Energy Security: Advancements in Cooperation in the East ... · “Energy.Security:. Advancements.in.Cooperation.in.the.East.Asian.Region” As global energy consumption increases,

Energy Security:Advancements in Cooperation in the East Asian Region

From 16 to 27 May, 2011

The Japan FoundationJENESYS East Asia Future Leaders Programme

Energy Security:Advancements in Cooperation in the East Asian Region

From May 16 to 27, 2011

The Japan FoundationJENESYS East Asia Future Leaders Programme

Energy Security: Advancements in Cooperation in the East Asian Region

JENESYS East Asia Future Leaders Programme 2011 Report

Published by

The Japan Foundation

Date of publication

October 2011

Ⓒ The Japan Foundation 2011

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Tel: +81-3-5369-6070

Fax: +81-3-5369-6041

URL: www.jpf.go.jp/e/

ISBN: 978-4-87540-140-7

All rights reserved. No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted

in any form or by any means (electronic, mechanical, photocopying, recording or otherwise) without the prior permission of the

publisher of this book.

Contents

Foreword..........................................................................................................................................2

About.JENESYS...............................................................................................................................3

About.Participants........................................................................................................................4

Programme.Advisor./.List.of.Participants..............................................................................6

Programme.of.Activities..............................................................................................................9

Programme.Advisor.................................................................................................................. 11

Overall.Reports........................................................................................................................... 20

Reports.by.Participants............................................................................................................. 33Australia / Vlado Vivoda ..................................................................................................... 34Australia / Diane Clare Jorgensen ..................................................................................... 37Cambodia / Yim Sophy ....................................................................................................... 41China / Li Pengfei ................................................................................................................. 44India / Deepti Mahajan ....................................................................................................... 48India / Akshay Chhabra ...................................................................................................... 52Indonesia / Aswin Rizal Harahap ........................................................................................ 56Indonesia / Muhammad Arifuddin ..................................................................................... 61Lao People’s Democratic Republic / Manopaphath Phithsamay ................................ 65Malaysia / Nurhaniza binti Hamzah ................................................................................... 70Myanmar / Kyaw Min Thu .................................................................................................... 74New Zealand / Hollie Jane Hyndman ............................................................................... 78Philippines / John Prado Virgino ......................................................................................... 82Singapore / Tng Mei Ling ..................................................................................................... 86Thailand / Faikham Harnnarong ......................................................................................... 90Thailand / Wimolsiri Pridasawas .......................................................................................... 95Vietnam / Le Cam Van ....................................................................................................... 98Vietnam / Nguyen Quang Thanh .................................................................................... 101

Vietnam / Dang Thi Ngoc Huyen ..................................................................................... 104

Group.Presentation...............................................................................................................................109Group A ............................................................................................................................... 110Group ............................................................................................................................... 114Group C ............................................................................................................................... 120Group D ............................................................................................................................... 123

Photographs.............................................................................................................................................127

Foreword“Energy.Security:.Advancements.in.Cooperation.in.the.East.Asian.Region”

As global energy consumption increases, energy consumption in Asian states is showing a drastic increase due to growing population and industrialization. Imports comprise 80% of Japan's primary energy supply, the majority of which is imported via maritime transportation. Therefore, improving bilateral relations with resource and energy producing nations and securing shipping lanes are key elements to maintaining a stable supply of resources and energy. Efforts carried out by the Japanese government up to this point have included numerous top level summits and meetings for the purpose of furthering cooperation in the East Asian region. For example, at the 2nd East Asia Summit (EAS) in February 2007, it was decided to put into effect cooperative initiatives such as the promotion of energy conservation and biomass energy, the use of clean coal, and the elimination of energy impoverishment. In order to promote a more active exchange of resources in the future, this project aims to develop mutual understanding and stronger relationships of trust between Japan and her partners among the nations of East Asia through Japanese government initiatives and interaction with organizations involved in energy policy.

For this purpose, young leaders from throughout the East Asian region including government officials, educators, NGO staff members, journalists, researchers, artists, and community leaders were invited to share their understanding of the current conditions in each nation and study Japan's energy policies. Bringing together hearts and minds for common understanding was essential for the development of relationships of trust. In addition to the many individuals in government who had have been invited this time, individuals from energy related industries also attended, making possible the exchange of views regarding energy measures from diverse points of view. Note that in Tokyo, visits were made to various government agencies and organizations focused on energy issues. There also was an opportunity to observe geothermal power and low carbon technology. This was followed by a visit to observe and discuss various power plants and related organizations utilizing biofuels.

2

About.JENESYSThe Japan-East Asia Network of Exchange for Students and Youths　(JENESYS) is designed to strengthen solidarity in East Asia through the promotion of mutual understanding among the younger generations in the region. The then Japanese Prime Minister Shinzo Abe announced a large-scale youth exchange initiative, total of US$315 million for 5 years, titled the JENESYS Programme in January 2007. Approximately 6,000 youths, mainly from East Asia Summit (EAS) member countries, will be invited to Japan over the five years under the Programme.

The Japan Foundation organizes a series of East Asia Future Leader Programme, funded by the Japan-ASEAN Integration fund, as an international exchange among young intellectuals in Asia and Oceania under JENESYS Programme.

*JENESYS Programme in Asia and Oceania Section in the Japan Foundation

<1st Year: 2007-2008>-International Forum “Towards and East Asia Community: Beyond Cross-Cultural Diversity; Inter-cultural, Inter-

societal, Inter-faith Dialogue” -Group A “Migration in Asia and Oceania: Towards a Win-Win and WIN Scheme for the Origin-Destination Countries

and for the Migrant themselves”-Group B “Urban Community Development Inspired by Culture: The Potential of Creative Cities”

<2nd Year: 2008-2009>-Group C “Overcoming Poverty through a Social Inclusion Approach: The Status quo of Asia and Oceania in a

Globalized Economy”-Group D “Environmental Conservation through Biodiversity: In Search of Sustainable Development”-Group E “Migration and the Role of Community amid the Global Financial Crisis”

<3rd Year: 2009-2010>-Group F “The Potential of Peace Education in Asia and Oceania”-Group G “Re-Acknowledging Cultural Diversity: The Roles and Possibilities of the Asia and Oceania Region”-Group H “Disaster Prevention and People: Working Toward the Creation of a Strong Society”

<4th Year: 2010-2011>-Group I “Climate Change Measures in Asia: A Review of Daily Life and Social/Economic Structure”-Group J “Disaster Prevention and People: Working Toward the Creation of a Strong Society”

3

About.Participants<Expected Participants>Candidates for this programme are expected to be ‘Future leaders’ who are engaged in comprehensive ‘energy security’ within the Asia and Oceania region especially in the following fields;

<Requirements for the Participants>Candidates for this programme will need to meet the following criteria:- In principle, be 35 years or under as of May 16,2011, and currently engaged with intentions to continue to play a

leading role in such fields as academics, politics, government services, business, journalism, and NGOs- Nationality in one of the following countries (currently residing within the country is desirable): ASEAN (Brunei,

Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam), Australia, China, India, Republic of Korea, New Zealand (15 countries in total)

- Fluency in English to make individual/group presentations, contribute to the discussion and write an individual/group paper on the topic

- Utilize the knowledge and network gained from this programme for their career and future activities- In principle, applicants should have no experience of visiting or studying in Japan through programmes organized or

funded by the Japanese government.

<Obligation of the Participants>- Fill in the Application Form and submit it to the relevant office that will recommend the participant. (Either the Japan

Foundation office abroad or the Japanese embassy in the participants country)- Submit the following to Japan Foundation headquarters in Tokyo by the designated time.

(1) Health Questionnaire(2) Country report presentation materials. Prepare and give a short presentation on the first day of the programme,

which will introduce the participant’s career background related to the topic and on the current situation of their country. (10 minutes each. Details will be sent out once the participation is confirmed).

- Write a group paper, and organize presentations and workshops at the end of the programme. (The volume, deadline and theme will be indicated during the programme)

- Actively participate in the entire programme as a member of a team. - Submit a completion report within the designated time after the programme.

Politics and Public Administration policy makers or officials of the Central/Local government, International Organization officials, Politicians

Education Educators working in schools, universities, communities, or other organizations

Arts Those utilizing art, theatre, music, literature, etc to promote ‘energy security’

Business Those promoting ‘disaster prevention’ through CSR, etc.

NGO/NPO and Community NGO/NPO affiliates, community leaders, etc.

Media or Academia Journalist and Researchers

4

About Participants

- Cooperate in answering questionnaires and any follow up activities, etc that the Japan Foundation may ask for after the programme.

<Terms and Conditions>- Participants are prohibited from extending their stay in Japan, even on their personal expense.- Keep to the arrival and departure date and flight to/from Japan once it is confirmed.- No individual activity will be allowed except during the designated free time.- Those participating are requested not to bring along any family members, etc with them during this programme.

<Costs>The Japan Foundation will cover all participation costs, which includes international airfare (discount economy class), domestic transportation within Japan, accommodation fees, meal allowance, and insurance premiums for those invited to participate.

5

Programme.Advisor./.List.of.Participants.Programme.Advisor

JapanYasuhiko.NagataSenior Researcher, JIME Center, Institute of Energy Economics, Japan

Commentator

JapanKoji.HorinukiResearch Fellow, JIME Center, Institute of Energy Economics, Japan

Participants

AustraliaVlado.VivodaResearch Fellow, Griffith Asia Institute, Griffith Business School, Griffith University

Diane.Clare.JorgensenGeoscientist, Geoscience Australia

CambodiaYim.SophyOfficer, Department of Energy Technique, Ministry of Industry Mines and Energy, Cambodia

ChinaLi.PengfeiDeputy Director, Department of Industrial Resources and Environmental Research, Institute of Industrial Economics, Chinese Academy of Social Sciences

IndiaDeepti.MahajanResearch Associate and Area Convenor, TERI, The Energy and Resource Institute

Akshay.ChhabraProject Engineer, Bureau of Energy Efficiency, Ministry of Power, India

IndonesiaAswin.Rizal.HarahapJournalist, PT KOMPAS Media Nusantara

Muhammad.ArifuddinHead of Section, Geology and Mineral Resources Planning Section, Planning and Cooperation Bureau, Ministry of Energy and Mineral Resources

6

Programme Advisor / List of Participants

Lao People’s Democratic RepublicManopaphath.PhithsamayElectrical Engineer, Power Sector Planning Division, Department of Electricity, Ministry of Energy and Mines, Laos

MalaysiaNurhaniza.binti.HamzahAssistant Secretary, Ministry of Energy, Green Technology and Water, Malaysia

MyanmarKyaw.Min.ThuStaff Officer, Energy Planning Department, Ministry of Energy, Myanmar

New ZealandHollie.Jane.HyndmanPolicy Analyst, Energy and Environment Group, Ministry of Economic Development, New Zealand

PhilippinesJohn.Prado.VirginoLegal Manager, TeaM Energy Corporation

SingaporeTng.Mei.LingEngineer, National Environment Agency

Thailand Faikham.HarnnarongProgramme Officer, NGO Ecological Alert and Recovery (EARTH), Thailand

Wimolsiri.PridasawasLecturer, Department of Chemical Engineering, King Mongkut's University of Technology Thonburi

VietnamLe.Cam.VanOfficial, PetroVietnam Power Corporation, Vietnam

Nguyen.Quang.ThanhClimate Change Education Officer, NGO "Live & Learn for the Environment and Community"

Dang.Thi.Ngoc.HuyenHead of Unit, Promotion Unit, Biogas Programme for the Animal Husbandry Sector of Vietnam

7

Programme Advisor / List of Participants

Profile.of.Programme.Advisor

Yasuhiko.Nagata

Present.Position.・ Senior Researcher, Japanese Institute of Middle Eastern Economics Study Center (JIME), Institute of Energy

Economics, Japan

Specialized.Field・ International Crude Oil Market, Petroleum Industry, Economics and Energy Analysis of Qatar

Academic.Background.&.Professional.Experience・ MBA at New York University (June 1988) ・ In April 1976, joined major oil company in Japan and experienced various assignment including crude oil

supply, foreign exchange, general accounting and corporate planning. In 1983 assigned to Caltex Petroleum Corp. in Dallas, Texas as a trainee. In 1990 assigned to EDMC, Institute of Energy Economics Japan as a senior economist.

・ In April 2004, joined Japanese Institute of Middle Eastern Economics Study as a Senior Researcher of Oil Study Group.

・ In April 2005, Senior Researcher, Strategy and Industry Research Unit, IEEJ・ In April 2009, present position

Books.and.research.papers・ “This is the Whole Picture of Oil Industry” published by Kanki Publishing, April, 2009・ “The Economy and Energy projects of Qatar” published by “Trend Review” of JIME Center February 2011・ “The LNG Export Potential of Middle East and the Resource Diplomacy of Japan” by IEEJ Home Page,

September 2008・ “The Crude Oil Production Prospect of West African Nations and the Supply Possibility to Japan” by IEEJ

Home Page, November 2007 ・ “The Oil Resources: the Status Quo and the Challenges”, by “Automobile Technology”, November 2007・ “The Trend of Oil Price and the Effect to Energy Supply and Demand” by “Electricity Review”, March 2006・ “China and India, Heated Competition for Oil Well Acquisition” by “Economist”, September, 2005

8

Programme.of.ActivitiesDay.1.■..May.16,.2011.(Monday)..

Arrival in Japan17:30-18:15 Introduction and Orientation18:30-20:00 Welcome Reception

Stay in Tokyo

Day.2.■..May.17,.2011.(Tuesday)

<Introduction Session>9:00-12:15 Presentation of Country Reports from participants: “Situation and Experience of Energy Security”13:30-14:30 Keynote Lecture: “Energy Security in Japan” Mr. Yasuhiko Nagata, Senior Researcher at JIME Center, Institute of Energy Economics Japan15:00-16:30 Visit Observation floor at Tokyo Metropolitan Government Office17:00-20:00 Sightseeing and Dinner in Asakusa

Stay in Tokyo

Day.3.■..May.18,.2011.(Wednesday)

10:00-12:30 Activity in Ginza “Let’s find Unique Eco-Friendly Products in Japan” 13:45-15:00 Sightseeing in Tokyo, Palace Higashi Gyoen

<Visit Local Family and Dinner>15:30-20:00 Home Visit: Experience Lifestyle and Energy Use in Local Households

Stay in Tokyo

Day.4.■..May.19,.2011.(Thursday)..

<Visit Government Office>10:00-11:30 Lecture at Natural Resource and Energy Agency: “Energy Security and regional cooperation in the East Asia”

<Site Visit and Lecture>14:30-16:00 Lecture at NPO Fudo Katsuyo Center, Regional Resource Utilization Center in Ogawa-cho, Saitama “Turn Food Waste into Community Resources”16:30-20:00 Sightseeing and Dinner in Koedo, Kawagoe-city, Saitama

Stay in Tokyo

Day.5.■..May.20,.2011.(Friday)

9:30-11:00 Lecture: “The History and Current Situation of Japanese Hot Springs” Professor Junji Yamamura, Visiting Professor, Josai International University

<Site Visit and Lecture>14:00-15:30 Site tour at Panasonic Center Tokyo16:30-18:00 Lecture at Haneda Airport: “Haneda’s Approach to Energy Conservation and Clean Energy”

Stay in Tokyo

9

Day.6.■..May.21,.2011.(Saturday) Individual Research/Day off

Stay in Tokyo

Day.7.■..May.22,.2011.(Sunday)

10:00-11:30 Flight from Haneda Airport to Oita Airport12:45-13:15 Sightseeing in Beppu, Umi Jigoku Hot Springs

<Site Visit>15:30-16:00 Site tour at Hachobaru Geothermal Power Plant Visitors Center

Stay in Oita, Yufuin

Day.8.■..May.23,.2011.(Monday)

<Site Visit and Lecture>10:00-11:30 Lecture at NPO Kaze no Harappa - Yufuin Murazukuri “Community Approach to Local Development in Effective Use of Energy”15:00-18:00 Bus from Yufuin, Oita to Kumamoto

Stay in Kumamoto

Day.9.■..May.24,.2011.(Tuesday)

<Site Visit>10:00-11:00 Site tour at Mandakoh, Mitsui Miike Coal Mine: History of Coal Mine12:30-13:30 Site tour at Omuta Coal Industry and Science Museum: “History of Coal Industry”14:00-17:30 Shinkansen Bullet Train from Omuta to Osaka

Stay in Osaka

Day.10.■..May.25,.2011.(Wednesday) <Site Visit and Lecture> 9:00-12:00 Lecture and Q&A at Kansai Electric Power Co., Inc

<Group work>13:30- Preparation time for the presentation document and discussion

Stay in Osaka

Day.11■..May.26,.2011.(Thursday)

9:00-12:00 Group Presentation12:30-13:30 Farewell Lunch

Stay in Osaka

Day.12■..May.27,.2011.(Friday)

Departure of Participants

Programme of Activities 10

Programme.Advisor

Energy.Security.in.Japan

Before going into the subject, I would like to point out the major issues on energy security. First of all, what is energy security? We need to know the definition. Then what are the risks on energy security? I would like to point out the risks on energy supply including the demand side. Then, what is happening in the energy market now? I would like to focus the energy situation in Asia. Because Asian energy demand has been increasing quite rapidly and this will tighten the energy supply and demand picture in the world. And also we need to look at the future situation. I will introduce the world energy outlook of IEA.Then, I would like to move on to the main theme, “energy security in Japan”. First I will introduce the evaluation of Japan’s energy security. Since Japan is a small island country, we do not have sufficient energy and depend heavily on the Middle East relating to the oil. So the issue is how Japan copes with the risks to ensure the security. Japan suffered from major earthquake and tsunami on March 11. Not only the nuclear power plant, but also the refineries and other power plants were damaged by the earthquake and tsunami at the same time. I would like to pick up the oil industry of their disaster prevention system. Then I will focus onto their countermeasures taken right after the earthquake.

Definition.of.energy.securityAccording to UNDP, United Nations Development Programme, energy security is the availability of energy at all times in various forms, in sufficient quantities and at affordable prices, without unacceptable or irreversible impact on the environment. These conditions must prevail over the long term. Energy security has both a producer and a consumer side.In UNDP’s definition, the impact on environment is stressed and this point is different from the other definition. Also it stresses that there is both a producer and a consumer side. Since Japan suffers from energy scarcity, Japan is mainly on the consumer side.

Risks.on.securing.energyFirst of all, I would like to pick up the geopolitical factors. As for geopolitical risks, I would like to point out political factors, such as tension between Israel and other countries. As for geophysical risk, the oil reserves decline naturally. Also we see the concentration of resources into the Middle East as for the oil resource.Now the environmental constraints and sustainability factor has become very important. When the economy grows, the energy consumption tends to increase. So we need to care about the environment when we want the economic development. One solution is the renewable energy supply. Recently we have faced natural disaster, such as earthquake

Yasuhiko NagataSenior Researcher, JIME Center, Institute of Energy Economics, Japan

11

all over the world. It will be a major risk on securing energy. So far these risks relate to the supply side. But also the demand side risks are as important as supply side. Demand has been increasing from emerging markets including China or India, where the population and the economic growth are high. We see the oil futures price high volatility, which affects to the economy.

Now I would like to see the details of these risks. First of all, there is a threat to production and transportation. The oil resources have been concentrated in the Middle East, so the terrorist attacks to the oil wells or shipping facility will lead to the supply disruption. The oil flow from the Middle East will certainly increase in the year 2020. Even in 2003, the oil flow from Strait of Hormuz is 15.2 million barrel per day (b/d) and Strait of Malacca is 11 million b/d. The security of these straits has become major focus on the energy security.

Then I would like to see how the geopolitical factors affect the crude oil price. As for the unrest of Middle East, there are factors of democratization request, throne succession issue, and so on. Because the energy resources concentrate in the Middle East region, the unrest directly affects to the energy security. Crude oil price is a good barometer of the level of unrest. When we look back the historical events, we understand how these events affected to the crude oil price. The oil as commodity has been seen as a strategic commodity and these characteristics have become in focus recently.

Recently, the consumption of oil has been expanding in the Middle East. The domestic demand for oil has been increasing, so that GCC nations who are rich in their resources have to control the level of export. Their exportable quantity of crude oil has not increased. And instead they have been trying to deploy new and renewable energy including solar, wind, and nuclear power.

Energy.Security.in.AsiaNow let’s turn to Asia. The demand for energy in Asia has been steadily increasing. Obviously, the countries who have increased at most are China and India. The economic growth of China has been so high since 2000. With the growth of the economy, energy demand has expanded. The elasticity of energy demand, namely energy demands per GDP for China in 2008 is 711 oil equivalent ton per million US dollars. As for Japan, it is 96.5 ton and for US, it is 205 ton. GDP is in real term.Now let’s move on to the oil consumption. As we have seen in the energy demand, oil consumption in Asia has grown steadily and the share of Asia expanded to 31% in 2009 from 17% in 1980.As for oil trade, the share of Asia in 2009 is 43% and the largest in the world. Asia is heavily dependent on oil to the Middle East by 59%.

Energy.outlookNow I would like to see the energy outlook. The recent trend continues that China and India will increase their shares in the world up to 30% in 2030. Instead, the OECD countries demand growth remains flat.As for energy supply, we cannot expect new and renewable energy source to 2035. The share of oil in the primary energy supply continues to decline less than 30% in 2030. So the diversification from oil to the other energy sources will continue. We all know that the new and renewable energy source is the best solution toward the energy security and the environmental issue as well. But the cost of renewable energy is the key. The solar energy is still very costly. The wind energy, its cost has been declining. When we look at the supply source of oil, we will see that the OPEC share will exceed 50% by 2035. But with technology development in the future, we might see more unconventional sources of supply including shale oil etc. But with the abundant resource in the Middle East, the OPEC share especially OPEC Middle East countries will gradually be higher to the future.

12Programme Advisor

Energy.security.in.JapanNow we look at the energy security in Japan. First, I look at the historical changes of primary energy supply in Japan. Japan experienced oil shocks in the 1970’s. At the time of oil shocks, Japan’s oil dependency was 78% in 1973 and 73% in 1979. In 1973, oil dependency in US was 47% and UK 50%.Recently, the energy consumption has been declining. Especially, oil consumption has been declining since 1995. Mainly the fuel oil for the power generation has been substituted by the coal, natural gas and nuclear energy.

After the oil shocks, Japan has introduced important energy policies. There are three policies, which are very keen. Namely, energy conservation, alternative energy source development and oil stockpile. The energy conservation was very successful issue. Japan succeeded to cut the energy consumption per GDP by 32% between 1973 and 2007.

Japan has become heavily dependant on oil from Middle East supply. The dependency on oil from the Middle East was 45% in 1973, but 90% in 2009.

Now let us evaluate Japan’s energy security in seven indices for evaluation. There are three stages in the supply chain including resource acquisition, domestic supply and domestic consumption. Japan has weakness on the self sufficiency, supply diversification and choke points, which are 1.8, 2.7 and 0.2 respectively. If we compare with other countries on these indices, as for self sufficiency, China and UK are 10. As for supply diversification, China is 6.8 and UK 2.6. Choke point is concerned, China 0.3 and UK 10. Energy supply structure is concerned; Japan is 9.3 and China 4.5 and UK 7.6, so that Japan is better than these countries.

In Japan, the national energy resource is poor and the self sufficiency level is extremely low. Oil dependency on Middle East is high. As for the choke point, Japan is heavily dependent on to the straits of Hormuz and Malacca. The diversification of energy supply source has seen some progress recently. Japanese electricity companies installed electricity national transmission grid, so that the blackout hours have been limited. From the view point of high dependency on Middle East, the oil stockpile programme is not enough.As for policy, we have to focus where the evaluation is lower. What we have to do is to move the level toward higher levels.

New.National.Energy.Strategy“New National Energy Strategy” was announced in 2006 but the main direction of the strategy has not changed. It contains the goals and basic viewpoints and the quantifiable goals. In 2007, Energy Fundamental Plan was announced. It stress four points, which are as follows: 1) Focusing onto nuclear power and new energy, 2) Stable supply of oil, 3) Energy conservation, 4) Breakthrough by the technology development on the environmental constraints.As for nuclear power, the electricity produced by nuclear power was 25% in 2009. The strategy plans to raise the level up to 30-40% beyond 2030. But this strategy became very difficult to implement after the Fukushima incident.Recently, Prime Minister Naoto Kan said that the Energy Fundamental Plan 2010 has to be changed. The Plan aims at electricity produced by nuclear power to be increased up to 50% by 2030.As for the security of the resources, Japan has been trying to increase the equity crude. Currently the share of the equity crude oil out of imported crude is about 15%. The strategy tries to increase the level up to 40%. It is uncertain if it is to be realized.

As for the energy/environment cooperation strategy in Asia under the new national strategy, there are five points that we can focus. First of all, energy conservation, then new energy cooperation, clean coal technology, regional cooperation of nuclear power. As for the nuclear power in Asia, the environment has changed significantly since the incident.

13 Programme Advisor

East.Japan.Earthquake.and.Oil.IndustryOn March 11, Japan was hit by earthquake and tsunami and the refineries, power plants and gas supply systems were damaged. The most severe case was the nuclear power plant in Fukushima Daiichi, which caused the severe shortage of electricity in Kanto region, where the rolling blackout system was introduced. As for the damages to the oil industries, refining facilities, oil depot or service stations were damaged. Also, the infrastructure such as roads and railways were damaged and the severe shortage of kerosene for heater. At the time when the earthquake hit, it was still very cold in Tohoku area, so that the heating oil was indispensable for the refuge camps where there were no electricity and gas supply.

Oil Industry of Japan faced number of disaster in the past. In 1972, marine pollution prevention cooperation organization was established. This was started after the oil pollution caused by the leakage from the ship in 1971. Now there are 6 bases in Japan and 5 bases overseas equipped by oil fence. In 1975, refining complex disaster prevention law was enacted. There was fuel oil leakage at Mizushima Refinery in 1974. In 1978 major earthquake countermeasure law was enacted.

Oil industry took countermeasures after the East Japan Earthquake hit Japan. March 11, emergency task force was setup at Petroleum Association of Japan (PAJ) and started collecting information on the damages to the refinery. March 12, asked each company to secure the supply to the refuge camp. March 14, asked the government to reduce the stockpile obligation by three days. And on March 22, PAJ asked to reduce stockpile days by 22 days.As for the refinery damage, 6 refineries were damaged and stopped their operation. The refining capacity was 4 million b/d before the quake and 2.7 million b/d right after the quake, 3.5 million b/d at the end of March.

Toward.the.greener.societyAfter the East Japan Earthquake, Japanese energy policy has become inevitable to reshuffle, especially the nuclear power policy. Also Japan will have to change the policy toward CO2 issue. Energy security in Japan is closely related to the energy policy. Probably Japan will have to rely onto the hydrocarbon power plants, especially natural gas power plants. The government has already announced to proceed the renewable energy and this will solve the energy supply and the CO2 issue at the same time. Although the cost of renewable energy source such as solar power has been reduced, but it is still very high. Japan will refocus another option, which is energy savings through energy efficiency. Japan is already number one on the energy efficiency, but is necessary to refocus it. Demand side management on electricity will be effective to reduce the total consumption. There are concepts of “Smart grid” or “Smart community”, which will control the electricity demand and supply automatically through the communications/calculations capability of the digital equipments. Also, since the incident of earthquake, Japanese people have become more mindful about the energy savings including sifting to LED lumps or using electric fan in stead of air conditioner. Not only the residential energy savings, but also the manufacturers will be more conscious with the energy savings. The building or houses will be equipped with the energy intelligence system and will be more and more energy efficient, greener.

14Programme Advisor

Energy Security in Japan

May 17th, 2011

Institute of Energy Economics, JapanJIME Center

Yasuhiko Nagata


What are the major issues1. What is energy security？2. What are the risks on energy security?3. What is happening in the energy market now and in the future?4. Japan, how is the evaluation of energy security?5. How does Japan cope with the risks and ensure the security?

Topics1. Definition, Risks, Issues2. Energy situation in Asia/World3. Energy outlook in the world4. Energy security for Japan, status quo and countermeasures5. Conclusion

2

DefinitionEnergy Security

By UNDP The availability of energy at all times in various forms,

in sufficient quantities and at affordable prices, without unacceptable or irreversible impact on the environment. These conditions must prevail over the long term. Energy security has both a producer and a consumer side.

3

Geopolitical risk Politics, military movement Sea lane *Resource nationalism, resource quest *Terrorist attacks

Geophysical risk Declining resources Concentration of resources

Domestic supply system risk Inappropriate infrastructure, capital investment

*Environmental constraints and sustainability *Natural disaster, accidents, strikes *Increasing demand from emerging market

Population, Economy High cost for alternative energy

*Energy price fluctuation risks

Risks on Securing Energy

Supply

Disruption

Demand

4

＊Relatively Newer risks

Threat to production and transportation

Security for oil production and shipping facilities Factors affecting oil production/shipping facilities such as terrorist attacks Accidental discontinued operation: poor maintenance and aging

Transportation Sea lane: Hormuz and Malacca straits. Piracy near Somalia Attacks to pipeline and accidents

5Source: IEA World Energy Outlook 2004

Geopolitical factors Unrest of Middle East

region Democratization

request, Throne succession issue

Religious conflicts Conflicts between

Israel and other regional countries

Suspicion on Iranian nuclear weapon development and the effect toward the other countries

0

20

40

60

80

100

120

140

160

91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11

US 9.11 (01.9)

Strike by Venezuelan oilworkes (02.12)

Terrorist attacks toSaudi oil facilities (06.2)

Turkey army and Krudistanarmy fought (07.9)

Nigerian armed forcesattacked oil facilities (09.6)

Iran's missaileissue (09.7)

Unrest inEgipt etc.(11.2)

$/bbl

Iraq war (03.3)

Terrorist attacks to foreignfirms in Saudi (04.5)

Source: Energy white paper 2008

6

Crude oil price and geopolitical factors


Changes in the Middle East

Demand has increased so that exportable quantity has not grown GCC has been developing new energy including solar, wind, nuclear

power

Middle East: Trend of Oil Supply & Demand

7Source：BP Statistical Review of World Energy（2010）

0

5,000

10,000

15,000

20,000

25,000

30,000

1965 1969 1973 1977 1981 1985 1989 1993 1997 2001 2005 2009

Production

Exportable quantity

Demand

Thousand b/d

Even GCC nations are shifting to new and renewable energy sector Shortage of gas drives them to sift to nuclear or renewable energy

Coal power plantSolar power plant

Nuclear power treatyLNG power plant

Hydrogen power plant

Renewable energy (Masdar)Nuclear power

GCC in transition

Solar energySolar Energy

8

Sifts of power generation source in GCC

Increasing energy demand of Asia Asian Region is the fastest demand growth region in the world China and India have shown the highest growth rate

Asian Energy Consumption

Source：BP Statistical Review of World Energy（2010）

Energy Consumption by Region

0

2,000

4,000

6,000

8,000

10,000

12,000

1965

1969

1973

1977

1981

1985

1989

1993

1997

2001

2005

2009

Asia Pacific

Africa

Middle East

Europe & Eurasia

S. & Cent. America

North America

Million ton oil Equivalent

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

1965

1969

1973

1977

1981

1985

1989

1993

1997

2001

2005

2009

Other Asia Pacific

Taiwan

South Korea

Japan

Indonesia

India

China

Australia

Million ton oil Equivalent

9

Oil consumption Oil consumption in Asia increased steadily Share of Asia expanded to 31% in 2009 from 17% in 1980

Share of Oil Consumption


Oil Consumption by Region

33%

6%

39%

3%2%

17%

Middle East8%

Europe &Eurasia

23%

S. & Cent.America

7%

NorthAmerica

27%

Asia Pacific31%

Africa4%

2009

1980

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

1965

1969

1973

1977

1981

1985

1989

1993

1997

2001

2005

2009

0

5

10

15

20

25

30

35

Asia Pacific

Africa

Middle East

Europe & Eurasia

S. & Cent.America

North America

Asia PacificShare

Thousand b/d %

10

Oil trade, Supply sources to Asia Supply Source (Crude Oil + oil products) Asia has highest share of oil import in the world Asia is heavily dependent on Middle East supply source

Share of Oil Import


Supply Source To Asia by Region

NorthAfrica

2%

WestAfrica

6%

East &Southern

Africa1%

Asia21%

NorthAmerica

2%

S. & Cent.America

3%

Unidentified0%

Europe1%

FormerSovietUnion

5%

MiddleEast59%

Europe25%

S & CAmerica

3%

Africa3%

Asia43%

Others1% North

America25%

2009 2009

11

Energy Demand Outlook– China, India expands China & India’s share gradually increase and get close to 30% OECD countries demand growth remains flat

Source：IEA “World Energy Outlook 2010”

Primary Energy Demand Outlook by Region

12

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

1980 2008 2015 2030 2035

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

International Bunkers

Latin America

Africa

Middle East

India

China

Asia-Others

E.Europe/Eurasia

Japan

Pacific(Exc.Japan)

Europe

North America

China/India Share

Billion ton oil Equivalent

China/India Share (Right axis)

％

16Programme Advisor

Energy Supply Outlook– Oil Share drops

Gas supply gradually increases compared to other resources Oil & Coal remains almost flat to 2035


Primary Energy Supply Outlook : New policies Scenario*

0

2

4

6

8

10

12

14

16

18

1980 2008 2015 2030 2035

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

Other renewables

Biomass & Waste

Hydro

Nuclear

Gas

Oil

Coal

Oil Share

％

Oil Share (Right axis)

Billion ton oil Equivalent

*New Policies Scenario: Takes into account of the broad policy commitments and plans that have been announced by countries around the world, to tackle either environmental or energy-security concerns.

