68 H. OHTA
and independent system for transmission and distribution of electricity
by establishing a real separation of ownership and management between
a power company and a transmission/distribution company (ISEP 2017,
Chapter 2). Under the legally unbundling scheme, it is crucial how closely
the OCCTO, along with the Electricity Market Surveillance Commission
(EMSC), or another regulatory organization, can monitor fair access to
power grids (Ito 2016, p. 4; ISEP 2014, pp. 28–29), but it is questionable
whether these regulatory bodies can ensure open access to grids.
Against the backdrop of all the above, the Abe administration adopted
Japan’s climate policy in the run-up to the Paris climate conference
(COP21) held in December 2015. In July 2015, Japan announced its
“intended nationally determined contributions” (INDCs) of reducing its
emissions 26% below 2013 levels by 2030. This target appears similar
to those of European countries, but actually, it is equivalent to an 18%
reduction below 1990 levels. Thus, it is much less ambitious than the EU
target of 40% reductions below 1990 levels.
In July 2018, the Abe Cabinet approved a new “Strategic Energy Plan”
drafted by ANRE/METI. Even though it states in its introduction by
referring to the Paris Agreement that Japan leads the challenge to achieve
decarbonization and energy transition, this basic energy plan still substantially relies on coal and nuclear power plants for electricity generation.
The estimated share of coal-fired electricity generation is 26% by 2030,
that of nuclear energy 20–22%, and that of renewables 22–24%, which is
lower than coal and slightly higher than nuclear power, though renewable energy is supposed to be “a major power source” according to the
new energy plan (METI 2018). Even the most advanced coal-fired plant
(IGFC) 13 emits almost twice as much CO 2 as an LNG plant does (MOFA
2018, p. 27).
Furthermore, the promotion of ultra-supercritical (USC) power plants
to replace conventional coal-fired power plants in China, India, and the
US can, according to ANRE’s estimate, only reduce around 18% of CO 2
emissions. Therefore, the remaining 82% of CO 2 emissions will be kept
unchecked for 40 years (REI 2018b, p. 1). Moreover, the cost of nuclear
power generation has been on the rise globally since 2012, while the costs
of renewable energy sources are on the decline, with the costs of utilityscale (mega) solar PV and wind power declining dramatically from 2009
to 2017: declines of 86% and 68%, respectively (MOFA 2018, p. 28).
Nonetheless, the cost of generating electricity is merely a tiny aspect
and independent system for transmission and distribution of electricity
by establishing a real separation of ownership and management between
a power company and a transmission/distribution company (ISEP 2017,
Chapter 2). Under the legally unbundling scheme, it is crucial how closely
the OCCTO, along with the Electricity Market Surveillance Commission
(EMSC), or another regulatory organization, can monitor fair access to
power grids (Ito 2016, p. 4; ISEP 2014, pp. 28–29), but it is questionable
whether these regulatory bodies can ensure open access to grids.
Against the backdrop of all the above, the Abe administration adopted
Japan’s climate policy in the run-up to the Paris climate conference
(COP21) held in December 2015. In July 2015, Japan announced its
“intended nationally determined contributions” (INDCs) of reducing its
emissions 26% below 2013 levels by 2030. This target appears similar
to those of European countries, but actually, it is equivalent to an 18%
reduction below 1990 levels. Thus, it is much less ambitious than the EU
target of 40% reductions below 1990 levels.
In July 2018, the Abe Cabinet approved a new “Strategic Energy Plan”
drafted by ANRE/METI. Even though it states in its introduction by
referring to the Paris Agreement that Japan leads the challenge to achieve
decarbonization and energy transition, this basic energy plan still substantially relies on coal and nuclear power plants for electricity generation.
The estimated share of coal-fired electricity generation is 26% by 2030,
that of nuclear energy 20–22%, and that of renewables 22–24%, which is
lower than coal and slightly higher than nuclear power, though renewable energy is supposed to be “a major power source” according to the
new energy plan (METI 2018). Even the most advanced coal-fired plant
(IGFC) 13 emits almost twice as much CO 2 as an LNG plant does (MOFA
2018, p. 27).
Furthermore, the promotion of ultra-supercritical (USC) power plants
to replace conventional coal-fired power plants in China, India, and the
US can, according to ANRE’s estimate, only reduce around 18% of CO 2
emissions. Therefore, the remaining 82% of CO 2 emissions will be kept
unchecked for 40 years (REI 2018b, p. 1). Moreover, the cost of nuclear
power generation has been on the rise globally since 2012, while the costs
of renewable energy sources are on the decline, with the costs of utilityscale (mega) solar PV and wind power declining dramatically from 2009
to 2017: declines of 86% and 68%, respectively (MOFA 2018, p. 28).
Nonetheless, the cost of generating electricity is merely a tiny aspect