                       20.2           14.1        19.3
                                                                                                                                                                                              between 1990 and 2001                     • Reduction of the level of dependence on a         • From the perspective of the prevention of global
                                               Level of import-dependence                44.6%       52.5%          59.6%               310
                                                                                                                                                                                                                                          single energy source through the development        warming, nuclear power and renewable energies,
                                                                                           30.8           16.4        39.3
                                                                                                                                                                                                                                          and introduction of diverse forms of energy         which produce no CO2, and natural gas, which
                                               (Million barrels/day)
                                                                                                                                                                                                                                          reduces the risk of being negatively affected       produces relatively little in comparison with other
                                               Level of import-dependence                55.2%       85.4%          95.2%                                                                                          Target: 290
                                                                                                                                               290                                                                                        by disruptions in energy supply or soaring          fossil fuels, are particularly important energy
                                Note: Asia includes Japan, Australia, China, Korea, Indonesia,                                                                                                                                            energy costs, and therefore contributes to          sources in considerations of energy diversification.
                                      Malaysia, etc.                                                                                    290
                                                                                          Source: IEA/World Energy Outlook 2002              90 91 92 93 94 95 96 97 98 99 00 01                                               2010
                                                                                                                                                                                                                                          stability of supply.
                               Gas prices are higher in Japan than                                                                    Electricity prices are higher in Japan than
                               in other countries                                                                                     in other countries
                                                                                                                                                                                                                                          Basing the energy market on market principles
                                (Figure 3-6) International comparison of gas prices (2001)                                              (Figure 3-7) International comparison of electricity prices (2000)
                                    (US dollar/107kcal)                                                                                 (US cent/kWh)
                                                                                                                                             25                                                                                         • The continuing advance of globalization is        • However, energy differs from other products
                                    1400    1294.1
                                                                                              Household consumption
                                                                                                                                                     21.4                                          Household consumption
                                                                                                                                                                                                                                          bringing manufacturing and other industries in      and services in that freeing the market could
                                    1200                                                                                                     20                                                    Industrial consumption
                                                                                              Industrial consumption                                                                                                                      every country into international competition.       have a negative impact on the stability of
                                                                                                                                                                                                                 12.1                     Against this background, the reduction of costs     supply and the preservation of the environment.
                                                                                                                                                                                  10.7             10.2
                                     600                                                                                                     10                     8.2                                                                   through liberalization and deregulation has         It will therefore be essential to give adequate
                                     400                    375.3
                                                                                           402.7            373.4
                                                                                                                                              5                           4.0
                                                                                                                                                                                       5.5                             4.1                become       an     increasingly    important       consideration to these two fundamental
                                     200                        191.5
                                                                                                  187.1          187.9
                                                                                                                                                                                                                                          consideration, and energy markets have not          principles of energy policy in proceeding with
                                             Japan            US               UK          France          Germany
                                                                                                                                                     Japan            US             UK            France        Germany                  been excepted from this process. Japan is also      structural reforms of energy markets.
                                *Data for 2000 is shown for Japan and Germany.
                                                                                                                                            Note: 1999 figures are used for industrial consumption in Japan.
                                                                                                                                                  Prices for US are shown before tax.                                                     moving ahead with the liberalization and
                                                                      Source: IEA “ENERGY PRICES & TAXES 4th Quarter 2002”                                                  Source: IEA “ENERGY PRICES & TAXES 4th Quarter 2002”
                                                                                                                                                                                                                                          deregulation of its energy markets.
                             9 Åú                                                                                                                                                                                                                                                                                                            Åú10

                         E nergy in J apan

                                                                                                                                                                                                                                                                                                                                                                         ..... ....
   5                                                                                                                                                                                                                                                                                                                                                                                    5

                         5 Energy Conservation
Energy Conservation

                                                                                                                                                                                                                                                                                                                                                                                      Energy Conservation
                         Energy conservation in Japan has already progressed to a high level, but
                         from now on it will be essential for every citizen to take up the effort to
                         achieve further energy savings in the future.
                         The first energy crisis had the effect of propelling     follow-up studies.
                         the establishment of energy conservation measures        Since the oil crises, energy consumption in the
                         in Japan. As a result, Japan’s use of energy is highly   commercial and residential sector has increased                                                 Energy conservation labeling system
                         efficient in comparison to other leading                 continuously. To respond to this problem, efforts are
                         industrialized nations (Figure 5-1).                     being made to increase the energy efficiency of home                                            (1) This system provides for labeling indicating energy conservation performance.
                                                                                  appliances and office equipment through the                                                     (2) The energy conservation mark allows consumers to judge excellent performance at
                         To respond to the problem of global warming, Japan       adoption of the “Top Runner” system, and to increase                                                a glance.
                         has made a commitment to reduce its energy               the energy conservation performance of homes and                                                (3) Standardized labeling allows the energy conservation performance of products to be easily
                         consumption by approximately 57 million kl in            commercial buildings by improving insulation. In                                                    compared in catalogs.
                         crude oil equivalent by FY2010. This figure is           addition, the use of IT-based home and building
                         higher than the energy consumed per year by all the      energy management systems (HEMS and BEMS) are                                                               Judgment of energy conservation performance at a glance
                         nation’s households (approximately 55 million kl         being promoted, and the number of energy service
                         crude oil equivalent), and we are therefore moving       companies (ESCO) offering comprehensive energy-                                                 JIS standards relating to the “energy conservation                                                  national energy conservation standards (target values).
                         ahead seriously with energy conservation measures.       saving services is being increased.                                                             labeling system” were published on August 21, 2000. This                                            This will enable consumers to easily compare energy
                         Efforts in all sectors will be essential to the                                                                                                          system provides for labeling of household appliances and                                            conservation performance when they replace products.
                         achievement of this goal.                                Increase in the energy demand of the transport                                                  other products that indicates whether the product satisfies
                                                                                  sector has also been continuous since the oil crises.
                         The industrial sector is actively progressing with       The increased ownership of passenger vehicles has                                                                                                        The labeling is easy to understand.
                         voluntary measures to enhance energy conservation.       been a particularly conspicuous factor, accounting
                         The Keidanren (Nippon Keidanren: Japan Business          for approximately 80% of the increase in energy                                                 How to read the labels                                                                          The energy conservation mark is normally orange. The green
                                                                                                                                                                                  Actual energy conservation                               ÉläÓ íBê¨ ó¶
                                                                                                                                                                                                                                        è»ÉG èÄ             îNä‘ è¡ îÔìd óÕó
                         Federation) has announced the “Voluntary Action          demand in the sector in the 1990s. To combat this,                                                                                                                                              mark is only on products with outstanding energy
                                                                                                                                                                                  labels are shown.
                                                                                                                                                                                                                                           105Åì        Åõ kWh/îN
                                                                                                                                                                                                                                                      Åõ Åõ                       conservation performance (products that satisfy the energy
                         Plan on the Environment,” and has been voluntarily       the “Top Runner” system is also being used to                                                                                  ñ⁄ ïW       Åõ Åõ
                                                                                                                                                                                                                      îNìx Åõ Åõ îNìx

                                                                                                                                                                                                                                                                                  conservation standards by 100% or more). The green mark
                         moving ahead with energy conservation programs           increase automotive fuel efficiency, and high fuel
                                                                                                                                                                                                                                                                                  therefore functions as an easily interpretable guide for
                         since 1997. The “Voluntary Action Plan” sets             economy vehicles equipped with idle stop                                                                                                                 ÉläÓ íBê¨ ó¶
                                                                                                                                                                                                                                        è»ÉG èÄ             îNä‘ è¡ îÔìd óÕó

                                                                                                                                                                                                                                           98Åì       Åõ Åõ
                                                                                                                                                                                                                                                        Åõ kWh/îN                 consumers when choosing products.
                         voluntary targets for the business community in          mechanisms and similar technologies are being                                                                                  ñ⁄ ïW       Åõ Åõ
                                                                                                                                                                                                                      îNìx Åõ Åõ îNìx

                         looking towards responses to global warming and          marketed in greater numbers.
                         the establishment of a recycling-based                                                                                                                                                                                            Satisfaction of energy conservation standard (%)
                         socioeconomic system. Progress made towards the          Note: See page 23 for data on the energy conservation                                                                                      Energy                        Indicates the degree to which the product satisfies the standard as
                                                                                  effects of specific measures                                                                                                               conservation
                         achievement of these targets is assessed in annual                                                                                                                                                  mark
                                                                                                                                                                                                                                                           a percentage. Target values for energy conservation standards
                                                                                                                                                                                                                                                           are established for individual products on the basis of the Energy
                                                                                  Japan leads the major industrialized nations                                                                                                                             Conservation Law.