13

Oil Supply Outlook- OPEC share exceeds 50% OPEC’s share gradually increase and exceed 50% after 2035 Asia including China & India declines from 7.4 million b/d in 2009

to 5.0 million b/d in 2035


Oil Supply Outlook by Region

14

0

20

40

60

80

100

120

1980 2009 2015 2020 2030 2035

0

10

20

30

40

50

60

OPEC

Africa

Middle East

Latin America

India

China

Asia

East Europe & Eurasia

Pacific

Europe

North America

OPEC Share

million b/d %

OPEC Share (Right axis)

15


Source：BP “Statistical Review of the World” 2010

Oil consumption has been decliningInstead, Gas, Coal and Nuclear power have increasedExperienced first and second oil shocks in 1973 and 1979

0.0

100.0

200.0

300.0

400.0

500.0

600.0

1965

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

水力

原子力

石炭

天然ガス

石油

100万石油換算トン

First Oil Shock（’73）

Second Oil Shock（’79）

Million ton oil equivalent

OilNatural GasCoalNuclear PowerHydro

Primary Energy Supply in Japan

After the oil shocks Japan has introduced energy policies

Legislated two laws in 1973: Justification of appropriate levels of demand/supply, Stabilization of nationals lives

At the time of emergency, immediate legal action was taken Started Oil stockpiling in 1975

Legislated oil stockpile law: Obligation 80 days, SPR 95 days Energy conservation law in 1979

Plants, transportation, buildings, equipments etc. Alternative energy source development/implementation law in 1980

Stable and appropriate supply sources of energy Shift from the oil dependency

16

Japan’s oil supply has become heavily dependent on Middle East

17Source：IEA “Oil Information”

Crude oil supply source in Japan

0

50,000

100,000

150,000

200,000

250,000

1988 1991 1994 1997 2000 2003 2006 2009

0

10

20

30

40

50

60

70

80

90

100

OECD

Latin America etc.

FSU

Africa

China

Asia

Middle East

% of Middle East

1000 metric ton ％

% of Middle East (right axis)

18

Energy Security in General

Energy Policy

Resource exploration and development

Pricing and Taxation

Demand sidePolicy

Supply Security End-userawareness

Direct subsidies and tax reduction

Supply side Policy

Efficient production

Optimum energyconsumption structure

Conservation andefficiency

To pursue Energy security : to ensure the energy supplies are available, sufficient, affordable and sustainable.

To take broad measures:Conserve or raise energy

efficiencyRationalize pricing and taxation

system Improve energy sector

governanceDiversify energy supplies in

particular making greater use of alternative and renewable resources

Need appropriate legal frameworks, regulatory environments and systems for pricing/taxation, along with fair and transparent processes that will encourage public partnerships for developing energy infrastructure

Energy Policy Framework


Evaluations - Energy Security in Japan

Japan

19Source：METI “White paper on energy 2010”

A: Indigenous sources of energy resource development Primary energy supply: self supply level

B: Diversification of energy import Occupation rate of supply source of

resourcesC: Transportation of resources risk management

Dependency on the Choke point risksD: Diversification of energy supply structure

Diversification of primary energy sources and the power generation source

E: Domestic risk management Electricity supply accountability i.e. hours

of blackoutF: Controlling the demand

Energy consumption per GDPG: Countermeasure for the supply disruption

Oil stockpile days

Seven indices for general evaluation of energy security

1.82.7

0.2

7.2

4.3

10

9.3

0

2

4

6

8

10A: Self Sufficiency

B: Supply diversifie

C: Choke point

D: Energy supplyE: Blackout

F: Efficiency

G: Supply disruption

Evaluation of Energy Security in Japan

National energy resource is poor and the self sufficiency level is extremely low ( related to A.)

Oil dependency on Middle East is high and the choke points too (related to B. & C.)

With gas and coal, energy composition has become balanced but still level is low compared to the international standards (related to D.)

Diversification of energy supply source has seen some progress (related to D.)

Installed electricity national transmission system and the blackout hours are limited (related to E.)

20

From the viewpoint of high dependency on Middle East, the oil stockpile scheme is not enough (related to G.)

New National Energy Strategy of Japan Goals

Energy security trusted by Japanese people Sustainable growth by solving energy and environmental issues at the same

time Active contribution to the solution of energy issues in Asia/World

Basic viewpoints on composing strategy To realize cutting edge structure of energy demand and supply To strengthen resource diplomacy, energy environmental cooperation To enrich emergency countermeasures

Quantifiable goals toward 2030 Energy savings: energy efficiency will be increased by 30% Oil dependency: dependency level will be less than 40% (from 47% in 2003) Transportation sector: oil dependency will be reduced to around 80% (from

98 % in 2000) Nuclear power: Electricity produced by nuclear power by30-40% beyond 2030 Equity resource: Equity crude oil out of imported crude level should be raised

to 40%

21

Asian energy/environment cooperation strategy under the new national energy strategy

Energy conservation Bilateral policy talks and building the action plans Cooperation on transportation & electricity sector

New energy cooperation To support the introduction of renewable energy & the technology

development

Clean coal technology in Asia Technology development of clean coal

Stockpile system in Asia To cooperate to set up the emergency countermeasure system

Regional cooperation of nuclear power in Asia Regional cooperation on safety of nuclear power Regional cooperation on peaceful utilization of nuclear power

22

Major earthquake/tsunami

Manufacturers’Production loss

Power plants damaged

Gas supply system damaged

Fuel shortage Electricity supply shortage

Refineries etc. damaged

Households’Energy shortage

Gas shortage

Japan’s earthquake/tsunamiimpact to the energy supply

Production: Refining facilities

Distribution: Shipping facility, Oil depo, SS

Infrastructure: Roads & railways to supply

Damages

Oil Industry countermeasures for disaster prevention

1972 Marine pollution prevention cooperation organization est. Started after the oil pollution caused by the leakage from the ship in 1971 There are 6 bases in Japan and 5 bases overseas equipped by oil fence etc.

1975 Refining complex disaster prevention law Fuel oil leakage at Mizushima Refinery of Mitsubishi Oil in 1974

1978 Major earthquake countermeasure law Interest on countermeasure for earthquake was closed up

24

Refinery

Refining complex disaster prevention law

Fire prevention law

High pressure gas security law

Oil Depo, SS End User

Oil leakage prevention bank

Leaked oil collection ship

Large sized chemical fire engine

Transportation

Between refineries, major disaster agreement to cooperate

18Programme Advisor

Oil Industry countermeasures taken after the East Japan Earthquake

Mar.11, Emergency task force was setup at PAJ and start information gathering on the damages to the refinery etc.

Mar.12, Asked each company to secure the supply to the refuge Mar.14, Set 24 Hr Operation room to cope with government request for fuel

supply at PAJ. Mar.14, Asked the government to reduce the stockpile obligation by three days Mar.17, Decided to donate ¥50 million and kerosene Mar.22, Asked additional request to reduce the stockpile obligation by 22 days Mar.28, Supply priority to the emergency fleet for medical team

Refinery damage: 6 refineries were damaged and stopped operation Refining capacity: Before the quake= 4.0 million barrels/day Right after = 2.7 million b/d End of March = 3.5 million b/d Individual countermeasure includes emergency import, cancelling export Transfer the products from western part to north east region

25

References BP Statistical Review of World Energy（2010） IEA “World Energy Outlook” 2004, 2010 METI “White paper on energy” 2008, 2010 IEA “Oil Information” Petroleum Association of Japan: http://www.paj.gr.jp/english/

26


May.16,.201117:30.–An.orientation.session.and.an.introduction.of.the.programme.conducted.by.the.Japan.Foundation.at.Shinjuku.Washington.Hotel,.Tokyo.

The Japan Foundation opened the speeches by welcoming the participants to Japan and explaining the purpose of the JENESYS programme. The mission of the programme was to invite young leaders from East Asia to Japan to provide an opportunity for them to discuss the various requirements and challenges of each region on the topic of energy security, to introduce them to current technology and to share experiences on how to ensure future energy security. The programme was designed to provide the participants with a learning opportunity to gain understanding of energy security efforts as they talked about current situations in their countries and to learn energy security measures in Japan from the advisors and other experts. The programme was also designed to provide the participants with an opportunity to deepen their understanding of how young leaders in East Asian communities can cooperate in future energy security. The Japan Foundation hopes that the programme helps the participants learn about Japanese culture and foster international relationships.

Mr. Tadashi Ogawa, Managing Director, Japanese Studies and Intellectual Exchange Department of the Japan Foundation requested one minute of silence to pray for the victims and refugees of the recent disaster. Mr. Ogawa expressed hope that each of the participants would utilize the experience and knowledge acquired through this programme and contribute to the future of energy security efforts in their home countries.

18:30.–Due to the recent disaster, a formal welcome ceremony was suspended; however, the participants were welcomed at a social party.

Overall.Report

JENESYSEast.Asia.Future.Leaders.Programme.2011

Group.K“Energy.Security:

Advancements.in.Cooperation.in.the.East.Asian.Region”

May.16.–.27,.2011Organized.by.the.Japan.Foundation

20

May.17,.2011.10:00.–.12:30Shinjuku.Washington.Hotel,.TokyoCountry.Report.by.each.participant

Each participant made a presentation where they mentioned their individual roles and responsibilities, and the current situation in their home country.

From Cambodia, Mr. Yim Sophy, Department of Energy Technique, Ministry of Industry, Mines and Energy made a presentation on his report “The Current Situation of Energy in Cambodia.” Three major tasks of the Department of Energy Technique are: 1) creating electricity standards and establishing energy efficiency, 2) potentiality of renewable energy, and 3) study and research regarding energy in Cambodia. In Cambodia, there are three potential energy resources being considered; solar, wind and hydro energy. Currently, hydroelectric system is the most promising form of energy resource followed by solar and wind. Cambodia’s energy development planning are divided into three categories; generation of electricity, transmission, and energy trade. Cambodia is currently heavily dependent on imported energy.

From Indonesia, Mr. Aswin Rizal Harahap, PT. KOMPAS MEDIA NUSANTARA made a presentation on his report “Electricity Condition in Eastern Indonesia” and “Infrastructure in Sulawesi in Indonesia.” The infrastructure within Java-Madura-Bali and Sumatra is currently interconnected, however it is separated from other areas. Power plants in Indonesia are concentrated in the JaMaLi area where two thirds of electricity is generated.The Indonesian Government has been planning to develop more power plants to supply electricity to wider areas. Currently, the Government is drafting a presidential regulation on the assignment to PT PLN (Persero) to purchase electricity from the plant to supplement the shortage of power generation.

Also from Indonesia, Mr. Muhammad Arifuddin, Head of Geology & Mineral Resources Planning Section, made a presentation on his report “Indonesia New & Renewable Energy Policy Update.” Mr. Arifuddin explained his roles and responsibilities in the Government programme which supports new and renewable energy resources to supplement the insufficient supply of energy generated by conventional methods. There is a shift from the current and conventional energy generating methods to a new energy paradigm to create a sustainable energy supply and environment. The programme also considers CO2 emmision reduction. The Government is shifting away from conventional energy plant development to a new energy policy that embodies energy divirsification and conservation. They are also experimenting with new renewable energy generating systems such as geothermal and bioenergy, aiming at establishing fully self-sufficient energy supply villages.

From Lao P.D.R., Mr. Manopaphath Phithsamay, Electrical Engineer, Power Sector Planning Division, Department of Electricity, Ministry of Energy and Mines, made a presentation on his report “Power Sector Development in Lao PDR”. He explained the current power sector development. Coal is a major resource of energy, followed by oil and other renewable resources such as solar, biomass and hydropower. Hydropower has an estimated potential of 23,000 MW utilizing the Mekong River. Geothermal is considered to hold the least potential as an energy resource.

From Malaysia, Ms. Nurhaniza Hamzah, Assistant Secretary, Malaysian Electricity Supply Industries Trust Account (MESITA) Division, Energy Sector, Green Technology and Water, Ministry of Energy talked about the current energy supply condition in Malaysia. He explained his role and responsibilities in the Division as well as the role of MESITA and its key initiatives which are an electrification programme in rural areas, research and development programmes including New and Renewable Sources of Energy (NRSE) projects, human resource development, energy efficiency

21 Overall Report

projects and the development and promotion of the Malaysian electricity industry.

From Myanmar, Mr. Kyaw Min Thu, Staff Officer, Energy Planning Department made a presentation on his report “Energy Resources and Energy Security in Myanmar.” Myanmar currently depends heavily on natural gas and oil for energy resources. Major tasks for the department are to maintain the status of energy independence, promote wider use of new and renewable sources of energy, promote energy efficiency and conservation, promote the use of alternative fuels in household and aggressive exploration programmes such as natural gas utilization, hydroelectricity development or extensive coal exploration. The department also undertakes research and development for potential uses of renewable and green energy.

From the Philippines, Atty. John Prado Virgino, Senior Manager, Legal Department, TeaM Energy Corporation (TeaM Energy is a consortium of Tokyo Electric and Marubeni) made a presentation on the unique energy landscape of the Philippines. He explained the background and history of energy supplies in the Philippines. The Philippines is opening up the state monopoly energy supply corporation to private sectors to promote transparency and healthy competition.

From Singapore, Ms. Tng Mei Ling, National Environment Agency, Energy Efficiency Conservation Department explained the roles and responsibilities of the National Environment Agency, which are to ensure sustainable development and a quality living environment for present and future generations. Due to the geographical location, energy efficiency and sufficiency combined with efforts to mitigate the greenhouse phenomenon are the key issues for Singapore.

From Thailand, Ms. Faikham Harnnarong, Programme Officer, Climate Justice Campaign, Ecological Alert and Recovery in Thailand (EARTH) made a presentation on her report “Climate Justice and Energy Security View Point” focusing on the pros and cons of industrial development and discussed if we can justify the issues raised by industrialization or not.

Also from Thailand, Dr. Wimolsiri Pridasawas, Department of Chemical Engineering, King Mongkuts University of Technology Thonburi (KMUTT), Bangkok, a scholar and researcher in chemical engineering specializing in energy technology, talked about the current energy situation in Thailand.

From Vietnam, Mr. Ngyen Quang Thanh, NGO “Live & Learn for the Environment and Community” explained the concept and mission of the “Live & Learn” group. He explained that the quality education and good governance are the keys to improve the quality of life and to create a sustainable environment and life. The mission of this NGO is to create a sustainable future through education, community mobilization and supportive partnerships.

Also from Vietnam, Ms. Dang Thi Ngoc Huyen, Head of Administration/Promotion Unit, Biogas Programme for the Animal Husbandry Sector, explained her roles and responsibilities. She emphasized the use of animal waste as a resource of energy and the benefits of domestic biogas.

From Australia, Dr. Vlado Vivoda, Research Fellow, Griffith Asia Institute at Griffith University, specializing in geopolitical and economical changes in relation to international oil power shifts, commented that the JENESYS programme would be beneficial for establishing networking for future collaboration.

Also from Australia, Dr. Diane Jorgensen, Geoscientist, Petroleum and Marine Division, Geoscience Australia, explained the position of the Australian Government as a major exporter of energy resources such as oil, uranium, and coal. Geoscience Australia monitors and ensures a sustainable natural energy resource supply. She also discussed the current

22Overall Report

position of energy supply and consumption in Australia.

From New Zealand, Ms. Hollie Hyndman, Analyst, Ministry of Economic Development, explained the current situation in New Zealand in terms of energy resources and supply. An energy policy was drafted and released for consultation and the final strategy is now being finalized. The infrastructure for the supply of energy resources in New Zealand is not inter-connected due to geographical challenges. The keys to the energy policy in New Zealand are development of indigenous energy resources, both renewable and petroleum fuel resources, secure and affordable energy through oil security and transparent energy markets, efficient use of energy through enhanced consumer awareness, and environmental responsibility.

From India, Ms. Deepti Mahajan, Research Associate and Area Convenor, The Energy and Resources Institute, New Delhi, made a presentation on her report “Oil supply and demand in India - Understanding Issues, Affecting Action.”A challenge faced by India is the heavy dependence on imported oil resulting in energy security that is not under their control. Other issues include the economic growth with the resulting increase in energy demands.

Also from India, Mr. Akshay Chhabra, Project Engineer, Bureau of Energy Efficiency, Ministry of Power, made a presentation on his report “Regional Energy Efficiency Initiative India’s Perspective.” The level of electrification and consumption in India is relatively low compared to the world average. However, energy demand is increasing due to rising incomes, accelerated industrialization, urbanization and population growth. The Bureau of Energy Efficiency is responsible for improving energy efficiency through various regulatory and promotional instruments. As the future projection of energy demands in India shows an increase, the Bureau is tasked with the promotion of energy efficiency.

From China, Dr. Li Pengfei, Deputy Director of the Department of Industrial Resources and Environmental Research, Institute of Industrial Economics, Chinese Academy of Social Sciences, referred to China being a major provider of energy resources in the world. As the economy of China is improving, so is the energy consumption and demand. In the presentation, he explained that energy related issues and the resulting economic impacts have arisen over the last two years in China. Also explained were the roles and responsibilities of the Chinese Government in a global cooperation for energy, taking an important part in multilateral and bilateral cooperation for resources, energy economics, and environmental economics to achieve the development of a clean energy supply and to reduce the impact on climate change. 13:25.–.14:30Keynotes.lecture:.“Energy.Security.in.Japan”.by.Mr..Yasuhiko.Nagata,.Senior.Researcher,.Japanese.Institute.of.Middle.Eastern.Economics.Study.Center.(JIME),.Institute.of.Energy.Economics.

Mr. Nagata gave a lecture on the various risks in energy security that Japan currently faces. Producers of crude oil are concentrated in the Middle East. The geographical location and fluctuations in the oil price significantly affect the economy of Japan. Japan must consider these factors, while still maintaining a sustainable energy supply. Any changes in the Middle East affect Japan significantly. A shift of power generating resources from oil to gas also affects the Middle East, thus the economy of Japan.

Asia has been a major player in oil consumption. Japan must seriously consider the uncertainty of reliance on nuclear power. The recent Tohoku-Kanto Great Earthquake, which occurred on March 11, greatly affected both the infrastructure and power plants in Japan. The Government of Japan is taking serious countermeasures, including forming an Emergency Task Force and re-establishing energy supplies to devastated areas.

23 Overall Report

After the lecture, a Q&A session was held. Several participants raised questions on Japanese nuclear policies and future energy plans for Japan.The participants learned about the countermeasures and efforts that the Japanese Government has been undertaking in response to the recent major earthquake, including the development of new nuclear power policies and implementation of legislative measures. Out of 54 nuclear reactors in Japan, two thirds of these are currently shut down. Due to the high probability of another major earthquake occurring, the Hamaoka nuclear power plant has suspended operations. This is a temporary measure until feasible and robust countermeasures can be implemented. The increase in energy consumption during the summer period is also a major concern. Japan has been studying alternative energy generating systems as a substitute for nuclear power. International collaboration with China and Korea has begun regarding the safety and future of nuclear power plants.

The participants also raised questions regarding a linkage between climate changes and energy policies in Japan. Due to the nuclear power plant issues which require a change in the future direction of the energy supply structure, Japan has been studying ways to move to renewable energy sources. However, because of the higher costs of alternative power generating systems, a feasible alternative solution has not yet been found.

Japan targeted a reduction of CO2 emissions by half through an increased reliance on nuclear power. However, the impact of the recent earthquake and tsunami has forced the Government of Japan to reconsider its energy strategies. 15:00.–.17:30Visit.to.the.Tokyo.Metropolitan.Government.building.observation.floor.

May.18,.2011.10:00.–Browsing.around.the.Ginza.area;.exploring.eco-friendly.products.

13:30.–.15:00Sightseeing.in.the.Kokyo.Higashi.Gyoen.(Imperial.Palace.East.Garden),.Tokyo

15:30.–.18:30Home.visit:.host.families.in.the.Ryogoku.and.Kitasenju.areas.

Each of the JENESYS participants visited his/her host family to observe the ideas being exercised to save energy and to experience their ecological life style.The participants had dinner with their host family enjoying homemade Japanese style dishes. The home visit experience was far better than they expected, and the participants appreciated the opportunity to experience the life style of Japanese people first hand.

24Overall Report

May.19,.201110:00.–.12:00Courtesy.visit.to.the.Agency.for.Natural.Resources.and.EnergyLecture:.“Energy.Affair. in.East.Asia”.by.Mr..Ryuta.Minami,.Deputy.Director,. International.Affairs.Division,.Agency.for.Natural.Resources.and.Energy.(ANRE)

A lecture was given covering energy outlook, natural resources, and major frameworks in regional cooperation. Mr. Minami talked about the energy outlook of Japan using fact sheets. Energy consumption is projected to increase in Asia. In 2008, China alone accounted for approximately 50% of the energy consumption for the entire Asian region. The primary energy resources were coal 35 %, followed by oil. The composition of resources used in Japan is expected to be the similar for next 20 years. Japanese coal powered plants could maintain a high efficiency. While natural resources are under consideration, the infrastructure to support the development and utilization of natural resources is insufficient. International cooperation between ASEAN countries has begun for the Trans-ASEAN gas pipeline project, which is to ensure greater security and sustainability of energy supply in the region. Cross-border activities have increased. A major framework of regional cooperation has been formed amongst ASEAN, ASEAN+3 (Japan, China and Korea), EAS (16 countries), Australia, New Zealand, and APEC (21 countries). Three forums were held to discuss and promote energy efficiency within the ASEAN+3 countries. An energy security forum was conducted by Japan to discuss issues such as the rapid demand increase in the region compared to the Western standard. An Oil Stockpiling Roadmap (OSRM) was submitted at the 7th AMEM in 2010. Oil stockpiling goals were set for each participating country. At the Energy Security Forum an agreement was made to create an appropriate database in regards to coal and promote CCTS. An Oil and Gas Market Forum was conducted to share information and discuss possible international cooperation over oil to establish a healthy pricing mechanism. Several workshops were held to promote energy efficiency and conservation, discuss energy saving potentials and to create action plans for each country. Japan has been studying new forms of renewable energy. Currently the Government of Japan has been promoting eco-friendly initiatives stimulating the general public to buy eco-friendly products. The 7th AMEM (ASEAN Ministers on Energy Meeting will be held in July, 2011 in Lao PDR to develop an advanced technology scenario in the region covering the reduction of CO2, and improvement of the situation in regards to Total Primary Energy Supply (TPES), Total Final Energy Consumption (TFEC), Business as Usual case (BAU) and Energy Saving Promotion case (APS). Other workshops conducted were the Biofuel workshop and Energy Market Integration (EMI) workshop. The objectives of the Biofuel workshop were to assess the sustainability of biomass utilization in East Asia and to set a benchmark for biofuel in each country. The goal of the Energy Market Integration workshop was to recommend and set goals to address energy market issues. A framework to secure nuclear safety was also discussed.The JENESYS participants raised several questions regarding the heavy dependency on imported oil, the lack of participation from private corporations in certain regions, Japan’s actionable plans for energy efficiency and other energy related issues. Mr. Minami explained the activities Japan has been conducting to address the issues, which resulted in a new energy policy being issued. He said that he would take some of the concerns raised by the JENESYS participants to the next international conference, in January 2012.

Atty. John Prado Virgino from the Philippines expressed his appreciation to the advisers and experts for taking the time to answer questions.

25 Overall Report

14:30.–Site.visit:.NPO.“Ogawamachi.Fudo.Katsuyo.Center.(Ogawamachi.Community.Utilization.Center)”.,.Mr..Mamoru.Kuwabara,.Head.of.the.NPO

A lecture was given and a DVD introducing the activities of the NPO was shown.The objectives of the NPO are to achieve a fully self-sufficient community utilizing regional resources, and its policy is not to rely on other subsidies where possible. A lecture on a successful waste recycling system was given. In addition, a handmade solar power panel was shown. Their approach is to turn food waste into an environmentally friendly resource and revitalize the community by creating new job opportunities and to provide resources back to the local community. The lecture introduced the history of the waste recycling power plant and the technology and mechanisms used by the system. Currently 400 households participate in the waste recycling programme with assistance from the Ogawamachi municipality. The lecture moved into a brief introduction of solar panel creation and its concept. After March 11, handmade solar panels were sent to the devastated areas of Tohoku and used as initial power sources. It was essential to create various localized power stations for a successful self-sustainable recovery. The NPO used no governmental or other public funds to subsidize the project.

Site.visit:.Waste.recycling.power.plant.in.Yuwata...

The technological mechanism was first explained on site, and then the participants toured around the energy plant. Q&A session was held after the tour. To assist recovery, especially in the early stages, it was important to build many localized power stations to provide energy to the most needed areas. As the financial aspects of maintaining the waste recycling, power plants and other activities of the NPO were explained. The NPO is currently participating in joint research with Honda Motor Co., Ltd. to develop power generating systems that operate on natural resources.

May.20,.2011.9:30.–.11:00Lecture:.“History.and.Current.Situation.of.Hot.Springs. in.Japan”.by.Mr..Junji.Yamamura,.Visiting.Professor,.Josai.International.University.

Introducing several excerpts from ancient writings and documents, Prof. Yamamura explained the first hot spring in Japan that was discovered more than 1000 years ago. Currently, there are more than 1000 known hot spring areas in Japan. Historically, hot springs have been used for multiple purposes. Hot springs in Japan recently gained public attention and created a new trend allowing several hot spring areas to be revitalized. Some hot spring areas in Japan and their characteristics were introduced in the lecture. Prof. Yamamura explained a law enacted in 1948, which set forth the definition of ‘hot spring’, and mentioned the possibility of utilizing hot springs as a source of energy.

Mr. Yim Sophy from Cambodia expressed his appreciation for the programme.

26Overall Report

14:00.–.15:30Site.visit:.Panasonic.CenterMr..Takashi.Oshima,.General.Manager,.Panasonic.Corporation

A DVD was shown introducing Panasonic as a company, its products and the future outlook of the company.

Mr. Oshima explained the history of the Panasonic Center built 9 years ago to serve as an international information center based upon a new company policy to become a green innovation company. The Center hosts visitors from all over the globe. The company is promoting ‘Green Life Innovation and Green Business Innovation’ for a sustainable life style.

Guided tour of the Center by Ms. Akiko Nagase

16:30.–.18:00Site.visit:.Haneda.AirportLecture:.“Efforts.to.achieve.eco.friendly.facilities.at.Haneda.Airport”.by.Mr..Tojo,.Assistant.Manager.of.Facility.Management,.Mr..Koji.Kato,.Senior.Manager.of.Engineering.Department,.and.Mr..Saito,.Vice.President.of.Facility.Management,.Airport.Techno.Co.,.Ltd.

Mr. Saito welcomed the participants to the facility and emphasized his appreciation for their visit to Japan after the major earthquake. After the DVD showing which introduced the ecological efforts at Haneda Airport, Mr. Kato explained the background of the efforts exercised by the company in complying with the new energy saving laws and ordinance issued by the Tokyo Metropolitan Government in April 2010.Leaflet titled “Eco at Haneda - what we can do” explaining the actual methods used at Haneda Airport to reduce CO2 emissions were distributed to the participants. In order to reduce energy consumption and move towards “green electricity” the company has been making various efforts. These efforts include the installation and utilization of solar power, the promotion of a business style called “cool biz / warm biz”, adjustment of air conditioning temperatures, lighting amount, etc.The cyclic air conditioning method has largely contributed to the reduction of CO2 emission at Haneda Airport. Questions were raised regarding the exact reasons for making the eco-efforts, and any rewards or punishments associated with the eco-efforts. One reason for these eco-efforts is the control of CO2 emissions as imposed by law. Currently there are no rewards provided for organizations achieving the standard, nor have any punishments been incurred for exceeding it.

Site.visit:.Solar.panel.installation.site.at.Haneda.Airport

Solar panels have been installed at several locations at Haneda Airport. The participants observed one of the earliest solar panel installations located on the rooftop of the parking facility.

May.21,.2011.–.Free.time

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May.22,.2011Travelled.to.Yufuin,.Ohita.On a way to Yufuin, the participants briefly visited Beppu Onsen, a famous hot spring resort in Kyushu, and enjoyed significant views of natural hot springs.

15:00.–Site.visit:.Geothermal.Plant.Visitor.Center.at.Hacchobaru

The participants watched a DVD “Power from the Earth” which was introducing the Hacchobaru Geothermal Plant that utilizes binary turbine systems. The Hacchobaru Geothermal Plant, located in the Aso-Kuju National Park, is the number one geothermal facility in Japan, generating 110,000 KW/H. The system utilizes steam obtained from underground to rotate the turbine units. The site is optimal for a geothermal plant because of the composition of a stratum. Due to geological limitations, the number of geothermal energy plants is small in comparison to other types of power plants. Geothermal power station does not rely on imported resources such as oil. A significant advantage of geothermal power plants is that they produce no CO2 emissions. The history of geothermal energy station began with feasibility studies in 1949. The significance of the Hacchobaru plant compared to other geothermal plants is the utilization of the double flash system to reduce the waste of hot water and steam. The Hacchobaru system provides electricity to 37,000 households.

During Q&A session, questions were raised mainly focusing on the evaluation of locations appropriate for geothermal power plants, geographical study, drilling methods, power generating efficiency, and cost and economical factors. The operating costs of a geothermal power plant are about the same as that of a coal plant. The construction cost of the Hacchobaru plant was 14 billion yen plus an additional 12 billion yen, excluding research and development costs. A government subsidy was provided while drilling was taking place.

May.24,.201110:00.–.13:00Site.visit:.NPO.“Kaze.no.Harappa”

A.DVD.was. shown. introducing.Yufuin,. its.history.and. the. revitalization.efforts. to.promote. the.community.as.a.tourist.destination..An.explanation.session.was.also.given.by.the.head.of.the.NPO.“Kaze.no.Harappa”,.Mr..Ryuji.Urata.

The revitalization of Yufuin goes back to the efforts of two pioneers whose ideas and initiatives contributed to town planning by drawing public attention to the hot springs. Previously, there was a plan to build a large scale dam in Yufuin. Locals objected to this and other large scale development plans that would have ignored the history, characteristics and people of Yufuin. In 1975, a large earthquake hit the area with the epicenter located near Yufuin. Later, Mr. Kentaro Nakaya and Mr. Kunpei Mizoguchi took the initiative and implemented various ideas to promote the town of Yufuin. Since then, the popularity of Yufuin has increased, and the town has become a famous tourist destination, receiving 4 million visitors per year. However, various issues have arisen coinciding with the increased tourism. Strong competition in the retail sector destroyed the solidarity of the community that was one of the main characteristics in the area. There was also a decrease in the number of local farmers. The NPO “Kaze no Harappa” has a slogan that is “the best place to live is the best place to visit.” “Kaze no Harappa” implies community as this is a place where lots of visitors could come and gather. The major objectives of the NPO were to reestablish community ties through agriculture and establish

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a self-sufficient community in terms of food, welfare and energy. The NPO “Kaze no Harappa” also implemented several ideas to attract both young and foreign interns. The NPO promoted local agriculture using eco-friendly organic methods. Utilizing the 10 ha of pod fields that the NPO owns, it have been promoting farming by non-farmers such as local children, college students, high school students, senior citizens and foreign students and teaching them how to grow rice. The NPO has also implemented various ideas with incentives to attract young people call for inhabiting in Yufuin. One of the ideas to bring back youth from urban areas to Yufuin is called as the WWOOF programme. It provides accommodation and food in exchange for their work. Through these efforts the NPO “Kaze no Harrapa” operates the organization on a self funded basis. Liberated ideas implemented at the NPO have contributed to the production of safe food and the revitalization of the community.During the lively Q&A session, ranging from the usage of bio diesel fuel, rice production mechanisms, any direct or in-direct impacts incurred from the March 11 earthquake and tsunami, to challenges the NPO currently face, diverse questions were raised by the participants. In response to those questions, Mr. Urata commented that the important keys would be “synchronicity”, diverse support, taking action, and perseverance. The desire of the NPO as well as Mr. Urata himself was to raise the awareness of local residents and preserve the unique characteristics of Yufuin. It can be said one of the successful examples is an establishment of local regulations for preservation of the scenery in Yufuin.

