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15 April, 2019

Keidanren Promotes Nuclear Power and Renewable Energies in Electric Power Policy Proposal

On April 8, the Japan Business Federation (Keidanren) released a proposal on electric power policy. It proposes fostering an environment leading to a “virtuous circle” of investments in electric power for Japan to adhere to the “3E’s+S” principle of its energy policy, referring to the conventional three E’s of energy security, economy, and environmental protection, along with safety, while simultaneously responding to the demands of the “3D’s” of decarbonization, distribution and digitalization, a direction toward which the global electricity business is clearly heading.

Put differently, it is particularly essential to create and develop a market environment promoting investments for nuclear power and renewable energies—given the desirability of their increased use—although the ratios of their fixed costs are high. Nor can adequate investment returns be expected in a wholesale power trading market where prices are determined on the basis of variable costs. This is Keidanren’s first proposal on power policy since Chairman and CEO Hiroaki Nakanishi of Hitachi, Ltd. assumed its leadership in May of last year. At a press conference in the afternoon of April 8, Nakanishi stressed the need to take swift action to establish a mechanism to spark investments in electric power. Keidanren will boost its approaches to related parties based on the proposal. In it...more
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