Japan’s energy players need to stay nimble
Japan’s energy players need to stay nimble to navigate challenges and seize opportunities brought about by the energy transition, say panellists at the Tokyo edition of SIEW Energy Insights.
Held in partnership with the Institute of Energy Economics, Japan (IEEJ), the panel shared perspectives on global uncertainty in the oil and gas markets and the role of technology.
Hiroshi Hosoi, Executive Vice President of JX Nippon Oil & Gas Exploration Corporation, said that Japan faced global and domestic uncertainties in the form of geopolitical developments and market reforms.
Oil and gas important for Japan’s energy future
Oil and gas will continue to be important for Japan’s energy future. Renewables alone would not meet the country’s overall energy demand. For this, upstream oil and gas investments and the role of technology would be critical.
The panel agreed that given Japan’s reliance on gas imports from the US and the Middle East, collaboration with producers remains important going forward. On the risk of resource nationalism, the panel stressed the importance of international cooperation.
Collaboration between traditional and new energy players needed
At the same time, traditional oil and gas players must collaborate with new energy players to find solutions to ensure Japan’s energy security, said moderator Yukari Yamashita, Board Member & Director of Energy Data and Modelling Center, IEEJ.
Is wind losing to solar in Japan?
There were also discussions on wind and solar power in Japan. Compared to other countries, the adoption rate of wind power generation in Japan has been much lower than solar. One reason could be the Feed-in-Tariff policies in Japan. That said, wind power is making steady progress. Investments for wind power generation will be needed for long-term development.
Free competition and protection needed for market liberalisation
Yukinobu Uchida, Country Manager, Japan of DNV GL-Energy said that the best way to achieve market liberalisation was to balance free competition and protection, and ensure transparency in electricity charges for consumers. The panellists also shared that Japanese energy companies were looking to expand overseas due to demographic trends in Japan, with technology transfer as their global value proposition.