15:00.–Departed.for.Kumamoto.by.bus

May.24,.2011Site.visit:.Manda.Mine,.Guided.tour.by.Mr..Toshihiko.Horiuchi

A guided tour was given by Mr. Horiuchi, a 40-year-experienced coal miner, who has been serving as a volunteer guide since his retirement at the Manda Mine. In the guided tour, the participants observed the facilities and machines that actually used in the past, and learned about the coal mining operation.A one of the unique feature of the Manda Mine is that there is no Botayama (mining slag-heap) as those mining slag-heap had been used for reclamation of the seashore at east of the Miike Mine site. Another unique feature is a mine tunnels. All tunnels are inter-connected, which helped to prevent the effects of a coal dust explosion in 1963 from being worse. Although there were 458 casualties in the incident, many workers were able to escape through those inter-connected tunnels.

12:30.–.13:30Visit.to.Omuta.Coal.Industry.and.Science.Museum,.Guided.tour.by.Mr..Koji.Nakano,.Curator.of.the.Museum.

Mr. Nakano introduced the history of coal mining in Japan, especially in the Miike area. The participants learned how mining methods and working conditions changed as technology progressed. Mr. Nakano also explained to the participants about the last machinery and excavation method used at the Miike Mine site.

14:00.–Travelled.to.Osaka.via.Hakata.by.Shinkansen

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May.25,.20119:30.–.12:00Site.visit:.Sakaiko.Power.Station.of.Kansai.Electic.Power.Co.,.Inc.Lecture.by.Mr..Ryoichi.Kayanoki.and.DVD.showing.

Due to the recent Kanto-Tohoku earthquake, Kansan Electric Power Co., Inc. has been cooperating with partners in the same industry, providing assistance in resolving nuclear power plant issues and attempting to recover public trust regarding nuclear power plants. As a result of considerable efforts, CO2 emissions decreased drastically. Improvements of the facilities were made by building a combined cycle power plants with the operation commencing at Sakai last September. Two out of three planned power plants are already in operation. The third and last unit is still under construction. The participants learned that while ensuring energy security, the Company has been making efforts to contribute to the realization of a lower carbon society through the renewal of the facilities. A DVD was shown introducing the various efforts the Company has been making by complying with the Government policies, including the new facilities and solar power plants. Second.lecture:.“Introduction.of.Kansai.Electric.Power.Co.,. Inc..and.Energy.Security. Issue”.by.Mr..Satoshi.Tateishi,.Deputy.Manager.of.Office.of.Corporate.Planning

The lecture was given focusing on the views of the Company regarding energy security issues. Currently, there are 10 power companies in operation in Japan, with some of them are utilizing a combination of hydro and fossil-fired power. Kansai Electric Co., Inc. is distributing electric power only in the Kyoto, Osaka and Kobe areas. The Company is the second largest power supplier in Japan providing electricity to 13 million households. Self-sufficiency is low at 17 %, and the power resources are imported, especially crude oil from the Middle East. In order to achieve a sustainable and stable power supply while exercising the reduction of CO2 emissions, it is essential to have the best utility combination, “best mix” of electricity supply sources. When considering s future best mix, there should be three major options, which are nuclear, renewable, and thermal power (fossil-fired). In the 1970’s, commercial use of nuclear power began and great emphasis was focused on the research and development of nuclear energy. There were 3 nuclear plants with 11 reactors in Japan. Nuclear power became a major resource of power supply. The safety of nuclear plants is very important for a sustainable energy supply. For future operations, and in order to inter-exchange power between Kansai and Kanto, the Company needs to adjust its energy transmission grid. This poses difficulties because the frequency of electric current (hertz) is different between Eastern Japan and Western Japan. By utilizing a convertor, it is possible to transfer power from Western Japan to the devastated areas in the Eastern side of Japan to alleviate the power shortage caused by the earthquake and tsunami. Enhancing the convertor capacity is another issue to be discussed urgently. A safe and cost efficient energy supply is always the top priority of the Company. In September 2010, the last unit of the old facility was shut down, and operations were fully allocated to the new facility. The company has achieved a more cost effective and environmentally friendly power generating system.

Site.visit:.Solar.panel.installation.

The participants visited a solar power site followed by an overview of the Sakai Mega Solar project explained by Mr. Seigo Yagi, Assistant Manager of Renewable Energy Generation Strategy Group. The project was developed as part of the renewable energy utilization efforts focusing on the improvement and promotion of public awareness for a low carbon society. To achieve such a society, both the demand and supply sides must acknowledge the importance of lower carbon emissions. Disadvantages in the solar power generator are including manufacturing and installation cost and fluctuations

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in supply caused by the weather are disadvantages. In 2009, the Japanese Government designated the city of Sakai as an Environmental Model City. The Sakai Solar Power Station was built and conducting research and development efforts to expanding solar power generator. Currently however, renewable energy sources makes up only one percent of the entire power generated by Kansai Power Company Co., Inc. The Company has been taking action to reduce CO2 emissions at the thermal power plant. The Company aims to further reduce CO2 emissions at the thermal plant and promote alternative power generating systems such as solar power.

During Q&A session the question was raised in regard the ownership of the Company and the relationship with the Japanese Government. The Kansai Power Company is operating just like other commercial companies, having relationships with a municipality, banks, individual shareholders etc. The relationship between the Government and Kansai Power Company, the Government plays the role of regulator. There was a question whether there was any structural damage incurred on any Kansai Electric Power facilities by the March 11 earthquake. All the plants operated by Kansai Electric Power Co. avoided any damage from the March 11 earthquake.

Dr. Diane Jorgensen from Australia expressed her appreciation for the programme.

May.26,.2011.9:30.–Group.Presentation.at.Osaka.Daiichi.Hotel,.Osaka

The participants were divided into four groups and each group made a presentation on their topic. Following each group presentation, a Q&A session was conducted. Wrap-up comments were given by the advisors of the programme, Mr. Nagata and Dr. Horiuchi.

Group A

Group Members: Mr. Aswin Rizal Harahap, Ms. Dang thi Ngoc Huyen, Mr. Muhammad Arifuddin, Mr. Yim Sophy and Ms. Le Cam Van

The group gained valuable knowledge from each new experience, such as interaction with NPOs, local communities and the home visit in Tokyo. Their overall impression of Japan was positive. They stated that Japan is a happy and peaceful land with wonderful things, such as the scenery, food, native culture, clean cities, eco-friendly toilets, fashion items, bullet trains, road stations, and temples and shrines. Mentioning the perspective of the Japanese Government on energy security, and the high dependency on nuclear power, the participants summarized what they learned from this programme. They indicated that the Japanese Government appears to be avoiding sensitive topics such as nuclear issues whilst searching for solutions, and it seems that the Government has not come up with a comprehensive solution for the sensitive issues. Regarding the awareness of the general public, they learned that individuals have a high awareness about the energy security issues Japan is facing. The group indicated that from their experience of visits to NGO and NPO groups, they learned that these groups have been disseminating renewable energy technology to promote green energy and a self-sufficient society. Learning about the geothermal and solar power system, the group indicated that there is a high commitment from enterprises and organizations to reduce CO2 emissions and the impact on the environment. The group also indicated that they learned about a very important manner in Japan, that is, being punctual and being “on-time.”

Group B

Group Members: Dr. Li Pengfei, Atty. John Virgino, Mr. Kyaw Min Thu, Ms. Nurhaniza binti Hamzah, Mr. Manopaphath

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Phithsamay

They began by asking the question “What is Energy?” They identified an increased awareness of energy security and the importance of self-sufficient societies, and energy supplies. They recognized the challenges that we all face in terms of the sustainable energy issue and the importance of balancing out the gap between demand and supply. They learned about the power of grass-root activities by NPOs and NGOs, and the importance of raising awareness. They indicated that the programme far exceeded their expectations.

Group C

Group Members: Ms. Faikham Harnnarong, Ms. Tng Mei Ling, Ms. Hollie Jane Hyndman, Mr. Nguyen Quang Thanh, Mr. Akshay Chhabra

The group saw this programme as an energy security. The group indicated that the programme provided them with great opportunities to learn about diverse aspects of Japan, not only energy security but also the various attempts to progress towards green energy. The group also mentioned that they learned that environmental and social sustainability and public awareness are the key issues in Japan and other countries. Regarding energy security in Japan, the group learned about the current situation in Japan. This programme gave participants an opportunity to witness the changes in the awareness of society regarding energy security, sustainability and environmental responsibility. They also witnessed the strength of the community when neighbors bond together. They learned that while the energy roadmap shows changes in energy resourced from oil and coal, through oil and nuclear, to clean renewable energy, diversification and optimization are still required.

Group D

Group Members: Ms. Deepti Mahajan, Dr. Diane Clare Jorgensen, Dr. Vlado Vivoda, Dr. Wimolsiri Pridasawas The group identified three major successes and three major challenges through this programme. The three successes are: 1) energy conservation and efficiency, 2) transportation efficiency, and 3) environmental awareness and recycling. The three challenges identified are: 1) dependence on imported energy resources such as fossil fuel, 2) uncertain future of nuclear energy, and 3) slow advancement of renewable energy. They found Japan a fascinating country and gained a very good impression of the culture. Overall, the programme exceeded their expectations enormously.

Wrap-up.comments.by.Dr..Horiuchi,.Commentator.for.the.programmeDr. Horiuchi found the presentations refreshing, with each shedding new light on issues and aspects which are all too familiar to Japanese. He also hoped that this programme gave each participant an opportunity to develop networks for future global energy initiatives. The future of global energy is in the hands of the young generation.

Wrap-up.comments.by.Mr..Nagata,.Advisor.for.the.programmeMr. Nagata commented that all presentations exceeded his expectations. He briefly summarized each presentation and commented that each group captured the issues regarding energy security well.

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Reports by ParticipantsReports by Participants

Individual ReportAustralia

Vlado VivodaResearch Fellow, Griffith Asia InstituteGriffith Business School, Griffith University

Final report

The twelve day programme in Japan has been a fascinating experience during which I have learnt a lot about Japan’s energy security situation and about Japanese culture. The Japan Foundation have organized the programme exceptionally and I would like to thank them for the opportunity to come to Japan. Below are my comments on Japan’s energy security situation as inspired by the programme. They constitute a part of my forthcoming article on Japan’s energy security.

Japan is one of the world’s largest energy consumers. In 2010, the country ranked third in the world in oil consumption, fifth in natural gas consumption, fourth in coal consumption, and third in nuclear power generation. Japan is also an energy-poor country, which imports over 96 per cent of its fossil fuel demand (BP, 2011). Large demand for energy and high import dependence has made energy security as one of the priorities of any government in Tokyo, particularly since the two oil crises in the 1970s. The 1973 and 1979 oil crises caused the Japanese economy to record negative growth rates for the first time in its post-war history. Their impact on the lives of ordinary Japanese remains deeply etched on people’s minds. As a result, the Japanese government adopted policies aimed at improving energy efficiency and reducing the demand for oil. These policies have resulted in unprecedented success. Consequently, Japan is now the most energy-efficient country in the world with its energy efficiency enhanced by nearly 50 percent between 1980 and 2006 (Masaki, 2006). At the same time, demand for oil has dropped significantly since its 1970s peaks (see Figure 1).

Today, over three decades later, energy security is once again at the centre of attention among Japanese policy-makers and the general public. However, unlike in the 1970s, when the focus was on affordability and security of oil supplies, the current challenge is multifaceted. While the renewed interest in energy security issues was triggered by record oil prices in 2008, it was brought to the forefront of public discourse in the aftermath of March 11, 2011 (hitherto referred to as 3/11) earthquake and tsunami which caused a nuclear catastrophe in TEPCO’s Fukushima Daiichi nuclear power plant.

Largely absent since the two oil crises in the 1970s, the energy security debate in Japan has been revived in the aftermath of the 3/11 disaster. Some analysts have suggested that Japan should move away from nuclear energy citing safety concerns in an earthquake prone country which lies on several fault lines. For example, the Japanese government now claims it is scrapping plans to build as many as 14 new nuclear reactors over the next two decades. (It is worth remembering that the government stated plans to increase nuclear share of total electricity generation from 24 percent in 2008 to 40 percent by 2017 and to 50 percent by 2030, according to the Ministry of Economy, Trade and Industry). On May 10th, Prime Minister Naoto Kan announced that the government would have to “start from scratch” in devising a

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Australia

new energy policy for the country. Though he speaks of replacing the cancelled reactors with renewable energy systems such as wind and solar, the sad reality is that short of a major energy policy change, a significant part of any future short-to-medium term energy expansion will inevitably come from more imported oil, coal, and LNG.

The fact is that the realities of energy transitions and particularities of Japan’s energy system hinder any quick move away from nuclear power (and fossil fuels). If Japan is to reduce its nuclear power output, the only viable short to medium term alternative are in fact fossil fuels. With Fukushima and other nuclear plants off line, industry analysts calculate that Japanese oil imports could rise by as much as 238,000 barrels per day, and imports of natural gas by 1.2 billion cubic feet per day (mostly in the form of liquefied natural gas, or LNG). Yet, the issue is that fossil fuels, and particularly supplies of oil are constrained. The lessons that Japan has learnt from the 1970s oil crises attest to dangers of increased reliance on imported fossil fuels, which remain today. The world economy is structured in such a way that standing still in energy production is not an option. In order to satisfy the staggering needs of older industrial powers like the United States along with the voracious thirst of rising powers like China and India, global energy supply must grow substantially every year. According to the projections of the U.S. Department of Energy (DoE), world energy output, based on 2007 levels, must rise 29% to 640 quadrillion British thermal units by 2025 to meet anticipated demand. Even if usage grows somewhat more slowly than projected, any failure to satisfy the world’s requirements produces a perception of scarcity, which also means rising fuel prices.

These are precisely the conditions we see today and should expect for the indefinite future. Any expectations that ever-increasing supplies of energy will meet demand in the coming years are destined to be disappointed. Instead, recurring shortages, rising prices, and mounting discontent are likely to be the theme of the global energy future. If we fail to abandon a belief that unrestricted growth is our inalienable birthright and embrace the genuine promise of renewable energy (with the necessary effort and investment that would make such a commitment meaningful), the future is likely to prove grim indeed. Therefore, moving towards renewable energy is the only reasonable long-term energy option for Japan. However, if accompanied with a reduction in nuclear power consumption, it is an option which will require increased fossil fuel demand in the short to medium term to replace the lost nuclear power (see Figure 1 above - it indicates increased coal demand in 2010).

Scholarship on energy transitions suggests that these transitions have been both gradual and complex. As Grubler (1991)

Source: BP, 2011

Figure 1: Japan’s energy demand (million tons of oil equivalent), 1965-20102

Source: BP, 2011 Today, over three decades later, energy security is once again at the centre of attention among Japanese policy‐makers and the general public. However, unlike in the 1970s, when the focus was on affordability and security of oil supplies, the current challenge is multifaceted. While the renewed interest in energy security issues was triggered by record oil prices in 2008, it was brought to the forefront of public discourse in the aftermath of March 11, 2011 (hitherto referred to as 3/11) earthquake and tsunami which caused a nuclear catastrophe in TEPCO’s Fukushima Daiichi nuclear power plant. Largely absent since the two oil crises in the 1970s, the energy security debate in Japan has been revived in the aftermath of the 3/11 disaster. Some analysts have suggested that Japan should move away from nuclear energy citing safety concerns in an earthquake prone country which lies on several fault lines. For example, the Japanese government now claims it is scrapping plans to build as many as 14 new nuclear reactors over the next two decades. (It is worth remembering that the government stated plans to increase nuclear share of total electricity generation from 24 percent in 2008 to 40 percent by 2017 and to 50 percent by 2030, according to the Ministry of Economy, Trade and Industry). On May 10th, Prime Minister Naoto Kan announced that the government would have to “start from scratch” in devising a new energy policy for the country. Though he speaks of replacing the cancelled reactors with renewable energy systems such as wind and solar, the sad reality is that short of a major energy policy change, a significant part of any future short‐to‐medium term energy expansion will inevitably come from more imported oil, coal, and LNG. The fact is that the realities of energy transitions and particularities of Japan’s energy system hinder any quick move away from nuclear power (and fossil fuels). If Japan is to reduce its nuclear power output, the only viable short to medium term alternative are in

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notes, “Along its growth trajectory, an innovation interacts with existing techniques...and changes its technological, economic, and social characteristics.... Decades are required for the diffusion of significant innovation, and even longer time spans are needed to develop infrastructures.” Smil (2008) makes the point even more concisely: Energy transitions “are prolonged affairs that take decades to accomplish and the greater the scale of prevailing uses and conversions the longer the substitutions will take.” Coal had been in use for thousands of years, but it was not until growing urbanisation led to a shortage of wood that the use of coal became more commonplace. Similarly, oil derivatives were used in lamps throughout the nineteenth century, decades before they became the world’s dominant source of energy.

Similarly, it will take decades before renewable energy becomes competitive with fossil fuels both in Japan and globally. Renewable energy sources are negligent as sources of energy in the current global energy system. The same applies for Japan, where they start from a very small base (see Figure 1). More generally, reliance on coal, oil and gas as primary sources of energy has left Japan and the world with a legacy of environmental problems. While a decarbonised world is highly desirable from an environmental and regulatory standpoint, getting there will demand considerable government expenditure and will affect individuals, society and business - particularly emissions-intensive firms. The changing domestic and regional policy environment is bound to create problems for the producers of those energies that are being replaced. This is likely to include the abandonment or reorganisation of many old business practices. If any lessons are to be taken from previous energy transitions, as witnessed by economic depression in former major coal-mining regions, severe socioeconomic dislocations are likely to occur in Japan and elsewhere (Smil, 2003).

The nature of the looming energy transition is unique. While previous energy transitions have been slow and complex, environmental considerations dictate that the timescale for the current transition be significantly shorter. This will be the first energy transition driven largely by government policy intervention. Given that previous energy transitions had such revolutionary effects on society it is likely that Japan will undergo unprecedented change in the coming two to three decades. This will involve a fundamental reconsideration of – how the Japanese people live, including their consumption patterns, transport systems, and urban design; how they work, including employment patterns, agricultural and commercial practices (what Japanese business produce and how); Japan’s energy choices, including the role of nuclear power and renewables; and even Japan’s national security and interactions with the region. Japan’s energy companies will be affected in unanticipated ways. The critical question is how and whether the Japanese government, society, and businesses can adapt when faced with multiple pressures in the existing energy system?

Sources cited:BP (British Petroleum). 2011. BP Statistical Review of World Energy 2011. London: British Petroleum.Grübler, Arnulf. 1991. ‘Energy in the 21st Century: From Resource to Environmental and Lifestyle Constraints.’ Entropie, 164/165, pp. 29–33.Masaki, Hisane. 2006. ‘Japan’s New Energy Strategy.’ Asia Times Online, 13 January.Smil, Vaclav. 2003. Energy at the Crossroads: Global Perspectives and Uncertainties. Cambridge, MA: MIT Press.Smil, Vaclav. 2008. ‘Moore’s Curse and the Great Energy Delusion.’ The American Magazine, 19 November.

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Individual ReportAustralia

Diane Clare JorgensenGeoscientist, Petroleum and Marine Division, Geoscience Australia

Energy Security in Australia

The secure supply of affordable, reliable, environmentally sustainable energy is essential to Australia’s future economic growth and prosperity. Australia’s future energy supply will need to have lower greenhouse gas emissions in order to meet the challenges posed by climate change driven by rising levels of carbon dioxide in the Earth’s atmosphere. This requires a higher level of understanding of Australia’s energy resources and the factors likely to affect their development and use.

Geoscience Australia plays a key role in developing a sustainable energy supply for Australia’s future. Geoscience Australia is the Australian Government’s geoscience agency, which provides geoscientific information and knowledge to enable government and the community to make informed decisions about the exploitation of resources, the management of the environment, and the safety of critical infrastructure. The outcome of this work is an enhanced potential for the Australian community to obtain economic, social and environmental benefits through the application of first class research and information.

In a national first for Australia, Geoscience Australia and Australian Bureau of Agricultural and Resource Economics (ABARE) produced a comprehensive and integrated scientific and economic assessment of Australia’s energy resources (Geoscience Australia and ABARE, 2010). This national assessment of Australia’s energy resources examines Australia’s identified and potential energy resources ranging from fossil fuels and uranium to renewables. It reviews and assesses the factors likely to influence the use of Australia’s energy resources to 2030 including the technologies being developed to extract energy more efficiently and cleanly from existing and new energy sources. The assessment aims to inform future industry investment analysis and decision making and government policy development. The key messages of the national assessment are as follows:

“1) Australia has an abundance and diversity of energy resources. Australia has more than one third of the world’s known economic uranium resources, very large coal (black and brown) resources that underpin exports and low-cost domestic electricity production, and substantial conventional gas and coal seam gas resources. This globally significant resource base is capable of meeting both domestic and increased export demand for coal and gas, and uranium exports, over the next 20 years and beyond. There is good potential for further growth of the resource base through new discoveries. Identified resources of crude oil, condensate and liquefied petroleum gas (LPG) are more limited and Australia is increasingly reliant on imports for transport fuels.

2) Australia has a rich diversity of renewable energy resources (wind, solar, geothermal, hydro, wave, tidal, bioenergy).

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Except for hydro where the available resource is already mostly developed and wind energy where use is growing strongly, these resources are largely undeveloped and could contribute significantly more to Australia’s future energy supply.

3) Greater use of many energy sources with lower greenhouse gas emissions (especially renewable energy sources) is currently limited by the immaturity of technologies and the cost of electricity production. Advances in technology supported by industry and government actions are expected to result in commercial electricity production by 2030 from sources that are currently only at the demonstration stage.

4) Australia’s energy usage in 2030 is expected to differ significantly from that of today under the influence of the 20 per cent Renewable Energy Target and other government policies such as the proposed emissions reduction target. In addition the Government has established the Clean Energy Initiative which includes the Carbon Capture and Storage and Solar Flagship Programmes, and the Australian Centre for Renewable Energy.

5) Australia’s long-term energy projections show total energy production nearly doubling due to strong export demand, primary energy consumption rising by 35 per cent, and electricity demand increasing by nearly 50 per cent by 2030. Whilst coal is expected to continue to dominate Australia’s electricity generation, a shift to lower-emissions fuels is expected to result in a significant reduction in coal’s share and increases in gas and renewable energy, particularly wind.

6) Australia’s energy infrastructure is concentrated in areas where energy consumption is highest and major fossil fuel energy resources are located. Greater use of new energy resources, particularly renewable energy sources, will require expansion of Australia’s energy infrastructure, including augmentation of the electricity transmission grid.” (Geoscience Australia and ABARE, 2010, p 1)

Australia’s energy production was 17 360 PJ in 2007–08. The main energy sources produced, on an energy content basis, were coal (54 per cent), uranium (27 per cent) and gas (11 per cent). Renewable energy accounts for nearly 2 per cent of total production. Primary energy consumption was 5772 PJ in 2007–08. Coal accounted for around 40 per cent of this, followed by oil (34 per cent) and gas (22 per cent). Renewable energy accounts for 5 per cent of primary energy consumption, most of which is bioenergy. Wind and solar account for only 0.3 per cent of primary energy consumption. (Geoscience Australia and ABARE, 2010, p 3-4)

Taken as a whole, Australia’s energy market differs from that of many other Organisation for Economic Cooperation and Development (OECD) countries and world energy markets. Coal plays a much larger role in Australia’s primary fuel mix, reflecting Australia’s large, low-cost resources located near demand centres and close to the eastern seaboard. The penetration of gas in Australia is similar to that of the OECD and world average, as is that of wind and solar. On the other hand, Australia has less hydro energy resources, makes less use of bioenergy than some countries, and does not use nuclear power. (Geoscience Australia and ABARE, 2010, p 3)


It is clear that Japan is facing its own challenges in relation to the impact of the Great East Japan Earthquake and tsunami disaster of March 2011 and the subsequent accident at the Fukushima Dai-ichi Nuclear Power Station. In particular relations to energy issues, there are the power shortages due to several nuclear and conventional power plants going

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offline after the earthquake and tsunami. Tokyo Electric Power Company supplies electricity to an area with 42 million people and 40% of Japan’s GDP, but lost 40% of its generation capacity after the earthquake and tsunami. Efforts were made to match supply and demand during the peak-load summer on both the demand and supply side. However, the basis of Japan’s energy policy – stable energy supply and ensuring nuclear safety – has been undermined. While the Japanese government is currently reviewing its energy policy (including its nuclear policy), debate on the local, national and international stage has arisen on the fundamental direction of Japan’s future energy policy.

The three fundamental principles of the national energy policy in Japan is energy security, environmental protection and efficient supply (Ministry of Economy, Trade and Industry, 2010). As can be seen in instances around Japan, communities, non-profit organisations and companies in Japan have been working hard over the years to improve energy production, conserve energy and reduce energy consumption. For example, the Haneda Airport Facility Management Division have put in significant effort to reduce CO2 emissions. This included establishing a 1240 kW generating solar cell system (Figure 1), improvements to the air conditioning, lighting and toilet systems that reduced the energy consumption of the systems and establishing the use of hybrid shuttle buses.

Haneda Airport offers an excellent case study for communities and other companies in Japan with high energy consumption. However, whilst Haneda Airport highlights a local approach to address some of the challenges faced, it appears that there is still significant progress to be made at a central and national level in the reform of Japan’s energy supply system (electricity, oil, gas and renewable energy) and the direction of Japan’s future energy policy in light of the accident at the Fukushima Dai-ichi Nuclear Power Station. It seems clear that with the potential reduced reliance on nuclear power, Japan’s reliance on LNG, coal, petroleum and renewable energies to generate electricity will increase. Japan will then face similar challenges to Australia, in that the greater use of many energy sources with lower greenhouse gas emissions (especially renewable energy sources) is currently limited by the immaturity of technologies and the cost of electricity production. Renewable energy resources in Japan (wind, solar, hydro, wave, tidal, bioenergy and even geothermal) are largely undeveloped and could contribute significantly more to Japan’s future energy supply. Greater use of new energy resources, particularly renewable energy sources, will require expansion of Japan’s energy infrastructure, including augmentation of the electricity transmission grid. However, advances in renewable energy technology supported by industry and government actions are not expected to result in significant increases to commercial electricity production until at least 2030 (Ministry of Economy, Trade and Industry, 2010). Japan’s short- to medium-term energy supply will be more reliant on LNG, coal and petroleum and Japan will become increasingly reliant on imports for electricity generation and transport fuels.

To secure a stable power supply for the Japanese people, nuclear power generation is an inevitable power source in Japan. In this regard, the issue of safe and stable operation of nuclear power plants needs to be addressed before this power source can be used or accepted by the Japanese people. The lessons learnt from the accident at the Fukushima Dai-ichi Nuclear Power Station will result in both software and hardware countermeasures. With these improved safety measures in place,

Figure 1: Solar panel cells on the roof of the multi-layered parking lot of Haneda airport. These solar cells cover 3000 km2 and generate 300 kW of electricity, part of which is used to power the car park lifts.

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electricity generation from nuclear power in Japan would increase and help secure Japan’s energy independence. However, such physical improvements would have to coincide with educating and talking with communities. Only through educating the Japanese people about past events and improved safety, will nuclear power ever be accepted by the Japanese people again. Effective communication is the cornerstone of nuclear power being accepted by the Japanese people.

What I have gained from the ProgrammeAs a geoscientist at Geoscience Australia in Canberra Australia, I was privileged to participate in the JENESYS East Asia Future Leaders Programme in May 2011. Over ten days, I travelled to Tokyo, Saitama Prefecture, Oita, Yufuin, Kumamoto City, Omuta City and Osaka to learn about Energy Security: Advancements in Cooperation in the East Asian Region. The study tour provided a unique opportunity to explore energy security issues in Japan and engage in sharing ideas and experiences with young professionals across a range of disciplines and cultural backgrounds.

Through the Programme, we were able to discuss different government, non-profit organisations and community approaches to energy conservation, efficiency and security in the East Asian region and develop an in-depth understanding of the approaches being taken by governments and communities in Japan at both the national and local levels. The study tour was a well organised and insightful programme that was designed in such a away as to highlight both the successes and challenges of energy issues within Japan. The opportunity to discuss these issues, using examples from our own countries was beneficial. I also gained insight into the challenges and issues of other neighbouring countries, especially through the diverse presentations given by participants. New understandings and knowledge were gained, from not only Japan, but other neighbouring East Asian countries also.

Perhaps most importantly, the study tour provided an invaluable opportunity to build an international network of young professionals to begin an ongoing process of working together to tackle issues that are shared across the East Asian region. I look forward to continued discussion and involvement with this network, which will have a great impact on my future career.

With thanksI sincerely thank the Japan Foundation and the Japanese Ministry of Foreign Affairs for the opportunity to participate in the JENESYS East Asia Future Leaders Programme. I have no doubt that this experience will greatly enhance my current and future career through a deeper understanding of energy security issues facing Japan and the East Asian region and the strong regional network established during our time and experiences in Japan. My sincere thanks go for this unique, amazing and incredibly worthwhile experience.

References:Geoscience Australia and ABARE, 2010—Australian Energy Resource Assessment, Canberra.https://www.ga.gov.au/products/servlet/controller?event=GEOCAT_DETAILS&catno=70142

Ministry of Economy, Trade and Industry, 2010—The Strategic Energy Plan of Japan, Tokyo. http://www.meti.go.jp/english/press/data/20100618_08.html

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Individual ReportCambodia

Yim SophyElectrical Engineering Working in Renewable Energy officeDepartment of Energy TechniqueGeneral Department of EnergyMinistry of Industry Mines and Energy

I am working at Department of Energy Technique of the Ministry of Industry, Mines and Energy (MIME), as an officer of Office Renewable Energy, and then I responsible for and prepare all documents that involve with Renewable Energy field.

The Kingdom of Cambodia is located in the tropical region of Southeast Asia in the Lower Mekong region, with 800 Km border with Thailand in the west, 450 Km with Lao PDR in the north, 1,250 Km with Viet Nam in the east and a coastline of 440 Km long. The physical landscape is dominated by the lowland plains around the Mekong River and the Tonle Sap Lake. Its country area is 181,035 square kilometers. There are about 2.5 million hectares of arable land and over 0.5 million hectares of pasture land.

The climate in Cambodia is tropical and subject to both southeast and northwest monsoons. The southeast monsoon, which coincides with the rainy season, extends from May to October. The northwest monsoon brings a cool but drier period from November to April. The average annual rainfall is about 1500 mm, with the heaviest rainfalls of up to 4000 mm per year occurring in the southwest coastal line. The temperatures are fairly uniform in the central basin area with an average of about 27°C. The maximum temperatures in the region vary from 35°C to 38°C which are common before the start of the rainy season, but the temperatures very rarely fall below 10°C.

The Cambodia need for will be to find the energy sources in order to meet future electricity demand and reduce its dependence upon imported fuel oil, to strengthen its energy security and to exchange of electricity with neighboring countries.

The electricity generated by power plants using imported heavy fuel oil and diesel oil shares as high as nearly 80% of total energy generation in Cambodia, and this condition provides the electricity sector with unstable conditions in terms of energy security. The two (2) mini hydropower plants existing in Cambodia are generating only 3.84% of total electricity generation in Cambodia.

What do I learn from Japan?1- Technology2- Culture and Traditional

1-Technology:- Young Japanese workers still generally defer to their seniors and people are always in a hurry but arrive on time.- High Technology such as:

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- Electronic System with high technology.- Heavy Industries equipped by modern materials.- Reduce Environmental impact by new updated technology.

Example: Kansai Electric Power has been promoting comprehensive strategies with the goal of reducing the amount of Co2 emissions proportional to the amount of electric power consumed (sold), know as the Co2

emissions factor. As a result, Co2 emissions factor reduction has reached the highest standards in the industry, but with the goal of establishing an even lower-carbon power grid, we are challenging ourselves to reduce emissions by a five-year average of 0.282 kg-Co2/kwh over the first commitment period of the Kyoto Protocol and are promoting further efforts.

- I’m interesting in Panasonic Company. Because of this Company is very popular in Japan, and that has new technology such as Computer, Solar, Camera, flat panel TVs, air conditioning units, washing machines and refrigerator. And then the world needs the technology for working a feature in life.

- I’m interesting in geothermal power station of Kyushu electric power. Because it is operating by natural heat supply for generating electricity. Not use oil and diesel.

- I’m interesting the Solar panels which installed the rooftop at the Haneda International Airport, because it uses there to make very helpful such as energy saving, especially reducing Co2 emissions in the environment.

