Japan's Power Market News 2024/W45

New Government Aims to Finalize Draft of “GX2040 Vision” by Year-End

The new government held its first GX (Green Transformation) implementation council meeting after the inauguration of Prime Minister Ishiba’s administration. At the meeting, the government outlined plans to accelerate the promotion of regional decarbonization through the use of micro-grids and the development of #renewable energy power sources in high-potential regions in order to “revitalize regional economies,” as Prime Minister Ishiba has advocated.?

According to the Ministry of the Environment (MOE), regional #decarbonization (regional GX) efforts led by local governments are extremely important to achieve net zero emissions in 2050 and a 46% reduction in GHG emissions by 2030 compared to 2013 levels. In addition to helping counter rising #energy prices, decarbonization initiatives tailored to regional characteristics will contribute to solving various regional issues, such as industrial development using unused resources, strengthening disaster prevention capabilities by securing energy in times of emergency, and improving regional energy balances.??

Renewable Energy Expansion and Digital Transformation in GX2040 Vision

The government confirmed it would accelerate the development of renewable energy sources, including an expansion of support for #geothermal research and the social implementation of offshore wind power. It also stressed the importance of simultaneously advancing digital transformation (DX) using artificial intelligence to accelerate the overall GX process. The meeting reiterated the idea of using #nuclear power and other energy sources to meet the increasing demand for electricity and decarbonization that will accompany the progress of DX. A draft of the “GX2040 Vision” will be presented by the end of this year after further GX council meetings.

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