                                                                                  in efficient energy use                                                                                       Target year                                                Energy efficiency
                              The “Top Runner” System                             (Figure 5-1) Comparison of energy consumption                                                                 Indicates the year by which the product                    Provides a figure (annual power consumption, etc.) indicating how
                                                                                                                                                                                                should satisfy the standards. The target                   much energy the appliance consumes. These figures are
                                                                                  by GDP in leading nations                                                                                                                                                calculated using measurement methods established for individual
                              To increase the use of highly energy efficient                                                                                                                    year is stipulated for individual products
                                                                                                                                                                                                by the Energy Conservation Law.                            products.
                              appliances, the Energy Conservation Law (Law                                2.73
                              Concerning the Rational Use of Energy) requires      2.5
                              manufacturers to meet target energy conservation
                                                                                                                                                                                                       Energy-conserving appliances help the household budget
                              standards in their appliances.                         2
                                                                                                                                            1.58                                                                                                                                                                                          Approx. 110, 000 yen can
                                                                                                                                                            1.50                                                                                  Example of an air conditioner with a cooling capacity of
                              The concept behind the formulation of these          1.5                                                                                                                                                            2.5kW in a 13.2m2 tatami-matted room
                                                                                                                                                                                                                                                                                                                                            be saved in 8 years! !
                              standards was to improve on the energy                       1.00                                                                                   Energy-saving appliances lower
                              conservation performance of the best products          1                                                                                                                                                                    Product A
                                                                                                                                                                                  electricity bills. Consumers can                                 Satisfaction of energy                            Purchase price         Electricity charge
                              (“top runners”) presently available.                                                                                                                                                                                 conservation standard
                                                                                   0.5                                                                                            make savings not only by                                                 108%                                    101,800 yen    1 year 19,021 yen       8 years 152,168 yen
                              At present, 18 product categories are covered by                                                                                                    comparing prices, but by
                              the standards, including air conditioners, tele-                                                                                                    comparing running costs.
                                                                                           Japan           US               UK            France         Germany                                                                                          Product B
                              visions, lighting fixtures (fluorescent lights),                                                                                                                                                                     Satisfaction of energy
                                                                                                                                                                                                                                                                                                                                 Electricity charge
                                                                                   *Energy consumption (crude oil equivalent in kl) / Real GDP (both FY2000 figures)
                              refrigerators, computers, gasoline and diesel        converted on the basis of Japan = 1                                                                                                                             conservation standard
                              vehicles and electric heaters.                                              Source: Compiled from the “Handbook of Energy and Economic Statistics                                                                              55%                                    53,800 yen        1 year 38,594 yen     8 years 308,752 yen
                                                                                                                  in Japan” by the Agency of Natural Resources and Energy

                      11 Åú                                                                                                                                                                                                                                                                                                                                            Åú 12
                        E nergy in J apan
   6                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  6

                        6 New Energies
Renewable Energies

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Renewable Energies
                                                                                                                                                                                                                                                                              New energies are domestically generated and produce                                                                               However, there are concerns that the instability of the
                                                                                                                                                                                                                                                                              little or no CO2, making them particularly desirable                                                                              output of wind power could adversely affect the
                                                                                                                                                                                                                                                                              from the perspectives of ensuring a stable supply of                                                                              electric grid (by disrupting frequencies, etc.), and
                                                                                                                                                                                                                                                                              energy and alleviating environmental problems.                                                                                    research has therefore commenced towards stabilizing
                        New energies are not reliant on imports and are environmentally friendly. At                                                                                                                                                                          However, there are a number of drawbacks. The cost
                                                                                                                                                                                                                                                                              of these energy sources is high in comparison to other
                                                                                                                                                                                                                                                                                                                                                                                                                wind power output and preventing any negative
                                                                                                                                                                                                                                                                                                                                                                                                                impact on the existing power supply.
                        present new energy sources provide only a small portion of the nation’s                                                                                                                                                                               forms of energy, due to the enormous capital required
                        energy needs, but active efforts are being made to promote them.                                                                                                                                                                                      for each facility and the low load factor. In addition,                                                                           At present new energies account for only
                                                                                                                                                                                                                                                                              solar and wind power generation is affected by                                                                                    approximately 1% of the primary energy supply, but
                                                                                                                                                                                                                                                                              environmental conditions, making output unstable, and                                                                             the goal is to increase this figure to around 3% in
                                                                                                                                                                                                                                                                              facilities can only be established in a limited number                                                                            2010. To achieve this end, active support is being
                                                                                                                                                                                                                                                                              of areas.                                                                                                                         offered to local governments, businesses and non-
                                                                                                                                                                                                                                                                                                                                                                                                                profit organizations (NPO) which are working towards
                                                                                                                                                                                                                                                                              As of the end of FY2001, Japan had generated                                                                                      the introduction of renewable energies.
                                                                                                                                                                                                                                                                              45.2MW of solar electric power for the year, marking
                                                                                                                                                                                                                                                                              an eight-fold increase over the figure recorded five                                                                                                 Support for NPOs, etc.
                                                                                                                                                                                                                                                                              years previously and bringing the nation into the                                                                                   In order to operate at the regional grass-roots level in
                                                                                                                                                                                                                                                                              position of the world’s number one producer of solar                                                                                accelerating the introduction of effective new energy
                                                                                                                                                                                                                                                                              power (Figure 6-1). The cost of energy generated by                                                                                 schemes, support is being offered to non-profit
                                                                                                                                                                                                                                                                              solar power dropped in this five-year period, but is still                                                                          organizations seeking to establish new energy facilities
                                                                                                                                                                                                                                                                              high at 46-66 yen per kWh, some 2-3 times the cost of                                                                               operating on a not-for-profit basis.
                                                                                                                                                                                                                                                                              the electricity currently supplied to households. In
                       Solar power                                                                                                                                                                                                                                            addition, the output from installations is affected by                                                                                               What are new energies?
                       generation                                                                                                                                                                                                                                             climatic conditions and the amount of available
                       (Fuji Business                                                                                                                                                                                                                                                                                                                                                                             Solar power generation, wind power generation,
                       Office, Tokyo                                                                                                                                                                                                                                          sunlight, and is therefore unstable (Figure 6-2).
                                                                                                                                                                                                                                                                                                                                                                                                                  generation from waste products, biomass power
                       Electric Power
                                                                                                                                                                                                                                                                                                                                                                                                                  generation, solar thermal energy, thermal energy from
                       Company,                                                                                                                                                                                                                                               Wind power generated 31.2MW in FY2001,
                       Shizuoka                                                                                                                                                                                                                                                                                                                                                                                   waste products, biomass thermal energy, ice thermal
                                                                                                                                                                                                                                                                              representing a roughly 22-fold increase from five years
                       Prefecture)                                                                                                                                                                                                                                                                                                                                                                                energy, production of fuels from waste products,
                                                                                                                                                                                                                                                                              ago. Technological advances and increases in the scale
                                                                                                                                                                                                                                                                                                                                                                                                                  production of fuels from biomass, temperature
                                                                                                                                                                                                                                                                              of wind power generation facilities have reduced costs                                                                              differential energy, electric vehicles (including hybrid
                                                                                                                                                                                                                                                                              and contributed to recognition of the viability of wind                                                                             cars), natural gas vehicles, methanol vehicles, natural
                                                    Wind power station (Tomamae Green Hill Wind Park, Tomamaemachi, Hokkaido)                                                                                                                                                 power generation. Large-scale facilities continue to be                                                                             gas cogeneration, fuel cells.
                                                                                                                                 Changing weather conditions make the output of                                                                                               established, predominantly in Hokkaido and Tohoku.
                        Japan leads the world in solar power generation                                                          solar power installations unstable                                                                                                                                                                                                                                             The target for FY2010 is to increase the share of new
                         (Figure 6-1) International comparison of rate of                                                                      (Figure 6-2) Changes in amount of solar power                                                                                  The cost of new energies is a problem                                                                                             energies to approximately 3%
                         solar power generation (2002)                                                                                         generation caused by weather conditions                                                                                        (Table 6-1) A comparison of nuclear power generation,                                                                             (Table 6-2) Actual figures and targets for new energies
                                                                                                                                                                                                                                                                              solar power generation and wind power generation                                                                                                                                                              Units: 10,000kl (10,000kW)
                                                                                                                                                    Åi %Åj
                                             50                                                                                                      70                                                                                                                                                                    Nuclear power
                                                                                                                                                                                                                                                                                                                                                    Solar power generation                 Wind power
                                                                                                                                                                                                                                                                                                                                                                                                                                                               FY2000                                     FY2010 target
                                                                                                                                                                                                                                                                                                                                              For business use For household use                                                                                      %Åi*1Åj                                      %Åi*2Åj
                                                                                                                                                                                                                                                                               Capacity per power plant                       1 million kW              300kW                3.5kW                1,000kW                                                8.1           1.1      Approximately 15 times    118        6.2
                                                             Japan is a world leader,                                                                                                                                                                                          Load factor                                Å@ Å@
                                                                                                                                                                                                                                                                                                                         Å@ Å@        80%                  12%                 12%                     20%
                                                                                                                                                                                                                                                                                                                                                                                                                 Solar power generation
                                                                producing 46% of                                                                                               60                  Fine weather                                                                Annual power generation per plant         Å@ 7 billion kWh         320,000 kWh           3,700 kWh         1.75 million kWh
                                                                                                                                                                                                                                                                                                                                                                                                                                                       Åi33.0Åj                                          Åi482Åj

                                             40              world total solar power!                                                                                                                                                                                          Investment per plant                         360 billion yen     300 million yen       3 million yen         250 million yen
                                                                                                                                                                                                                                                                                                                                                                                                                 Solar thermal energy                    89           12.3      Approximately 5 times     439       23.0
                                                                                                                                 Output ratio (Actual output / Rated output)

