Japan

Index rank 08

Energy Sustainability Index Rankings

 2010  2011  2012  Trend
Energy Performance  11  10  7 
Energy Security  5  16  7 
Social Equity  12  6  9 
Environmental Impact Mitigation  39  37  24 
       
Contextual Performance  24  27  28 
Political Strength  18  16  20 
Societal Strength  13  12  12 
Economic Strength  47  51  54 
       
Overall Rank  11  11  8 
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Fossil Fuel Resources

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Key Metrics

Industrial sector (% of GDP) 27.3
TPEP / TPEC  (net energy importer) 0.19
Emission intensity (kg CO2 per USD) 0.87
Energy affordability (USD per kWh) 0.23
GDP / capita (PPP, USD); GDP Group 34,330 (A)
Energy intensity (million BTU per USD) 0.02
CO2 emissions (metric tons) / capita) 8.61
Population Access to Electricity (%) 100.0
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Index Commentary

Japan’s rise by three ranks in the Index was driven by an improved energy performance, while contextual scores remained mostly constant with a small negative trend. Improvement in energy security was triggered by an increased wholesale margin on gasoline. Stronger environmental performance was driven by lower emissions intensity and a better quality of air and water. It has to be noted however, that the data currently available does not cover any repercussions from the Fukushima accident. Japan’s weakest dimension is economic strength due to high cost of living and relatively low macroeconomic stability.

Trends and Outlook

Most recent energy policy developments include the implementation of a feed-in tariff (FIT) system as of July 1, 2012 which is expected to increase the penetration of renewable energies, such as solar PV and wind. However, the FIT system is viewed with some criticism, as purchasing prices are set high based on the estimated cost of individual renewable energies and a heavy burden on household’s (including households on welfare) electricity bill is expected. Also there are concerns that the domestic PV will not be able to compete against lower-cost imports in the national market. After the devastating earthquake and tsunami which caused the accident at the Fukushima Daiichi nuclear power plant, Japan’s Strategic Energy Plan is under revision. Policymakers have to focus on defining the future energy mix after scientifically evaluating and comparing all available energy technologies. A subcommittee under the advisory committee on energy and natural resources has completed the review based on analysis and assessment of the impact on the trade balance, employment and electricity rates in connection with the adoption of either one of the three energy mix options for 2030: abandon nuclear power, reduce nuclear power (15%) or keep nuclear power (20-25%). Other sources for power generation include 25-35% renewable energy, 35-50% conventional thermal and 15% non-utility generation. A conclusion is to be expected in the second half of 2012 after completing the public debate