Formulation of the 7th Basic Energy Plan begins, with a focus on power source composition for decarbonization
On May 15, the Ministry of Economy, Trade and Industry (METI) initiated the formulation of the 7th Basic Energy Plan. The plan aims to address topics such as the composition of power sources, decarbonization targets, and policies for the utilization of renewable energy and nuclear power, with a focus on fiscal year 2035 and beyond. As the plan will align with the government’s proposed “GX2040 Vision,” discussions will also cover the effective utilization of decarbonized power sources and the promotion of GX (Green Transformation) on the consumer side. A draft of the plan is to be compiled by the end of this year, with Cabinet approval expected by March next year. The discussions will be conducted by the Subcommittee on Basic Policy of the Advisory Committee on Natural Resources and Energy, chaired by Shuzo Sumi, Senior Advisor to Tokio Marine & Nichido Fire Insurance Co.
The secretariat presented five points for discussion: (1) GX (Green Transformation) and energy conservation on the demand side, (2) decarbonization of power sources, (3) resource strategies, including key minerals and decarbonized fuels, (4) power system reform and improvement of the energy business environment, and (5) the ideal energy mix. Additionally, it was indicated that the greenhouse gas (GHG) reduction target, the “Nationally Determined Contribution (NDC),” to be submitted to the UN by February 2025, is recommended to cover fiscal year 2035. It was also emphasized that consideration of the energy mix aligned with this target needs to be advanced.
Committee members voiced numerous opinions emphasizing the need to secure power sources to ensure a stable energy supply. Teiko Kudo, Vice President of Sumitomo Mitsui Banking Corporation, remarked, “While the promotion of decarbonization is important, energy security should also be given greater emphasis.” Regarding the nuclear power sector, Jun Sawada, Chairman of NTT, called for the development of a detailed plan, asking, “Where and how will next-generation nuclear reactors be located?