                                                                                                                                                                                                                                                                                                                                                                                                                                                         5.9           0.8      Approximately 23 time     134        7.0
                                                                                                                                                                                                                                                                               Number of power generating units                                                                                                  Wind power generation
                                                                                                                                                                                                                                                                                                                                                                                                                                                       Åi14.4Åj                                          Åi300Åj
                                                                                                                                                                               50                                                                                              required to generate equivalent
                                                                                                                                                                                                                                                                               electricity to one block of a 1 million               1 unit        21,875 units     1.9 million units           4,000 units                                              115          15.9      Approximately 5 times     552       28.9
                                                                                                                                                                                                                                                                               kW nuclear power plant                                                                                                            Power generation from waste
                                                                                                                                                                                                                                                                                                                                                                                                                                                       Åi103Åj                                           Åi417Åj
                                             30                                                                                                                                                                                                                                   (For reference)
                             Quantity (MW)

                                                                                                                                                                                                                                                                                                                            360 billion yen        7 trillion yen      6 trillion yen          1 trillion yen    Thermal energy from waste               4.5           0.6      Approximately 3 times      14        0.7
                                                                                                                                                                               40                                                                    Cloudy
                                                                                                                                                                                                                                                                                  Necessary investment
                                                                                  World total 98.2MW                                                                                                                                                 weather                       Required site area                                         Approx. 67 km
                                                                                                                                                                                                                                                                                                                                                                                        Approx. 248 km
                                                                                                                                                                                                                                                                                                                                                                                                                                                         4.7           0.7      Approximately 7 times      34        1.8
                                                                                                                                                                                                                                                                                   ÅE olar power generation:
                                                                                                                                                                                                                                                                                    S                                                                                                                            Biomass generation
                                                                               • Japan 45.2MW                                                                                                                                                                                       10 m2 /kW                                                  Almost equivalent to 1,500 Tokyo         Almost equivalent                                              Åi6.9Åj                                           Åi33Åj
                                                                                                                                                                                                                                                                                   ÅE ind power generation:
                                                                                                                                                                                                                                                                                    W                                                          Domes                                    to 5,550 Tokyo
                                                                               • Germany 19.5MW                                                                                30                                                                                                   0.062 km2/generating unit                                                                           Domes                    Thermal energy from biomass              Å|            Å|                Å|               67        3.5
                                             20                                                                                                                                                                                                                                                                                                                                                                  Black liquor, waste wood, etc. (*3)     490          67.9      Approximately 1 times     494       25.9
                                                                               • US 16.8MW                                                                                               Rainy
                                                                                                                                                                                                                                                                                                                                              Mean price (Household use):
                                                                                                                                                                                                                                                                                                                                                                      66 yen/kWh Large-scale:
                                                                                                                                                                                                                                                                               Generating cost                                5.9 yen/kWh                                                                                                                4.5           0.6      Approximately 13 times     58        3.0
                                                                                                                                                                                        weather                                                                                                                                               (Lowest price Household use):
                                                                                                                                                                                                                                                                                                                                                          Åi                          9-14 yen/kWh               Unutilized energies
                                                                                                                                                                                                                                                                                                                                                                      46 yen/kWh)                                (Including ice thermal energy)
                                                                                                                                                                                                                                                                                   (For reference)
                                                                                                                                                                                                                                                                                                                                                       Approx. 2-3 times                Approx. 1.2-2 times      Total for new energies                  722          100%      Approximately 3 times    1,910     100%
                                                                                                                                                                                                                                                                                   Comparison with the costs of the
                                             10                                                                                                                                                                                                                                    competing energies listed below
                                                                                                                                                                                                                                                                                                                                                                                                                 Percentage of the total supply
                                                                                                                                                                                                                                                                                                                                                                                                                                                               1.2%                       Å|                               Å@ Å@
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Approximately 3% Å@ Å@
                                                                                                                                                                                                                                                                                                                                                 Unit price of household power:         Unit cost of thermal     of (primary) energy
                                                                                                                                                                                                                                                                                  Assumed costs of competing
                                                                                                                                                                               10                                                                                                 energies
                                                                                                                                                                                                                                                                                                                                                          23.3 yen/kWh                  power generation:
                                                                                                                                                                                                                                                                                                                                                                                                                (*1) Percentage of total (7.22 million kl) for new energies in FY2000
                                                                                                                                                                                                                                                                              These estimates are calculated on the basis of fixed preconditions using the average cost                                         (*2) Percentage of total (19.1 million kl) for new energies in FY2010
                                                                                                                                                                                                                                                                              of power generation facilities established in FY1999 (calculated for 20 years of operation                                        (*3) Classified as biomass, and generally used to provide thermal energy.
                                              0                                                                                                                                 0                                                        (Time)                               in the case of solar power generation and 17 years of operation in the case of wind power                                              A certain percentage is also used in the generation of electricity.
                                                  Japan Germany   US    Australia Holland      Italy Switzerland Mexico                                                             5     6    7     8    9 10 11 12 13 14 15 16 17 18 19                                     generation). The unit price for thermal power represents an average of the cost of thermal
                                                                                                                                                                                                                                                                              generation using oil, coal, and natural gas.
                                                            Source: NEDO survey employing IEA statistics (Actual 2001 figures)                                                             Source: New Energy Division, Advisory Committee for Natural Resources and Energy
                                                                                                                                                                                                                                                                              Source: Compiled from data from New Energy Division, Advisory Committee for Natural Resources and Energy (June 2001)                                 Source: Compiled from reports of Advisory Committee for Natural Resources and Energy

                     13 Åú                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Åú14
                                                         E nergy in J apan
          7                                                                                                                                                                                                                                                                                                                                                                                                                         7

                                                        7 Nuclear Power Generation
Nuclear Power Generation and the Nuclear Fuel Cycle

                                                                                                                                                                                                                                                                                                                                                                                                                          Nuclear Power Generation and the Nuclear Fuel Cycle
                                                                                                                                                                                                                Nuclear power generation was exploited as an alternative to oil, and
                                                                                                                                                                                                                now provides approximately one-third of Japan’s electric power.
                                                                   and the Nuclear Fuel Cycle                                                                                                                   To make more effective use of uranium, the fuel for nuclear power
                                                                                                                                                                                                                generation, efforts are being made to recycle spent fuel.

                                                                                                  Low-level radioactive waste
                                                                                                                                                                                                                Nuclear power is an important energy source for a                                                          power plants is made up of uranium and plutonium
                                                                                                  (Replaced valves and pipes,                                                                                   number of reasons. Uranium, the fuel employed in                                                           which can be recovered and reused as fuel. Only the
                                                                                                  used gloves and protective                                                                                    generating nuclear power, is widely available in                                                           remaining few percent represents high-level
                                                                                                  clothing, etc.)
                                                                                                                                                                                                                politically stable countries and its price is not                                                          radioactive waste (Figure 7-3).
                                                                                                                                                                                                                subject to major variations, making it a highly
                                                                                                                                                                                                                stable energy source. In addition, the use of nuclear                                                      The burning of recovered plutonium and uranium at
                                                                                                                                                                                                                power does not produce any CO2 in the generation                                                           existing nuclear power plants is called “pluthermal”
                                                                                                                                                                Low-level radioactive waste disposal facility   process, and therefore prevents global warming                                                             generation. Pluthermal generation has been safely
                                                                                                                                                                (Rokkasho-mura, Aomori Prefecture)
                                                                                                                                                                                                                (Figures 7-1 and 7-2). At present, nuclear power                                                           used for over thirty years in nine countries, including
                                                                                                                                                                                                                generation provides approximately one-third of all                                                         France. In Japan, pluthermal fuels containing
                                                                                                                                                                                                                the energy generated in Japan.                                                                             plutonium have been utilized on a trial basis at the
                                                                                                                                                                                                                                                                                                                           Japan Atomic Power Company’s Tsuruga No. 1
                                                                                                                                                                                                                Like other resources, reserves of uranium are                                                              Reactor and at the Kansai Electric Power Company’s
                                                                                                                  Nuclear power station
                                                                                                                                                                                                                limited, and if it is disposed of after being used                                                         Mihama No. 1 Reactor. The results of these trials
                                                                                                                                                                                                                once, reserves can only last approximately 60 years.                                                       have been encouraging, and plans are progressing
                                                                                                                                                                        Part of the spent fuel from
                                                                                                                                                                        nuclear power generation is             However, around 90% of spent fuel from nuclear                                                             for a more extensive use of pluthermal fuels.
                                                                                                                                                                        kept in intermediate storage
                                                                     Fuel assembly                                                                                      facilities (Photograph shows
                                                                                                                                                                        a storage tank)                         Uranium is imported from politically stable countries                                                      Low-level radioactive waste represents the major
                                                                                                                                                                                                                 (Figure 7-1) Countries from which Japan imports uanium
                                                                                                                                                                                                                                                                                                                           part of the waste produced by nuclear power
                                                                                                                                                                                                                                      China 1%                                                                             generation. Part of the low-level radioactive waste
                                                                                                                                                                                                                                      France               Others
                                                                                                                                                                                                                                                                                                                           from Japan’s reactors is processed at the Low-level
                                                                                                                                                                                                                                        6%                  8%                                                             Radioactive Waste Disposal Center maintained by
                                                                                                                                                 Reprocessing facility                                                   South Africa                                          28%                                         Japan Nuclear Fuel, Ltd., in Rokkasho-mura,
                                                                                                                                                 (Planned to commence                                                        7%
                                                                                                                                                 operation in 2005)
                                                                                                                                                                                                                                                             Amount imported                                               Aomori Prefecture. After the plutonium and
                                                                                                                                                                                                                                                            300,000 short tons
                                                                                                                                                                                                                                              Niger                U3O8                                                    uranium content is recovered from the spent fuel,
                                                                          Uranium                                                                                                                                                              9%
                                                              fuel fabrication plant
                                                                                                                                                                                                                                                           (As of end of March,
                                                                                                                                                                                                                                                                                                                           the remaining high-level radioactive waste is
                                                                                                         MOX fuel                                                                                                                                                            Australia
                                                                                                                                                                                                                                                                                                                           vitrified and kept in cold storage for 30-50 years.
                                                                                                      fabrication plant                                                                                                                US
                                                                                                                                                                                                                                       9%                      UK             17%                                          The vitrified waste is then encased in thick metal
                                                                                                                                                                                                                                                               15%                                                         and clay, and disposed of in a stable geological
                                                                                                                              Powdered MOX
                                                                                                                                                                                                                 *The short ton is a unit of weight
                                                                                                                                                                                                                 mainly used in the US.
                                                                                                                                                                                                                                                                                                                           stratum more than 300 meters below the earth’s
                                                                                                                                                                           High-level radioactive waste
                                                                     Yellow cake                                              (Plutonium-uranium                           (Vitrified in a glass matrix)
                                                                                                                                                                                                                 1 short ton = Approx. 970 kg                     Source: Agency of Natural Resources and Energy
                                                               (Powdered uranium                                              mixed oxide)
                                                                     concentrate)                                                                                       High-level radioactive                  The use of fossil fuels produces a large amount of CO2
                                                                                                                                          More than 300 m               waste disposal facility
                                                                                                                                             underground                                                         (Figure 7-2) Lifecycle CO2 emissions (including methane) for different energy sources used in the generation of electricity
                                                                                                                    Uranium mine                                        (Planned to commence
                                                                                                                                                                        operation in the mid-2030s)
                                                                                                                                                                                                                Coal thermal energy                                                                                                                                           975.2

