Investing in Japan

Future Energy Systems

Full text(4.2MB) March 2012

Executive Summary

High Growth of Energy Saving and Renewable Energy Related Markets is Expected

In Japan, the deployment of hybrid cars and other eco-car s aims t o reduc e CO2 emi s s ions as a countermeasure against global warming. The introduction of eco-houses equipped with photovoltaic power generation, high-efficiency hot water heaters and LED lighting is being promoted for more than just improved insulation.
Moreover, the Japanese people’ s interest has grown in the markets concerning energy saving and renewable energy as a result of the electricity shortages caused by the Great East Japan Earthquake.

Major Environmental and Energy Strategies from the Japanese Government

In addition to countermeasures against global warming, the government has set forth “Green Innovation” as the driving force for growth in its “New Growth Strategy” by setting a target of 50 trillion yen and the creation of 1.4 million jobs within the environmental market. With the introduction of the Feed-in Tariff for renewable energy planned for July 2012, an increase of new enterprises in the renewable energy field is expected. Moreover, to combat electricity shortages, the government also launched a subsidy support scheme funded by the supplementary budget to promote the growth of future energy systems involving the improvement of electricity supply and demand, renewable energy, and energy saving.

Wide-ranging Industries such as Automotive and Housing

With the introduction and distribution of next generation energy, new demands are anticipated in relation to eco-cars and eco-houses. These industries include a wide range of related businesses. For example, with the arrival of electric vehicles (EV), new demand is expected in sectors such as the weight reduction of components and material parts, storage batteries, battery management technology, EV charging infrastructure, and other energy saving technologies. There is also a range of related businesses in the housing industry for home builders, apartment developers and renovators. This includes the instal lat ion of resident ial fuel-cell systems and solar-thermal systems, and refitting insulation in windows, outer walls, and floors in both new and old buildings.

Creating New Towns – Smart Community

Among various new-town-creation projects, the smart community is particularly relevant in responding to new t rends in social systems. At present, advanced experiments utilizing regional resources to revitalize local areas are underway in several locations to promote these smart community projects. Through these projects, industrial promotion and employment creation are expected to develop further business opportunities.