Osaka - Sunday, May 22, 2011
In a popular morning TV programme this morning, there was an interesting short discussion on energy policy of Japan, which started with the excerpt of the recent comment of Prime Minister Naoto Kan about “separation of power generation and power transmission”.
The basic idea agreed by the panelists was that Japan is at the verge of change in its energy policy, which requires paradigm shift in the way of thinking, and that vision based on solid philosophy delivered effectively and clearly by the Prime Minister.
1. How has electricity power business in Japan been until today?
Currently, electricity power companies such as Tokyo/Tohoku Electric Power Co., Inc. (TEPCO) have been responsible for both generation and transmission of electricity/power, based on the concept of “stable electricity supply”. In short, it has been of centralization of power supply
Under this situation, electricity power companies allocated by regions of responsibility such as Tokyo/Kanto, Tohoku (north eastern Japan), Chubu (midlands including Aichi where Toyota is located), and Kansai (Osaka, Kyoto, Kobe etc.) have been monopolizing electricity power businesses in their region.
2. What is “separation of power generation and power transmission” and what could it mean?
It is to separate power transmission from power generation.
This means dispersion and diversification of power transmission from centralization. It is quite similar to the ongoing transformation of information by the emergence of the Internet and social media.
It can be also quite similar to what happened in capital by the financial policy change before 2000 that triggered “Financial Big Bang” and reorganization of financial industry/sector in Japan. This was due to implementation of principle of competition and market mechanism in the financial sector.
Separation of power generation and power transmission is expected to implement the same principle in the energy supply sector as well, allowing power supply companies enter the market. It could also mean individuals who generated electricity by such system as solar to provide electricity to the public.
As a result, it is quite possible that citizens would benefit from reduction in their monthly electricity fee payment.
3. Is there any country that implemented this policy with success?
Yes, there is. It is Germany.
As a result of separating power transmission from power generation, the supply of natural energy increased from 6% to 16%. And the country aims to further increase to 30% by 2015 or so.
4. What are other requirements to increase natural energy?
1) Financial support from the government
In the initial stage, support from the government, financial in particular, is required because cost of anything new to the market is extremely high. A good, easy-to-understand example is of AV product of new technology and/or format and the author would like to add the explanation of this mechanism.
For example, when first launched in the market, LCD and plasma flat panel TVs were so expensive that the general public could not afford. But with further technological innovation and others, the cost went down so it became more affordable for more people. The more people buy and use the product, the great the reduction of the price per unit due to reduction in production cost per unit.
And when it reaches a “critical mass”, the product becomes popular all of a sudden, which is usually said that when 16% of the people in the market use the product.
Financial support from the government at the initial stage could speed up the whole process in popularization of natural energy.
2) Vision, roadmap, regulations and systems set by the government
Easy-going approach would only lead to failure of natural energy popularization. Solid energy supply vision, roadmap, regulations and systems to achieve the vision. Not only Germany but all other countries that the government initiated popularization of natural energy developed and implemented them.
3) Environment to drive popularization
There may be many factors for an environment to drive popularization of natural energy. One is the recent popularization of smart grid.
5. What should happen to the nuclear power?
This is a question that provokes a hot discussion. There were interesting comments by a panelist of the TV programme, whom he said is that he is more of a person who has been initiating nuclear power.
That is that Japan is the only country that has been leveraging nuclear power for electricity use only and not for producing atomic bombs (although it is the only victim country from atomic bomb in World War II).
Japan is also a country that has engineers in this realm, and since there are many neighbouring countries that initiate nuclear power generation, Japan is expected to protect the engineers and allow/encourage them so that they can utilize their skills and know how to such countries.
6. What are the author’s final thoughts?
The author is not a specialist in this realm but from general understanding she fully understands what the panelists said and agrees, especially the comment about the nuclear power made at last as conclusion.
It might be ideal to abolish nuclear power immediately; however, it is simply not feasible to do so completely and immediately under current circumstances of power generation; i.e. balance of demand and supply of electricity. Should nuclear power be immediately abolished, serious electricity shortage would spread worldwide and not only in Japan which has been suffering from electricity shortage since March because operation of Fukushima and recently other nuclear power plants are halted.
The electricity shortage is expected to be a serious problem in summer when electricity use is at one of the peak in the year therefore the country has been making upmost efforts to overcome it by all possible means as mentioned in the previous article 15% Energy Cut without Production Cut – The Japan Disaster as well as planned blackouts in Kanto (e.g. Tokyo, Yokoyama, Chiba) in March but worldwide.
With such a reality, while Japan is expected to terminate the Fukushima nuclear power issue with help and support from around the globe while it is also expected to protect and support its nuclear power engineers and encourage them to leverage their skills and know how for “safe and appropriate use of nuclear power” globally. This is based on mutual help philosophy.