- The Non Profit Organization (NPO) is bridging the gaps between the community and the local government. Based on the substantial record accumulated by NPO Foodo in the field of technology for the building and operation of biogas facilities and utilization of liquid fertilizers, the organization and the local administration reached a consensus to implement operation for verification of the feasibility of the raw garbage recycling project as part of the basic environment plan, as action plan which is currently underway.

- The community is many ways from high cost to low cost technology that the community and the government strive to ensure to keep the experiences.

- Community network in Japan is very strong. - Exchange of Experience from other countries among the participant on Energy Security and Advancement in

Cooperation in the East Asia Region.

2- Culture and Traditional: - The Japanese house or apartment is also very different from western houses, but some households are changing

like western lifestyle also.- Japanese lifestyle is similar, the husbands go to work and his wife is expected to stay at home and look after the

house and children.- For the Japanese living is very nice, eating and sleeping are most of Japanese style.- Japanese food, sushi in particular, is popular around the world and renowned for their health benefits.- For the Traditional Japanese clothing distinguishes Japan from all other countries around the world. The

Japanese word kimono means "something one wears" and they are the traditional garments of Japan. Originally, the word kimono was used for all types of clothing, but eventually, it came to refer specifically to the full-length garment also known as the naga-gi, meaning "long-wear", that is still worn today on special occasions by women, men, and children.

- Japanese we hard working people- Japanese like what is new interns of technology- Clean and beautiful cities.- The Japanese are a very proud race and everything must be done certain ways and with certain manners.

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- Japanese houses have a vestibule area (called Genkan no ma) just inside the front door and once inside you must remove your outdoor shoes before proceeding inside.

- Beds and hotel rooms are usually tidied away at the start of every day and put down again before bedtime as space is at premium in some houses and this method allows one room to be used for many different purposes.

- We are learning some Japanese words

Challenges/barrier to my Country:- Lack of Technology, Because most of technology in my Country is only an implemented and demonstrated- Lack of budget, the financial sector in my Country is still poor and has a limited.- Lack of policy and legal framework: The legal environment in Cambodia is not yet strong, with many of the

laws still being drafted.- Limited capacity of supply system- Lack of interest in investment in power sector Low benefit - Low reliability of supply- Lack of access to low costs energy sources- High technical and non-technical system losses- Low load factor- Low power factor- Lack of Institutional capacity for planning, implementation and maintenance: Cambodia, relatively a young

democracy, is still in the process of building its institutions and the infrastructure is still remains poor.- Lack of coordination among concerned stakeholders (government, donors, NGOs, private sector, financial

institution) also acts as another barrier in absence of a comprehensive policy on renewable energy development.

Conclusions:I would like to thank the Japan Foundation, and I truly appreciated the warming of the Japan foundation’s staffs and representatives in this programme. For 2 weeks trip in Japan, from Tokyo City to Osaka City, I get more knowledge, such as Living, Food, Learning, Experience, Technology, Culture and other the lecturers or Japanese people, especially home visit and hot spring, because is very interesting in. The programmes have 19 people from 13 countries that participated on Energy Security and Advancement in Cooperation in the East Asia Region.

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Individual ReportChina

Li PengfeiDeputy Director, Institute of Industrial Economics, Chinese Academy of Social Sciences, China

My workI joined Institute of Industrial Economics (IIE) of Chinese Academy of Social Sciences (CASS) in July 2008. I have been serving as deputy director of department of industrial resources and environmental research of IIE since April 2010.Before that I had been a researcher of department of energy economics research from July 2008 to March 2010. I graduated from Hunan Normal University with a bachelor's degree in Economics, and received my master's degree in Economics from Nanjing University and my PhD in Economics from Renmin University of China.

The areas of my research interest are energy economics, resources and environmental economics, and industrial organization. As a principal researcher, I worked with my colleague and finished some important programmes about China's energy issues during the past three years, such as Utilization of Foreign Capital to Promote Energy Conservation and Energy-Efficiency Power Generation Scheduling funded by Asian Development Bank, Green Transition of China's Manufacturing Industry funded by China Council for International Cooperation on Environment and Development, The Priority Field and Strategic Mission of China's New Energy Industry During the 12th Five-Year Plan Period funded by National Energy Administration of China, China’s Industrial Power Demand Side Management funded by Ministry of Industry and Information Technology of China, A Study on the System of Energy Administration of China funded by Chinese Academy of Social Sciences, and A Study on the Effects of China's Energy Efficiency Policies funded by Asia Centre in Paris of France, etc. Moreover, I and my co-authors published many papers on China's energy issues in professional journals and public media.

Overview of China’s energy situation and energy saving policyAs the largest developing country in the world, China faces huge pressures for meeting its rising energy demand, and plays an increasingly important role in maintaining global energy security. Although energy resources are abound,1 China’s per-capita average of energy resources is very low. China has a large population, resulting in a low per-capita average of energy resources in the world. The per-capita average of both coal and hydropower resources is 50 percent of the world’s average, while the per-capita average of both oil and natural gas resources is only about one-fifteenth of the world’s average. The per-capita average of arable land is less than 30 percent of the world’s average, which has hindered the development of biomass energy. Moreover, the development of energy resources is fairly difficult. Compared with other parts of the world, China faces severe geological difficulties in tapping its coal resources, and has to get most

1 By 2009, the reserves of coal stood at 1145 billion tons, and the remaining verified reserves exploitable accounted for above 10 percent of the world total, ranking China third in the world. The verified reserves of oil and natural gas are relatively small, while oil shale, coal-bed gas and other unconventional fossil energy resources have huge potential for exploitation. China also boasts fairly abundant renewable energy resources. In 2008, the theoretical reserves of hydropower resources were equal to 6,083 billion Kwh per year, equivalent to 15.3 percent of global hydropower resources, ranking the country first in the world (BP Statistical Review of World Energy 2010; 2010 Survey of Energy Resources).

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of its coal by underground mining, as only a small amount can be mined by opencast methods. Oil and gas resources are located in areas with complex geological conditions and at great depths, so advanced and expensive prospecting and tapping techniques are required. Untapped hydropower resources are mostly located in the high mountains and deep valleys of the southwest, far from the centers of consumption, entailing technical difficulties and high costs. Unconventional energy resources are insufficiently prospected, their development is neither economical nor competitive.

China’s energy self-sufficiency was 0.94 in 2008,2 a little less than the world’s average. For addressing its energy security problem, China has made resource-conservation a basic state policy, and stresses both developing and saving, with priority given to saving. For this, it is actively changing the pattern of economic growth, adjusting the industrial structure, encouraging research and development of energy-saving technologies, popularizing energy-saving products, improving energy management expertise, improving energy-saving legislation and standards, and enhancing energy efficiency. For the past years, Chinese governments formulate and implement a series of policies in order to further energy conservation. China’s energy conservation policies are composed of three types: structure-oriented energy conservation, technology-oriented energy conservation and management-oriented energy conservation.

Structure-oriented energy conservation policies. Considering the structural factors that make it difficult to reduce energy consumption, such as unreasonable industrial structure, overweight heavy industry and small proportion of energy with high thermal efficiency, in order to reduce energy consumption, China has taken a series structural adjustment measures as follows:

► Facilitate energy structure adjustment and increase renewable energy weight► Boost industrial restructuring and develop advanced manufacturing► Boost industrial restructuring and raise service industry share

Technology-oriented energy conservation policies. China fully relies on science and technology to enhance its ability for independent innovation and its ability to digest and improve imported technologies, tackle technological bottlenecks in energy development, improve key technologies and the manufacturing level of key equipment, seek new ways for energy development and utilization, and redouble the strength for further development. Particularly, China has implemented technology-oriented energy conservation policies as follows:

► Eliminate backward production capacity and reduce energy consumption per unit of product► Carry out energy saving programmes and improve energy utilization efficiency of key energy consuming

equipment► Establish energy-saving technology service system and enhance energy-saving technology professionalism

Management-oriented energy conservation policies. Efficient energy management is micro-foundation of energy saving. To improve energy management, Chinese governments have carried out management-oriented energy saving policies, such as:

► Establish responsibility system and improve administrative efficiency► Complete energy-saving regulations and criteria system and enhance energy saving supervision► Establish statistical, monitoring and examination systems and consolidate decision-making basis► Strengthen management on key enterprises and improve energy utilization efficiency► Increase fiscal investment and establish incentive mechanism

2 National Bureau of Statistics of China: China Energy Statistical Yearbook 2010.

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After years of work, China’s energy conservation policies and measures take effect and energy consumption per unit GDP continue to drop. As the following figures indicate, energy consumption per unit of GDP drops steadily. In 2005, China's energy consumption per unit of GDP was 1.28 ton of standard coal per 10,000 Yuan. In 2009, the energy consumption per unit of GDP continued to decline to 1.08 ton of standard coal per 10,000 Yuan.

Lessons learned from Japan’s PracticeIn China, governments play a dominate role in energy conservation promotion in the current phase. By contrast, non-profit organizations (NPOs) take more active part in energy saving in Japan. The site-visit of Ogawamachi Fuudo Katsuyo Center and the lecture of Mr. Ryuji Urata, the head of NPO Kaze no Harappa-Yufuin Murazukuri, have given me a very deep impression. Comparing to market-based approach or state-based approach, this community-based method, in which NPOs play a leading role, has advantages as follows:

► High participation of local residents► Diverse instruments suitable to local conditions► Less likely to be affected by external factors► Faster diffusion of new technology► Lower cost

Based on the above merits, in China, it is necessary to foster the community-based approach to address its energy security problem with the other two approaches.

JENESYS ExperienceThe two-week JENESYS trip improved substantially my understanding on Japanese practices for addressing energy security, and was valuable for building friendship among participants from ASEAN countries, Australia, India, and New Zealand. It gave us rare opportunities to formally and informally discuss many interesting topics. I enjoyed all the activities and I learned a fair amount of new things at this Programme.

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Last but most important, beyond the purely intellectual matters, I would like to express my deepest appreciation to Ms. Ayano Inami, Ms. Moe Akimune, Ms. Keiko Uchiyama, Ms. Hiroko Kawata, Ms. Ikuko Shimizu and other Japanese friends, who have made this trip into one of the best experiences in my life. The good time spent in Tokyo, Yufuin, Kumamoto, and Osaka will remain clear in my mind for many years. I have had good experiences in most of my academic visits to other countries, but my experiences in this visit to Japan ranks at the top of the very best ones. I appreciate the great effort and time that staffs of the Japan Foundation have dedicated to make my visit so pleasant. I would also like to say thanks to my fellow participants, who I believe are working inexhaustibly on our common challenges of energy security in their own countries, and hope to work together again in the future.

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Individual ReportIndia

Deepti MahajanResearch Associate and Area Convenor, TERI, The Energy and Resource Institute

Programme Report

Addressing energy supply and demand challenges: Understanding Issues, Affecting Action

Japan, after the devastating earthquake and tsunami of March 2011, has shown remarkable resilience. The country’s people, known for their discipline and dedication to work, stood strong in the face of unprecedented challenges. Yet the earthquake’s repercussions for the energy sector, triggered by the nuclear disaster at Fukushima, brought to the foreground many concerns with regard to the operation of nuclear reactors in sensitive seismic zones. The shutting down of some reactors has also led to concerns about possible shortage of electricity in the near future. While visits to different offices and market centres do reveal an effort to conserve energy, Japan needs to secure its energy supply sources and ensure access to energy without disruptions. A country highly import dependent for fossil fuels, Japan faces another set of challenges with growing oil price volatility.

This report is divided into two main sections. The first is a summary of the India country report, and the second section delves into the main take-away from the programme.

Country report: Oil supply and demand in IndiaFuelling India’s economic growth, the country’s energy consumption is expected to increase exponentially over the next few decades. TERI estimates of a Business As Usual (BAU) scenario peg India’s primary energy consumption at 2149 mtoe in 2031, starting with 283 mtoe in the base year of 2001, with fossil fuels remaining the most significant component of the energy basket (See Figure 1).1 The potential of domestic energy production remains limited, and therefore, the country will become increasingly import dependent for oil, natural gas and coal. The domestic crude oil production stands at 33.67 MT while the consumption of petroleum products is 138 MT.2 Forty-one per cent of this consumption of products is comprised of high-speed diesel. The country is a refining hub, and the total installed refining capacity stands at 184.4 MTPA. Oil import dependence is at 79% and is slated to go up to 91% in 2031, increasing India’s import bill.

Challenges on the supply side:• India is witness to stagnant oil production levels at home, and is largely seen as a “mature oil producing

1 The Energy and Resources Institute (TERI), India’s energy security: New opportunities for a sustainable future – Paper submitted to the Hon’ble Prime Minister of India, 2009.

2 The Energy and Resources Institute (TERI), TERI Energy Data Directory Yearbook, 2010.

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country.”3

• In an oligopolistic market, the country is heavily dependent on West Asian countries, and Nigeria in Africa. Currently, the share of West Asian oil in India’s imports is 72%, and that of Africa is 16%. The disproportionate reliance on politically unstable regions is seen as a significant risk to India’s oil supply.

• Oil price rise and market volatility, fuelled by paper trading in oil, will present an increasing burden for the country. The value of crude imported in 2009/10 stood over USD 84 billion. In addition to geo-strategic imperatives, uncertainty in world reserve assessment, and the rising costs of accessing oil in frozen terrain and the deep sea, will only exacerbate India’s supply risks in the future.

• Reliance on two critical shipping routes, the Strait of Hormuz and the Malacca Straits exposes India’s supplies to piracy threats and possible blockades. India has been playing an active role in countering the challenge of piracy, and has deployed warships to fight piracy off the coast of East Africa. The tensions between Iran and the US have led experts to earmark the blockade of Strait of Hormuz as a possible strategic instrument that could be deployed in a conflict situation.

Strategies geared towards supply security:• The India Hydrocarbon Vision 2025, drafted in 2000, urged the government to accelerate efforts to produce oil

domestically. While the results may be constrained by India’s limited reserve base, the introduction of changes in policies governing exploration and production (for instance the movement towards the Open Acreage Licensing Policy), and use of techniques such as enhanced oil recovery need to be pursued.

• The establishment of Strategic Petroleum Reserves is an effort towards enhancing supply security. Phase I of India’s SPR programme includes the setting up of 5MT strategic storage by 2012 in 3 locations – Mangalore, Padur and Vishakhapatnam. Given that public and private companies in the country are adding to their tankage/storage capacity, it is projected that by the year 2012, the available storage capacity will be to the tune of 30

• In an oligopolistic market, the country is heavily dependent on West Asian countries, and Nigeria in Africa. Currently, the share of West Asian oil in India’s imports is 72%, and that of Africa is 16%. The disproportionate reliance on politically unstable regions is seen as a significant risk to India’s oil supply.

• Oil price rise and market volatility, fuelled by paper trading in oil, will present an increasing burden for the country. The value of crude imported in 2009/10 stood over USD 84 billion. In addition to geo-strategic imperatives, uncertainty in world reserve assessment, and the rising costs of accessing oil in frozen terrain and the deep sea, will only exacerbate India’s supply risks in the future.

• Reliance on two critical shipping routes, the Strait of Hormuz and the Malacca Straits exposes India’s supplies to piracy threats and possible blockades. India has been playing an active role in countering the challenge of piracy, and has deployed warships to fight piracy off the coast of East Africa. The tensions between Iran and the US have led experts to earmark the blockade of Strait of Hormuz as a possible strategic instrument that could be deployed in a conflict situation.

Figure 1

Source: TERI 2009

Strategies geared towards supply security:

• The India Hydrocarbon Vision 2025, drafted in 2000, urged the government to accelerate efforts to produce oil domestically. While the results may be constrained by India’s limited reserve base, the introduction of changes in policies governing exploration and production (for instance the movement towards the Open Acreage

Commercial Energy Requirement in BAU (mtoe)

283 356488

7231062

1508

2149

0

500

1000

1500

2000

2500

2001/02 2006/07 2011/12 2016/17 2021/22 2026/27 2031/32

Years

mto

e

Coal OilNatural Gas Hydro (large & small)Nuclear Solar & WindTotal

3 International Energy Agency (IEA), World Energy Outlook 2007: China and India Insights, 2007.

Figure 1

Source: TERI 2009

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MMT, equivalent to about 78 days of projected net oil imports.• Diversification of oil supplying trade partners and pursuing overseas equity investments in oil is an important

component of the country’s supply securing strategy. The country is increasing its engagement with new partners in Africa, Central Asia and South America, and deepening ties with existing oil trade partners. Building mutual stakes in each other’s economic well-being through cross-investments fortifies economic interaction.

• In the light of significant oil supply risks, and the need to reduce emissions from fossil fuel use, the country is working towards diversifying its energy mix and increasing investment in renewable energy technologies such as wind and solar.

Challenges on the demand side:• Development objectives require the Indian economy to grow at 8-10%, with concomitant increase in energy

demand. • The transport sector accounts for over 50% of consumption of petroleum products, and there is a lack of

available alternatives in the sector. The commercial viability of energy options, and externalities associated with alternatives such as bio-fuels, need to be addressed as part of a strong R&D initiative.

• There is a need to devise a rational pricing regime for petroleum products in the wake of rising subsidy bills. Petroleum products’ price rise is an issue with strong popular and political appeal and, therefore, reform is difficult.

Strategies on the demand side:• Transport sector: Road transport is continuously growing, consuming about 80% of energy in the transport

sector. Alongside, the share of rail is declining even though it is more energy efficient. The number of private vehicles in urban areas shows an upward trend. Focus needs to be on reducing total vehicle kilometer with promotion of rail and public transport; using fuel more efficiently – institution of fuel economy standards is key in this regard; and deploying alternative energy options.

• Pricing: There is a need to move towards market-based petroleum pricing regime, along with making amendments to the taxation structure – from ad valorem to specific; and introducing a targeted subsidy delivery mechanism for LPG and kerosene.

Learnings from the programme:The programme covered a wide gamut of energy issues, and served to further the understanding of energy policy, technology, economics, and environmental concerns. Following are some of the highlights:

• Energy efficiency and conservation have been an important focus for energy policy in Japan. Since Japan is highly import-dependent for energy, the country recognized early on that in order to decrease its reliance on imported energy, it will need to invest in energy conservation and efficiency measures. The oil shocks of the 1970s strengthened this resolve. Japan is a world leader in efficiency today with programmes that have been initiated in office and residential spaces, and industry. Various agencies have been established under the Ministry of Economy, Trade and Industry (METI) to implement programmes for energy efficiency and conservation, and ensure judicious use of natural resources. The Agency for Natural Resources and Energy recently launched a programme to support energy saving by small consumers within the service areas of TEPCO and Tohoku EPCO, by providing information, and allowing registration of energy saving action plans. Also, Japan’s Top Runner programme sets efficiency standards for a range of electrical appliances.

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• The country has been successful in creating awareness amongst its people on energy and environment. Recycling and avoiding wasteful use of energy are integral to Japanese lifestyles. During the home visit, we were able to see how the government is putting in place formal mechanisms to encourage households to separate garbage for purposes of recycling.

• The public transport network in the metropolitan centre of Tokyo is extensive, and has helped reduce the number of private vehicles plying on roads. Also, people often choose to drive hybrid vehicles. Often public buses are hybrid, such as those that are used between airport terminals.

Some significant challenges, however, remain:• Japan is characterized by low self-sufficiency in energy. Its high import dependence exposes the country to

supply risks. The volatility in oil markets, and the oligopolistic nature of the oil market, along with other factors, have made some industries move from oil to coal – a more polluting fuel. Given the continuing reliance on external sources for fossil fuels, the country will need to deepen its engagement with current energy partners, and expand energy links. Also, as the energy consumption of China and India rises, they will compete with Japan for resources in energy-rich regions.

• There is a cloud of uncertainty over nuclear energy in the country after the Fukushima Dai-ichi disaster. Japan has 54 nuclear reactors and the plants collectively are operating at 44% of their capacity after some shutdowns were affected. On May 06, 2011, Prime Minister Kan ordered the Hamaoko nuclear power plant to be temporarily shut down as it lies in a highly earthquake sensitive zone. Such instances can be cited from the past too. The Kashiwazaki-Kariwa nuclear plant was shut down for a little less than 2 years after an earthquake in 2007. While nuclear energy is slated to remain a part of the country’s energy mix, it remains to be seen how the nuclear sector will develop, and what steps the country will take to make nuclear power safer.

• For an energy efficient economy like Japan, renewable energy allows an important area of intervention to further its energy security objectives while reducing carbon emissions. The government has employed tax incentives and subsidies to promote renewable energy. It has also put in place a buy-back programme for solar PV generation. However, the country will need to grapple with associated challenges of ensuring efficiency, addressing technological issues such as intermittent supply, and ensuring availability of renewable energy finance.

Local initiatives are being taken in various part of Japan to deploy clean energy options, and build sustainable communities. The government needs to work closely with a cross-section of stakeholders, including small energy consumers and industry, to devise a robust energy policy for the future that adds to the country’s self-sufficiency, and ensures availability of adequate energy to meet the growing needs of the economy. It will need to keep in view that the urban populace would want to maintain the comforts of its energy intensive lifestyle, and policy action will need to take cognizance of this.

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Individual ReportIndia

Akshay ChhabraProject Engineer,Bureau of Energy Efficiency,Ministry of Power, India

ConceptUNDP definition: the availability of energy at all times in various forms, in sufficient quantities ad at affordable prices, without unacceptable or irreversible impact on the environment. These conditions must prevail over the long term. Energy Security has both a producer and a consumer side.

As the global energy consumption increases, energy consumption in Asian states is showing a drastic increase due to growing population and industrialization.

However, the uneven distribution of energy supplies among countries has led to significant vulnerabilities. Countries in Asia and the Pacific already consume around three times more oil than they produce, and consumption is increasing twice as fast in the region as in the world as a whole. The overall energy import dependency within Asia and Pacific is expected to increase over the period. It is projected that oil import dependency within the region will increase substantially from 57.5 % in 2005 to 66.4% in 2030. In addition to oil and natural gas, coal is particularly important source of energy in India and other countries in the Asia Pacific region, and in India, we are seeing an enhanced demand for coal imports in the region as well, which is going up from 40 million tonnes in year 2005 to more than 100 million tonnes in the year 2011.

Recent years and months have seen increasing attention being paid to the issue of energy security. There are a number of concerns and fears such as (though not limited to):

• Oil and other fossil fuel depletion (peak oil, etc)• Reliance on foreign sources of energy• Geopolitics (such as supporting dictatorships, rising terrorism, “stability” of nations that supply energy)• Energy needs of poorer countries, and demands from advancing developing countries such as China and India• Economic efficiency versus population growth debate• Environmental issues, in particular climate change• Renewable and other alternative energy sources

Understanding about the Japan’s Energy SecuritySecuring stable supplies of energy supplies from abroad, and establishing the “best mix’ of fuels and technology at home have been the focus of Japan energy sector. This is understandable given the country’s nearly complete dependence on imported fossil fuels to drive economy. But the realities are pushing energy security to the top of the political agenda in a way that has not been seen in more than two decades. The focus remains to see the country’s energy security interests

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best secured through market mechanisms against those who favour strategic government intervention and championing to the extent possible energy autonomy. The outcome of this policy debate will have significant implications for how the government intervenes in energy market at home and abroad.

• National energy resources are minimal and the self sufficiency level is extremely low.• Oil dependency on the middle on Middle east is high and the choke points too • With gas and coal, energy composition has become balanced but still level is low compared to the international

standards• Diversification of energy supply sources has seen some progress,• Installed electricity national transmission system and the blackout hours are limited.• From the viewpoint of high dependency on Middle East, the oil stockpile scheme is not enough.

Interaction with the IndustryThe Japan energy industry had a vision to contribute to Japan’s economy in self sustainable manner. The interaction with the Panasonic Centre highlighted the technological interventions needed in the demand side to increase the efficiency standards of the products in the market. The eco friendly products like energy efficient televisions, water conservative washing machines, lighting systems and other energy efficient products were some of the interesting products developed by the Panasonic industry.

The combined cycle thermal power plant at Kansai Electric Power Company (KEPCO) was a demonstration of high efficiency thermal power plant. The 110 x 2 MW solar power installations at KEPCO highlighted the emphasis of renewable energy source of power generation under the looming threat of climate change and energy security.

The transformation of Haneda airport into the energy efficiency mode of power consumption was a responsibility taken by authorities to demonstrate through certified energy audits, how energy efficiency in business centres and public buildings and other places can contribute to energy conservation.

India’s Perspective: Role of Energy Efficiency in Energy SecurityThe energy policy of India is largely defined by the country's burgeoning energy deficit and increased focus on developing alternative sources of energy, particularly nuclear, solar and wind energy.

About 70% of India's energy generation capacity is from fossil fuels, with coal accounting for 40% of India's total energy consumption followed by crude oil and natural gas at 24% and 6% respectively. India is largely dependent on fossil fuel imports to meet its energy demands — by 2030, India's dependence on energy imports is expected to exceed 53% of the country's total energy consumption. In 2009-10, the country imported 159.26 million tonnes of crude oil which amount to 80% of its domestic crude oil consumption and 31% of the country's total imports are oil imports. The growth of electricity generation in India has been hindered by domestic coal shortages and as a consequence, India's coal imports for electricity generation increased by 18% in 2010.

It is also evident that it is becoming even more difficult to source new supplies of fossil fuels as demand is increasing at a faster rate than the addition of new resources or of new supply fields. This fuel availability crunch is evident from the volatility in energy prices that we have been witnessing. Oil now seems to be reaching an average of $ 100/barrel and even coal which used to cost less than $50 per tonne delivered in India, now costs in excess of $140 per tonne. To

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summarize, access to energy resources is becoming more diffi cult and more costly.

To meet growth in energy services in this environment of limited and costly energy supply, energy effi ciency acts like a key strategy to bridge the gap. Effi cient utilization of energy to meet the required demand is one of the key options for the enhancement of energy security and sustainable development. Technology interventions at both the generation and demand side will help in slowing the overall energy demand growth trends while increasing level of energy services. Operational effi ciency improvements, such as in production processes and in freight transport, will result in lower energy requirement to produce a given output level. Energy effi ciency improvements will also move economies towards lower carbon intensities, slowing down the environmental deterioration till the time renewable and other zero-carbon energy sources become mature and viable which can be deployed on a larger scale.

Indian policy makers focus to thrust on self regulation and market principles, with primary objective of reducing energy intensity of the Indian economy. It is an understanding that interventions are important in these energy end-use sectors: appliances, buildings and industry. In each country, the ranking of priority sectors may be different, based on the current energy use patterns and trends of future growth.

Following is a brief presentation on some of the energy effi ciency schemes in India.

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AppreciationI wish to express my gratitude to Japan Foundation and Government of Japan to give me this unique opportunity to interact with the Japan energy industry and the Japanese culture. This interaction with Japan society has broaden my understanding about Japan and would help me in developing long term association with Japan.

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Indonesia

Aswin Rizal HarahapJournalist, PT KOMPAS MEDIA NUSANTARA, INDONESIA

Solar Power Plants, Indonesia’s Future EnergyFukushima Daiichi nuclear disaster few months ago provide valuable lessons for the Japanese government. That

accident makes them realize how important the development of green and renewable energy. The government began to tighten the rules, especially on the application of solar power plants.

Each company is expected to reduce their reliance on coal and nuclear power plants. They were asked to apply solar power plants. Kansai Electric Power Co., Inc and Haneda Airport, for example, have already implemented that policy.

Among the actions to create a low carbon society, Sakai city and Kansai Electric Power are jointly building a large scale solar power station, called as ”Mega-Solar”, in the part of industrial waste landfill of Osaka Prefecture. The management rented 20 hectares area for 70,000 of solar panels which can produce 10 MW electricity.

By March 8, 2011, about 6.3 MW electricity has been operated. The construction is now underway to complete in October, 2011. This policy succeeds to reduce the CO2 emission approximately 4,000 t per year.

This method also utilize by Haneda Airport management. They use the roof of the parking lot for 3,000 square meters of solar panels. Besides being used to supply power to the terminal 2, the solar power plant was capable of reducing CO2 emissions up to 30 percent during a year.

Haneda Airport management also applies energy saving policies through the use of an inverter in air conditioner as well as hybrid fuel transport. They even reduce air conditioning usage at certain hours as a policy of energy savings.

Those various policies are should be a good example which can utilize by the Indonesian government in meeting the electricity needs through solar power. Solar power is one of the potential energy resources in Indonesia. The average sunshine duration of 8-10 hours per day, giving an average of 10 kwh/day.

Indonesia has a land area of nearly 2 million square kilometers. This can be exploited to build thousand solar panels. In the work plan in 2012, Indonesian government set up cost 600 billion for the construction of solar power plants at 240 locations, especially in remote areas.

This policy aims to expand accessibility for electricity services and increase the electrification ratio. The development of solar power is expected to reach 12,000 families in remote locations. The management of it will be performed by the community. There are many remote areas could not reached by state electricity company (PLN) distribution network.

The electrical conditions in Indonesia so far are still worrying. The differences of electric power capacity in western and eastern Indonesia is too far. The capacity in Java-Madura-Bali is 23,009 MW. If it combines with the western side of Indonesia, the capacity is increase to 28,251 MW. Meanwhile, the capacities in eastern Indonesia which consist of 70 percent areas are only 2,710 MW.

As the most developed province in eastern Indonesia, South Sulawesi didn’t have sufficient electrical capacity. The total capacity right now is 593.7 MW. This capacity also used to cover West Sulawesi and South East Sulawesi. It seems to be crisis when the peak load power has reached 542.6 MW. It means that electricity reserves in the three

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provinces were only 51.1 MW.The conditions were far away from ideal because the reserves must require 25 percent of total capacity. It is not

surprising if blackouts often happened in those provinces. Unfortunately, those conditions contrast with their potentialities. Some areas of Sulawesi have many rivers that can utilize to produce electricity. Karama River in West Sulawesi,

for example, has the ability to generate more than 1,000 MW. Some small rivers also have potentiality to produce 100-200 MW of electricity.

So far South Sulawesi government has invited many investors from China, South Korea, and Sweden. But none of them seriously build power plants. The private sectors are expected to participate in the construction of power plants in eastern Indonesia.

It is time for the Indonesian government is more serious in developing solar power as a cornerstone of future energy. The dependence on coal power plants should be reduced as a commitment for the creation of green and renewable energy.

Learning From the Japanese People Way of LifeOne thing that amazed me from the visit is how the Japanese people maintain their spirit after disaster. When I

visit Taeko Koyama’s family in Hirai, Edogawa-ku, Tokyo, I was impressed by her attitude after Fukushima disaster. She saves electricity consumption to support the Japanese government's policy to reduce energy usage at certain times.

She can accept that the Japanese government policy has not taken formal steps after Fukushima disaster. The application of renewable energy should be applied gradually as Japan has limited mineral resources. ”Current nuclear power plants still needed despite their utility should be reduced slowly in the future,” said Koyama.

The inspiration also comes from the attitude of Yufuin society after big earthquake hit in 1975. When Yufuin devastated by the earthquake, there was no sightseeing. People were scared visit Oita Prefecture at that time. But, the disaster did not make Yufuin people despair.

They started to create many unique events to show that Yufuin is still fine to visit. Some events, such as, horse drawn wagon, Yufuin music festival, and barbeque and screaming festival, succeed to attract tourists. The resident initiative improves the number of tourists.

The Yufuin society managed to create a comfortable area for shopping. They renovate their houses into shops with a unique design which can interest visitors. Their hospitalities were able to attract 4 million visitors a year, about 60 percent of them regular visitors.

The creativity of communities should be inspiring Indonesian citizen which blessed by many tourist destinations. Bandung in West Java actually has similarity with Yufuin. However, the government needs to fix the traffic was always jammed every weekend.

ConclusionsThe 12 days trip in Japan gave me unforgettable learning experiences. I got a lot of knowledge about the

renewable energy and the Japanese people way of life. The programme was very well organized by The Japan Foundation that makes me enthusiastically follow each event. It is also resulting new community, the JENESYS 2011 community, a group of 19 talented youngsters from 13 countries. A great new circle of best friends!!

The programme not only intelligently prepared, but also gives me chance to visit many beautiful places in some areas of Japan. The officials from the JTB travel provide a very good guiding during the programme. I am very grateful for the generosity and warm hospitality of The Japan Foundation’s staffs and representative in this programme. Thank you very much. Dōmo arigatōgozaimashita. Terima kasih.

