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2015/EWG49/004 Agenda Item: 3

Japan’s Effort toward Strengthening Energy Security

Purpose: Information Submitted by: Japan

49th Energy Working Group Meeting Gyeongju, Korea22–26 June 2015

Japan’s Efforts toward Strengthening Energy Security

June 2015

Agency for Natural Resources and Energy Ministry of Economy, Trade and Industry (METI), Japan

EWG49 Agenda 3

Contents

1. Japan’s New Electricity Generation Mix (Preliminary)

2. APEC Initiative for Quality of Electric Power Infrastructure Development

3. LNG Producer-Consumer Conference 2015

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• Stable Supply (Energy Security)

• Cost Reduction (Economic Efficiency)

• Environment

• Safety

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Global Viewpoint -Developing energy policies with international movement appropriately

-Internationalizing energy industries by facilitating business overseas.

Economic Growth -Contribution to reinforce Japan’s locational competitiveness.

-Activating Japan’s energy market through energy system reform.

(1) Confirmation of basic viewpoint of energy policies (3E + S)

(2) Building multilayered and diversified flexible energy demand-supply structure

Establishing resilient, realistic and multi-layered energy supply structure, where each energy source can exert its advantage and complement others’ drawbacks.

Creating a flexible and efficient supply/demand structure where various players can participate and various alternatives are prepared by system reforms.

Improving self-sufficiency ratio by developing and introducing domestic resources to minimize influence from overseas’ situation.

Strategic Energy Plan (April 2014)

1-1. Principles of Energy Policy and Viewpoints for Reformation

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（Total Electricity generation ）

（Total Electricity generation ）

1,065TWh Energy Conservation ＋Renewable Energy

= about 40%

energy conservation 196TWh （▲17%）

Electricity Demand

981 TWh

Electricity Demand Electricity generation mix 1,278TWh

２０３０ ２０３０ ２０１３ （ actual results）

GDP growth 1.7%/year

Electricity Demand

967 TWh

Oil 2%

Coal 22%

LNG 22%

Nuclear 18～17%

Renewable Energy 19～20%

Energy Conservation 17%

（loss form Electricity transmission etc,）

Hydro 8.8～9.2%

Solar PV 7.9%

Wind 1.7%

Bioenergy 3.7～4.6%

Geothermal 1.0～1.1%

Total base load power ratio

：56%

Renewable Energy 22～24%

Nuclear 22～20%

LNG 27%

Coal 26%

Oil 3%

【Direction】 （１）To improve the self-sufficiency ratio to around 25% surpassing the lever before the Earthquake （２）To reduce the electricity costs lower than today （３）To set a high-level GHG reduction goal compared with other developed countries to lead the world.

(1 June 2015, Sub committee on long-term perspectives of energy demand and supply)

1-2. Japan’s New Electricity Generation Mix (Preliminary)

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At the APEC Ministerial Meeting on November 2014, Ministers recognized that (i) lifecycle cost (LCC), (ii) environmental impacts, and (iii) safety such as resilience to natural disasters constitute the key elements of infrastructure quality, and agreed the APEC Guidebook on Quality of Infrastructure Development and Investment.

• Initial cost • Maintenance cost • Operation cost • Demolition cost • Disposal cost etc.

LCC

• CO2 • NOx • SOx • Particulate matter • Waste disposal etc.

ENVIRONMENTAL IMPACTS

• Natural disaster (e.g. earthquake and tsunami)

• Cyber security etc.

SAFETY

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2. APEC Initiative for Quality of Electric Power Infrastructure Development

2-1. APEC Guidebook on Quality of Infrastructure Development and Investment

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In 2015, APEC Ministers Responsible for Trade (MRT) emphasized “the importance of quality infrastructure in mitigating environmental risks and enhancing resilience to natural disasters.”

The MRT also encouraged officials to explore initiatives to secure quality of infrastructure across various sectors.

2. APEC Initiative for Quality of Electric Power Infrastructure Development

2-2. Secure Quality of Infrastructure across Various Sectors

Based on the spirit of the Guidebook, with a view to developing high quality electric power infrastructure in the Asia-Pacific region, Japan proposes to launch an initiative for the Quality of Electric Power Infrastructure Development.

1. Survey on the current state and outlook of power

demand in the APEC region 2. Formulating a guideline for developing high quality electric

power infrastructure 3. Capacity building for disseminating the guideline

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2. APEC Initiative for Quality of Electric Power Infrastructure Development

2-3. Objectives

2015 29 May Circulate a proposal for the initiative to APEC Energy Working Group (EWG) members ( >>> endorsed on 8 June)

22 June Hold APEC Infrastructure Development Workshop to explain the overview of the initiative <Gyeongju, Korea>

25-26 August Hold a workshop <Tokyo>

12-14 October APEC Energy Ministers welcome the initiative and instruct the EWG to formulate the guideline at the APEC Energy Ministerial Meeting (EMM) <Cebu, the Philippines> 2016 Autumn EWG members agree to the guideline

Autumn APEC Ministers welcome the guideline at the APEC Ministerial Meeting <Peru>

Year-end Hold seminars to disseminate the guideline

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2. APEC Initiative for Quality of Electric Power Infrastructure Development

2-4. Tentative Schedule

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Date 25, 26 August 2015 Place Tokyo, Japan Objectives (1) To share the importance of high quality electric power infrastructure

(2) Discuss possible elements to be incorporated into the guideline

Participants - Government officials in charge of energy infrastructure procurement

- International institutions - Experts

Agenda and an administrative circular w ill be provided soon!

2. APEC Initiative for Quality of Electric Power Infrastructure Development

2-5. Upcoming Workshop in Tokyo

Outline of the Conference Date: September 16, 2015 （9:00 a.m.-4:50 p.m.） Venue: The International Convention Center PAMIR, The Grand Prince Hotel New Takanawa (Tokyo, Japan) Participants: Over 1000 from 50countries, including 90 from the Media

Main Speakers (LNG Producer-Consumer Conference 2014) 【Consumers】 Gov.: Japanese Minister Miyazawa, Korean Deputy Minister, Office of Energy and Resources Policy Corp.: President, Tokyo / Chubu Electric Power Co. and Tokyo Gas Co.,

Chairman & MD, the Gas Authority of India (GAIL) Chairman, CPC (Taiwanese LNG distributor)

【Producers】 Gov.: Qatar Minister of Energy &Industry Australian Minister for Industry Canadian Minister of Natural Resources U.S. Principal Deputy Assistant Secretary, Department of Energy Corp.: ExxonMobil, Shell, Total, Woodside Energy, Cheniere, Veresen

【Others】 Head of IEA, JBIC, JOGMEC and IEEJ

On September 16, 2015, the LNG Producer-Consumer Conference 2015 (The 4th Conference) will be held.

Including ministerial-level officials and top business executives, more than 1,000 people from about 50 nations attended the conference.

See http://www.lng-conference.org/english/index.html

3. The LNG Producer-Consumer Conference 2015

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Thank you for your attention

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