                                                                                                                                                                                                                  Oil thermal energy                                                                                                          742.1
                                                         Plutonium and uranium which can still be used is recycled                                                                                              LNG thermal energy                                                                                           607.6

                                                          (Figure 7-3) Composition and reprocessing of spent fuel                                                                                                      LNG mixtures                                                                                518.8

                                                                                   Spent fuel                                                                                                                          Nuclear power          22.0—25.0
                                                                                                                                                                                                                                 Hydro       11.3
                                                                                                   Plutonium 1%
                                                                                                                                                                                                                  Geothermal power           15.0
                                                                                                                                                                                                                                                                                                                                 Produced by burning for generation (Direct)
                                                                                                                                                    Recovered                                                            Solar power                53.4
                                                                                                                                                                                                                                                                                                                                 Other (Indirect)*
                                                                                                                                                                                                                          Wind power          29.5
                                                                                                                                                                                     Recycled as fuel                                    0                         200                       400                   600                             800                       1000
                                                                                                                                                                                                                                                                                  Lifecycle CO2 emissions [g-CO2kWh (transmission end)]
                                                                                                                                                                                                                              *CO2 emissions produced by total energy consumption required for mining/drilling, construction, transport, refining,
                                                                                                                  Reprocessing facility                                                                                       operation of facility (actual generation), maintenance, etc.
                                                                                                   Uranium 96%
                                                                                                                                                                                                                              (Ex.) Coal Mining Dressing Å® Transport Å® Generation Å® Disposal of ash
                                                                                                                                                                                                                              Calculations for nuclear power assume enrichment of uranium by gas diffusion and once through (no recycling).
                                                                                            High-level radioactive waste 3%         Vitrified for disposal                                                                    (If uranium is enriched by centrifugal separation and recycled, the figure is 9.3g-CO2kWh)
                                                                                                                                                                                                                                                           Source: “Evaluation of Lifecycle CO2 Emissions of Power Generation Technologies (March 2000)” (Central Research Institute of Electric Power Industry)

                                                      15 Åú                                                                                                                                                                                                                                                                                                                                                        Åú16
                 E nergy in J apan
  8                                                                                                                                                                                                                                                                                                                                               8

                 8 Natural Gas
Natural Gas

                                                                                                                                                                                                                                                                                                                                                Natural Gas
                                                                                                                                                                   Natural gas is abundantly available throughout the world, and is
                                                                                                                                                                   an environmentally friendly energy source. Japan is promoting its
                                                                                                                                                                   increased use.

                                                                                                                                                                   The abundant global reserves of natural gas led to                      receiving stations in Japan, and supplied to power
                                                                                                                      Pipeline                                     its promotion as an alternative to oil after the oil                    generation facilities and households by pipeline.
                                                                                                                                                                   crises. At the time of the first oil crisis, natural gas
                                                                                                                                                                   supplied only 2% of the nation’s energy needs, but                      A number of schemes are under examination to
                                                                                                                                                                   its use has increased to the point where it presently                   expand the use of natural gas in the future. These
                                                                                                                                                                   supplies 13% of Japan’s energy. Compared to other                       include converting thermal power plants from the
                                                                                                                                                                   fossil fuels such as coal and oil, the burning of                       use of oil and coal to natural gas, replacing oil
                                                                                                                                                                   natural gas produces little CO2 (a cause of global                      with natural gas as the raw material for urban gas
                                                                                                                                      Gas liquefaction facility    warming) and NOx (a cause of acid rain), and no                         supplies, and promoting the use of vehicles fueled
                                                                                                                                                                   SOx. Natural gas is therefore expected to be used                       by natural gas*. Another new plan is to modify the
                                                                                                                                                                   more extensively in future (Figure 8-1).                                gas and use it as liquid fuels. These new fuels, gas-
                                                                                                                                                                                                                                           to-liquid (GTL) and dimethyl ether (DME), are
                                                                                                                                                                   Unfortunately, Japan’s reserves of natural gas are                      expected to provide fuel for transport and industry
                                                                                                                                                                   poor, and, like oil, 97% of the nation’s supplies are                   in future.
                                                                                                                                                                   imported from overseas. In Europe and the US,
                                                                                                                                                                   natural gas can be transported by pipelines in its                      The realization of these schemes will require the
                                                                                                                                                                   gaseous state. Japan, however, is far from the gas                      systematic establishment of a domestic pipeline
                                                                                                                                                                   fields, and the gas is therefore cooled to                              network for the provision of natural gas.
                                                                                                                                                                   –162˚centigrade at the fields themselves to cause it
                                                                                                                                                                   to liquefy. This liquid natural gas (LNG) takes up                      *Natural gas vehicles: 7,811 / Fuel stations: 138 (As of March, 2001)
                                                                                                                                                                   1/600 the volume of the gas, and it is transported                      [Source: The Japan Gas Association]
                                                                                                                                                                   to Japan in this state in tankers lined with thermal
                 Gas field in Australia                                                                                                                            insulation. After arrival, it is regasified at the

                                                                                                                           LNG tanker
                                                                                                                                                                   Global reserves of natural gas
                                                                                                                                                                    (Figure 8-2) Major reserves of natural gas by country

                                                                                                                                                                    Proven reserves
                                                                                                                                                                    (Units: Trillion m3)

                                                                                                                                                                                                                 Former Soviet                                    North America
                                                                                Receiving station                                                                                             Europe                                                              7.6 trillion m3
                                                                                                                                                                                           4.9 trillion m3
                                                                                                                                                                                                                 56.1 trillion m3

                                                                                                                                                                                               Middle East
                                                                                                                                                                                              55.9 trillion m3
                                           Environmentally friendly natural gas                                                                                             Africa                                       Asia-Pacific
                                            (Figure 8-1) Comparison of CO2, NOx and SOx emissions                                                                       11.2 trillion m3                                12.3 trillion m3                                     Central and South America
                                                                                                                                                                                                                                           (Figure 8-3)               7.2 trillion m3
                                                                                                                                                                                                                                           Countries from which Japan
                                                                                                                                                                                                                                           imports natural gas
                                                       Coal 100                            Coal 100                              Coal 100
                                                                                                                                                                                                                                                 US 2.3%             Oman 1.6%
                                                         Oil 80
                                                                                            Oil 70                                                                                                                                                  United Arab
                                                                                                                                  Oil 70                                                                                                             Emirates
                                                                                                                                                                                                                                                     Å@ 8.4%
                                                                                            Natural                                                                                                                                             Brunei                   Indonesia
                                                     Natural gas                                                             Natural gas                                                                                                        10.9%      Total amount 31.8%
                 Natural gas vehicle and                 57                                                                      0                                                                                                                           imported
                                                                                              40                                                                                                                                                           55.02 million                                           Source: “BP Statistics”
                 fuel station                                                                                                                                                                                                                   Qatar
                                                                                                                                                                                                                                                          tons (FY2002)

                                                                                                                                                                                                                                                    Australia        Malaysia
                                                                                                                                                                                                                                                     13.1%            19.8%
                                                          CO2                                NOx                                   SOx
                                             Note: Emissions when burned, with emissions from coal representing 100         Source: “Natural Gas Prospects 2010”                                                                                                      Source: “Monthly Report of Japanese Trade”

              17 Åú                                                                                                                                                                                                                                                                                                                      Åú18
          E nergy in J apan
9                                                                                                                                                                                                                                                                                                                                                                  9

         9 Coal

                                                                                                                                                                                       As the competitiveness of domestic coal declined, the level of
                                                                                                                                                                                       imports increased. Today Japan is almost 100% reliant on imports
                                                                                                                                                                                       for its coal, which provides 19% of the nation’s energy needs.
                                                                                                                                                                                       Efforts are being made to increase the use of coal as a cleaner
                                                                                                                                                                                       source of energy.