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ELECTRICITY CONDITION IN ELECTRICITY CONDITION IN EASTERN INDONESIAEASTERN INDONESIA

ASWIN RIZAL HARAHAPASWIN RIZAL HARAHAPPT. KOMPAS MEDIA NUSANTARA

17th May 2011

The electricity condition in indonesia nowadays

• System Condition :▫ Interconnection : Java-Madura-Bali and Sumatra▫ The Other Areas separated

• The Growth of power plant 2010-2029 : 9,5 %• Total Capacity 30.961 MW▫ Jamali : 23.009 MW▫ Western Indonesia : 5.242 MW▫ Eastern Indonesia : 2.710 MW

• Indonesia Electrification Ratio▫ Jamali : 69,4%▫ Western Indonesia : 65,4%▫ Eastern Indonesia : 52,35%

• Indonesia Ratio of Electrified Villages▫ Jamali : 99,6%▫ Western Indonesia : 95,9%▫ Eastern Indonesia : 83,6%

KHATULISTIWASYSTEM

Capacity : 192,70 MWPeak Load : 151,40 MWBalance : 41,30 MW

ELECTRICITY CONDITION IN EASTERN INDONESIAELECTRICITY CONDITION IN EASTERN INDONESIA

BARITO SYSTEMCapacity : 282,50 MWPeak Load : 272,15 MWBalance : 10,35 MW

SAMPIT SYSTEMCapacity : 20,10 MWPeak Load : 19,00 MWBalance : 1,10 MW

MAHAKAM SYSTEMCapacity : 263,47 MWPeak Load : 229,49 MWBalance : 33,98 MW

BONTANG SYSTEMCapacity : 24,70 MWPeak Load : 15,40 MWBalance : 9,30 MW

MINAHASA SYSTEMCapacity : 159,65 MWPeak Load : 149,59 MWBalance : 10,06 MW

PALU SYSTEMCapacity : 70,24 MWPeak Load : 51,86 MWBalance : 18,38 MW

GORONTALOSYSTEM

Capacity : 35,60 MWPeak Load : 33,20 MWBalance : 2,40 MW

POSO SYSTEMCapacity : 8,00 MWPeak Load : 5,90 MWBalance : 2,1 MW

SULSEL SYSTEMCapacity : 593,70 MWPeak Load : 542,60 MWBalance : 51,10 MW

KENDARI SYSTEMCapacity : 39,60 MWPeak Load : 36,10 MWBalance : 3,50 MW

AMBON SYSTEMCapacity : 39,50 MWPeak Load : 36,00 MWBalance : 3,50 MW

JAYAPURA SYSTEMCapacity : 51,70 MWPeak Load : 44,45 MWBalance : 7,25 MW

NTB SYSTEMCapacity : 106,70 MWPeak Load : 110,00 MWBalance : (3,30) MW

NTT SYSTEMCapacity : 31,60 MWPeak Load : 28,37 MWBalance : 3,23 MW

* Status * Status s.ds.d. 30 . 30 AgustusAgustus 20102010

POWER PLANT DEVELOPMENT PROGRAMME PHASE ACCELERATION

• Government is doing 2 Fast Track Programme:▫ Phase I began in 2007, consisting of 10,000 MW coal power plant

(37 projects). ▫ Entirely a private project and participate PLN as EPC contractor.

• Growth Acceleration Programme Phase I *:▫ 31 projects from 32 projects that qualify for tenders with a total

capacity of 8773 MW under construction.(physical progress of ≥ 70%: 10 projects, and <70%: 21 projects)

▫ 1 project plant (power plant Labuan, Banten 2 x 300 MW) of the 32 projects that qualify for the tender had been operating, with a capacity of 600 MW generated.

ACCELERATED PROGRAMME 10,000 MW PHASE I

SUMATERA1425MW

10 LOCATION

KALIMANTAN605 MW

5 LOCATION

SULAWESI220 MW

4 LOCATION

MALUKU46 MW

2 LOCATION

PAPUA34 MW

2 LOCATION

NUSA TENGGARA117 MW

4 LOCATION

JAWA7490 MW

10 LOCATION

PLTU NAD –Meulaboh(2 x 110 MW)

PLTU SUMUT –Pangkalansusu(2 x 200 MW)

PLTU SUMBAR – Teluk Sirih(2 x 112 MW)

PLTU 1 RIAU – Bengkalis(2 x 10 MW)

PLTU 2 RIAU – Selat Panjang(2 x 7 MW)

PLTU KEP.RIAU – Tj. Balai Karimun (2 x 7 MW)

PLTU 3 BANGKA – BangkaBaru(2 x 30 MW)

PLTU 4 BANGKA –Belitung(2 x 16,5 MW)

PLTU LAMPUNG – Tj. Selaki(2 x 100 MW)

PLTU 1 BANTEN –Suralaya(1 x 625 MW)PLTU 2 BANTEN –Labuhan(2 x 315 MW)

PLTU 3 BANTEN – Lontar(3 x 315 MW) PLTU 1 JABAR –

Indramayu(3 x 330 MW)

PLTU 2 JABAR –PelabuhanRatu(2 x 350 MW)

PLTU 2 JATENG – CilacapBaru(1 x 660 MW)

PLTU 1 JATENG –Rembang(2 x 315 MW)

PLTU 1 JATIM – Pacitan(2 x 315 MW)

PLTU 3 JATIM – Tj. AwarAwar(2 x 350 MW)PLTU 2 JATIM – Paiton

(1 x 660 MW)

PLTU 1 KALBAR – Parit Baru(2 x 50 MW)

PLTU 2 KALBAR – Bengkayan(2 x 27,5 MW)

PLTU 1 KALTENG – PulangPisau(2 x 60 MW) PLTU 1 KALSEL – Asam

Asam(2 x 65 MW)

PLTU 2 NTB – Lombok(2 x 25 MW)

PLTU 1 NTB –Bima(2 x 10 MW) PLTU 1 NTT –

Ende(2 x 7 MW) PLTU 2 NTT –

Kupang(2 x 16,5 MW)

PLTU 1 PAPUA – Timika(2 x 7 MW)

PLTU 2 PAPUA –Jayapura(2 x 10 MW)

PLTU MALUKU –Ambon(2 x 15 MW)

PLTU MALUT – Tidore(2 x 8 MW)

PLTU SULUT –Amurang(2 x 25 MW)

PLTU GORONTALO –Anggrek(2 x 25 MW)

PLTU SUTENG –Kendari(2 x 10 MW)

PLTU SUSEL – Barru(2 x 50 MW)

TOTAL EASTERN INDONESIA1.022 MW

17 LOCATION

PLTU RIAU –Tenayan/Pekanbaru(2 x 100 MW)

PLTU KALTIM – Tlk Balikpapana(2 x 100 MW)

TOTAL INDONESIA9.937 MW

37 LOCATION

THE DEVELOPMENT OF ACCELERATION POWER PLANT PROGRAMME PHASE I IN EASTERN INDONESIA

Number POWER PLANT LOCATION CAPACITY (MW) COD

UNIT 1 UNIT 2

1 PLTU SULTRA KENDARI 2X10 Okt 2010 Des 2010

2 PLTU 1 NTT ENDE 2X7 Nop 2010 Des 2010

3 PLTU 2 SULUT AMURANG 2X25 Des 2010 Jul 2011

4 PLTU 1 NTB BIMA 2X10 Apr 2011 Jun 2011

5 PLTU GORONTALO ANGGREK 2X25 Mei 2011 Jul 2011

6 PLTU KALSEL ASAM-ASAM 2X65 Jul 2011 Sep 2011

7 PLTU SULSEL BARRU 2X50 Agt 2011 Okt 2011

8 PLTU 2 NTT KUPANG 2X16,5 Agt 2011 Okt 2011

9 PLTU MALUT TIDORE 2X15 Agt 2011 Des 2011

10 PLTU 2 PAPUA JAYAPURA 2X10 Sep 2011 Nop 2011

11 PLTU 1 KALBAR PARIT BARU 2X50 Des 2011 Feb 2012

12 PLTU 2 NTB LOMBOK 2X25 Mar 2012 Mei 2012

13 PLTU 1 KALTENG PULANG PISAU 2X60 Nop 2012 Jan 2013

• 2 projects canceled• 1 contract project not effective• 1 project is tendering

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ACCELERATION POWER PLANT PROGRAMME CONSTRUCTION PHASE II

• In the beginning of 2010, government established a programmewith a total acceleration of phase II consisting 10.000 MW, with the composition:▫ Hydroelectric 12%▫ Geothermal 39% (3977 MW)▫ Coal 33%▫ Gas 16%

• The total power of 1,934 MW to Eastern Indonesia• Acceleration of phase II project consists of PLN and private power project

(IPP), which can participate as EPC or as a developer.

• Currently being drafted Presidential Regulation on the Assignment to PT PLN (Persero) to purchase electricity from the plant.

SUMATERA• PLTA : 204 MW• PLTP : 1.767 MW• PLTU : 547 MW

TOTAL : 2.518 MW

KALIMANTAN• PLTU : 620 MW• PLTGU : 120 MW• PLTG : 100 MW

TOTAL : 840 MW

SULAWESI• PLTP : 145 MW• PLTU : 384 MW• PLTGU : 240 MW

TOTAL : 769 MW

MALUKU• PLTP : 35 MW• PLTU : 38 MW

TOTAL : 73 MW

PAPUA• PLTU : 116 MW

TOTAL : 116 MW

NTT• PLTU : 16 MW• PLTP : 10 MW

TOTAL : 26 MW

NTB• PLTP : 40 MW• PLTU : 70 MW

TOTAL : 110 MW

JAMALI• PLTP : 1.970 MW• PLTU : 1.600 MW• PLTGU : 500 MW• PLTA : 1.000 MW

TOTAL : 5.070 MW

TOTAL INDONESIA

•PLTA : 1.204 MW•PLTP : 3.967 MW•PLTU : 3.391 MW•PLTG : 100 MW•PLTGU : 860 MW

TOTAL : 9.522 MW

MAP ACCELERATION PROJECT 10,000 MW PHASE IITOTAL KTI

•PLTP : 230 MW•PLTU : 1.244 MW•PLTG : 100 MW•PLTGU : 360 MW

TOTAL : 1.934 MW

POWER PLANTPLN + IPP PLN IPP

Capacity (MW) Capacity (MW) Invesment (MillionUSD) Capacity (MW) Invesment (Million USD) PLTA 1,204 1,174 923 30 45PLTGU 860 740 1,020 120 360PLTP 3,967 340 1,343 3,627 7,212PLTU 3,391 1,862 2,567 1,529 2,440PLTG 100 100 50 -

Total 9,522 4,216 5,903 5,306 10,057

Number LOCATION CAPACITY (MW)PLN IPP

1. Kalimantan 304 5562. Sulawesi 540 2293. Maluku 20 534. Papua - 1165. NTB 70 406. NTT - 26

TOTAL 914 1.020

LIST OF PROJECT ACCELERATION PROGRAMME PHASE II IN EASTERN INDONESIA 2010-2015

Number NAME OF PROJECT PROVINCE CAPACITY (MW)

1. PLTP Kotamobagu 1 dan 2 Nort Sulawesi 2 x 20

2. PLTP Kotamobagu 3 dan 4 North Sulawesi 2 x 20

3. PLTP Sembalun West Nusa Tenggara 2 x 10

4. PLTP Tulehu Maluku 2 x 10

5. PLTU Sampit Central Kalimantan 2 x 25

6. PLTU Kotabaru South Kalimantan 2 x 7

7. PLTU Parit Baru West Kalimantan 2 x 50

8. PLTU Ketapang West Kalimantan 2 x 10

9. PLTU Takalar South Sulawesi 2 x 100

10. PLTU Bau-Bau South East Sulawesi 2 x 10

11. PLTG Kaltim (Peaking) East Kalimantan 2 x 50

12. PLTU Lombok West Nusa Tenggara 2 x 25

13. PLTGU Senoro Central Sulawesi 2 x 120

LIST OF POWER PLANT PROJECT PHASE II 10,000 MW IN EASTERN INDONESIA WHICH HELD BY PT PLN (PERSERO)

LIST OF POWER PLANT PROJECT PHASE II 10,000 MW IN EASTERN INDONESIA WHICH HELD BY PRIVATE SECTOR


1. PLTP Lahendong 5 dan 6 North Sulawesi 2 x 20

2. PLTP Bora Central Sulawesi 1 x 5

3. PLTP Merana/Masaingi Central Sulawesi 2 x 10

4. PLTP Hu’u West Nusa Tenggara 2 x 10

5. PLTP Atadei East Nusa Tenggara 2 x 2,5

6. PLTP Sukoria East Nusa Tenggara 2 x 2,5

7. PLTP Jailolo North Maluku 2 x 5

8. PLTP Songa Wayaua North Maluku 1 x 5

9. PLTU Melak East Kalimantan 2 x 7

10. PLTU Nunukan East Kalimantan 2 x 7



11. PLTU Kaltim East Kalimantan 2 x 100

12. PLTU Putussibau West Kalimantan 2 x 4

13. PLTU Kalsel South Kalimantan 2 x 100

14. PLTU Tahuna North Sulawesi 2 x 4

15. PLTU Moutong Central Sulawesi 2 x 4

16. PLTU Luwuk Central Sulawesi 2 x 10

17. PLTU Mamuju West Sulawesi 2 x 25

18. PLTU Selayar South Sulawesi 2 x 4

19. PLTU Kendari South East Sulawesi 2 x 25

20. PLTU Kolaka South East Sulawesi 2 x 10

21. PLTU Sumbawa West Nusa Tenggara 2 x 10

22. PLTU Larantuka East Nusa Tenggara 2 x 4

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23. PLTU Waingapu East Nusa Tenggara 2 x 4

24. PLTU Tobelo North Maluku 2 x 4

25. PLTU Tidore North Maluku 2 x 7

26. PLTU Tual Maluku 2 x 4

27. PLTU Masohi Maluku 2 x 4

28. PLTU Biak Papua 2 x 7

29. PLTU Jayapura Papua 2 x 15

30. PLTU Nabire Papua 2 x 7

31. PLTU Merauke Papua 2 x 7

32. PLTU Klalin West Papua 2 x 15

33. PLTU Andai West Papua 2 x 7

34. PLTGU Bangkanai Central Kalimantan 1 x 120

THANK YOUTHANK YOUARIGATOGOZAIMASHITATERIMA KASIH

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Individual Report

Muhammad ArifuddinHead of Section, Geology and Mineral Resources Planning Section, Planning and Cooperation Bureau, Ministry of Energy and Mineral Resources

Indonesia

INDIVIDUAL REPORTMy name is Muhammad Arifuddin. Currently I am working in the Bureau of Planning and Cooperation, Ministry of Energy and Mineral Resources, as the Head of Geology and Mineral Resources Planning Section. I was participant of Jenesys Programme 2011 in Group K "Energy Security: advancements in Cooperation in the East Asian Region."

The programme itself was held for 12 days and followed by 19 participants from 13 countries in Asia and Oceania. We got the chance to visit 5 cities/prefectures in Japan (Tokyo, Saitama, Oita, Kumamoto and Osaka) to learn how Japan (government, NPOs, business entities/companies, and society) maintain and enhance its energy security. In the 5 cities that we visited to, we learned and shared experiences with various government agencies, companies, Non Profit Organizations (NPOs) and urban communities about energy issues in Japan, both before and after the earthquake and tsunami March 11, 2011. We also got the opportunity to learn the culture and history of Japan and enjoyed beautiful natural scenery and historic places.

Indonesia New and Renewable PolicyIndonesia is a country blessed with diverse energy resources, both fossil energy such as oil, gas and coal, and non-fossil energy in the form of geothermal and various forms of renewable energy. Indonesia is well known for its reputation as one of the largest producers of fossil energy consisting of oil, gas and coal. Such reputation has made Indonesia an important partner for several countries in the region in terms of energy cooperation.

Till end of 2010, Indonesia's energy mix, similar to that in most developing countries, is still dominated by fossil energy. Currently, fossil energy contributes more than 95% to national energy mix, comprising of 47% oil, 22% natural gas and 26% coal, while the rest almost 5% is renewable.

Indonesia’s energy consumption increases at an average of 6-7% annually in the last ten years. Oil and gas still play an important role in the national economy development both as the state’s main source of revenue and domestic energy supply. But, on the other hand, oil reserves are depleting and part of energy prices are still subsidized which burdens the state budget and lead to the development of alternative energy became an inhibited.

Regarding to Indonesia’s energy policy, in the past, we kept on using fossil-based energy, subsidizing at any costs, at any amount of money, and at any amount that could have spent for health or education. But in the future, we want to change the paradigm. We want to manage the demand side and ensure a more efficient energy use. We want to conserve energy. We want people to remember that every minute we postpone the energy conservation - we will waste money!

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Before, we look at renewable energy resources only as an alternative. Future, we want to change that paradigm. Indonesia has abundant renewable energy resources such as geothermal, water, solar, and others. Renewable energy should not be a mere alternative, but it should become our focus.

One of our objective in developing renewable energy and energy conservation is to reduce CO2 emissions, as the President of the Republic of Indonesia has committed to reduce CO2 emissions up to 26% (equivalent to 767 million tones CO2) in 2020 with national efforts and 41% with international assistance. And energy sector will contribute around 30 million tones CO2 reduction.

Renewable energy and energy efficiency programmes are currently being prioritized to achieve the emission reduction targets. In line with these objectives, the policy direction of renewable energy development, which is currently still under discussion, is to achieve 25% renewable energy share in the year 2025. It's called 25/25 vision.

To achieve these objectives, Ministry of Energy and Mineral Resources (MEMR) has 2 general policies: energy conservation at demand side to improve efficiency in energy utilization from up-stream to down-stream, and energy diversification at supply side to increase new & renewable energy share in national energy mix.

Inline with these policies, MEMR has develop 12 programmes/agendas on renewable energy and energy conservation, i.e: 1) harmonize regulations; 2) Update Master Plans on Energy Diversification and Energy Conservation; 3) Improvement of efficiency on energy utilization; 4) Development of geothermal; 5) Development of bioenergy; 6) Development of other new renewable energy; 7) Development and implementation of clean energy technology; 8) Increase local content and supporting industry; 9) Increase public participation on Energy Self-Sufficient Village; 10) Increase public participation on low carbon city; 11) Enhance research and development; and 12) Enhance training and education.

Several strategies will be pursued on the supply side are implementing new and renewable energy supply mandatory; improving new and renewable energy utilization; and fuel switching (use cleaner fuel for energy); while in the demand side, we will implementing the commitment of energy efficiency; fuel switching; implementing principles of energy saving; use clean energy and efficient technology; and make “Energy Efficient-Living” as a people culture.

Lesson Learnt from the Programme: Japan Energy Security Approaches1. Government: Shifting oil dependency to nuclear and renewable energy sources, as well as

increase of energy efficiency. Japan does not have wealth of energy resources. Until now, Japan is still heavily dependent on imported fuels, especially oil from the Middle East region. Currently, energy self-sufficiency of Japan only about 4%.

Low energy self-sufficiency and oil shocks occurred in 1973 and 1979 made Japan began to reduce its dependency on oil by introducing energy conservation regulation in 1979 and also develop and implement alternative energy sources, including nuclear energy. In fact, until the year 2030, Japan has the following targets: 1) Energy savings: Will Be Increased energy efficiency by 30%; 2) Oil dependency: dependency levels will from some Less than 40% (from 47% in 2003); 3) Transportation sector: oil dependency will of be reduced to around 80% (from 98% in 2000); 4) Nuclear Power: Electricity produced by nuclear power by30-40% beyond 2030.; and 5) Resource Equity: Equity crude oil out of imported crude Should Be level raised to 40%.

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Japan’s tsunami and earthquake on March 11, 2011 had an impact on Japan energy supply. Leakage of some nuclear reactors further reduced energy supply. Many companies suffered losses and households experienced electricity supply shortage. The government has been trying hard to overcome the difficulties faced, but avoid to address sensitive topics related to the nuclear issue.

2. Enterprises: Creating Low Carbon Society via techological approach.Many companies contribute in maintaining and enhancing energy security through the development of renewable energy projects, in addition to high commitment to reduce environmental impact through CO2-free and CO2-off strategies, among others: 1) Kyushu Electric Power developt 110 MW Geothermal powerplant Hachobaru on the island of Kyushu; 2) Kansai Electric Power C.., Inc. developt a 10 MW Sakai Mega Solar Project on a former industrial waste land; 3) Haneda Airport built solar panels at several parking buildings, using hybrid buses, and improved water efficiency by installing an inverter in the air-conditioning system; 4) Panasonic produced eco-friendly electrical equipments.

3. NPOs: Empowering Communities to increase is self-sufficient in terms of Food, Welfare and Energy.We visited two NPOs who have high concern to disseminate renewable energy and striving to support energy self-sufficiency. In addition, these NPOs have strong influence to the Government and the community.

In Saitama Prefecture, we visited the "Ogawamachi Fuudo Katsuyo Center (Regional Resource Utilization Center)" NPO that has been successfully working with local communities to improve the utilization of local resources such as vegetable waste to be converted into fertilizer and biogas. The NPO also teached and empowered people to produce Solar Home System (SHS) panels. SHS panels produced were also used in the areas affected by earthquakes and stunami as a temporary lighting.

Likewise in Yufuin, we visited the NPO "Kaze no Harappa-Yufuin Murazukuri" who shared about his activities in moving society, especially young people, to have the awareness to form a society that is self-sufficient in terms of food, welfare, and energy.

Yufuin which previously unknown, both in Japan itself, as well as abroad, is now widely known for its natural beauty and tourist attractions, especially the hot springs. The NPO creates a mechanism to attract young people from within and abroad. Interested youths can stay in Yufuin for 2 weeks without pay the cost of accommodation and food that will be provided by the NPO. But, in return, these youths have to work in the field of business that was developed by the NPO such as agriculture, cafes, and biogas. Then, the youths have a very interesting experience in both enjoy the beautiful scenery of Yufuin and learn the Japanese culture while working at the NPO.

4. Urban Household: High Awareness to the Current Country’s Energy Security IssuesJapan is a country with a very high energy efficiency. This condition is not only supported by the use of energy-efficient and eco-friendly appliances, but also supported by the high public awareness to the importance of energy security. In our home visit in Ryogoku and Kitasenju area in Tokyo, the hosts showed us their lifestyle and how they use energy before and after March 2011’s earthquake and tsunami. They show a good cooperative attitude to the Government's policy via conserve and use energy efficient and low CO2-emmision equipments.

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Indonesia

Lesson Learnt from the Programme: Japanese Culture and TraditionFrom the 12 days programme, I learned Japanese culture, especially how they value time that leads to punctual and efficient time management. I also learned the importance of empowering community to build a strong society.

ConclusionsThe 2 weeks programme was an invaluable learning experience that I will never forget. The programme was very well and efficiently organized. We had the chance to learn Japan experiences in terms of energy security and also Japanese culture and history. On top of that, the opportunity to interact and discuss with participants from different countries of different backgrounds was immensely rewarding.

Finally, I would like to express my sincere gratitude to the Japan Foundation for the opportunity to join the JENESYS East Asia Future Leaders Programme 2011. I truly appreciated the warm hospitality of the Japan foundation’s staffs and representatives in this programme.

Thank you very much. Arigatou gozaimasu !

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Individual Report

Manopaphath PhithsamayElectrical Engineer, Power Sector Planning Division, Department of Electricity, Ministry of Energy and Mines, Laos

Lao People’s Democratic Republic

FINAL REPORT

The Japan Foundation has organized an East Asia Future Leaders Programme to Japan in May 2011 under the Japan–East Asia Network of Exchange for Students and Youths (JENESYS) Programme.

It was funded by the Japan-ASEAN Integration fund, and aims to deepen understanding of the different facets of the Japanese society including politics, diplomacy, economics and culture and to form the basis of future vision and construct firm solidarity among Asian countries which will promote mutual understanding of the future generation of the East Asia Community.

In the Programme include learning and visiting on many place as:

- Advisor Keynote Lecture “Energy Security in Japan” Mr. Yasuhiko Nagata, Senior Researcher, JIME Center, Institute of Energy Economics, Japan

- Home Visit in Tokyo “Experience lifestyle and energy use in local households”- Agency for Natural Resources and Energy: Japan’s Approach to Energy Security- Visit NPO Fudo, Biogas energy in Ogawa cho, Saitama Prefecture- Lecture: Professor. Junji Yamamura “The History and Current Situation of Japanese Hot Springs” Visiting

Professor, Josai International University- Visit & Lecture: Haneda Airport ‘Haneda’s Approach to energy conservation and clean energy’- Visit: Hacchobaru Geothermal Power Plant- Visit NPO: “Kaze no Harappa” local development group- Visit: Old Coal Pit Place and Visit: Omuta Coal Museum- Visit Kansai Electric Power Company

What we learn and get from these programmes: As we all know, Japan is one of the most developed countries in the world, and it’s also the leading country

both in economics and technology in the eastern Asia. Anyway, after the tsunami, the devastated natural disaster that hit the north-eastern part of Japan has affected badly on Japanese economics, as well as the Japanese people’s lives. Surprisingly, facing the unprecedented disaster Japanese people weren’t panic at all, but dealing with it calmly and considerately. With the rapid growth of economy which mainly relies on export, energy is undoubtedly the most important factor in the production; therefore Japanese government has decisively adjusted their policy by taking a big

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step on importing petroleum and urgently requires the alternative energy which is indispensable. While I was staying in Japan, during those few weeks’ time I noticed that living life in Japan is very convenient with the assistance of machines, internet etc, people don’t even have to go out to shop by themselves, while they can shop online without setting their feet out of home, I feel that these things are alienating people from one another, people couldn’t have opportunities to interact each other as much as before, this kind of situation is hardly seen in our country, Lao temples play an important role in it, Lao people can take advantage of the temples to meet each other and share what they encountered during the weeks.

Today, energy security is an indispensable subject even in general discussions about foreign policy. Securing necessary energy resources is one of the prerequisites for ensuring sustainable economic growth. Dealing with the current rapid growth in demand for energy in Asia is a high priority on many agendas as for Japan’s perspective on energy security co-operation.

I personally think that energy security and environmental protection have to be compatible. The urgent task for the energy side is to link energy efficiency improvements with reductions of greenhouse gas emissions. This is the task not only for developed countries but also for developing countries, which also consume energy resources and emit greenhouse gases. In this regard, the OECD’s work on adapting to climate change, particularly in relation to development aid, is relevant. We should elaborate data quantifying the effects of improved energy efficiency on the reduction of greenhouse gas emissions. I believe that the IEA will be able to accelerate its studies on this subject. Without serious study of this vital question, I am concerned that any achievements in terms of conservation might not be properly evaluated in the context of climate change.

Besides I think Japan should also have to work closely with China and India in order to assist their efforts to improve energy efficiency. According to IEA estimates in 2006, both China and India will almost double their energy consumption by 2030. Japan has taken advantage of its low energy intensity, which is approximately one-ninth that of either China or India, and, together with like-minded OECD countries, has provided financial and technical co-operation, as well as technology transfers based on commercial transactions, to assist the efforts of these fast-growing Asian consumer countries. In addition to such co-operation, during the second East Asia Summit in the Philippines on 15 January this year, the then Prime Minister Shinzo Abe announced the Cooperation Initiatives for Clean Energy and Sustainable Growth for East Asia. These initiatives include the provision of energy-related official development assistance worth US$2 billion between 2007 and 2009, as well as technical co-operation for the promotion of energy conservation, biomass energy and clean coal technology.

Meanwhile, the concept of biomass, is one of the most valuable knowledge I have learnt during my study tour, it’s undoubtedly appropriate for the energy generation in the developing countries, though there is certain difficulties in generating this kind of energy resource in Laos because of the shortage of fund and sufficient professional talents, however I do believe that Lao government will figure it out one way or another, and finally end up with this indispensable energy resource.

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Power Sector Planning DivisionPower Sector Planning DivisionDepartment of ElectricityDepartment of Electricity

Ministry of Energy and Mines, Ministry of Energy and Mines, Lao PDRLao PDR

Present by:Present by:

ManopaphathManopaphath PHITHSAMAYPHITHSAMAYElectrical Electrical EgineerEgineer

BACKGROUND OF LAO PDRBACKGROUND OF LAO PDR Area of 236,800 sq km; Provinces: 17 provinces (142 districts and

10,912 Villages); Vientiane is capital City; Population of 6.3 million (2010); GDP per Capita of USD 984 (2010); Religion: Buddhism; 70% in rural area; Mountainous area with major tributaries of

the Mekong River covering 35% of total Mekong River basin;

Relatively high annual rainfall; The Government has identified both the

hydropower and mining sectors as fundamental drivers of progress toward achieving the Millennium Development Goals by 2015 and graduating from the list of least developed economies by 2020

Resource Reserves Potential for Use in Power GenerationOil and Gas Two exploration concessions in central and southern Lao

PDR. Mapping and geophysical investigations are being carried out, including deep hole drill (2,560 m). Results are being evaluated

Possibly in the longer term (10-15 years), if sufficient reserves found

Coal(Lignite)

Major resource located at Hongsa in north-west Lao PDR. About 810 million tons proven reserve, of which over 530 million tons is deemed economically recoverable. Energy content 8-10 MJ/kg, relatively low sulfur content of 0.7-1.1%

Sufficient reserves for about 2,000 MW installed capacity

Coal (Bituminous and Anthracite)

Reserves, mainly anthracite, dispersed in various fields throughout Lao PDR. Exploration ongoing. Total proven reserve to date about 100 million tons.Energy contents 23-35 MJ/kg.

Current annual production of 130,000 tons, used for local factories or export. Possible longer-term option for around 500 MW installed capacity, depending on results of exploration.

Solar Annual solar radiation received in Lao PDR about 1800 kWh/m2, possibly less in mountain areas.Corresponds to conditions in southern Europe (Italy, Spain).

Photovoltaic modules already used for small-scale (e.g. 100 W) remote applications.

Wind Mean wind speeds at Luang Prabang and Vientiane around 1 m/s, in mountain areas likely to be somewhat higher.

Costs in areas of less than 4 m/s likely to be in upper end of range US$ 0.05-0.25 per kWh, hence limited potential

Geothermal No significant known reserves. Limited potential for power generation

Biomass (agriculture waste)

Biomass resources dispersed throughout the country. Current share of biomass (mainly wood fuel) in total energy consumption about 88%. Wood-fired cogeneration (heat and power) plants could be economic for self-supply in wood processing facilities

Hydropower Average annual precipitation about 2,000 mm. Total runoff around 240,000 million m3. Theoretical hydropower potential of 26,000 MW (excluding mainstream Mekong).

Exploitable hydropower potential, including share of mainstream Mekong, around 23,000 MW.

Primary Energy Resources of Lao PDRPrimary Energy Resources of Lao PDR

Power Sector/ElectricityPower Sector/Electricity

Power SectorPower Sector• The hydropower and mining sectors in Lao People’s

Democratic Republic (PDR) have developed rapidly over the past ten years, and have become the two primary commodities of the country

• For electricity generation and consumption, hydropower type comprises of 99.8% of total, the rest is diesel generation and solar photovoltaic sets.

• The Government Of Lao has set up the national target for the household electrifies (standard usage), which 70% and 90% in 2010 and 2020 respectively

History of Power Sector DevelopmentHistory of Power Sector Development

• Electricity generated from hydropower plants was not produced in Lao PDR until the late 1970s. Some small hydropower plants serving small isolated local grids were commissioned at the time.

• Before 1993 only three hydropower plants had been developed and brought into operation.

• The power sector was subsequently opened up to foreign investment. In June 1993, the Lao PDR and Thailand signed the first MOU to supply electricity of up to 1,500 MW to Thailand.

• To meet the rapid increase of demand in Thailand the two Gov’tsextended the MOU several times. In Dec 2007, the both Gov’ts newly agreed to expended up to 7,000 MW of electricity supply to Thailand by 2020.

• In 1998 and 2006 MOUs were signed with the Government of Vietnam for 3000 MW and subsequently 5000 MW is agreed.

• In 1999 Agreement on Cooperation in Power Sector was signed withCambodia.

Exploitable Hydropower Potential of Exploitable Hydropower Potential of Lao PDRLao PDR

Total exploitable hydro potential 23,000MW

Major Mekong tributaries,

13000MW, 56%

Main stream Mekong (share),

8000MW, 35%

Rest of country2000MW , 9%

OWNERSHIP OF POWER GENERATIONOWNERSHIP OF POWER GENERATIONThe country’s total installed Capacity: 1926 MW: EdL 383.5 MW, IPP: 1542.5 MW

EDLIPP

EDL-383.5 MW

IPP-1542.5 MW

EXISTING NETWORK AS OF 2009EXISTING NETWORK AS OF 2009 Demand Forecast GraphDemand Forecast GraphDEMAND FORECAST

2,422

1,927

2,3652,3142,267

2,2232,176

1,690

1,195

945

808

621

416349291

2,494

0

500

1,000

1,500

2,000

2,500

3,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Peak

Loa

d Fo

reca

st, M

W

North Central1 Central2 South TOTAL

Actual Forecast

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Power SectorPower Sector• The hydropower and mining sectors in Lao People’s

Democratic Republic (PDR) have developed rapidly over the past ten years, and have become the two primary commodities of the country

• For electricity generation and consumption, hydropower type comprises of 99.8% of total, the rest is diesel generation and solar photovoltaic sets.