And of course, all countries and parties are expected to get together to make innovation for discovery and/or proliferation of alternative energy while saving energy for sustainability and prosperity of our planet.
2011年5月22日日曜日
2010年3月20日土曜日
Is Decentralized GW Long Holiday Good?
Osaka – Saturday, March 20, 2010
March 22, Spring Equinox Day, is National Holiday in Japan and therefore today is the start of our extended weekend. The next National Holiday/long holiday is Golden Week Holiday in May. Japanese government is planning to decentralize Golden Week Long Holiday, usually set May 3 – 5 (with April 29 as a National Holiday, weekend and strategic office shut down, some companies make a long holiday of April 29 – May), but most Japanese citizens seem to be against the idea, according to a recent TV news in Japan. In this article, the author would like to explain the objective and overview of the government’s plan and introduce different views of the citizens from different standpoint.
1. What is the objective/background of the plan?
The government came up with the plan as an action plan of the fourth field of focus of the growth strategy, which is tourism and local community, mentioned in the previous article How Japan's Growth Strategy Shoud Be? They believe that this plan would improve tourism to boost the economy, and make Japan a Tourism-Oriented Country.
2. What is the plan?
The plan is to decentralize Golden Week long holiday usually set May 3 (Mon) – 5 (Wed). With weekend, this would make 5 day holiday. They plan to divide Japan into 5 regions, and set GW holiday of each region separately, in different week. For example, GW long holiday for region 1 is May 3 (Mon) – 5 (Wed), region 2 is May 10 (Mon) – 12 (Wed), and so forth.
GW long holiday in good climate is one of the best seasons of the year to going on a vacation and sightseeing, and a result, GW holiday is notorious for crowdedness. With the plan, the government believes that people going to on a vacation and sightseeing will not be concentrated in a particular period but will be dispersed meaning less crowdedness. They believe this would encourage more people to go on holiday and sightseeing on accumulated basis, leading to greater consumer spending in total.
3. How each segment Japanese citizens view the plan?
When the broadcasting company asked 200 citizens whether they are in favour or against the play, only 58 people answered that they are in favour and the remaining 132 answered that they are against the plan.
According to the interviews conducted to major segments, the result was the same. Although sightseeing and accommodation industry segment are mostly in favour, other segments are against the plan.
1) Sightseeing spots and hotels are mostly in favour.
Major and popular sightseeing spots and hotels are in favour. This is because they believe that decentralization of the long holiday meaning less crowdedness would attract more tourists in total and therefore would be a big advantage for their business.
However, minor, less popular sightseeing spots and hotels are against the plan. This is because tourists that would visit them to avoid crowdedness of the popular sightseeing spots and hotels would not need to avoid the crowdedness, so they may well be attracted to popular places and hotels. And therefore, they believe that the plan would have negative impact on their business.
Travel agencies and souvenior shop owners are in favour, for the same reason with major and popular sightseeing spots and hotels.
2) Companies are mostly against.
Companies are mostly against the plan, whether they are operating nationwide or locally.
Companies operating nationwide are strongly against the plan. This is because one branch of a region would be off when all other branches in other regions are operating, and this would cause many problems, especially in logistics and (online) accounting.
Quite a few companies operating locally (exclusively in one region) are also against the plan. This is because the influence they have from the market and business partners operating in other regions of different GW holiday would cause many problems to their operation.
A food company making and supplying lunch to schools insist that they would not be able to obtain necessary ingredients. This means they would not be able to operate smoothly, therefore, they would not be able to meet their customer needs and thus give negative impact on their business.
A fish wholesaler insists that the plan would decrease their business opportunity. This is because its means no business if their market (Tokyo, Osaka etc.) is closed when they are operating.
Other factories are against because decentralized long holiday makes them difficult for them to set their own holiday, i.e. the time to shut their plant down, for the same reason.
3) Households and individuals are mostly against.
Individuals and households are against the plan, excluding a few.
Although a female in 20s are in favour, because sightseeing spots and hotels would not be so crowded, another female is against because she would not be able to go on a holiday, sightseeing or do other things with her parents. This is because her parents and she lives apart in different regions of different GW holiday timing.
A family living together was strongly against the plan for the same reason. Location of the father’s workplace, children’s school and their house happen to be of different timing of the GW holiday so the family would not be able to enjoy holiday together.
4) Education industry is against.
Education industry is against the plan because they feel the plan would have negative effect on children. The representative interviewed did not specify reason in detail; however, he may well be thinking of possible cases such as of the household mentioned above.
4. How does the government view to the reaction of the citizen?
When the broadcasting company reporter briefly explained the above views of the citizens, the government representative replied that the concept of the plan is boosting tourism to make Japan a Tourism-Oriented Country.
