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World Potential (JAPAN)

Changes in National Energy Policy


JThe world wide oil crises of the 1970's caused major changes in national energy policy. During that period, the expansion plans for electricity had been mainly based on large scale, high efficiency thermal and nuclear power stations, together with some amount of hydropower, mainly pumped-storage. The electricity sector was dominated by ten privately owned power companies which were responsible for supplying their respective regions. They were supplemented by two corporations: the Electric Power Development Co., and the Japan Atomic Power Co., which sell the electricity from their power stations at the wholesale level. In addition, 34 municipally owned and publicly managed corporations sell the hydropower which they produce.

The Ministry of International Trade and Industry (abbreviated as MITI) is responsible for the electricity sector. It was compelled to work out a new national-energy plan which would establish a long-term supply system. It embraced two main policies: to diversify the energy resources, and to promote the utilization of new and renewable energy resources. At that time, 80% of primary energy and 75% of electricity generation were using imported petroleum.

Hydropower was looked at again, as the most realistic source of renewable energy with a sufficiently matured technology. Furthermore, the concern about global environmental issues re-enforced the necessity of promoting hydropower. For these reasons, the Government encouraged the electric power companies and other corporations to further develop hydropower of all sizes. It may be small-or medium-scale installations, and also upgrading of existing facilities. This may be combined with pumped-storage. The remaining potential sites are not always economical when measured by conventional standards, because almost 60% of the natural resources are already exploited according to a nation-wide government survey. MITI's promotion scheme for hydropower encompasses various concrete measures, including financial assistance to the owners for construction and operation, subsidies to municipalities for installation of public facilities where hydropower stations are constructed and operated, and the like.

SHP In Japan
Changes in National Energy Policy
The New Energy Foundation, Hydropower Capacity and Energy Production
Legislation and Regulations
Licensing Procedures