                                                                                                                                                                                       Coal has been one of the major sources of energy                                                 Japan possesses coal reserves, and once engaged in
                                                                                                                                                                                       since the Industrial Revolution. In the period                                                   extensive mining. Until the 1960s, the domestic
                                                                                                                                                                                       between the two world wars, coal provided three-                                                 mining industry supplied more coal than the nation
                                                                                                                                                                                       quarters of Japan’s energy. However, with the                                                    imported, but imports increased with steady
                                                                                                                                                                Coal mining in Japan
                                                                                                                                                                                       discovery of vast oil fields in the Middle East after                                            increases in imports of low-cost overseas coal.
                                                                                                                                                                                       World War II, the predominance of coal declined,                                                 Japan’s mines ceased operations one after another,
                                                                                                                                                                                       and oil became the world’s major source of energy                                                and the nation is today almost entirely reliant on
                                                                                                                                                                                       in the 1960s.                                                                                    imports (Figure 9-3).

                                                                                                                                                                                       The use of coal was reconsidered in the wake of the                                              Coal has the drawback of producing more CO2, a
                                                                                                                                                                                       twin oil crises of the 1970s, and three major benefits                                           cause of global warming, when burned than other
                                                                                                                                                                                       became apparent. First, reserves are abundant, and                                               fossil fuels. At present, Japan and other advanced
                                                                                                                                                                                       current projections indicate that they can be                                                    industrialized nations are engaging in international
                                                                                                                                                                                       exploited for approximately 204 years. Second,                                                   cooperation programs and working to develop clean
                                                                                                                                                                                       reserves are widespread around the world and are                                                 coal technologies (high-efficiency combustion, etc.)
                                                                                                                                                                                       found in politically stable countries such as                                                    which will reduce the environmental impact of
                                                                                                                                                                                       Australia and Canada, representing a contrast to the                                             using coal. The introduction of these clean coal
                                                                                                                                                                                       situation of oil, for which the world is dependent on                                            technologies is expected to significantly increase
                                                                                                                                                                                       the volatile Middle East (Figures 9-1 and 9-2).                                                  the use of coal as a clean energy source.
           Coal mine in Australia                                                                                                                                                      Third, the cost of coal per thermal unit is low in
                                                                                                                                                                                       comparison to oil, making its use highly
                                                                                                                                                                                       economical. Coal currently provides Japan with
                                                                                                                                                                                       19% of its energy requirements.
                                                                                                                                 Bulk coal carrier

                                                                                                                                                                                                                                                                                                 Wakamatsu Integrated Operations Center of
                                                                                                                                                                                                                                                                                                 Electric Power Development Company
                                                                                                                                                                                                                                                                                                 Pilot plant for the development of technology to produce
                                                                                                                                                                                       As domestic coal lost its competitiveness, coal imports increased                                         coal gas for fuel cells

                                                                                                                                                                                        (Figure 9-3) Amount of domestically-produced and imported coal
                                                                                                                                                                                        (Million tons)
          Matsuura thermal power plant                               Iron mill
          (Nagasaki Prefecture)                                                                                                                                                                                                                                                      162.60

                                                                                                                                                                                                                                                 Second oil crisis
          Coal imports comes from the Pan-Pacific region                                           Coal reserves are widely distributed around the world                                  160

               (Figure 9-1) Countries from which Japan imports coal                                 (Figure 9-2) Coal reserves by country                                                 140
                                                  South Africa 0.25%
                         US 0.25%                                                                                                                                                         120
                                                    Others 1.8%
                     Russia 4.3%
                   Canada 5.8%
                                                                                                                               Others                                                       80
                                                                                                                               18.4%             US
                                                                                                                                                25.4%                                       60                                                                       Imported coal
                             Indonesia                                                               South Africa                   World total:
                               11.9%       Total amount                                                                           984.5 billion tons                                        40
                                             imported                                                                                   (2002)
                                                                                                                       India     Limit of exploitable                                       20                   Domestic coal
                                           162.6 million
                                                                                                                       6.7%           reserves:
                                             (FY2002)                                                                                204 years        Russia                                   0
                                                                                                                                                      15.9%                                          1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2001 (FY)
                               19.1%                                                                       Australia                                                                                  Îi   Îi   Îi   Îi   Îi   Îi     Îi        Îi        Îi       Îi       Îi      Îi

                                                        Australia                                           8.3%                                                                                       2    6    1   ÇQ ÇT ÇV ÇW ÇX ÇX ÇX ÇX ÇX
                                                                                                                                India     China

                                                         56.5%                                                                                                                                        ÅE ÅE      4   ÇT ÇV ÇV ÇO ÇT ÇQ ÇT ÇW ÇX
                                                                                                                                8.6%      11.6%                                                        5    9   ÅE ÅE ÅE ÅE ÅE ÅE ÅE ÅE ÅE ÅE
                                                                                                                                                                                                      %    %     0   ÇR ÇP ÇO ÇP ÇP ÇX ÇQ ÇP ÇR
                                                                                                                                                                                                      Îj   Îj   %    %    %    %      %         %         %        %        %       %
                                                                                                                                                                                                                Îj   Îj   Îj   Îj     Îj        Îj        Îj       Îj       Îj      Îj
                                    Source: “Statistics of Energy Production, Supply and Demand”                                                        Source: “BP Statistics 2003”                                              Source: “Statistics of Energy Production, Supply and Demand”

       19 Åú                                                                                                                                                                                                                                                                                                                                                Åú20
         E nergy in J apan
10                                                                                                                                                                                                                                                                                                                                                              10


                                                                                                                                                  Japan is entirely reliant on imports for its supply of oil, which
                      Oil                                                                                                                         provides approximately 50% of its energy needs. About 90% of
                                                                                                                                                  Japan’s oil is imported from the Middle East.
                                                                                                                                                  To ensure a stable supply of oil, we are deepening exchanges with
                                                                                                                                                  oil-producing countries and stockpiling oil reserves.
                                                                                                                                                  In Japan, the establishment of energy conservation                                                      Japan’s high level of dependence on oil imports from
                                                                                                                                                  measures and the introduction of energy sources                                                         the Middle East is expected to continue, and we are
                                                                                                                                                  which would provide an alternative to oil proceeded                                                     therefore deepening relations with the oil-exporting
                                                                                                                                                  in earnest after the two oil crises. Despite these                                                      countries in the region through continuous exchanges
                                                                                                                                                  measures, Japan remains dependent on oil for                                                            of human resources and the implementation of joint
                                                                                                                                                  approximately 50% of its energy supply.                                                                 research projects and technological cooperation in
                                                                                                                             Japan                                                                                                                        oil-related fields, such as the development of high-
                                                                                                                                                  After the oil crises, Japan diversified the sources of                                                  precision refining technologies.
               Oil field in the Middle East                                                                                                       its oil imports, to reduce its level of dependence on
                                                                                                                                                  any specific nation or region, such as the Middle                                                       In addition, to prepare for the contingency of a
                                                                                                                                                  East. As a result, the nation’s dependence on oil from                                                  sudden cessation of oil imports, both the central
                                                                                                                                                  the Middle East dropped temporarily. However, the                                                       government and private enterprises are stockpiling
                                                                                                                                                  East Asian nations (in particular China) from which                                                     oil reserves. As of the end of March, 2003, a total of
                                                                                                                                                  Japan was then importing oil have gone from being                                                       89.6 million kl of oil, or 169 days’ supply, were held
                                                                                                                                                  exporters to being net importers of oil as their                                                        in reserve (Figure 10-3).
                                                                                                 National Oil Storage Base                        domestic energy consumption has increased, and
                                                                                                 (Shibushi, Kagoshima Prefecture)                 Japan’s dependence on the Middle East has once                                                          Japanese enterprises also hold long-term drilling
                                                                                                                                                  again been climbing since the early 1990s (Figures                                                      rights in oil-producing countries, and are involved in
                                                                                                                                                  10-1 and 10-2).                                                                                         the surveying and development of oil fields and the
                                                                                                                                                                                                                                                          production of oil, and export part of this oil to Japan.
                                                                                                                                                  Japan’s level of dependence on Middle Eastern oil is rising again
                                                                                                                                                   (Figure 10-2) Trends in dependence on Middle Eastern oil imports
                                                                                                                                                       % 95