The objective and concept is fully understandable and it is indeed one way of boosting the economy; however, it is a question whether this plan really is a good solution to achieve the goal. What do you think?
March 22, Spring Equinox Day, is National Holiday in Japan and therefore today is the start of our extended weekend. The next National Holiday/long holiday is Golden Week Holiday in May. Japanese government is planning to decentralize Golden Week Long Holiday, usually set May 3 – 5 (with April 29 as a National Holiday, weekend and strategic office shut down, some companies make a long holiday of April 29 – May), but most Japanese citizens seem to be against the idea, according to a recent TV news in Japan. In this article, the author would like to explain the objective and overview of the government’s plan and introduce different views of the citizens from different standpoint.
1. What is the objective/background of the plan?
The government came up with the plan as an action plan of the fourth field of focus of the growth strategy, which is tourism and local community, mentioned in the previous article How Japan's Growth Strategy Shoud Be? They believe that this plan would improve tourism to boost the economy, and make Japan a Tourism-Oriented Country.
2. What is the plan?
The plan is to decentralize Golden Week long holiday usually set May 3 (Mon) – 5 (Wed). With weekend, this would make 5 day holiday. They plan to divide Japan into 5 regions, and set GW holiday of each region separately, in different week. For example, GW long holiday for region 1 is May 3 (Mon) – 5 (Wed), region 2 is May 10 (Mon) – 12 (Wed), and so forth.
GW long holiday in good climate is one of the best seasons of the year to going on a vacation and sightseeing, and a result, GW holiday is notorious for crowdedness. With the plan, the government believes that people going to on a vacation and sightseeing will not be concentrated in a particular period but will be dispersed meaning less crowdedness. They believe this would encourage more people to go on holiday and sightseeing on accumulated basis, leading to greater consumer spending in total.
3. How each segment Japanese citizens view the plan?
When the broadcasting company asked 200 citizens whether they are in favour or against the play, only 58 people answered that they are in favour and the remaining 132 answered that they are against the plan.
According to the interviews conducted to major segments, the result was the same. Although sightseeing and accommodation industry segment are mostly in favour, other segments are against the plan.
1) Sightseeing spots and hotels are mostly in favour.
Major and popular sightseeing spots and hotels are in favour. This is because they believe that decentralization of the long holiday meaning less crowdedness would attract more tourists in total and therefore would be a big advantage for their business.
However, minor, less popular sightseeing spots and hotels are against the plan. This is because tourists that would visit them to avoid crowdedness of the popular sightseeing spots and hotels would not need to avoid the crowdedness, so they may well be attracted to popular places and hotels. And therefore, they believe that the plan would have negative impact on their business.
Travel agencies and souvenior shop owners are in favour, for the same reason with major and popular sightseeing spots and hotels.
2) Companies are mostly against.
Companies are mostly against the plan, whether they are operating nationwide or locally.
Companies operating nationwide are strongly against the plan. This is because one branch of a region would be off when all other branches in other regions are operating, and this would cause many problems, especially in logistics and (online) accounting.
Quite a few companies operating locally (exclusively in one region) are also against the plan. This is because the influence they have from the market and business partners operating in other regions of different GW holiday would cause many problems to their operation.
A food company making and supplying lunch to schools insist that they would not be able to obtain necessary ingredients. This means they would not be able to operate smoothly, therefore, they would not be able to meet their customer needs and thus give negative impact on their business.
A fish wholesaler insists that the plan would decrease their business opportunity. This is because its means no business if their market (Tokyo, Osaka etc.) is closed when they are operating.
Other factories are against because decentralized long holiday makes them difficult for them to set their own holiday, i.e. the time to shut their plant down, for the same reason.
3) Households and individuals are mostly against.
Individuals and households are against the plan, excluding a few.
Although a female in 20s are in favour, because sightseeing spots and hotels would not be so crowded, another female is against because she would not be able to go on a holiday, sightseeing or do other things with her parents. This is because her parents and she lives apart in different regions of different GW holiday timing.
A family living together was strongly against the plan for the same reason. Location of the father’s workplace, children’s school and their house happen to be of different timing of the GW holiday so the family would not be able to enjoy holiday together.
4) Education industry is against.
Education industry is against the plan because they feel the plan would have negative effect on children. The representative interviewed did not specify reason in detail; however, he may well be thinking of possible cases such as of the household mentioned above.
4. How does the government view to the reaction of the citizen?
When the broadcasting company reporter briefly explained the above views of the citizens, the government representative replied that the concept of the plan is boosting tourism to make Japan a Tourism-Oriented Country.
The objective and concept is fully understandable and it is indeed one way of boosting the economy; however, it is a question whether this plan really is a good solution to achieve the goal. What do you think?
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