• The Government Of Lao has set up the national target for the household electrifies (standard usage), which 70% and 90% in 2010 and 2020 respectively

History of Power Sector DevelopmentHistory of Power Sector Development

• Electricity generated from hydropower plants was not produced in Lao PDR until the late 1970s. Some small hydropower plants serving small isolated local grids were commissioned at the time.

• Before 1993 only three hydropower plants had been developed and brought into operation.

• The power sector was subsequently opened up to foreign investment. In June 1993, the Lao PDR and Thailand signed the first MOU to supply electricity of up to 1,500 MW to Thailand.

• To meet the rapid increase of demand in Thailand the two Gov’tsextended the MOU several times. In Dec 2007, the both Gov’ts newly agreed to expended up to 7,000 MW of electricity supply to Thailand by 2020.

• In 1998 and 2006 MOUs were signed with the Government of Vietnam for 3000 MW and subsequently 5000 MW is agreed.

• In 1999 Agreement on Cooperation in Power Sector was signed withCambodia.

Exploitable Hydropower Potential of Exploitable Hydropower Potential of Lao PDRLao PDR

Total exploitable hydro potential 23,000MW

Major Mekong tributaries,

13000MW, 56%

Main stream Mekong (share),

8000MW, 35%

Rest of country2000MW , 9%

OWNERSHIP OF POWER GENERATIONOWNERSHIP OF POWER GENERATIONThe country’s total installed Capacity: 1926 MW: EdL 383.5 MW, IPP: 1542.5 MW

EDLIPP

EDL-383.5 MW

IPP-1542.5 MW

EXISTING NETWORK AS OF 2009EXISTING NETWORK AS OF 2009 Demand Forecast GraphDemand Forecast GraphDEMAND FORECAST

2,422

1,927

2,3652,3142,267

2,2232,176

1,690

1,195

945

808

621

416349291

2,494

0

500

1,000

1,500

2,000

2,500

3,000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Peak

Loa

d Fo

reca

st, M

W

North Central1 Central2 South TOTAL

Actual Forecast

Electricity Tariff in Lao PDRElectricity Tariff in Lao PDR

Month, Year Lao Kip/kWh Jan-08 Jan-09 Jan-10 Jan-11

Residential

0-Œ25 kWh Lao Kip/kWh 175 201 231 26626Œ-150kWh Lao Kip/kWh 290 298 307 316>150 kWh- Lao Kip/kWh 765 765 765 765

Business

Low Volt. Lao Kip/kWh 826 826 826 826Med. Volt. Lao Kip/kWh 702 702 702 702

Intertratement Lao Kip/kWh 1,095 1,095 1,095 1,095

Government


Inter. Organization Lao Kip/kWh 1,066 1,066 1,066 1,066

Industry


Irrigation


Exchange Rate 1$=8000 Kip

DEVELOPMENT STATUSDEVELOPMENT STATUS

86 Projects with estimated installed capacity of 19579.4 MW:

Projects at Feasibility Study stages/with Memorandum of

Understanding (MOU): 48 Projects with estimated installed

capacity of 7631.5 MW

Projects at Preparation stage/with Project Development

Agreement (PDA): 27 projects with estimated installed capacity of

7195.5 MW

Projects under Construction / with Concession Agreement (CA):

10 Projects with installed capacity of 4752.4 MW

GMS Power GridGMS Power Grid

1. Nabong (Laos) - Oudon (Thailand)

2. Ban Sok (Laos) – Pleiku (Vietnam)

3. Ban Sok (Laos) - Oubon (Thailand)

4. Hongsa (Laos) - Thailand5. Nam Ou (Laos) - Thailand

6. Luangphabang (Laos) - Nho Quanor Than Hoa Vietnam

7. Xayabouli (Laos) – Khon Ken (Thailand)

8. Pakbeng (Laos)-Thailand

Thank YouThank You

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Electricity Tariff in Lao PDRElectricity Tariff in Lao PDR

Month, Year Lao Kip/kWh Jan-08 Jan-09 Jan-10 Jan-11

Residential

0-Œ25 kWh Lao Kip/kWh 175 201 231 26626Œ-150kWh Lao Kip/kWh 290 298 307 316>150 kWh- Lao Kip/kWh 765 765 765 765

Business


Intertratement Lao Kip/kWh 1,095 1,095 1,095 1,095

Government


Inter. Organization Lao Kip/kWh 1,066 1,066 1,066 1,066

Industry


Irrigation


Exchange Rate 1$=8000 Kip

DEVELOPMENT STATUSDEVELOPMENT STATUS

86 Projects with estimated installed capacity of 19579.4 MW:

Projects at Feasibility Study stages/with Memorandum of

Understanding (MOU): 48 Projects with estimated installed

capacity of 7631.5 MW

Projects at Preparation stage/with Project Development

Agreement (PDA): 27 projects with estimated installed capacity of

7195.5 MW

Projects under Construction / with Concession Agreement (CA):

10 Projects with installed capacity of 4752.4 MW

GMS Power GridGMS Power Grid

1. Nabong (Laos) - Oudon (Thailand)

2. Ban Sok (Laos) – Pleiku (Vietnam)

3. Ban Sok (Laos) - Oubon (Thailand)

4. Hongsa (Laos) - Thailand5. Nam Ou (Laos) - Thailand

6. Luangphabang (Laos) - Nho Quanor Than Hoa Vietnam

7. Xayabouli (Laos) – Khon Ken (Thailand)

8. Pakbeng (Laos)-Thailand

Thank YouThank You

69

Individual Report

Nurhaniza binti HamzahAssistant Secretary, Ministry of Energy, Green Technology and Water, Malaysia

Malaysia

“BEST-MIX” POWER GENERATION

Every weekday when I wake up in the morning, I expect to switch on the light in my room and the bathroom so that I can start off my day. Then I expect to be able to drive my car to the office, switch on the lights in my office and the computer and thus my work day begins. The enabler of my routine is electricity. To me as a regular person, electricity in Malaysia is easily available, reliable and affordable.

However when I started working at the Ministry of Energy, Green Technology and Water early this year followed with a working trip to Japan in May, I realized the bigger picture. My early “high expectation” on being able to do things comfortably everyday is met by the efforts of hundred thousands of people from power producers, transmission workers, distributions workers, the management of the utilities companies, the miners of coal, the oil riggers, gas producers, the non-profit organizations, communities, the guy who change my light bulbs, government’s policy makers and many more.

Every country sings the same song with regards to securing energy. The objective is to ensure sufficient, reliable, affordable, cost effective supply of electricity with minimal impact to the environment and efficient utilization of energy in order to drive the country’s economic development. However, it is easier said than done.

Since 2008, we witnessed severe volatility of crude oil prices in the global market. The instability of oil prices had an adverse effect on the global economy as well as the socio-economic well-being of nations. We have seen, in some countries, where demonstrations and social unrest are the order of the day. These events bring to our minds the fragility of the energy sector and how it can affect the sociopolitical health of a nation. Therefore, we have to treat energy not just from the economic perspective, but as a national security issue. Malaysia is dependent on fossil fuels for her transportation and electricity needs. Although blessed with oil and gas, these natural resources are depleting fast. The government has already made it clear that subsidies for the energy sector will be reduced gradually and eventually we have to pay market prices for energy.

Overall, about 33% of our annual natural gas production is consumed locally. In the power sector, as at 2010, about 52% of Malaysia´s electricity generation comes from natural gas, 40% coal, 5% hydro, and the rest from diesel, fuel oil and renewable. Total installed generation capacity stands at 24,178 MW, comprising of 21,817 MW in the Peninsula and 2,361 MW in East Malaysia. Natural gas usage in power generation has increased from less than 1% in 1984 to 52% today, largely displacing oil. The overall sharp increase in the share of gas in power generation also owes to the popularity of the more efficient combined cycle gas turbine technology which has relatively low capital costs per unit of electricity

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Malaysia

generated. Combined cycle technology has changed the economics of gas for power generation, offering net efficiencies of over 55% with emissions substantially below oil and coal fired plant. Natural gas-based cogeneration technology has also resulted in overall thermal efficiency reaching above 85%. Currently, 25 power stations in the country are fuelled by gas as against just one plant in 1984. This is one of the strategies for best-mix generation of electricity.

Whilst gas is the preferred fuel for power generation, there are also some challenges in the future. Firstly is the declining production of indigenous resources and uneconomic new fields, which is a big challenge to Malaysia in its efforts to sustain the present level of gas production from indigenous sources. Over the years, our major gas discoveries have been developed and are now in production. As a consequence, gas reserves from indigenous sources are depleting and gas production is declining at a rate that is of concern to the government. In addition to that, the remaining gas fields are of lower quality due to high carbon dioxide content, relatively smaller in size, scattered and remotely located from the existing production facilities. At the present rate of production, Malaysia’s oil reserve is estimated to last for another 20 years and natural gas for another 38 years. Hence, whilst Malaysia is a significant Southeast Asian producer of oil and gas, proven reserves are declining against a backdrop of sustained economic growth.

Therefore, greater use of renewable energy is a viable alternative. Apart from our abundant solar potential, there is an estimated hydropower potential of over 22,000MW while biomass and biogas potential combined is more than 2,000 MW. We have four of the biggest international solar PV plants in Malaysia which could support our solar PV initiatives. We also have ample agricultural wastes from our oil palm and other agricultural sectors to promote our biogas initiatives. It is without doubt that renewable energy is environmental-friendly energy source.

The Malaysian cabinet had approved the Renewable Energy Act and the Sustainable Energy Development Authority (SEDA) Act in April 2011. SEDA is the authority to spearhead renewable energy development in Malaysia. It aims to increase the generation of electricity from renewable sources of energy from less than 1% of total peak electricity demand capacity in 2009 to 6% in 2015. We hope to escalate this number to 4,000 MW in 2030, an equivalent to 17% increase. To ensure the success of this effort, Feed-in Tariff (FiT) mechanism will come into force in the third quarter of 2011. FiT is a mechanism that allows electricity produced from indigenous renewable energy resources to be sold to power utilities at a fixed premium price and for a specific duration.

Renewable sources of energy eligible for the tariff system are solar photovoltaic, biogas, biomass, mini hydro and solid waste. Basically the system will allow producers and users alike to sell excess power to the national power grid. At the same time, Ministry of Energy, Green Technology and Water offers the Green Technology Financing Scheme amounting to RM1.5 billion to attract the private sector to participate in green technology entrepreneurship. Both of these initiatives should be able to remove major stumbling block in increasing renewable energy in the electricity mix. At the same time, development of a smart grid that can withstand the fluctuation of green energy sources will need to be expedited.

I was most impressed with the Kansai Electric Power joint effort with the Sakai city to build a large scale solar (photovoltaic) power station called as “Mega-Solar” in an industrial waste landfill. The construction work were divided into three part, the first part of the power station, about 2.9MW started operation on October 5, 2010, the second about 3.4MW started running on March 8, 2011 and the third one 3.7MW will be completed in October 2011. Upon completion, there will be an approximately 70,000 solar panels generating electricity. The direct current electricity generated by solar panels is converted to alternate current, boosted up to 22kV and then send to substation with approximate peak output at 10MW. The entire project uses local technology.

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Malaysia

In June 2011, the Malaysian government announced tariff hike effective June 1, 2011. Industrial and commercial users will have to pay an increase of 8.3% without affecting 75% of the 5.94 million households in Malaysia. Households with consumption more than 300kWh of electricity a month will see the increase in their bills. Electricity consumption in Malaysia is in actual fact on the higher end. Per capita consumption in Malaysia now is about 3,400kWh per year, significantly higher than most developing countries. It is projected to reach 7,500kWh per capita in 2030, higher than that of the APEC region average at 6,800kWh per capita. Hence, Malaysia has embarked in intensifying energy efficiency initiatives. An Energy Efficiency Master Plan has been completed this year and would be the basis for the enactment of Energy Efficiency Act. It would be enforced by 2013. We hope to escalate initiatives to reduce 10% of energy intensity by 2020.

It is important for our industries and consumers need to change their mindset. Industries must strive to remain competitive without seeking lower than market prices for energy. Larger plants or buildings will have to take the first step toward energy efficiency. Their large energy bills need to be reduced through energy saving measures that can be adopted quickly. Gradually, the owners of smaller plants and buildings will also need to take the same path towards energy efficiency. The building sector too can play an important role in reducing energy consumption. In Malaysia, we have made headway into the green building sector with the launching of the Malaysian Green Building Index. It is a standard that could be adopted by the building industry for the design and construction of green buildings. The construction of such sustainable buildings is slowly being promoted in Malaysia as they provide energy savings, water savings, a healthier indoor environment and other green elements.

We are very much aware that financial costs often play a major role in escalating the execution of energy efficiency activities. Since 2001, fiscal incentives have been introduced by the Government to promote efficient use of energy and renewable energy. Investment tax allowance, accelerated capital allowance, duty import exemption and sales tax exemption are given to companies implementing energy efficiency measures in their premises.

During my trip in Japan, I was privileged to stay for dinner at a local family home in Tokyo. Ms. Chiemi Yoshida is a part of LEX / Hippo Family Club that love to acquire many languages in a fun, casual setting. They gather at least once a week and engage in dancing, singing, listening and speaking 19 languages including my native language. She visited Malaysia in 2007 and still has the Visit Malaysia Year 2007 car sticker at the back of her car. I am really glad that she had fond memories during her stay.

Through our conversation, I got a glimpse of her lifestyle that give emphasized on energy efficiency and energy conservation. She had to, for the average selling prices of electricity in Japan is the highest in Asia. For a 3-bedroom apartment, her average monthly electricity bill is about ¥10,000. Comparing that to my sister’s home (which is of similar type), her bill is only about ¥3,800. But that is not just the reason for her way of life. Every Japanese people take the responsibility to save energy and conserve their environment. When we visited the Panasonic Center in Tokyo, we saw product innovation that emphasized on ‘eco ideas’. The main ideas are to promote lifestyle with virtually zero CO2 emissions and business-style optimizing resources and energy. The Japanese people’s sense of awareness about the importance of secure, stable power supply is also heightened due to the Great East Japan Earthquake on March 11, 2011. Every country has different risks in securing energy. In my opinion, the main strategies for Malaysia to secure power generation are greater efficiency and reduced CO2 emissions in fossil-fired thermal power, greater use of renewable energy and intensified energy efficiency initiatives.

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Malaysia

The Japan Foundation under its programme, The Japan-East Asia Network of Exchange for Students and Youths (JENESYS) – Group K “Energy Security: Advancements in Cooperation in the East Asian Region” had offered me an opportunity of a life time. The visit to Japan from May 16 – 27, 2011 brought together 20 participants from 14 countries together, making possible interactions between people involved in the energy sector. Perhaps before we met, we were six degrees separated but after the programme, we are on the 10 degree connection. All thanks to The Japan Foundation.

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Individual Report

Kyaw Min ThuStaff OfficerEnergy Planning DepartmentMinistry of Energy

Myanmar

JENESYS: ENERGY SECURITY PLANNING IN MYANMAR AND WHAT I GET FROM THIS PROGRAMME

Energy Security is one of the main challenges of the 21st Century for each and every country alike. ASEAN Member States are intensifying cooperation for greater energy stability, security and sustainability, as a pathway to building the ASEAN Economic Community by 2015. Oil prices volatility and numerous geopolitical events leading to the vulnerability of the global energy supply pose a challenge for ASEAN in sustaining its economic growth.

To ensure greater security and sustainability of energy, ASEAN Member States are making continuous efforts to reduce oil dependency and increase energy efficiency through diversification, development and conservation of resources, as well as efficient use of energy, among others.

Myanmar has a total land area of 676,578 square kilometers inhabited by around 60 million people and rich in energy resources mainly crude oil, natural gas, coal and hydro power potential. The country’s economy kept its dynamic pace with Gross Domestic Product (GDP) growing by 10.4 percent in 2010.

In response to Cebu Declaration, Myanmar is making efforts to reduce dependence on conventional fuels through intensified energy efficiency and conservation programmes, hydropower, expansion of renewable energy systems and biofuel production. The Government of the Republic of the Union of Myanmar encourages collective efforts in intensifying the search for new and renewable energy resources and technologies, including research and development in bio fuels and also developed policies focused on energy efficiency improvement, development of alternative and new & renewable sources of energy in all sectors, exploration & development of new energy sources and to reduce dependency on fossil fuels import. The Myanmar Energy policy in general strives towards maintaining the status of energy independence by increasing indigenous production of available primary energy resources through intensive exploration and development activities. It also addresses electric power as the main driving power source for economic development and the need to generate and distribute in terms of volume, density and reliability. It also advocates the utilization of water resources, a renewable energy source for generation of electricity to save non-renewable sources of energy such as fossil fuels for alternative and future use.

Total final energy consumption of Myanmar was around 3.5 Mtoe in 2005 and increased to 4.3 Mtoe in 2010 growing

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Myanmar

at an average annual growth rate of 7.6 percent. The commercial, residential and agricultural sectors were the fastest growing consumer at 10.7 percent per annum followed by the transportation sector at 7.7 percent. On the other hand, the consumption of the industrial sector has grown slightly by an average annual rate of 4.6 percent from 2005 to 2010. But it has aggregated of 1.4 Mtoe in 2010, equivalent to a 32.6 percent, the most shares in the overall final energy consumption in 2010.

As the country's economy has been growing and with developments of new investments in the country, the demand for energy is rapidly increasing than can be supplied.

On the Supply Side, the Government stressed the importance of petroleum and non-petroleum in order to fulfill energy needs, including Natural Gas, Coal and Renewable. To meet the increasing demand of crude oil and natural gas, efforts are being made to boost the current production of crude oil and natural gas by working jointly with Foreign Oil Companies on Production Sharing Basis in both Onshore and Offshore areas.

Myanma Oil and Gas Enterprise constructed Onshore Natural Gas Pipeline Network to transport natural gas from surplus regions to deficient regions and It is now conducting replacement of smaller diameter pipes with larger one. Also, with the development of offshore natural gas reserves, plans are underway to construct a pipeline from Myanmar offshore area to onshore area to utilize offshore Natural Gas for domestic consumption.

Gas Sales projects by pipelines from Myanmar Offshore Areas, Shwe Project (Rakhine Offshore Block A-1 & A-3) to People’s Republic of China and Zawtika Project (Mottama offshore Block M-9) to Thailand respectively, Myanmar shall take some portion of natural gas for domestic utilization.

On the other hand, to meet the increasing electricity demand of the country, more Hydroelectric Power Projects are being implemented and also more Electricity Power Plant utilizing natural gas will be needed to maintain the stability of demand. The Government laid down the energy policy to exploit and utilize enormous hydro power potentials of the country to meet the electricity demand throughout the country.

With respect to regional cooperation, the Myanmar Coal sector is a member of the ASEAN Forum On Coal (AFOC) and

Projected Final Energy Consumption by Sector

2

renewable energy source for generation of electricity to save non-renewable sources of energy such as fossil fuels for alternative and future use. Total final energy consumption of Myanmar was around 3.5 Mtoe in 2005 and increased to 4.3 Mtoe in 2010 growing at an average annual growth rate of 7.6 percent. The commercial, residential and agricultural sectors were the fastest growing consumer at 10.7 percent per annum followed by the transportation sector at 7.7 percent. On the other hand, the consumption of the industrial sector has grown slightly by an average annual rate of 4.6 percent from 2005 to 2010. But it has aggregated of 1.4 Mtoe in 2010, equivalent to a 32.6 percent, the most shares in the overall final energy consumption in 2010.

Projected Final Energy Consumption by Sector

As the country's economy has been growing and with developments of new investments in the country, the demand for energy is rapidly increasing than can be supplied. On the Supply Side, the Government stressed the importance of petroleum and non-petroleum in order to fulfill energy needs, including Natural Gas, Coal and Renewable. To meet the increasing demand of crude oil and natural gas, efforts are being made to boost the current production of crude oil and natural gas by working jointly with Foreign Oil Companies on Production Sharing Basis in both Onshore and Offshore areas. Myanma Oil and Gas Enterprise constructed Onshore Natural Gas Pipeline Network to transport natural gas from surplus regions to deficient regions and It is now conducting replacement of smaller diameter pipes with larger one. Also, with the development of offshore natural gas reserves, plans are underway to construct a pipeline from Myanmar offshore area to onshore area to utilize offshore Natural Gas for domestic consumption.

MT

OE

PAST FUTURE

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actively participated in all events connected with the development and utilization of coal resources in the region.

Ministry of Energy will take responsibilities on monitoring the specification of distributed Biofuels. As per Government’s guidance for development of the Biofuel production, Jatropha Curcas plants are grown in homesteads and cultivable land in order to use its oil as alternative fuel. It is planned to plant 7 million acres of Jatropha Curcas in the country within 5 years time starting from 2006-2007.

For the development of rural area, economy biogas digesters will be constructed in rural area with the aims to get biogas for cooking and generating electricity, to have wood-substituted fuel and to improve the rural environment in agricultural and livestock sectors.

On the Demand Side, the Government emphasized the importance of Energy Efficiency and Conservation Programme as it is an important aspect of energy security.

The Promotion of Energy Efficiency and Conservation (PROMEEC) Project under ASEAN Senior Officials’ Meeting on Energy-Ministry of Economy, Trade and Industry, Japan (SOME-METI) consisting of PROMEEC-Buildings, PROMEEC-Industries, PROMEEC-Energy Management. In order to conserve energy, the Government initiated two administrative actions for government offices and vehicles since years ago. The action includes all government buildings are to use daylight for illumination during office hours as much as possible and all government vehicles to observe two dry days per month except in emergency and vehicles on duty.

Energy Efficiency and Conservation is emphasized in order to save energy through effective energy management and to reduce energy consumption so as to minimize the harmful impact to the environment. Encouragement is made to utilize new and renewable energy sources, especially solar and wind which are abundant under Myanma’s climatic conditions.

The Government is making efforts to reduce the CO2 emission by increasing natural gas utilization in industrial sector and improving hydro power generation, by converting Gasoline, Diesel and LPG vehicles to CNG vehicles and also using Biofuels. Compressed Natural Gas (CNG)/Natural Gas Vehicle (NGV) conversion programme was initiated starting from 1986 and as of March 2010 a total of over 27,000 vehicles were converted and a total of 44 refueling stations are constructed and utilized throughout the country and more CNG refueling stations will be installed along the existing domestic pipeline route.

Oil stockpiles are one important mechanism for energy security planning. In order to explore possible modes of strategic fuel stockpiling the Government of the Republic of the Union of Myanmar through the Ministry of Energy implemented to have Strategic Petroleum Reserves by expanding products storage facilities throughout the country. Also the new ASEAN Petroleum Security Agreement (APSA) and its Annex on Coordinated Emergency Response Measures (CERM) was signed on 1 March 2009 during the 14th ASEAN Summit.

Myanmar has abundant various energy resources potential which needs to be tapped. Myanmar is turning the oil price crisis into an opportunity to increase the potential for exploration and production of energy from other sources, diversifying away from oil. This effort is still continued to date, along with other programmes. With full commitment towards the cooperation of the private sector and international energy cooperation, it is very much hoped that the national energy security will be strengthened and hence achieves sustainable development of the country and the well-being of the

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people. Hence, Energy Security is vital to national economy and people’s livelihood, it needs more and more cooperation and exchanges among the region.

Participating in this programme, I have been learnt the way of Energy Efficiency and Conservation, Energy Saving and CO2 Reduction what Japan initiated and what Japan is implementing. Others Countries views and situations on Energy security are also good experience and valuable information for my career.

Also, new and advanced technologies on Renewable Energy such as Fuudo NPO Biogasifier and Mega Solar Power Plant are useful career for my future work and Funding from NGO/NPO are also notable record for projects implementation.

By taking these opportunities, I am going to use my best endeavors to narrow the gap between demand and supply side of the energy which may be faced as the challenges in the role of regional energy security. I also assure that our networks on EAS Countries through Japan Foundation might be the concrete solution for the future energy security challenges in the region.

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Individual Report

Hollie Jane HyndmanPolicy Analyst, Energy and Environment Group, Ministry of Economic Development, New Zealand

New Zealand

New Zealand Country Report

Energy is essential to the way we live. The world’s prosperity and welfare depends on having access to reliable and secure supplies of energy at affordable prices. Improving how we acquire, produce and consume energy is central to becoming economically and environmentally responsible and sustainable.

However, energy security is an issue of differing magnitude and dimension for different countries. It can refer to oil and other fossil fuel depletion, reliance on foreign sources of energy, geopolitics, economic efficiency versus population growth, environmental issues (particularly climate change), as well as developing renewables and other alternative energy sources.

The JENESYS East Asia Leaders Programme on Energy Security in the East Asia Region provided a forum to discuss energy security in its broadest sense and to appreciate the nuances in which concerns about energy security are manifest. On a personal level, participation in this programme offered an opportunity to reflect on my own country’s challenge with respect to energy security, as well as to consider and contrast the complex Japanese situation.

Three issues had particular resonance with me during my time in Japan. The first is the importance of appreciating and understanding the different set of national circumstances vis-à-vis energy security. The second is the way in which natural disasters test a society and highlight the resilience of humanity. The third is the importance of regional and global cooperation, and of understanding what drives countries to interact with other countries and to engage on particular issues. In this paper, I reflect on these three issues in the context of my experiences in Japan.

Confronting different energy security challengesOn first impressions, Japan and New Zealand are similar in at least two respects – both are island nations and have a similar land area. Beyond this, however, the differences between the two countries give rise to different energy challenges and opportunities.

Indeed, while New Zealand has a population of just over 4 million people, Japan has one of the highest population densities in the OECD and is home to 127 million people. Extenuating differences in population density, the resource base that underpins the two countries is vastly different. New Zealand has abundant natural resources, both renewable and non-renewable, and to date generates 78% of electricity from renewable resources (one of the largest shares among OECD countries). New Zealand has a single grid, and electricity and gas networks are not connected to any

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other country. In contrast, Japan is resource poor and is consequently low in self-sufficiency. Japan imports over 80% of primary energy needs, obtains only 0.3% of its crude oil supply from domestic sources, and has very few domestic sources of coal, natural gas and uranium.

In the process of exploring Japan, and interacting with the participants in the JENESYS programme, I reflected on my own perspective on energy security, which is influenced by the unique New Zealand context. To date New Zealand’s strong commitment to undistorted and transparent liberalised energy markets has delivered a relatively high level of energy security and economic prosperity for consumers. Unlike many other countries, renewable energy resources already play a significant role in New Zealand’s energy mix. Certainly, New Zealand is recognised as having one of the best wind energy resources of any OECD member country, is a world leader in geothermal, and hydro power (the principal source of electricity) continues to expand. There are also substantial bioenergy and marine energy resources, both of which have a potential that is yet to be realised.

New Zealand’s geological history has also provided rich mineral and petroleum resources, of which only a small proportion has been tapped to date. Developing the potential non-renewable resources is an opportunity for New Zealand, provided that there are the very highest standards of environmental protection applied. Indeed, in the transport sector specifically New Zealand is dependent on petroleum and we recognise that fossil fuels will continue to be an important part of the global energy mix for the foreseeable future.

The International Energy Agency (IEA) have commended New Zealand’s effort to develop our diverse energy resources but concede that the challenge for New Zealand is to develop a “long-term strategic policy direction for the energy sector that is based on a coordinated approach to economic, environmental and consumer priorities”. This involves striking the balance between developing our extensive renewable resources, as well as developing the largely untapped but extensive non-renewable resources.

The energy security challenge for Japan is of a different nature to New Zealand. Following the oil shocks of 1973 and 1979, Japan have sought to reduce oil dependence and to develop large-scale nuclear as an alternative to fossil fuels. Nearly 30% of electricity has been generated from nuclear power, with a plan for this to increase to 50%. Alongside this, Japan has imposed strict energy efficiency and conservation policies to reduce energy demand, which helps to achieve the twin goals of energy security and environmental protection. Indeed, the IEA commends Japan’s commitment to energy efficiency, which underpins global gains in energy efficiency.

However, in the wake of the Fukushima nuclear disaster, the future of nuclear energy in Japan is uncertain and the 50% target for electricity from nuclear has been halted. The growing domestic and international concerns about the safety of nuclear energy has seen the Japanese government shift its focus to diversifying its energy portfolio, including developing alternative renewable energy sources such as wind and solar.

It is not immediately clear how alternative renewable sources can provide a realistic alternative of sufficient scale to nuclear energy. The JENESYS programme included site visits to a biogas farm in Ogawa, the Hachobaru Geothermal Power Plant, the photovoltaics at Kasai Electric Power Ltd, and to Haneda Airport to learn more about its ambitious energy conservation and efficiency projects. My impression was that existing renewable energy projects may have potential but appear to either be of a small-scale or at a developing stage. I had the sense of Japan being at a cross-road in the direction of its energy policy, and the presentations from senior Japanese government officials indicated to me that

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there is no immediate or easy answer to Japan’s pressing energy security challenges.

That said, one aspect that surprised me during my time in Japan was awareness of environmental issues at the local level. There does appear to be a greater awareness of energy efficiency and recycling in Japan than in New Zealand. A visit to a local development group in Yufuin was particularly interesting; established in 2006, the group is committed to improving the rate of self-sufficiency in the area, particularly with regard to food, welfare and energy. While this group is not necessarily representative of grassroots development across Japan, it suggests that there is a capacity for action. I am interested to see how environmental issues are debated in Japan, and the extent to which local groups put pressure for a national dialogue on energy security challenges.

Resilience in the face of adversityThe JENESYS programme on energy security took place at an interesting, and slightly propitious, time. I departed for Japan when my own country had just experienced two tragic earthquakes, and when Japan had also suffered its own devastating earthquake and tsunami. This offered an unprecedented experience to witness the way in which two very different countries respond to crises – and despite the geographic and cultural differences between Japan and New Zealand, I saw a commonality across the two countries as expressed in the resilience of people and the bonds of humanity in the face of adversity.

Certainly, the earthquake that struck Christchurch, the largest city in the South Island, on 5 October 2010, followed by a second earthquake on 22 February 2011, continues to have a lasting effect on New Zealand. The earthquakes have highlighted both how vulnerable we are, but also how resilient and flexible we are as communities and as a nation.

The sense of vulnerability and courage was also evident in Japan. I had the memorable experience of visiting a local Tokyo family in their home, where they showed me how they used energy and shared their views on energy efficiency. At this time, the Japanese government had imposed a national target to reduce energy consumption by 15% as a counter-measure to the nuclear crisis. I was struck by how responsive the family was to this goal and their own contribution, despite a very real concern about what it would mean to reduce energy consumption during the height of summer. I struck up similar conversations with local people during my hike in outskirts of Tokyo, and was amazed at the willingness of people to speak openly to me about the challenges facing Japan (including expressing empathy for New Zealand’s experience) but also of the individual desire to do what they could to assist in their country’s recovery.

The importance of regional and global co-operationJapan is consonant of the fact that its future prosperity will be shaped by cooperation and coordination, particularly in the East Asia region. Improving bilateral relations with resource and energy-producing nations and securing shipping lanes are key elements to maintaining a stable supply of resources and energy in Japan.

For this reason, the JENESYS programmes have been designed to strengthen solidarity in East Asia throughout the mutual understanding amongst the younger generation in the region. As a participant in the final JENESYS programme, I certainly gained an insight into how Japan seeks to relate to other countries on energy issues and influence negotiations in regional and international fora.

The priority that Japan places on regional and global cooperation resonates with New Zealand’s approach. Geographically isolated and a long distance from international markets, New Zealand’s ability to negotiate successful

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relationships for trade and diplomacy is critical. Indeed, Japan is a major bilateral and regional partner for New Zealand. Strong political ties are underpinned by a commonality of views, a shared interest in the stability, growth and development of the Asia Pacific region, and substantial economic, tourism, and people-to-people linkages. The relationship with Japan is one of New Zealand’s longest and most important.

My own interactions with Japan are in the context of the East Asia Summit Energy Working Group (EAS EWG), the International Energy Agency (IEA) and APEC. In these fora, Japan is a strong leader in international collaboration and the global dialogue on energy efficiency and environmental protection. Japan is an advocate both for sectoral approaches to energy efficiency as well as the development of low carbon energy technologies. Japan is also globally prominent in energy technology development and transfer, and more recently, on renewable energy and the low carbon economy. I now have a more considered and informed view on why Japan is driving progress and coordination in these areas.

As I prepared to depart Osaka for New Zealand, and reflected on my two weeks with participants in the JENESYS programme, I more fully appreciated that as Japan confronts its energy challenges, New Zealand has the opportunity both to learn from Japan but also to share our own experiences. And as energy security issues gain more urgency, New Zealand and Japan have a shared interest in coordination and cooperation to ensure a stable and prosperous East Asia region.

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Individual Report

John Prado VirginoSenior Manager TeaM Energy CorporationRepublic of the Philippines

Philippines

I. Introduction:

Imagine, a day in your life, without power.