                                                                                                                                                           90                  First oil crisis

                                                                                                                                                                                                    Second oil crisis


                                   Oil tanker                                                                                                              75

                                                90% of Japan’s oil is imported from the Middle East
                                                 (Figure 10-1) Countries from which Japan imports oil                                                               73           75                           80                         85                         90                       95                           2000        2002 (Year)
                                                                                                                                                                                                                                                                                          Source: “Statistics of Energy Production, Supply and Demand”

                                                     China 1.6%
                                                                                                                                                  169 days’ supply of oil are held in reserve to prepare for potential cessation of supply
                                                                                                                                                   (Figure 10-3) Trends in amount / days’ supply of oil held in reserve in Japan (As of end of March each year)
                                                      Indonesia               9.1%
                                                                                                                                                     (Million kl)
                                                                                                                                                                                                                                                         157 days   163 days
                                                        4.0%                                                                                             100                                                                       157 days   150 days    9,332      9,393
                                                                                                                                                                                                                                                                               164 days
                                                                                                                                                                                                                                                                                          156 days
                                                                                                                                                                                                                                                                                                       163 days     166 days     169 days
                                                                                                                                                                                                                                               8,953                            9,141                   9,080        9,023        8,960
                                                                                                 United Arab                                                                                                            144 days    8,816                                                  8,806
                                                       Others                                     Emirates                                                                                                               8,276
                                                        4.4%                                       22.9%                                                   80                                               128 days
                                                                                                                                                                                   88 days        95 days    6,593
                                                      Oman                      Total amount                                                                        90 days         6,048          6,593                                                                                                                                    National
                                                      5.7%                                                                                                           5,945          7 days        7 days    31 days     55 days    76 days    76 days    78 days     82 days   85 days     84 days      85 days      89 days      91 days   reserves
                                                                                  imported                                                                 60
                                                                  Kuwait       241.9 million kl
                                                                   6.9%           (FY2002)
                                                                      Qatar                        Saudi Arabia
                                                                      9.2%                           22.4%                                                                                                                                                                                                                                  Private
                                                                                       Iran                                                                20        90 days       81 days        88 days   97 days     89 days    81 days    74 days    79 days     80 days   79 days     72 days      78 days      77 days      78 days   enterprise
                                                                                      13.8%                                                                                                                                                                                                                                                 reserves
                                                                       Mi                                   %
                                                                            d dl                      5.3
                                                                                   e Eas
                                                                                         t re gio n 8                                                        0
                                                                                                                                                                     1978           1979          1980      1985         1990       1995       1996       1997       1998       1999        2000        2001         2002         2003 (Year)
                                                                                                                                                    Note 1: The amount of the reserves are converted in terms of products, while the number of days’ supply is calculated using the
                                                                                                                                                            method stipulated in the Petroleum Reserve Law
                                                                                   Source: “Statistics of Energy Production, Supply and Demand”     Note 2: Figures have been rounded off, and the total for days of reserve supply may not match the sum of the number of days
                                                                                                                                                            indicated in each bar.                                                                                                                    Source: Agency of Natural Resources and Energy

      21 Åú                                                                                                                                                                                                                                                                                                                                              Åú22
                  Data Sheet
Data Sheet

                                                                                                                                                                                                                                                                                                                                                                                                                             Data Sheet
                    Outline of long-term outlook for energy supply and demand                                                                                                                    Current and future energy conservation measures
                     ÅúFinal energy consumption trends and outlook                                                                           Åi Units: 1 million kl crude oil equivalentÅj        Sector                                                                                         Measure                                                                                Amount of energy saved
                                                          FY                                                                                               2010                                                                                                                                                                                                                         Åi Crude oil equivalentÅj
                                                                             1990                            2000                                                                                                               Ås
                                                                                                                                                                                                                                 Existing measuresÅt                                                                                                                                                 20.1 million kl
                                                                                                                                   Standard case                        Target case
                                                                                                                                                                                                                                ÅõMeasures based on Voluntary Action Plan on the Environment of the Japan Business Federation                                                             Åi total energy savingsÅj
                      Item                                                     % distribution                  % distribution                 % distribution                    % distribution

                                                                                                                                                                                                                                ÅõEnergy conservation measures adopted by medium-sized factories, etc.                                                                                                 20.1million kl
                     Industry                                          183            52.5             200                49.3      187              45.8      Approx. 185        Approx. 46                                    ÅsNew measuresÅt                                                                                                                                                       0.4 million kl

                     Residential and commercial                         85            24.4             108                26.5      126              30.8      Approx. 120        Approx. 30                                    ÅùHigh-performance industrial furnacesÅi Small and medium-sized enterprisesÅj                                                                                          0.4 million kl
                      Household                                         46            13.3              58                14.2       60              14.7       Approx. 58        Approx. 14                                                                                    Subtotal                                                                                                             20.5 million kl
                      Business                                          39            11.2              50                12.3       66              16.1       Approx. 63        Approx. 16                                    ÅsExisting measuresÅt                                                                                                                                                  14 million kl

                                                                                                                                                                                                   Commercial and residential
                     Transport                                          80            23.0              98                24.1        96             23.4         Approx. 94      Approx. 24                                    ÅõImprovement of efficiency of appliances through “top runner” legislation                                                                                             5.4 million kl
                                                                                                                                                                                                                                ÅõImprovement of energy conservation performance of residences and commercial buildings                                                                                8.6 million kl
                     Å@Passenger                                        38            11.0              54                13.4        51             12.5         Approx. 50      Approx. 12
                     Å@Cargo, etc.                                      42            12.1              44                10.8        45             10.9         Approx. 45      Approx. 11                                    ÅsNew measuresÅt                                                                                                                                                       4.6 million kl
                                                                                                                                                                                                                                ÅùIncreased appliance categories for “top runner” system                                                                                                               1.2 million kl
                     Total                                             349           100               406               100        409             100        Approx. 400       Approx. 100                                    ÅùIncreased use of high-efficiency appliances                                                                                                                          0.5 million kl
                                                                                                                                                                                                                                ÅùReduction of standby power consumption                                                                                                                               0.4 million kl
                                                                                                                                                                                                                                ÅùIncreased use of home energy management systemÅi HEMSÅj                                                                                                              0.9 million kl
                    ÅúOutlook for primary energy supply                                                                                      Åi Units: 1 million kl crude oil equivalentÅj                                      ÅùPromotion of energy management for commercial energy demand                                                                                                          1.6 million kl
                                                                                                                                                                                                                                                                                Subtotal                                                                                                             18.6 million kl
                                                          FY                                                                                               2010
                                                                             1990                            2000                                                                                                               ÅsExisting measuresÅt                                                                                                                                                15.9 million kl
                      Item                                                                                                         Standard case                        Target case
                                                                                                                                                                                                                                ÅõImprovement of efficiency of equipment through “top runner” legislation                                                                                              5.4 million kl
                     Primary energy supply                                   526                             604                            622                        Approx. 602                                              ÅõIncreased use of clean energy vehicles                                                                                                                               0.8 million kl

                                                                                                                                                                                                                                ÅõEnergy conservation measures for transport systems                                                                                                                   9.7 million kl
                     Energy classification                     Actual figure % distribution     Actual figure % distribution Actual figure % distribution Actual figure % distribution
                                                                                                                                                                                                                                ÅsNew measuresÅt                                                                                                                                                         1 million kl
                     Oil                                               306             58.3            313                51.8       280             45.0      Approx. 271       Approx. 45
                                                                                                                                                                                                                                ÅùAccelerated introduction of vehicles satisfying “top-runner” standards                                                                                               0.5 million kl
                     Coal                                               87             16.6            108                17.9       136             21.9      Approx. 114       Approx. 19                                     ÅùPromotion of diversification of vehicle types (hybrid vehicles, etc.)                                                                                                0.5 million kl
                     Natural gas                                        53             10.1             79                13.1        82             13.2       Approx. 83       Approx. 14
                                                                                                                                                                                                                                                                                Subtotal                                                                                                             16.9 million kl
                     Nuclear power                                      49              9.4             75                12.4        93             15.0               93       Approx. 15
                                                                                                                                                                                                                                ÅõTechnological development                                                                                                                                              1 million kl
                     Hydro                                              22              4.2             21                 3.4        20              3.2               20        Approx. 3

                                                                                                                                                                                                   Common areas
                                                                                                                                                                                                                                Å@High-performance boilers                             Åi Industrial technologyÅj                                                                                      0.4 million kl
                     Geothermal energy                                   1              0.1              1                 0.2         1              0.2                1       Approx. 0.2                                     ÅE
                                                                                                                                                                                                                                Å@High-performance lasers                              Åi Industrial technologyÅj                                                                                      0.1 million kl
                     New energies, etc.                                  7              1.3              7                 1.1        10              1.6               20        Approx. 3                                      ÅE
                                                                                                                                                                                                                                Å@High-efficiency lighting                             Åi Commercial and residential technologyÅj                                                                      0.5 million kl
                     Renewable energyÅi NoteÅj                          29              5.6             29                 4.8        30              4.8               40        Approx. 7                                      ÅE
                                                                                                                                                                                                                                Å@Increasing performance of clean energy vehicles      Åi Transport technologyÅj                                                                                                Å\Å\
                                                                                                                                                                                                                                  Å@       I                                                                                          ”
                                                                                                                                                                                                                                Å@Åi NoteÅjncluded in category “Promotion of diversification of vehicle typesÅi hybrid vehicles, etc.Åj
                    Note: Renewable energy includes new energies, hydroelectric power and geothermal power.                                                                                                                                                                     Subtotal                                                                                                                 1 million kl
                                                                                                                                                                                                                                ÅsExisting measuresÅt                                                                                                                                                  50 million kl

