25
ciency of leading-edge environmentally friendly vehicles. The Japanese automobile
companies are global leaders in this area. Toyota, for example, has gone all out in its
introduction of hybrid vehicles. Fig. 2.10 shows that energy consumption by new
cars sold in the global marketplace also improved 20% from 2000 to 2012.
Based on the foregoing, it would be safe to say that we are on target for tripling
energy efficiency by 2050 compared to 1990.
2.2.2 Putting Renewable Energy at the Core of Energy
Investments
Figure 2.11 presents trends of electricity generation by source since 1995.
Meanwhile, Table 2.1 shows the total energy supply and the share of each fuel from
1995 (when Vision 2050 was written) through 2015. Fossil fuels including oil, coal
and natural gas have always accounted for the biggest share of overall energy production, while the share that they accounted for in electricity specifically was nearly
constant at 65%, with composition for the remaining 35% exhibiting great changes.
First, the absolute amount of hydropower increased by 1.6 times. Renewables other
than hydropower – which at 1.4% was essentially close to zero – grew considerably,
with wind power and solar reaching 6.4%. This growth has been based on market
mechanisms, and renewable energy has already achieved price competitiveness.
Since reaching its peak amount of electricity generated in 2006, nuclear power has
declined slightly.
In terms of energy as a whole, fossil fuels account for 76.5%. The total amount
of renewable energy including wind, hydroelectric, solar, geothermal, and biomass
power grew by 1.6 times, and the share that renewables account for in the total
energy supply has reached 18.8%. Meanwhile, nuclear power fell from 6.3% in
1995 to 4.8% in 2015.
As a result, when we add renewable energy to nuclear power, we see that the
share of non-fossil fuel energy accounts for 23.6%.
The reason why renewable energy is being adopted is because costs have fallen.
This is a result of a positive spiral of improvements in technology and an expansion
of the market size, followed by further improvements in technology. As Figs. 2.12
and 2.13 shows, the costs of wind and solar power fell dramatically from the 1980s
to the present, to 1/20th and 1/200th of their earlier levels, respectively. Even
looking at just the past two decades since 1995, their costs have dropped to 1/4th
and 1/20th of their earlier levels, respectively. Reflecting this state of affairs, renewable energy has been put at the core of energy investments.
We have long argued that such a fall in costs would occur. However, many people
in Japan including energy specialists did not believe this would be the case. As a
result, Japan is one step behind compared to the pace at which renewables are being
adopted around the world. Japan lags far behind when it comes to wind power. The
country was a pioneer globally with solar power in launching a national project
2.2 Energy Saving and Renewable Energy
ciency of leading-edge environmentally friendly vehicles. The Japanese automobile
companies are global leaders in this area. Toyota, for example, has gone all out in its
introduction of hybrid vehicles. Fig. 2.10 shows that energy consumption by new
cars sold in the global marketplace also improved 20% from 2000 to 2012.
Based on the foregoing, it would be safe to say that we are on target for tripling
energy efficiency by 2050 compared to 1990.
2.2.2 Putting Renewable Energy at the Core of Energy
Investments
Figure 2.11 presents trends of electricity generation by source since 1995.
Meanwhile, Table 2.1 shows the total energy supply and the share of each fuel from
1995 (when Vision 2050 was written) through 2015. Fossil fuels including oil, coal
and natural gas have always accounted for the biggest share of overall energy production, while the share that they accounted for in electricity specifically was nearly
constant at 65%, with composition for the remaining 35% exhibiting great changes.
First, the absolute amount of hydropower increased by 1.6 times. Renewables other
than hydropower – which at 1.4% was essentially close to zero – grew considerably,
with wind power and solar reaching 6.4%. This growth has been based on market
mechanisms, and renewable energy has already achieved price competitiveness.
Since reaching its peak amount of electricity generated in 2006, nuclear power has
declined slightly.
In terms of energy as a whole, fossil fuels account for 76.5%. The total amount
of renewable energy including wind, hydroelectric, solar, geothermal, and biomass
power grew by 1.6 times, and the share that renewables account for in the total
energy supply has reached 18.8%. Meanwhile, nuclear power fell from 6.3% in
1995 to 4.8% in 2015.
As a result, when we add renewable energy to nuclear power, we see that the
share of non-fossil fuel energy accounts for 23.6%.
The reason why renewable energy is being adopted is because costs have fallen.
This is a result of a positive spiral of improvements in technology and an expansion
of the market size, followed by further improvements in technology. As Figs. 2.12
and 2.13 shows, the costs of wind and solar power fell dramatically from the 1980s
to the present, to 1/20th and 1/200th of their earlier levels, respectively. Even
looking at just the past two decades since 1995, their costs have dropped to 1/4th
and 1/20th of their earlier levels, respectively. Reflecting this state of affairs, renewable energy has been put at the core of energy investments.
We have long argued that such a fall in costs would occur. However, many people
in Japan including energy specialists did not believe this would be the case. As a
result, Japan is one step behind compared to the pace at which renewables are being
adopted around the world. Japan lags far behind when it comes to wind power. The
country was a pioneer globally with solar power in launching a national project
2.2 Energy Saving and Renewable Energy