There will be no hot bath to comfort you during the coldest of mornings, or brewed coffee to warmly assure you that you will get through your day. Without electricity to power internet connections, there will a serious breakdown in our communication systems, digital lifestyles and social networks. There will be no transportation running on electricity or gas to shuttle us to and from work. Business transactions will be paralyzed and our country’s economy will be induced in a lifeless coma. Society as we know it will be on a complete standstill, or at the very least, severely inconvenienced.

This scenario underscores the importance that power plays in our daily lives. Its ubiquitous presence however in almost aspects of our lives is the reason why we often take its value for granted.

Ever since the discovery of electricity, and its commercial application, it has drastically redefined how we humans conduct our lives. Civilization as we know it was completely transformed and energized a thousand fold.

There is a strong positive correlation between energy and economic growth. Energy drives and fuels economic development while progress hungers for more power. It can be said that energy and development are like two dancers locked in a helical dance, each one reinforcing each other’s steps.

Beyond the personal convenience it brings, a strong energy base stimulates industry, attracts investments, creates much-needed jobs, and ultimately becomes the foundation for an improved quality of life. It has become a basic and essential need and it is therefore understandable why it is important for every country to secure this precious resource.

Energy security is not a novel issue. It has breached global consciousness in the 1970s as a response to the need to minimize vulnerabilities brought about by the oil shocks in the Middle East. It has grown greater importance in the global agenda in light of recent events in Fukushima, Japan. Energy security has become more challenging as it could no longer be viewed in isolation without considering holistically, the broader context and complementary issues of sustainable development and climate change.

Energy security is currently defined by the United Nations Development Programme as the “availability of energy at all times in various forms, in sufficient quantities and at affordable prices, without unacceptable or irreversible impact to the environment.” The components of security could be summed as follows: uninterruptibility and sufficiency of supply,

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affordability and sustainability.

One important feature of energy security therefore is the ability of a country to control the sources and generation of its own power. Ideally, a country that is energy self-sufficient has all the resources within its territory. The paucity of resources however forces one to rely heavily on external imports which would mean that it is subjected to volatilities and uncertainties outside its borders.

Energy security is important in East Asia as it the fastest demand growth region in the world and houses two of the fastest growing economies, China and India. The region is also the largest net oil importing region highly dependent on oil from the Middle East which exposes it to disruptions brought about by geopolitical risks.

II. Observations and Realizations:

In the Country Report for the Philippines, I used the historical and policy approach from the time electricity was first introduced in the country in 1896, and fast forward to the present where its electricity rates, both industrial and residential is touted to be one of the highest in the region. This brings to the fore the issue that energy security is not just about availability, but more importantly about accessibility and affordability to the people.

What I have realized during the different country report presentations is that the countries in the East Asian region have unique and varied circumstances insofar as the issue of energy security is concerned and that there is no one-size-fits-all formula to address this problem. In terms of resource endowments, there are some obvious mismatches and that some countries are more energy secure compared to the others. The nature of electricity as a product is such however, that it cannot be easily stored in a bottle and shipped beyond one’s port. It is not something that could readily be redistributed to plug in said imbalance.

For the duration of the Programme, and in the tour we have made, one thing that is clear is that Japan is slowly planting the seeds to augment its future energy security requirements.

Notable are the following:

1. Optimal/Efficiency measures in exploiting geothermal resources at the Hatchobaru Geothermal Power Plant (double flash and binary cycle systems)

2. Kansai Electric power Plant Combined Cycle, and Sakai solar panels3. Haneda Airport CO2 reduction efforts4. Biomas Recycling at the Ogawamachi Fuudo Katsuyo Center 5. Smart communities and eco-friendly appliances from the Panasonic Center6. Conservation measures at the household level

It is my opinion that the Japanese society is culturally wired to make any efforts in clean energy successful. They have the discipline, access to both financing and the latest innovative technology. The visit in Yufuin and NPO would show that more than the available of technology, the local support of the community is just as important in making any conservation project successful.

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Japan is now at the crossroads of its energy policy and it must answer difficult questions. What Japan is currently experiencing is nothing short of being formidable. Japan must surely make a delicate balancing act navigating under the watchful eye of public opinion, both from its local constituents and the international community. As a co-participant from New Zealand Hollie Jane Hyndman has put it, Japan has to deal with both pressures exerted from the top (international community) and bottom (Japanese people), with a small policy window with regard to the future of its energy policy.

One observation while I was in Japan is that it shares the same pattern of consumption and waste characteristic of a developed country. The streets in Tokyo and Osaka are among the brightest I have seen, inspite of the energy crisis. Moreover, goods consumed in Japan require energy consumption elsewhere and has a corresponding cost in carbon emissions when it is produced.

With the energy crisis, Japan and its people would have to take a hard look at their consumption pattern on whether they need to scale down on the lifestyle they have been accustomed to, if they decide to wean off and shift away from nuclear energy. If not, the Japanese government must slowly win back public acceptability on the safety of nuclear power. This is an issue that it could no longer sidestep any further. People must be engaged in the debate as to where their energy path of Japan is heading.

Indeed, it is a good energy policy to diversify one’s energy mix and to move away from depleting fossil fuels. There is no doubt that Japan’s energy requirement will be partly met by alternative and renewable resources, but the important question is will it be enough to satisfy in the short term, the voracious appetite of a highly developed country such as Japan sans nuclear energy? This is considering that nuclear power accounts for about one fourth of the country’s electricity needs in 2010.

Therefore the greater challenge for Japan is on the interventions that it will have to introduce to fast track the maturity of its renewable energy as a viable replacement to nuclear power to meet its future energy trajectories. Japan has a long way to go in addressing problems of intermittency and high costs with respect to alternative and renewable energy.

III. Conclusions:

If energy security is primarily rooted in a country’s national interest, why is there then a need to bother considering the energy security policy of other countries? The answer lies in our interconnectedness.

We should consider that the choice of technology in generating power of a particular country because it will have an impact on the prices of electricity in our respective countries. Since most of the East Asian countries are still highly dependent on fossil fuels, the competition among importing countries for this scarce resource could distort and drive the prices higher. Lastly, the example of Germany, following the developments in Japan of putting its nuclear power on hold, shows that in an interconnected society, energy security policy in one country could easily spill and influence the opinion of citizens in other countries and thereby affect their government’s energy policies.

Even if a country is relatively secure in its energy requirements, this issue could still be a particular concern and importance if its economy is inextricably linked by trade relations, to the energy security of other countries. Also, it is in the greater interest of a country which exports consumer products if the countries importing their products have access to reliable and inexpensive power to further drive consumption of its exported goods.

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Inspite of obvios differences, there are common energy security challenges that could be jointly addressed. It is in these aligned interests where a collaborative and collective response could be made. There are opportunities like sharing of knowledge and technology and coordination that could be explored. Initiatives to solve energy security concerns at the regional level could provide the framework which would supplement and strengthen the energy policies of individual countries, leading towards the overall stability and prosperity in the East Asian region.

IV. Acknowledgments:

On a final note, I would like personally express my deepest appreciation to the Japan Foundation and its wonderful people for this very enriching experience. I had the amazing privilege of meeting brilliant minds from diverse fields and the JENESYS Programme has allowed me to engage Japan and its wonderful people on so many levels. It has afforded me the amazing opportunity to personally experience Japan in a different light. Arigatou Gozaimasu!

Additional Sources and reference materials:

BP Statistical Review of World Energy 2010UNESCO “Energy Security and Sustainable Development in Asia and the Pacific”, 64th session, Bangkok, ThailandAl Gore, “Our Choice” “Japan crisis put nuclear energy under the spotlight”, Euromonitor International, last accessed on June 21, 2011

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Individual Report

Tng Mei LingEngineer, National Environment Agency

Singapore

Japan’s Energy Conservation and Efficiency Efforts 1 From the keynote lecture by Mr Yasuhiko Nagata, Senior Researcher at JIME Center, Institute of Energy Economics Japan and the Programme Adviser, energy security is the availability of energy at all times in various forms, in sufficient quantities and at affordable prices, without unacceptable or irreversible impact on the environment. The idea of moving from energy dependency to self-sufficiency lingered in my mind during the JENESYS programme, which focused on the theme “Energy Security”. This 12-day programme highlighted Japan’s energy policies, allowing the delegates to witness the efforts behind securing energy supply for the nation.

2 Reflecting upon all the visits made during the programme to the various organizations, government agencies and local communities, I learnt that attaining self-sufficiency in energy is actually a joint effort among the 3Ps – Private, Public and People.

Private’s Effort – Organization3 During the visit to Kansai Electric Power Co., Inc., Mr Satoshi Tateishi, Deputy Manager, Office of Corporate planning, outlined to the delegates that Japan is dependent on imports for 96% of its primary energy supply. This is unlike major countries such as Germany, United States and China who can use their own resources for power generation. With an increasingly imminent threat posed to Japan’s energy security, the idea of “best-mix” of power sources is extremely important. This triggered Kansai Electric to use combined cycle for fossil-fired thermal power generation and to commence the Sakai Mega Solar Project. With the increase in efficiency for thermal power generation and the injection of renewable energy, Kansai Electric strives to bring about the “best-mix” power generation to achieve energy security, economy and environmental conservation for Japan.

4 Haneda Airport, owned by Japan Airport Terminal Co., Ltd, showcased three of its major approaches in its emission mitigation effort. These approaches were part of the measures taken under the Tokyo Metropolitan Government ordinance. Under the ordinance, businesses are required to report the emission levels of buildings that consume more than 1500 kilolitres of oil equivalent. It is an effective way to allow government to track the emissions from the larger buildings as well as to serve as a baseline for formulating mitigation measures targeted at these large energy guzzlers.

5 The first major approach is the installation of 10,120m2 solar

Solar panels installed on rooftop of car park at Haneda Airport

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panels on the rooftops of 2 passenger terminal buildings and a multi-storey car park, contributing to an annual reduction of 439 tons of CO2. Mr Kato, Section Manager of Engineering, shared with the delegates during the visit that the installation of solar panels at the multi-storey car park was able to supply solar power for all lightings in the car park, without relying on external electricity supply.

6 A second approach that Haneda Airport put in place is the use of inverter technology in the air-conditioning system. Generally, air-conditioning system contributes to the largest share of electricity consumption in buildings and households. The use of inverter technology allows the air-conditioning system to adjust its compressor speed depending on the load, operating at higher speed when there are more people at the airport. With the use of inverter technology, Haneda Airport has achieved 3,090 tons of CO2 reduction in three years; this reduction exceeded the initial planned 5-year target by 1,751 tons of CO2. The third approach is the use of hybrid shuttle buses between the domestic and international terminal building, which reduces the reliance on petrol-driven vehicles and reduces carbon footprints.

Public’s Effort – Government7 Energy security is never a country’s own problem; one country’s dependence on imported energy will mean an increase in energy export from another country. As shared by Mr Ryuta Minami, Deputy Director, International Affairs Division, Agency for Natural Resources and Energy (ANRE), Asia’s energy demand will raise to approximately 7,400 million ton of oil equivalent by 2035. This lead to a 35% increase in coal demand and 25% increase in oil demand in the business-as-usual scenario. With the growing energy demand, it triggered a need for regional cooperation among countries for projects such as laying gas pipeline beyond individual country’s border and trans-regional trading of liquefied natural gas.

8 Regional cooperation is essential to set countries in the same footing and at the same time, provides a platform for the sharing of countries’ progress in their energy policies and related activities, in the form of knowledge and information exchange or development and improvement evaluation. The platform could be through the regional forums and working groups as mentioned by Mr Minami in his presentation.

People’s Effort – Community and Individual9 Energy conservation efforts are generally a top-down approach, from policies developed by the government and implemented, down to each individual. During the JENESYS programme, I realized that energy conservation efforts can be a bottom-up approach as well. Through visiting Ogawamachi Fuudo Katsuyo Center (Regional Resource Utilization Center) NPO, I learnt that this NPO cooperated with the local town – both residents from the town and the administration, to convert wastes to resources. It involved the recycling of garbage that was used to generate electricity (1 kW) and produce liquid fertilizers for local farmers to use in their rice paddies and vegetable gardens. In the conversion process, biogas was produced as a byproduct which can also be used for cooking and heating purposes. The simple biogas facilities had provided significant effect in the lifestyles of the farmers staying in the Ogawa Town, making them self-sufficient in energy and resource supply.

10 Another community-sprang environmental initiative came from Kaze no Harappa-Yufuin Murazukuri NPO. According to Mr. Ryuji Urata, the Head of NPO, the goals of NPO is to develop the area into a place where residents can be self-sufficient in food, agriculture and energy. This spurred the series of initiatives to improve the rate of self-sufficiency in food, welfare and energy. The local community believed that the best place to live is the best place to visit. Waste vegetable oils from 20 hotels and restaurants were collected for conversion into biodiesel fuels in a local refinery.

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These biodiesel fuels were then used by the farmers to power their agricultural vehicles and machinery, reducing their dependency on external fuel sources.

11 Energy conservation efforts also come from individual in the households. I was privileged to be able to visit Ms Sato in Ryogoku, a local family of 3, to experience typical Japanese lifestyle.

12 On my way to Ms Sato’s apartment, I noticed an underground bicycle parking station located in front of the residential building. It was common sight to see a bicycle parking along the pedestrian roads; an underground bicycle parking station was something unique to me. The gantry to the parking station utilized barcode card as source of identification, allowing owners to park and retrieve their bicycles by scanning the cards. By providing a safe and accessible place to store bicycles, this parking infrastructure encourages residents to use bicycles as a mode of transport in place of cars and railway for short distance travel.

13 Another interesting household appliance I found in Ms Sato’s apartment was the electric toilet. This unique electric toilet had a water-saving feature installed in it that allowed users to wash their hands while flushing the toilet. I understand from Ms Sato that this type of electric toilets was common in most Japanese households as it saved the need for an additional hand washing basin. The clean water from the pipe is used for hand washing before draining down to flush the toilet – environmentally friendly.

14 Through my conversation with Ms Sato and her family, I realized that Japanese are instilled with a great sense of environmental awareness. Japanese practice great discretion and caution in selecting home appliances and using them. According to Ms Sato, energy conservation is everyone’s responsibility; in fact, households are the ones paying for the high electricity bills if there is excessively wastage. She shared that her electricity bills were generally higher during winter times due to the need for heating to keep warm. In summer, she tried to reduce electricity consumption by using natural cooling in place of air-conditioner. Japan has indeed done a great job in inculcating these environmental values to her people and it is highly commendable.

Acknowledgement and Appreciation15 I would like to thank Japan Foundation and the JENESYS East Asia Future Leaders Programme for all the hard work and effort in organizing this fruitful and rewarding programme for all the delegates. It is a wonderful experience visiting Japan and learning about Japan’s effort in her journey towards self-sufficiency in energy security as well as her unique culture.

16 I would also like to extend my appreciation to all the lecturers who have shared with us the various topics in the area of energy security. They have been very helpful in answering the questions posed by the delegates and provided us

Underground bicycle parking station

Electric toilet with water saving feature for hand washing

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with great insights in the subject matter.

17 Last but not least, thanks to all delegates who have participated in this trip and made this trip a memorable one.

Participants of JENESYS Japan Trip in May 2011

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Individual Report

Faikham HarnnarongEcological Alert and Recovery - Thailand (EARTH)

Thailand

Final Report Experiencing Japan energy scenario and the shift in time of crisis

The visit.Mid May 2011, around two months after the triple crisis - the Tohoku Earthquake which followed by tsunami and the incident at the Fukushima Daiichi Nuclear Power Plant, I had the honor to participate in the JENESYS East Asia Future Leaders Programme 2011. The two-weeks visit to Japan was organized by the Japan Foundation under the topic: Energy Security - Advancements in Cooperation in the East Asian Region. Since this programme was originally planned before the unexpected disasters, the original plan to visit nuclear power plant and wind farm in Aomori Prefecture, north of Miyagi - the hardest hit area, was cancelled. We were told that many of the power plants in the area are still struggling to recover from the disasters and some are still out of operation. Instead, the organizers tried their best to show us different perspectives of Japan energy system. We have visited Haneda airport to see their attempt to reduce carbon emission; we also visited a geothermal power plant of Kyushu Electric Power Co. in Oita and a combined cycle power plant and a solar power plant of Kansai Electric Power Co. in Osaka - attempts of electric utilities to supply cleaner energy. In addition, we were lucky enough to have visited two community initiatives on renewable energy and self-dependent in terms of resources utilization and energy production - a foundation for more sustainable society. In the time of crisis like this one, it is very valuable to have direct experiences on the inevitable changes related to energy, security, and sustainability that are happening in the Japanese society.

Below are my reflections:

Thailand - why we should be interested in Japan’s changing energy scenario.Energy is one very significant crisis Japan is facing as a result of the disasters - particularly the Fukushima Nuclear disaster. Not only how to deal with the current supply shortage but also if and how the country’s energy scenario will change is what the world is watching with great interest since Japan has been one of the role models for industrial and economic development for many countries in the region. Thailand, for example, has followed the Japanese model for the past 30 years of its industrial development. The current and projected increase in demand of energy, especially for use in industrial sector, has resulted in the government’s recent 20-years plan to add 9,000 MW of coal power plants and to build 5,000 MW of nuclear power plants. It should be noted that Thailand do not currently has a nuclear power plant and has received technical assistant from Japan for the current plan. However, these projects have been highly controversial - facing lots of oppositions from all local communities and being questioned by general public on issues of safety, health and social impacts, as well as environmental impacts.

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In Thailand, energy sector contributes to around 70% of green house gases emission - the most comparing to other sectors. Thailand’s energy productions has long been relying on fossil fuels; accordingly, to tackle climate change, reducing emission in energy sector should be focused. However, the current plan to add coal and nuclear power plants would increase the country’s CO2 emission by 68%. Additionally, the argument that nuclear power would help to reduce emission from energy production is not yet widely accepted as health and safety perspectives are still questioned. Consequently, Thailand’s current energy policy has been challenged that, instead of increasing fossil and nuclear energy, the country should pursue more sustainable approaches which have long been neglected, for example, promoting Demand Side Management, energy efficiency, and renewable energy. In the end, “energy security” is not only about supply security but also about security for the environment and society as a whole. Therefore, changes that are currently occurring in Japan’s energy scenario would provide very interesting insights for Thailand and other countries - whether and how transition from fossil and nuclear based economy toward more sustainable one is possible.

Immediate threats to Japan energy system after disasters.Directly after the incident, many power plants in the East and Northeast of Japan were shut down for security measures. Additionally, many infrastructures including electricity transmission lines were damaged. Around 4.4 million households were immediately left without electricity. These infrastructures and communities have to be rebuilt. But problems are not only limited to these disasters-stricken areas. The big challenge is the whole Kanto region where Tokyo (the highest demand) is located - since the region’s electricity is supplied by TEPCO who operates the crippled Fukushima Daiichi Plant.

After the incident, approximately 20,000 MW or 40% of TEPCO’s electricity generation capacity have been out of operation. This means that Tokyo need help of electricity supply from neighbouring regions. However, limitations remain since Tohoku region is still struggling to meet its demand because some of its facilities were also out of operation while Kansai to the west is using different transmission lines and can only supply 1,000 MW to the East due to limited capacity of available converter stations. Supply shortage will be more severe in the arriving summer with the increase use of air-condition. When demand is more than available supply - it could mean electricity black-out for the whole region. Tokyo people responded fast. Many offices turn off air-condition and unnecessary light; they allow staffs not to wear tie and suit - something not quite imaginable in the traditional Japanese working environment. Some big companies with headquarter in Tokyo even announced measures for staffs to take turns to work from home. The government has also asked industries in certain areas to reduce energy use at peak demand.

Dependency on nuclear power - becoming obsolete with rising public awareness.In context, it is important to understand that Japan has relied heavily on nuclear power since World War II. With only 17% of the total energy demand is sourced from within the country, 13% of which is from nuclear. Moreover, one-third of Japan energy supply depend on imported oil from the Middle East while most coal used in the country are also imported because of the high cost of domestic coal mining. This scenario makes the country quite vulnerable from external factors, in terms of supply sourcing. Accordingly the government had planed to increase nuclear power to 50% by year 2050.

On the other hand, interesting changes in the Japanese society have arisen from the Fukushima crisis. Citizens have become more aware of the negative sides of nuclear power. Most importantly, more Japanese people - especially parents, youngsters, and university students - even took to the streets to express their concerns on nuclear power and demand cleaner and safer energy. During the past months after the incident, anti-nuclear activities/demonstrations have been

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organized by various local groups more frequently across the country, almost weekly in big cities like Tokyo. Nowadays these events could expect hundreds, if not thousands, participants while it used to be much less. One recent public opinion poll by Asahi stated that by May 2011, 52% of the interviewees do not want nuclear power anymore or do not want expansion from the existing power plants. A report from Al Jazeera in June also quoted another public opinion poll that 67% of Japanese do not want nuclear power anymore. The result of this evident change in citizen view: many nuclear power plants which were not in operation during the incident (planned maintenance) decided not to restart because people oppositions. At the end of May 2011 - it was the first time since nuclear power development history in Japan that the government had announced to discontinue expansion of nuclear power in the country.

Shifting to renewable is possible.For Japan to stop using nuclear power and shift toward renewable energy is not only a utopia. The Institute for Sustainable Energy Policy (ISEP) and Japan Renewable Energy Policy Platform who have long been advocating for renewable energy in the country had since 2008 released “Renewable Energy Vision in 2050”. the Vision stated that Japan already has the potential and technical availability to increase its renewable shares to 67% by 2050. In this regard, it is important to note that the past energy policies, which have relied heavily on nuclear power and imported fossil fuels, have frozen development of renewable energy industry in the country. Japan used to be among the world leaders of Solar PV technologies in 1990, but the industry had domestically come to a halt when the government discontinued subsidies for household solar power at the end of 2005. Accordingly, the report analyzes that Japan could phase out nuclear power in the next 20 years with proper government policy and measures.

Private sector initiatives - existing and need to be promoted.In the visits to power plants operating on renewable energies in Kyushu and Kansai, we’ve seen positive trend in development of renewable energy in Japan among private sectors. Japan, located on the Pacific Ring of Fire and well known for onsens or hot-springs, has abundant geothermal energy sources. It is estimated that the total potential of geothermal power generation capacity of the whole country is 14 GW. Hatchobaru Geothermal Power Plant in Oita, one of the biggest of its kind when first operated in 1977, is one of the five geothermal power stations operated by Kyushu EPC. The plant now has total capacity of 110 MW from two older generators and one 2 MW binary generator (total half of geothermal energy production in the region). Over all, Japan now produces around 540 MW of geothermal power from 18 plants around the north and southern regions. Though the share of geothermal power is still very small comparing to other conventional sources, geothermal is viewed as highly stable power supply source by attaining a high capacity factor without anxiety of energy storage or supply. Taking into account global warming prevention and CO2 emission reduction - high expectations are put on geothermal power since there are large rooms for development.

The Sakai Solar Power Plant in Osaka is one attempt of Kansai Electric Power Co. (KEPCO) to increase cleaner energy source in the region and reduce CO2 emission in its energy production (claimed to reduce 4,000 tons of CO2 per year). The plant is located on an already-closed-down industrial waste landfill of Osaka Municipality which is a reclaimed land (extension into the sea). It is said to be Japan’s first major solar power station commercially operated by an electric utility. The first phase of operation started in October 2010; when the last/third phase will complete in October 2011, the plant will have total capacity of 10 MW. Interest in solar power has increased since the triple-disasters. It is said that the country has total potential for solar power between 69 - 100 MW. Trend in building large-scale solar power plants is rising. To say the least, at the end of May 2011 Softbank had announced to support building of 10 solar power plants in Eastern Japan while at the end of June Mitsubishi also announced its interest to invest in 10 MW of solar power plant. Furthermore, the government of Japan has announced, in early June 2011 at the G8 summit, the plan to mandate all new

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buildings to install solar panels by year 2030. One expected result of the policy is that increase demand and investment in solar panels will bring down the cost of the technology thus making it more affordable for more people.

The Haneda Airport in Tokyo is one of the two primary airports serving the Greater Tokyo Area. It is the second largest greenhouse gas emitter in the sector of commercial building and business operation in Tokyo releasing around 80,000 tons of CO2 per year in 2007. Realizing that the government was likely to set emission reduction target for commercial sector in the future, the airport company has moved fast in greening their operation. It has installed solar panels on the roof and started various energy saving measures since 2005. These various measures include, for example, improve energy use in air-conditioning system e.g. reduce the differences between inside and outside temperatures (28C for summer and 20C for winter) to reduce load for air-conditioning thus electricity use, improve efficiency of lighting system, etc. While these measures might sound simple, within 5 years between 2005-2009, the airport had reduced its emission by 7,805 tone CO2, 40% more than what it originally planned. Additionally, since April 2010, a new city ordinance stipulates that large business operations or commercial building using energy more than 1,500 Ktoe/year need to report their emission and also requires that they reduce their emission by 6-8% in 10 years. This legal obligation will drive the airport to continue to improve its measures in order to meet its 6% emission reduction in the future.

Community initiatives - inner strength of the society.“Ogawamachi Fuudo Katsuyo Center”, a non-profit community-run organization in Ogawa-cho in Saitama, operates two biogas power plants (the first pilot project started in 1999) from kitchen waste from 400 households and community’ school, reducing 200kg/day of waste going to incinerator, produces electricity, and supplies liquid fertilizer to farmers in the community. Although the government had supported similar pilot projects in other parts of the country, this project was successful (still running and expanding while most others had stopped) particularly because very active participation of community members. Additionally, the same town also houses Solar Net, another non-profit organization who has been promoting hand-made solar panels from inexpensive materials for over 10 years. From the end of March 2011, Solar Net has been delivering and installing solar panels in devastated areas affected by the earthquake and tsunami. It has also received several requests from communities in those affected areas to help install solar panels once their towns will be rebuilt. This has demonstrated that when properly designed and operated with active public participations, decentralized, small-scale, renewable energy based on appropriate local resources of the community will be successful.

Yufuin in Oita, Kyushu, is a very distinctive community who has developed its own way of sustainable onsen/hot-spring tourism while preserving its tradition and nature. Community members first came together around 1970s to reject various development projects which would exploit their natural resources - for example, dams, giant golf course, safari park, and even a big gathering of a Yakuza group planned in their town. After a big earthquake which had tremendously damaged Yufuin in 1975, the community started various initiatives to boost its agricultural and onsen tourism traditions which has made it famous till this day. While the increase of tourists and large-scale tourism industry has changed many of the hot-spring towns in Japan, Yufuin community realized the need to boost community ties and become self-sufficient in order for it to survive. Consequently, a non-profit organization “Kaze no Harappa” was established in 2006 with the goals to strengthen the community, make it more sustainable and feel comfortable to live. In order to create a place where local residents can exchange and interact, the organization house a cafe run by community members, using local produces, and serving extra-cheap healthy food for elderly, handicapped, and sick people. It also runs organic rice farming and raising ducks where it allows school and college children and volunteers from foreign countries to learn organic farming. It also takes used vegetable oil from 20 traditional hotels in Yufuin to produce biodiesel which is used in their trucks and agricultural machineries. Yufuin demonstrates a successful example of a community who tries to maintain its self-

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sufficiency in terms of food, welfare, and energy.

Concluding - new energy security toward a more sustainable Japan. If we take one simple definition of “Energy Security” that is “Optimized utilization of available resources in self-sustainable way” - energy security is not only about supply dependency and pricing, it is also about demand side management, efficiency, environmental and social sustainability, and of course, secure and reliable energy system in times of crises.

With the ongoing catastrophe at Fukushima Daiichi nuclear power plant and the raising public awareness, it is likely that the Japanese energy scenario will shift toward less dependency on nuclear power. However, calamity may turn into opportunity to make Japanese energy system more sustainable and earth-friendly. Existing analysis has shown great potential of under-developed renewable energy while private sector has already demonstrated possibilities for renewable energy production and improving energy efficiency - to say the least. What is needed now is not only technology intervention but also appropriate policy intervention.

At the same time, examples of communities who try to be self-dependent, not only in energy aspect, but also natural resources utilization and management, have proven inner strength and desire of the Japanese society to overcome obstacles and move toward sustainability. These successful models should be recognized and promoted to enhance clean, sustainable, and independent energy system for the vast rural agricultural communities which occupy the majority area of Japan.

Friday afternoon, 11th March 2011 was the beginning of Japan’s hardest-hit disasters since World War II. Like many others around the world, I followed the news and pray. Unfortunately, after four months, the nuclear power plant is still leaking radiation into the environment - the incident is still nowhere near conclusion. However, signs of changes in the Japanese society right now indicate that it is possible to be more independent and free from fear of nuclear power. “I send my condolences to those who are struggling and wish for Japan to overcome this crisis and move toward a brighter and more sustainable future.”

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Individual Report

Wimolsiri PridasawasLecturer, Department of Chemical Engineering, King Mongkut's University of Technology Thonburi

Thailand

Energy is the key factor driving all sectors in the world; it roles the economics and human activities. In Thailand, industrial and transportation sectors consume energy more than any other sectors; most of energy utilized is in a form of fossil fuel including natural gas, lignite, heavy oil and diesel oil. Fossil fuel plays the important role as the energy source especially for electric power generation. The energy consumption, especially the electricity consumption in Thailand has increased continuously every year according to the economic growth. Natural gas and coal are the major fuel sources for electricity generation accounted for 70% and 21%, respectively (Energy Policy and Planning Office, 2008). About five percent of the electricity produced in the country comes from renewable energy sources including hydropower. Most of the natural gas for electricity generation obtains domestically; the natural gas reserve is limited and diminished. To strengthen the economics and the quality of life, the energy resources must be sufficiently provided. The renewable sources must be investigated and implemented to be used instead of the fossil fuel. The Thai government has considered building a nuclear power plant since 40 years ago due to the oil price crisis in the 1970s. The plan, however, has not been finalized until now because of the public acceptance and political issues. Therefore, there is no rigid mechanism or plan to promote the nuclear power plant in Thailand until now. Furthermore, the relevance regulations, law and responsible organization have not been developed yet.

Thailand is geographically located in the tropical region where solar energy is available all year round. Therefore, solar energy has a high potential to be employed as the renewable energy source. The installation cost of this technology is however, the challenge for the developing country such as Thailand. A largest share of renewable energy in Thailand is from biomass. Biomass from agriculture sector has been used as the fuel for several applications e.g. small scale power generators and boilers. The potential of other renewable energy source e.g. wind or geothermal power is limited. Thailand has a quite effective renewable energy plan. The implementation of some renewable energy systems e.g. PV system, however, do not grow so fast. This is mainly due to the installation cost of the renewable energy system together with the market oil and gas price is not very high.

Learning from the Energy Security WorkshopThe power generation in Japan relies on fossil fuel and nuclear. Nuclear power plants have been installed

in Japan for many years. They were internationally and domestically accepted as the clean energy source. After the earthquake and tsunami in March 2011, not only the Japanese government but also world-wide governments need to revise the power development plan again. There is a strong voice from the public to stop the nuclear power plant due to the safety consideration. This is a big challenge for Japan to develop the environmentally friendly and safe technology serving the need of the country. By the characteristic of the Japanese themselves, who strictly follow the rule of discipline, are very patient and can handle the severe situation with calmness and peacefulness. I strongly believe that Japan will jump over this crisis to be the green and clean country. During the time that I stayed in Tokyo, the unnecessary light bulbs in many buildings were switched off, escalators in the subway stations were off and air conditioning systems

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in many buildings especially governmental buildings were closed. The people told me that, they were trying their best to reduce the electricity consumption by 15% to cover energy that cannot be generated by the Fukushima power plant. The accident in March 2011 might be a crisis; on the other hand, this may also be the opportunity to develop the new energy model rolling the world towards the sustainability.

Japanese people are very soft, kind and friendly. They are trying their best to accommodate other people. From my experience, whenever I asked the way, even they could not explain in English, they always tried to print out the map or showed me by themselves how to reach the destination. Moreover, the Japanese people strictly follow the law and regulations. They do really care other people opinions and feelings. The people highly concern about the energy situation. It seems that the finish products with elaborated package are very popular in Japan e.g. food, drink, household or electronic products. This represents a pleasurable lifestyle of the people; however, it consumes energy and resources. Japanese food is so elaborated and harmony. The taste of food is so balance and the decoration is very beautiful. The public transport is common in a big city such as Tokyo or Osaka, this is an energy and time efficient transportation method. The government has a clear policy and promotion plan to reduce the energy consumption and CO2 emission in large buildings. A large building that consumes energy more than 1500 ktoe/year needs to report the annual energy consumption to the Metropolitan. Therefore, old buildings need to be renovated and redesigned; a new building will be equipped with energy efficient systems. The Haneda airport building is a good example; it was renovated and equipped with a very energy efficient system. Furthermore, on the top of the building is equipped with the 10,120 m2- PV panels generating 1,240 kW electricity for the airport.