                    ÅúTrends and outlook for amount of CO2 produced by energy sources                                                                                                                                           ÅsNew measuresÅt                                                                                                                                                        7 million kl
                                                                                                                                                                    Åi Units: 1 million t-CÅj
                                                                                                                                                                                                                                                                                Subtotal                                                                                                               57 million kl
                        Å@ Å@
                       Å@ Å@ Å@Å@                                                                FY                                       Å@ Å@ Å@
                                                                                                                                         Å@ Å@ Å@ Å@                 2010
                                                                                                                1990              2000                                                           * If an increase in the amount of fuel cell cogeneration for households is included in the new energy target case, energy conservation figures will
                    Å@                                                                                                                             Standard case               Target case
                                                                                                                                                                                                   increase by approximately 200,000kl (reference figure).
                     Amount of CO2 produced by energy sources                                                      287              316                 307                    Approx. 287
                     (Growth rate against 1990)
                       Å@                                                                                                        Åi 10%Åj              Åi 7%Åj
                                                                                                                                                                                                 New energies: Present status and targets
                                                                                                                                                                                                 The amounts shown as new targets for new energies are figures which are realizable in FY2010 assuming the maximum level of effort in both
                    ÅúYear-end capacity: trends and outlook (Electric utilities)                                                                                      Åi Units: 10,000 kWÅj      the public and private sectors to reduce costs and introduce new energies.
                      Å@Å@                                FY                                                                                               2010
                                                                             1990                            2000
                      Item                                                                                                         Standard case                        Target case              ÅúSupply-side new energies
                     Year-end capacity (Electric utilities)               17212                           22913                          26657                        25288—27229                                                                                                                                                                            FY2010
                                                                                                                                                                                                                                                                              FY2000Åi Actual figuresÅj
                                                                                                                                                                                                                                                                                                                  Maintenance of existing measures                               Target
                     Type of power generation                  Actual figures % distribution Actual figures % distribution Actual figures % distribution Actual figures % distribution                                                                                 Crude oil equivalent Scale of facility    Crude oil equivalent Scale of facility Crude oil equivalent Scale of facility
                     Thermal power                                 10408       60.5               13891                  60.6    15343              57.6       14670—16220        57.0—59.6                                                                              Åi 10,000 klÅj Åi 10,000 kWÅj             Åi 10,000 klÅj     Åi 10,000 kWÅj      Åi 10,000 klÅj     Åi 10,000 kWÅj
                       Coal                                         1223        7.1                2922                  12.8     4410              16.5        3155—4413         12.3—16.2        Solar power generation                                                            8.1               33.0                      62               254                  118               482      Approx.15 times
                       LNG                                          3839       22.3                5722                  25.0     6702              25.1        6606—6696         24.6—26.1        Wind power generation                                                             5.9               14.4                      32                 78                 134               300      Approx. 23 times
                       Oil, etc.                                    5347       31.1                5248                  22.9     4231              15.9         4908—5111        18.8—19.4        Power generation from waste                                                      115                103                     208                175                  552               417       Approx. 5 times
                     Nuclear power                                  3148       18.3                4492                  19.6     6185              23.2        5755—6185         22.7—24.1        Biomass power generation                                                          4.7                6.9                      13                 16                  34                  33     Approx. 7 times
                     Hydro                                          3632       21.1                4478                  19.5     5071              19.0              4810        17.7—19.0        Utilization of solar heat                                                          89                  Å|                     72                 Å|                 439                  Å|     Approx. 5 times
                       Conventional power                           1931       11.2                2008                   8.8     2070               7.8              2069          7.6—8.2        Unutilized energy                                                                 4.5                    Å|                 9.3                 Å|                  58                   Å|    Approx. 13 times
                       Pumped storage hydroelectric power           1701        9.9                2471                  10.8     3001              11.3              2741        10.1—10.8      Åi Including ice thermal energy storageÅj
                     Geothermal power                                     Å@ Å@
                                                                      24 Å@ Å@ 0.1                   52                   0.2       59               0.2                54              0.2        Utilization of heat from waste                                                    4.5                    Å|                 4.4                 Å|                  14                   Å|     Approx. 3 times
                                                                                                                                                                                                   Utilization of heat from biomass                                                   Å|                    Å|                  Å|                 Å|                  67                   Å|                  Å|
                                                                                                                                                                                                   Black liquor, waste wood, etc.                                                   490                     Å|                479                  Å|                 494                   Å|     Approx. 1 times
                                                                                                                                                                                                   Total for new energies                                                           722                     Å|                878                  Å|               1,910                   Å|     Approx. 3 times
                    ÅúElectric power generation: trends and outlook (Electric utilities)                                                                             Åi Units: billion kWhÅj
                                                       FY                                                                                                  2010                                  ÅúRenewable energies
                                                                           1990                           2000
                     Item                                                                                                           Standard case                       Target case                                                                                                                                                                            FY2010
                                                                                                                                                                                                                                                                              FY2000Åi Actual figuresÅj
                                                                                                                                                                                                                                                                                                                  Maintenance of existing measures                            Target case
                     Electric power generation
                    Åi Electric utilitiesÅj                               737.6                           939.6                          1029.2                       Approx. 997.0                                                                                      Crude oil equivalentÅi 1 million klÅj    Crude oil equivalentÅi 1 million klÅj   Crude oil equivalentÅi 1 million klÅj     2010/2000
                                                                                                                                                                                                  Total supply of new energies                                                           7                                        9                                      19                       Approx. 2.7 times
                     Type of power generation             Actual figures % distribution Actual figures % distribution Actual figures % distribution Actual figures % distribution                 Hydro                                                                                 21                                       20                                      20                        Approx. 1 times
                     Thermal power                               446.6            60.5         521.6            55.5          507.4           49.3 Approx. 468.0      Approx. 47                  Geothermal power                                                                       1                                        1                                       1                        Approx. 1 times
                       Coal                                        71.9            9.7         173.2            18.4          235.1           22.8 Approx. 159.9      Approx. 16                  Total supply of renewable energy                                                      29                                       30                                      40                       Approx. 1.4 times
                       LNG                                       163.9            22.2         247.9            26.4          234.1           22.7 Approx. 254.9      Approx. 26
                       Oil, etc.                                 210.8            28.6         100.5            10.7            38.3           3.7 Approx. 53.3        Approx. 5                 ÅúDemand-side new energies
                     Nuclear power                               201.4            27.3         321.9            34.3          418.6           40.7          418.6     Approx. 42                                                                                                                                                                               FY2010
                     Hydro                                         88.1           11.9           90.4            9.6            96.6           9.4           95.2     Approx. 10                                                                                              FY2000Åi Actual figuresÅj
                                                                                                 77.9            8.3                           7.8                                                                                                                                                                Maintenance of existing measures                    Target case
                       Conventional power                          78.8           10.7                                          80.3                         80.3      Approx. 8                                                                                                                                                                                                                     2010/2000
                       Pumped storage hydroelectric power           9.3            1.3           12.5            1.3            16.3           1.6           14.9      Approx. 1                  Clean energy vehicles                        *1                                 82,000 vehicles                          890,000 vehicles                       3,480,000 vehicles              Approx. 42 times
                     Geothermal power                               1.5            0.2            3.3            0.4             3.7           0.4             3.7 Approx. 0.4                    Natural gas cogeneration*2                                                       1.7 million kW                           3.44 million kW                         4.64 million kW                Approx. 3 times
                     New energies                                  —Å@              —             2.3            0.2             2.9           0.3            11.5     Approx. 1                  Fuel cells                                                                         12,000 kW                                40,000 kW                              2,200,000 kW                 Approx. 183 times
                     CO2 emissions per unit of energy                                                                                                                                            *1ÅjClean energy vehicles include electric vehicles, fuel cell vehicles, hybrid vehicles, natural gas vehicles, methanol vehicles, and vehicles
                                                                      101.9                          90.1                          82.6                      Approx. 73.6
                    Åi g-c/kWhÅj                                                                                                                                                                     switching from diesel to natural gas, which all represent demand-side energies.
                    * Forecasted figures are calculated on the basis of fixed assumed conditions, and should be seen as having a certain margin of error.                                        *2ÅjNatural gas cogeneration includes fuel cell cogeneration.

             23                                                                                                                                                                                                                                                                                                                                                                                                         24
                  Data Sheet
Data Sheet

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Data Sheet
                                                                                                                                                                                                                                                                                                       The composition of the energy supply differs with the characteristics and situation of individual countries
                                                                                         Major characteristics of energy sources
                                                                                                                                                                                                                                                                                                        Composition of (primary) energy supply in major countries (2000)

                                                                                                                                                                                                                                                                                                                         Oil     Coal         Natural gas             Nuclear power        Hydro and waste, etc.                               (Primary) energy supply
                                                                                                                                                                              Natural                                                                                                                                                                                                                                                          (Crude oil equivalent: Million tons)
                                                        Coal                                                       Oil                                                                                                                  Uranium
                                                                                                                                                                              gas                                                                                                                      World total                 35                                   23                      21                   7           13           9,700

                                                                                                                                                                                                                                                                                                              US                   39                                           24                    24                     9        5       2,300
                                                                                             Åi 2002Åj                                                      Åi 2002Åj                                                 Åi 2002Åj                                                      Åi 2001Åj
                                                     Central and                                             Former                        Asia and Oceania                  Asia and               Central and South                                                                                    Canada                    35                            12                        30                   8                16            250
                                                   South America                 Middle East                  Soviet                       3.7%                              Oceania                America 4.5%                       Europe 3.5%                       Middle East 0.0%
                                                           2.2%                  0.2%                         Union                             North America                 8.1%                    North America 4.6%
                                                        Africa                                                 7.5%                             4.8%
                                                                                                                                                                                                            Europe 3.8%
                                                                                                                                                                                                                                       Central and
                                                                                                                                                                                                                                                                                                        Germany                    39                                            24                       21                 13        3       340
                                                                                                                                                Europe 1.8%                                                                            South America
                                                        5.6%                                                                                                              Africa
                                                                                                                 Africa                                                                                                                6.5%
                                                                                                                 7.4%                                                     7.6%
                                                                                                                                                                                                                                                                                                          France                   34                       6              14                              42                          4       260
                           Proven                         Europe                                                                                                                                               Former                                                 Former
                                                                                    Asia and
                          reserves                        13.2%                      Oceania                                                                                                                    Soviet                       North                     Soviet
                                                                                                                                                                                                                                                                                                              UK                   36                                 16                             38                          10       2    230
                                                                                                                                                                                                                  Union                     America                     Union
                                                                         Coal          29.7%                                               Oil                                                Natural gas 35.4%                             17.9%      Uranium
                                                                    984.5 billion tons                                           1047.7 billion barrels                                        155 trillion m3                                      3.93 million tons U 30.6%

                                                                        Limit of
                                                                                                                                       Limit of
                                                                                                                                                                                                  Limit of
                                                                                                                                                                                                                                                               Limit of
                                                                                                                                                                                                                                                             exploitation:                                 Japan                   51                                                 18                  12               16          3       520
                                                                       204 years                                                     40.6 years                                                  60.7 years                                                   61.1 years
                                                         Union                                                                                                                                                                                    Africa
                                                          22.9%          North America                                                                                                                                                            17.8%                Asia and                                      0                  20                      40                    60                        80                        100 %
                                                                                                                                   Middle East 65.4%                                      Middle East 36.0%
                                                                         26.2%                                                                                                                                                                                         Oceania
                  Note: Figures are rounded off                                                                                                                                                                                                                        23.8%                                                                                                                                         Source: Energy Balances of OECD Countries, 2002, OECD/IEA
                  and may not total 100%.                                                                                                                                                                                                                                                                     * Figures are rounded off and may not total 100%.                                                              Energy Balances of Non-OECD Countries, 2001, OECD/IEA
                                                                                                              Central and South America                                                                                               Note: Mining loss and other factors have not been                                                                                                                                                       Note: 1999 figures are used for world total.
                                                                                                              9.4%                                                                                                                    considered in the figure for proven reserves of this resource.
                                                                                                                                                                                                                                      For reference, the yearly global demand for uranium is
                                                                                                                                                                                                                                      approximately 62,000 tons U.

                                                                                                (2002)                                                        (2002)                                                     (2002)                                                          (2001)
                     Annual output                       2.38 billion tons                                            27 billion barrels                                               2.5 trillion m3                                              37,000 tons
                         Limit of                                                               (2002)                                                        (2002)                                                     (2002)                                                          (2001)          MEMO
                       exploitation                              204 years                                                    40.6 years                                                  60.7 years                                                  61.1 years
                                                                                                (2000)                                                        (2001)                                                     (2001)                                                          (2001)
                      consumption                     4,648.8 million tons                                        3,510.6 million tons                                            2,404.9 billion m3                                                64,000 tons
                                in Japan
                                                      149.33 million tons                                            247.2 million tons                                                 79 billion m3                                               11,000 tons
                                                                                                                                                                                                                                                            Hydro /
                                                                                                                                                                                                                               Nuclear                      Geothermal power
                       Ratio of                                  Coal                                                                Oil                                                            Natural gas                 power                       3.5%
                   primary energy
                   supply in Japan                             19.1%                                                           49.4%                                                                  13.1%                     12.6%                                New energies,
                                     FY2001                                                                                                                                                                                                                          etc. 2.3%

                  Japan’s dependence                                                     Åi FY2000Åj                                                      Åi FY2002Åj                                             Åi FY2002Åj                                                    Åi FY2000Åj
                      on imports                                    98.4Åì                                                           99.7Åì                                                   96.6Åì                                                        100Åì
                                                                                         Åi FY2002Åj                                                      Åi FY2002Åj                                             Åi FY2002Åj                             (As of end of March, 1999)

                                                        Russia                 US 0.25%                         China 1.6%              Australia 1.3%
                                                                                                                                                                                                    United Arab Emirates
                                                        4.3%                                                    Others                                                                                                                   South Africa 7.0%
                                                                                South Africa                                                     Mexico 0.2%                                        8.4%
                                                     Indonesia                  0.25%                                                               Others 5.4%                                         US 2.3%                                          France 6.0%
                                                        11.9%                                                   Indonesia
                                                                               Others 1.8%                      4.0%                                                                                      Oman 1.6%                                          China 1.0%
                    Main countries                                                                                                               United Arab
                     from which                          Canada                                                   Others 4.4%
                                                                                                                                                 22.9%                                                                                                   Others
                                                           5.8%                                                Oman 5.7%                                                                                                                                  8.0%
                    Japan imports                                                                                                                                              Brunei                     Indonesia                                                     Canada
                                                                                                               Kuwait 6.9%                         Saudi Arabia                10.9%                                                                                    28.0%
                                                                                                                          Qatar                    22.4%                                                                                  Niger 9.0%
                                                                                 Australia                                9.2%         Iran                                       Qatar
                                                          China                  56.5%                                                 13.8%                                      12.1%                                                                            Australia
                                                          19.1%                                                                                                                                         Malaysia                                 US
                                                                                                                                                                                      Australia                                                  9.0%        UK    17.0%
                                                                                                                                                                                      13.1%             19.8%                                                15.0%

                   Note: Figures are rounded off                                                                           Middle East 85.3%
                   and may not total 100%.
                                                                                                                           Southeast Asia 6.2%
                                                                                                                           Others 8.5%                                                                                                  Source: Survey of Agency of Natural Resources
                                                                                                                                                                                                                                        and Energy

                  Source: “BP Statistics 2003,” OECD/NEA-IAEA “URANIUM 2001,” “General Energy Statistics,” “IEA Coal Information 2001”

                    Unit cost of power                     Approx. 6.5 yen/kWh                                         Approx. 10.2 yen/kWh                                          Approx. 6.4 yen/kWh                                         Approx. 5.9 yen/kWh

              2     Fuel required for one
                     years’ operation of   2.36 million tons - 11.8 freighters 1.31 million tons - 6.6 freighters                                                          0.97 million tons - 4.9 freighters                                     21 tons - 2.1 trucks
                  1 million kW power plant      carrying 200,000 tons               carrying 200,000 tons                                                                      carrying 200,000 tons                                               carrying 10 tons

                     Åñ                                                Scale of model plants                                                        2
                      *Exchange rate: 128.02 yen to the dollar         Conventional hydroelectric power....1.5 MW                                   *An equipment load factor of 80% is assumed in each case.
                                                                       Oil thermal power................................4 0 MW
                      (Inter bank)                                     Coal thermal power.............................9 0 MW                        *Figures for thermal efficiency                        *Figures for heating value or specific burn out
                      Equipment load factor: 80 %                      LNG thermal power..............................150 MW                         (at generation) are as follows:                        are as follows:
                      (Conventional hydroelectric power is 45 %)       Nuclear power......................................130 MW                      Oil thermal power..................39.8 %               Oil..............................Approx. 9,800 kcal/kg
                      The unit cost of nuclear power generation        Years of operation for calculation purposes                                    LNG thermal power...............48.0 %                  LNG...........................Approx. 13,000 kcal/kg
                      includes related costs, such as the nuclear      Conventional hydroelectric power....... 40 years                               Coal thermal power...............41.2 %                 Coal...........................Approx. 6,200 kcal/kg
                      fuel cycle, management of furnaces,              Oil thermal power................................ 40 years                     Nuclear power........................34.5 %             Nuclear power....... .Approx. 45,000 MWd/t
                      processing of radioactive waste, etc.            Coal thermal power............................. 40 years
                                                                       LNG thermal power............................. 40 years
                                                                       Nuclear power..................................... 40 years                                                                       Source: Agency of Natural Resources and Energy

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