From the presentation of our team from 13 countries, I noticed that no country can stay alone. Each country has different resources; Australia is rich or coal; Indonesia and Malaysia are rich of natural gas, and oil; Myanmar has a very huge natural gas reserve and hydro power; Lao has a highly potential to develop a hydropower plant. We need to have a strong collaboration and help each other serving and managing the sustainable energy fulfilling the need of the people in the region.

The local communities in Japan are quite strong and have many interesting projects e.g. the Ogawa town in Saitama prefecture. There is a project collaborated among the NPO, local residents and official administration to create the garbage recycling project and biogas system. This project has been implemented since 2001 with 14 households, until now there are more than 100 households joining the project. The food waste from the households are collected and used for producing biogas. The houses that provide garbage will receive the vegetable coupon. Right now, they can collect food waste in Ogawa town about 1,600 tons per year, which is equivalent to a maximum of 32 million Yen in local currency.

Japan is rich of natural resources and beautiful scenery. There are many geothermal power plants located in different parts of the country with the total capacity of 540 MW. The Hacchobaru geothermal power plant is a very good example of the harmony in protection and utilization of natural resource. The Hacchobaru power plant belongs to the Kyoshu Electric Power Co., Inc. There are two of the 55 MW-units in this power plant. The first unit is the double flash system; energy is extracted from the underground hot water by using 2 flash tanks. This increases the output by 15% to 25%. The second unit is the binary system technology; pentane and water are used as the working fluids. The hot water taken from underground is injected back into the underground in order to reduce the environmental problem.

Natural gas is also the major energy source for power generation in Japan, accounted for about 25% of the primary energy source. There was a study visit at the Sakaiko power plant, Kansai Electric power group in Osaka. This plant generates electricity by a natural gas combine cycle technology. Not far from the Sakaiko power plant, there is a Sakai Solar Power Station. This solar power plant covers 20 hectares located in industrial waste landfill of Osaka Prefecture. This is the 10-MW solar power plant; electricity produced from this solar power plant direct connects to the grid system. There are about 25 000 houses in Kansai area install PV system on the roof. Therefore, the Kansai Electric

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Power also buys solar electricity from household at the rate of 48 Yen/kWh.

Towards the Sustainability and Energy SecurityTowards the sustainability, the energy source should be sufficiently supply fulfilling the economic growth and

needs of the people. The increasing of the needs and the uses for energy especially fossil fuel results in the severe climate change problems. Therefore, the energy system in both demand and supply sides must be environmentally benign. The sustainable energy sources must be implemented and the research and development of this field must be performed. Furthermore, the energy conservation plan must be efficient enough to reduce the energy consumption per capita and utilize the energy efficiently.

Concluding RemarksThe challenge of every country is to provide the sufficient energy source fulfilling the economic growth and

human activities. Due to the diminishing of the conventional energy resource nowadays, together with the low level of renewable technology, the energy should be employed efficiently through the smart energy consumption plan. Furthermore, the cooperation of the countries in the same region will help each other utilize the resource efficiently fulfilling the need of human activities.

AcknowledgementThe author would like to thank the Japan Foundation for the great opportunity to let me attend this JENESYS

East Asia Future Leaders Programme 2011, Group K “Energy Security: Advancements in Cooperation in the East Asian Region”. Many thanks to the staff of the Japan Foundation who dedicated support all activities, Ms. Ayano Inami, Ms. Moe Akimune, Ms. Keiko Uchiyama, Ms. Hiroko Kawata and Ms. Ikuko Shimizu. Once again, “Arigatou Gozaimasu”.

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Individual Report

Le Cam VanOfficer of Investment & Development Division, PetroVietnam Power Corporation, Vietnam

Vietnam

ENERGY SECURITY IN JAPAN: AN OVERVIEW

Energy security has now become a serious problem which almost countries in the world have been confronted. The instability of the oil price, the depletion of fossil energy sources and inefficiency in energy utilization always has direct impacts on the countries’ economy and people lives.In common with the above global issues, Vietnam is also facing with the risk of large energy deficit. As in calculation, the coal and oil resources will soon be in depletion before 2025, while the electrical supply, apart from high rate of growth, still does not meet the demand. This disadvantage situation is putting Vietnam’s energy system in a potentially insecure state. And to lower the above risk, energy conservation and development of new energy resources is becoming major goals of the Vietnamese government. Participating in the JENESYS Programme 2011 “Energy Security: Advancements in Cooperation in the East Asian Region”, I was most fortunate to have a chance to understand how Japan faced with energy shortage problems and how the government, large industrial corporations, the NPOs and community responded to the insecure energy situation of their country. The trip to many places in Japan such as Tokyo, Saitama, Omuta, Osaka…showed me an overview of Japan’s energy situation with lots of fruitful lessons.

Government policies on energy securityIn Japan, I had got the opportunity to meet government officials from Agency for Natural Resources and Energy. From the meeting, it was clearly seen that Japan, although still enduring the high dependency on global oil prices, had step by step got out of the serious circumstance by suitable policy promulgation of its government. Especially, Japanese government also shows its important role in leading society to overcome energy problem.After 02 world oil crises in 1973 and 1979, with awareness of its poor fossil fuel resources and in order to meet the energy’s urgent need of the whole country, Japanese government was simultaneously carried out many policies and measures to conserve energy with main contents as below:

− All large industrial corporations will be the leaders in energy conservation. Each corporation has to report to the government annually of its energy consumption level.

− Promote stable and appropriate supply sources of energy with nuclear power as key factor to maintain the security of energy.

− Improve energy sector governance including energy security, environment protection and the market mechanism.With the government policies and energy sector’s effort, the installation and operation of nine nuclear power plants will help provide about 30% of the country electricity. Also, the dependence on imported oil has dropped from 77% in the 1970s to 50% in recent years and is planned to be less than 40% in near future.

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The accident at the Fukushima nuclear power plant is not only an environmental disaster but also make the Japanese government reconsider its policy of heavy dependence on nuclear power resources and plan to make greater use of renewable energy. Although the cost for renewable energy development is still much higher than that of nuclear power plants and it still need a long way to achieve such above difficult goal, the government has convincingly shown to the society their commitment to achieve a safe and secure energy resources.

2. The solution to efficient utilization of energyThere are many cooperative efforts between the government and private economic sectors to apply series of energy conservation measures, not only because this sector is consuming most energy but it also can provides innovation idea and solution to energy saving. Such close coordination was clearly shown at times we visited to several large industrial corporations such as Haneda Airport, Panasonic Center… during the tour. In Haneda airport, efficient use of energy closely engages with high performance solutions such as: Application of hybrid electric shuttle bus between airport terminals, the optimum measurements and control of inverter air-conditioning systems, lightning systems, etc. With further effort to save energy and reduce CO2, solar panels were installed on the roofs of the airport. In another approach, Panasonic have been contributing to solving the energy problems. With innovative eco-ideas and eco-products, they try to bring customers multi-choices of creating a green and economical lifestyle. The positive response of industrial sector to the government policy has manifested their commitment to build a sustainable development society and thus, has been a good model for most of country having the same energy situation.

3. NGO/NPO and Community involvement in energy saving.Among several NPOs that I had opportunity to visit, the Ogawa town of Saitama prefecture impressed me much by the efforts of the community and Ogawamachi Fuudo Katsuyo Center NPO (NPO Foodo) in implementing a biogas project here. The project has been operating since 1992 and now has a total of eight biogas facility. Under the project, biogas produced by decomposing organic waste is returned to households for cooking. In addition, recycling raw garbage also provides liquid fertilizer for soil revitalization, which is a better alternative to traditional fertilizers.

The benefits of the project and the efforts of NPO Fudo in conserving energy have been recognized and given high consent from the community. In other words, the people in Ogawa actively participate in the project through helping build biogas facility and sorting kitchen waste for the project operation. The project, therefore, is a good example of the strong bonding between NPO Fudo and local residents as well as the community high awareness in conserving energy.

Figure 3: Eco-idea for life – Panasonic Center, Tokyo

Figure 2: Hybrid electric Shuttle Bus

Figure 1: Solar panels on top of Haneda Airport

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ConclusionParticipating in this programme, for me to say is a special opportunity. It was a very meaningful trip where I could see and learn many things, not only about energy security matters but also the traditional cultures and living styles of people in Japan and other countries. I would like to express my deep gratitude to Japan Foundation, all staffs organizing the programme, and all other members who shared with me the wonderful moments in Japan. I will keep memories of the trip and appreciate what I have experienced in the trip for all my life.Thank you very much.

Figure 4: Visit Biogas facility in Ogawa Town

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Individual ReportVietnam

Nguyen Quang ThanhClimate Change Programme Officer, Centre of Live & Learn for the Environment and Community in Vietnam

BackgroundThe Centre of Live& Learn for the Environment and Community, in which I presented, is a small local NGO

in Vietnam. We are a member of Live&Learn International; a network consisted of nine local-led organisations located in different countries in the Asia-Pacific region1 with the mission to promote greater understanding and action toward a sustainable future through education, community mobilisation and supportive partnerships.

Since its establishment in 2009, Live&Learn Vietnam has actively working with Vietnamese youths throughout the country to promote awareness and actions toward a sustainable and transparent Vietnamese society through the Green Generation (GG). GG is a network of youth groups which were initiated by some enthusiastic young people and youth groups under the encouragement of Live&Learn Vietnam. GG was established from the youth demands to share knowledge, to connects and to create a bigger impacts in their action for sustainable development. It is an open network that allowed the youths to share, mobilise resource and create synergies in their actions towards a sustainable future. Over the past few years, the GG has promoted many youth-led campaigns and actions for sustainable development, as well as promoting youth’s participation in international campaigns to save energy and combating climate change such as Earth Hour, 26˚ and the 350.

Beside activities to support and facilitate the works of Green Generation, Live&Learn Vietnam also cooperate with a number of business enterprises in Vietnam (e.g. FPT, Alpha Books, Boo, KOTO and Thang Long cements, just to name a few) to promote sustainable practices and energy-wise behaviors in the business environment.

Vietnam, since the ‘Renovation’ economic reform, which often refer as ‘Đổi Mới’ era in Vietnamese, started in the early 1980s has done a remarkable job in lifting the country out of poverty and sustaining economic growth rate of approximately 7% annually since the 1990s. As a result, Vietnam GDP per capita has reached that of the middle-countries since the late 2010. Despite this impressive achievement, Vietnam is facing many issues arise at the expenses of economic growth such as environment degradations and the growing gaps of inequity between rural and urban areas in Vietnam.

With regards to energy consumption Vietnam is not doing so well, the country is wasting more energy to produce and unit of GDP than the average of the region and approximately 1.5 times lower than that of the world average. Vietnam energy efficiency in 2008 is 3.7 USD/kgoe, compare to 3.8USD/kgoe for the East Asia & Pacific region and 5.5USD/kgoe for the world2. Furthermore, it is projected that in the very near future Vietnam will have to import energy to fuel its expanding economy as its domestic sources for coal is running out and the uncertainties of the oil industry in Vietnam especially in the light of the regional disputes in the East Sea of Vietnam, which is often referred to internationally as the South China Sea, where all of the Vietnamese oil production comes from.

1 For more information about Live&Learn and its network, please visit our website: http://www.livelearn.org2 Figure from the World Bank, 2010, World Development Indicators, [internet]: http://data.worldbank.org/sites/default/files/wdi-final.pdf last

accessed, 20/06/2011.

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My chance to visit Japan under the JENESYS East Asia Future Leaders Programme 2011 on “Energy Security: Advancement in Cooperation in the East Asia Region”, in many ways is very valuable for me as I was able to learn a lot from the Japanese people as well as from other participants from other countries in the East Asia & Pacific region about energy security. Below are some of the lessons I have learnt from the trip which impressed me most.

Energy security in Japan – Historical perspectives and country context The lectures by Mr. Yasuhiko Nagata from the Institute of Energy Economics and the presentation of the

Mr. Ryuta Minami from the Ministry of Economic, Trade and Industry have provided me with necessary historical backgrounds information and country contexts on energy security and energy policies in Japan.

After the two oil shocks in the 1970s, Japan policies on energy have been focusing on the securing and diversifying of energy supplies internationally, and enhancing energy efficiency and sufficiency through technological advances as well as the stimulus of behaviour changes domestically. It is also interesting to learn that the domination role of Japan in the Asia’s energy picture, which have prolonged for decades since after World War II, are facing competitions from other newly emerge economies such as China, India and South Korea.

The Great Earthquake and Tsunami in March 11th, which lead to the crisis at the Fukushima Daiichi Nuclear Power Plant, has forced the country to rethink its energy and climate change policies. Although it is unlikely that Japan, in the near future, will shift away from its main energy sources of fossil fuels and nuclear (which currently comply approximately 91% of the country energy supplies), it is interesting to know that both Japanese people (which have resonated several times during the trips when we had chances to meet and talk with the Japanese people and the communities) and its government are seriously rethink about the futures of nuclear power and are putting great emphasis on green energy such as solar, wind and geothermal. Especially with the announcement of the Japan government ambitions to increase the share of renewable energy sources to 20% by early 2020s and the target to reduce the cost of solar power generation by one third of the present levels in 2020s and to one sixth by 2030s3. These are of course very ambitious goals and would required Japan to take many careful transitions steps in between, but the achievement of these goals will certainly create a second “Japan Miracle” and will put Japan much closer toward becoming a sustainable country.

Business perspectivesDuring the trip I also had chances to visit various Japanese businesses and private sectors to learn about their

efforts. One of the highlights would be the visit to Haneda Airport to learn more about its practices to reduce CO2 emissions and saving energy through a set of interesting practices such as:

• Utilized its roof to install solar power panels which have the capacity to generate in total approximately 1.2 MWh of electricity annually, which covered 10% of the airport electricity needs.

• Installing inverters and make operational shifting in the use of the air conditioning system to save energy. • The introduction of free hybrid shuttle buses system for transportation between its terminals which used

electricity and bio-diesel. The visit to Panasonic Centre in Tokyo Bay area is another highlight of the visit where I had a chance to learn

about the company vision of becoming the “No.1 green innovation country in the electronics industry” and many of its researches and pre-market eco-friendly products and ideas. The recent company plan to install sensors to monitor and control the company electric uses to streamline its production as a solution to meet the government recent request of cutting15% of electric uses (as a solution to avoid blackout in the Tokyo and Tohoku regions after the incident at

3 The Japan Times Online, Pursuing a New Energy Policy [internet] http://search.japantimes.co.jp/cgi-bin/ed20110611a1.html last accessed 11/06/2011.

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Fukushima) is another interesting approach in which if successful can be great as it can avoid the production stagnation and potential job losses by having other approach such as transferring production to other region or countries and by shifting of working days/hours away from peak time4.

Community and civil society organisations“If burn, raw garbage is just garbage, but if utilized efficiently, it is a valuable resource”, the motto of the

NPO Foodo in Ogawa Cho, Saitama Prefecture is another thing which struck me. This eco-community biogas project, designed and implemented by the Centre for Owaga Bio-Region, make used of kitchen waste to generate biogas and liquid fertiliser. This practice is not only good for the environment, saving cost and optimise the uses of local resources but also create a strong bond among the NPO, the communities and the local administration. It is the close collaboration between these three main actors that plays a critical role in ensuring the successfulness of the project.

The methane gas generated can be used for cooking purposes or use to generate electricity which then bought by the electric generation companies and the liquid fertiliser is sold to the local farmers to use in their soil. The government compulsory requirement for electric generation companies to buy electric from local sources to promote the uses of renewable energy is also another interesting point to notes. The uses of liquid fertiliser also reduce the amount of chemical fertiliser which contributes to the creation of a better environment and tastier food.

In addition to that, for each kilogram of the kitchen waste being utilised as input for the biogas facilities instead of being incinerated, the local can save 20 yen. This saving amount, along with the money collected from the selling of liquid fertiliser, then is used to create a local currency system by rewarding to local residents helping the collecting and separating of the garbage with coupons where they can trade for local fresh vegetable in fairs that organised twice annually in August and December.

ConclusionThis programme has provided me with a rare chance to meet, to witness, to discuss and to understand more

about Japan, not only about energy issues but also the Japanese history and culture, hers people and their mindsets toward the use of energy, and of life in general. The visit to government agencies, businesses, local communities and of course the home visit in Tokyo has helped me a lot in deepen my knowledge and further reinforced my admiration for Japan. There are many lessons, especially from the community and individual perspectives, which I can learn from, both for my work and in my life in the future. Also, during the two weeks in Japan, I have met many new friends and learn many things from the experience and sharing of other participants in the programme.

I would like to sincerely thank the Japan Foundation for giving me the chance to participate in such incredible programme, and of course the staff whom responsible for organising the trip, for their professional manners, excellent hospitality, caring and courtesy before, during and after the trip. Thank you very much!

4 Nikkei Times, 2011, Panasonic to cut power use by 15% without curbing output, [internet], http://e.nikkei.com/e/app/fr/gateway/rss_news.aspx?URL=/e/ac/tnks/Nni20110513D13JFF03.htm , last accessed 20/06/2011.

103

Individual ReportVietnam

Dang Thi Ngoc HuyenBiogas Programme for the Animal Husbandry Sector of Vietnam

Subject: 12 days in the Land of Rising Sun

Enhancing authorities and household’s awareness of the benefits of domestic biogas as a proper livestock’s waste treatment solution is what my programme and I are striving for in our nation for 8 years. Biogas plants have been built over 80,000 with 400,000 beneficiaries all over the nation. Biogas sector development is one of government policy’s priorities and biogas technology will be more familiar with Vietnamese farmers, 80% of whom raise livestock and poultry.

Energy security’s ranking is the first line of national energy development policy over the years. The concrete plan was made and it focused on solving the shortage of electricity use. Support from Japan will be needed in coming years with building nuclear plant besides the solar energy and wind power plants. The issue for our leaders is how to harmonize the economic efficiency and environment protection with energy security. Energy market is striving to integrate the region’s market.

Vietnam is known for a fast developing country in the region and is now dealing with lots of issues relating to energy security. Our government has its strategic plan for new and renewable energy (RE). The development of RE is the global trend to reduce the fossil use, pollution and to enhance the security of energy. The potential RE in Vietnam is high but the effective use is very low. Vietnam took the first steps in developing RE from building Ninh Thuan nuclear power plant with capacity of 4.000MW to the small solar lighting equipments in Truong Sa island. Small wind power plant and solar power projects in isolated provinces. Petrol and coal are mainly used for producing electricity, cement and manufacturing and Coal is still the strategic source to ensure the national energy security plan.

Japan is a well-known country in our nation for high technology and industrialized economy. Moreover, Japan is famous for high effective in energy use despite the lack of natural resources. Being a participant of the JENESYS tour is so fortunate and meaningful for my life and my career choice to study about Japan culture and its energy security situation. I was eager to see your beautiful landscapes with new friends and to enjoy the culture difference. I still recall 12 days of the tour. My overnight flight from Hanoi to Tokyo

(Hydro power plant construction)

(Coal mining in Vietnam. Source: http://www.vinacomin.vn) (Hydro power plant

construction)

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made me rather tired. And when I saw the first sunlight in the sky, I knew that I was arriving to the Land of rising sun. I started to compare whatever I saw with my home country. In this final report, I will summarize what I achieved and what I am impressed the most about the study tour.

My first achievement is to make friends with young leaders in the region. We come from different parts but share the same point of view about energy security cooperation. More than ever I feel that there is no border between us when we talk and share the ideas.

My second achievement is to introduce to new friends about a dynamic and traditional Vietnam. Sharing information about our programme in Vietnam – the most successful project about RE in Vietnam and one of the best RE projects in the world so far1 . Biogas is now coming more popular in Vietnam and Asia for its multi-benefits.

Next, I have chance to know more about Japan’s energy case study through lectures and discussion. So many questions were answered and I understand why Japan’s standing as the most powerful country in the region and why Japanese can overcome the challenges from the nature disaster these days.

One of the most interesting experiences that I have is home-stay tour. The family welcomes me warmly and happily with talks and home-made food. Time flies when we are talking about Japanese daily life and their behavior with the whole country’s energy security. They are the reasons why Japan’s community is so strong in public issues. Their awareness about environment protection and saving energy use is so appreciated.

The nature in Kyushu and Kansai are so amazing. Hot spring is the most exciting experience that I have. I am happy to enjoy the traditional hot spring in Yufun and I am so lucky to visit Hacchobaru Geothermal Power Station. This beautiful landscape truly deserves to receive this energy source for local sustainable economic development.

I am so fortunate to visit one of the most successful projects in Saitama prefecture about biogas energy. My impression is how they gather people and how local community support the project. Key factors are the people again. The project officers are local farmers.

Solar system in Haneda airport or in Osaka definitely shows the effort of the companies and government to reduce CO2 emission. Panasonic Company with the latest technology Eco-tech also confirms their best commitment with environment protections.

I am sorry for Japan when the tsunami and earthquake happened 2 months before this trip. The sadness is still in our heart and the case of Fukushima reminds us about the time of RE and the lesson of energy security. It is hard to express how I am grateful for great hospitality of Japan Foundation those days. Thank you for what you support and I believe that this study tour will absolutely benefit my understanding about Japan and my career’s choice. Thank you Japan.

1 Our programme was given Ashden Award in 2010. See detail at http://www.ashdenawards.org/conferences/imperial-college-2010

(shot at Tokyo Palace)

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Vietnam

VIETNAM

JENESYS East Asia Future Leader Programme“Energy Security: Advancements in Cooperation in the East Asian Region”

1 2

DOB: 03 -02 -1984

HANOI UNIVERSITY – Hanoi, Vietnam

FACULTY OF MANAGEMENT (BA1-02) in 2006

2006 – 2007: Business sector

2007 – 2010: Project unit management in environment and energy sector.

2010 – now: Project/ Promotion & Administration

Biogas Program for the Animal Husbandry Sector of Vietnam (SNV Netherlands/

MARD, Vietnam)

Email: [email protected] or [email protected]

3

Enhance authorities and household’s awareness of the benefits of domestic biogas as a proper livestock’s waste treatment solution.treatment solution.

4

Main sources: Hydroelectric & Thermal

EVN: under authority of Ministry of Industry – Government Office.

Energy efficiency and conservation law : Government’s efforts.

Go ernment’s planning to slo l remo e s bsidies on electricit Government’s planning to slowly remove subsidies on electricity.

2014: independent power producers are not allowed by EVN to sell

directly to the market

2022: customers nationwide will have right to select an electricity

suppliers.

5

Power Output 2011 (EVN + enterprises): 117.6 bln kWh (e) (17.63% increase compared to 2010). Of this, 56.14 bln kWh(e) for the first six months in 2011 (increase 18.3% with the

same period in 2010) Plan to cut electricity supplies from March (still cold weather in the North of VN). Supply capabilities: 54.06 bln kWh in the 6 months shortfall: 2.08 bln kWh

Source: Vietnam Financial Review

6

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Vietnam

Long-term: Government expects to continue electricity price

EVN outline: 88 new coal-fired power stations by 2025; 75 hydropower

plants with capacity of 30 – 1.200 MW each estimated:

satisfy 75%satisfy 75%

Domestic & int’l programs involvement

Renewable energy projects in progress (accounting for 5% electricity

production by 2025):

Wind power in south-central Ninh Thuan, Binh Thuan provinces

VN – Japan agreement on nuclear power

Other: biogas…Source: Vietnam Financial Review

7

1. Diversified, reasonable and efficient exploitation of domestic resources

combining fuel conservation and energy security for future.

2. Energy efficiency and conservation using from energy production to

transmission, processing and using., p g g

3. Harmonization with environment and resources protection.

4. Establish a market for the energy sector

5. Improve the energy program for rural areas, develop renewable energy.

8

Energy security

Environment protection

security

Economic efficiency

Harmonization

9

More than 80% of the farmer households raise livestock and poultry

Manure causes health and sanitation problems

Farmers rely on traditional fuels for cooking

10

Time frame: 2003 -2012

Goal- Commercially viable biogas sector

Target- 168,000 digesters

11

Netherlands:

DGIS Dutch Ministry of Development Cooperation

SNV Netherlands Development Organizationp g

Việt Nam:

Ministry of Agriculture and Rural Development

Provincial Department of Agriculture and Rural Development

National Extension Centre, Breeding Centre, Clean Water Centre

Mason, farmer household

... 12

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Vietnam

Made by local constructors using locally available materials

Average volume : 8-12 m3

Cost: US$ 450 Cost: ~ US$ 450

Farmer: ~ US$390

Subsidy: ~ US$ 60

13

Biogas:

Convenient and clean cooking, lighting and sanitation

Time and money saving

Slurry:

Potent bio-fertilizer increases yield and Potent bio fertilizer increases yield and hence income

Fewer pathogens, no smell Reduce CO2 from animal waste

14

Construction: 78,000 biogas digesters

390,000 beneficiaries

Reduce emissions 167,000 tones CO2

Emplo ment 00 000 labor da s Employment: ~1,500,000 labor days

Green economy: ~ 30 mil. US$

50% digesters from free market

Global Energy Award 2006

Ashden Award for sustainable energy 2010

15

Renewable energygy

16

Sharing my own case FYI

Learn from Japanese case and know more about Japan’s culture & people

Learn from other participants as young leaders in energy sector Learn from other participants as young leaders in energy sector.

17 18

108

Group Presentation

Group members:Aswin Rizal Harahap IndonesiaMuhammad Arifuddin IndonesiaDang Thi Ngoc Huyen VietnamLe Cam Van VietnamYim Sophy Cambodia

SHARING BEFORE FAREWELL...

•What we’ve seenWh ’ l•What we’ve learnt

What we’ve seen......

Happy Land

Tokyo Imperial Palace Saitama Prefecture

“Sugoii” and “Oishii”

Ginza, Tokyo

Kawagoe

Nature and Culture

Beppu, Oita Prefecture

Group PresentationGroup A

Mr. Aswin Rizal Harahap, Ms. Dang thi Ngoc Huyen,Mr. Muhammad Arifuddin, Mr. Yim Sophy and Ms. Le Cam Van

GROUP PRESENTATIONFrom Tokyo to Osaka...

Japan, May 26th, 2011

110

Clean and Clear

Yoyogy Park, Tokyo

Bullet Train

Shin-Omuta Station

Fashionista

Odaiba, Tokyo Bay

Eco Toilet

Shinjuku Washington Hotel, Tokyo

Road Michino Eki

Saitama Prefecture

Temple, Castle and street

Osaka Castle Asakusa, Tokyo

Ginza, Tokyo

Group Presentation

Group A

111

GOVERNMENT’S PERSPECTIVE ON ENERGY SECURITY• Still highly dependent on oil and nuclear• Great hospitality to Jenesys Program

participantsparticipants • After March earthquake & tsunami, Japan

government manages to overcome the difficulty, however avoiding sensitive topics related to nuclear issues.

URBAN HOUSEHOLD’S PERSPECTIVE

• High awareness of the country’s current energy security issues

• Good cooperation with the government policy• Good cooperation with the government policy via conserving/saving the energy and using low CO2-emission electric equipments.

• Willing to share private case with foreigners.

NGO/NPO’S PERSPECTIVE

• High awareness to disseminate renewable energy technology.

• Striving to support energy self-sufficiency• Striving to support energy self-sufficiency.• Great impact to the government’s decision and

the community.

ENTERPRISE’S PERSPECTIVE

• Contribute the energy security via renewable power projects

▫ Hachobaru Geothermal Power plant

▫ Kansai Electric Power Co. – Solar power plant project.p p p j

• High commitment to reduce impacts on environment

▫ Haneda Airport (Hybrid bus, solar panel, air - conditioning with

inverter system)

▫ Kansai Electric Power Co. (CO2-free & CO2-off strategy)

▫ Panasonic Center (Eco-Tech)

“On time” manner

Keiko-san

Inami-san

Group Presentation

Group A

112

SATISFACTION

K

Yufuin, Kyushu

Yufuin, Kyushu

Kawagoe

Group Presentation

Group A

113

DIVERSE BACKGROUNDS, ONE PUZZLE

Group PresentationGroup B

Dr. LiPengfei, Atty. John Virgino, Mr. Kyaw Min Thu,Ms. Nurhaniza binti Hamzah, Mr. Manopaphath Phithsamay

114

Increased importance of energy security after the Japan Earthquake on March 11, 2011

Interdependence among countries to meet electricity requirements in terms of resources, knowledge and technology

The power of community involvement and support to ensure successful programs on energy conservation, and that it must be supported by one’s way of life.

Doing business could no longer be just about profit Doing business could no longer be just about profit maximization, without considering the broader maximization, without considering the broader context and implications on human rights, context and implications on human rights, environmental impact and sustainable environmental impact and sustainable operationsoperations

How to manage the gap of energy technology between different countries??

How to balance the increasing energy demand and impact on the environment

Promotion of alternative and renewable Energy

Cooperation and collaboration within the Region amidst disputes

hard and sensitive questions on the future of nuclear energy

the need to address

countries

13

Fourlectures

5 hotels 20participants

3major cities

12DAYS

14 tours and visits

1 Bullet train ride

10 excellent speakers

Group Presentation

Group B

115

Group Presentation

Group B

116

Group Presentation

Group B

117

Group Presentation

Group B

118

“Do nini chi kam na ken ken wa, nani mo nonimo, kaegayatae monu desu,

Nihon wa subarashi suno, mamade subarashi desu”

Group Presentation

Group B

119

Akshay Chhabra(India)

Nguyen Quang Thang(Vietnam)

Faikham Harnnarong(Thailand)

Hollie Jane Hyndman(New Zealand)

Tng Mei Ling(Singapore)

Energy Security – Understanding

Perspectives – from the Japanese experiences

Sugoi Nippon!

The New Bento – the Challenges

Energy Security: optimized utilization of the available resources in self sustainable way.

Components:

Energy Supply Dependency Energy Pricing Energy Demand Management Environmental and social sustainability

• Local family visit• Community Biogas installation at Saitama• Community harmony @ “Kazze No Harrapa” • Panasonic Center• Haneda Airport energy efficiency and CO2 emission reduction• History of Omuta coal industry• KEPCO Combined Cycle Plant • KEPCO Solar Installation

Time of changes and opportunities

Local self-sustainability

Awareness sustainability and environmental Awareness, sustainability and environmental responsibilities

Community strength

Renewable energy roadmap & technology intervention

Energy diversification & technology optimization

Bottom up pressures

Outside pressures

A policy window?

Group PresentationGroup C

Ms. Faikham Harnnarong, Ms. Tng Mei Ling, Ms. Hollie Jane Hyndman,Mr. Nguyen Quang Thanh, Mr. Akshay Chhabra

120

Awareness of environmental concerns and energy efficiency

A it f h ?A capacity for change?

Citizen demanding new clean and green energy for their sustainable future

Private/Utility responding – CSR (Corporate Social Responsibility)Responsibility)

BUT – clean and green is not only about CO2 emission

other perspectives not prioritized in the past context

Sustainability = whole life cycle: extraction, production, consumption, waste

Responsibility not only in the country/people who utilize the energy – but also where the fuels are sourced

A tradition of strong bonding between neighboors.

Attitude towards other people and the environment.

Aiming at self sufficiency and sustainability.

Awareness Ideas Actions. Oil, Coal,hydro Oil ,

NuclearRenewable

Energy

Renewable Energy: Japan Approach

Zero Carbon – solar, energy, nuclear energy, wind energy

Carbon Reduction – high efficiency combined cycle power generation

Society: family and community, traditions and religions

Food: Full course meals!!!!! Bento! Ramen! Local ingredients!!

Working culture: spirit ,passion , dedication, perseverance, time management, perfectionism

Nature: Land of rising sun, Onsen!

Group Presentation

Group C

121

Shifting Mind set

National Dialogueg

Public Private People Partnership.

Group Presentation

Group C

122

Group D

Top 3 Energy Successes:

1: Energy conservation and efficiency


2: Transportation sector


3: Environmental awareness & recycling

Top 3 Energy Challenges:

1: Low self sufficiency / import dependence (e.g. fossil fuels)


2: The future of nuclear energy

Group PresentationGroup D

Ms. Deepti Mahajan, Dr. Diane Clare Jorgensen, Dr. Vlado Vivoda, Dr. Wimolsiri Pridasawas

123


3: Advancements in renewable energy

Cultural Impressions

Hard working Friendly Polite

P t l Punctual


Clean


Efficient and orderly


Rich history


Awesome fashion

Group Presentation

Group D

124


Innovation (i.e. hot coffee in a can, drink dispensers, electric toilets)


Quality food and drinks

Group Presentation

Group D

125

Photographs

128Photographs

129 Photographs

130Photographs

131 Photographs

132Photographs

Documents

Energy Security: Advancements in Cooperation in the East ... · “Energy.Security:. Advancements.in.Cooperation.in.the.East.Asian.Region” As global energy consumption increases,