@Green March/April 2021 | Page 7

March-April , 2021 | @ green

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07

Innovation and market reform needed

Japan ’ s success in making its energy system more resilient and sustainable is good , but reaching carbon-neutrality by 2050 requires quick action now

Japan will need to move quickly to make headway on the steep emissions reductions that are required to achieve its recently announced ambition of reaching carbon-neutrality by 2050 , the International Energy Agency said its latest in-depth review of the country ’ s energy policies .

Nearly a decade after the 2011 earthquake and the resulting Fukushima nuclear accident , Japan has made real progress towards developing a more efficient , resilient and sustainable energy system .
It has embarked on major reforms of its energy market and diversified its energy mix . Energy-related CO2 emissions have fallen continuously since their peak in 2013 , thanks to the expansion of renewable energy , the restart of some nuclear power plants and energy efficiency gains .
By 2018 , Japan ’ s emissions had declined to a level last seen in 2009 . Reliance on fossil fuels has also declined but remains high at nearly 90 per cent of energy supply , making Japan among the most carbonintensive economies of IEA members .
“ Japan needs to accelerate the deployment of low-carbon technologies , remove regulatory barriers and increase competition in its energy markets if it is to reach carbon-neutrality by 2050 ,” said Dr Fatih Birol , the IEA ’ s Executive Director , who launched the report at an online event with Shin Hosaka , Commissioner of the Agency for Natural Resources and Energy at Japan ’ s Ministry for Economy , Trade and Industry .
“ I welcome Japan ’ s new Green Growth Strategy that puts emphasis on these priorities . The IEA is committed to supporting the government in these vital efforts .”
The new IEA report on Japan ’ s
country alone cannot provide long-lasting solutions to a collective problem .
Being aware of the need to tackle this issue regionally , with the full engagement and support of the ASEAN + 3 member States , IGES and ERIA will utilise their expertise to formulate regional policy recommendations by promoting circular economy as the key to sustainability in the region .
Turkey has made solid progress in recent years in improving the security and diversity of its energy supplies but should also pay close attention to the sustainability and longer-term carbon footprint of its energy sector .
Since the previous IEA in-depth review of Turkey in 2016 , market reform and energy security have remained the guiding principles of the government ’ s energy policy .
Rapid economic and population growth in the past two decades have not only driven strong growth in energy demand but also an increase in import dependency , especially for oil and gas .
As a result , Turkey has emphasised security of energy supply as one of the central pillars of its energy strategy .
This includes efforts to expand domestic oil and gas exploration and production – which received a significant boost from the recent discovery of the giant Sakarya gas field in the Black Sea – and to diversify oil and gas supply sources and infrastructure .
Turkey has also sought to strengthen the security of its energy supply by increasing production of renewable energy and reducing energy consumption through increased energy efficiency .
Auctions , in particular , have proven successful in driving down costs and increasing investments in renewables .
Aerial view of Shiodome , Tokyo , Japan . policies analysed its energy challenges and recommends possible solutions to help it achieve a secure , affordable and sustainable energy future .
It finds that Japan has made important strides in reforming its domestic electricity and natural gas markets . The increasing competition in these sectors is encouraging , but further reform is needed to achieve a true level playing field for all market participants .
Additional regulatory reforms will be important to encourage investments in zero-emissions electricity and to improve power system flexibility . The IEA also called for policymakers to ensure that the market regulator has sufficient powers and independence .
The report highlighted that Japan had seen continuous growth in renewables in the power sector , but that grid constraints had hampered investment in new projects and posed challenges to security of supply .
Creating a well-integrated national grid and taking steps to improve the operational efficiency of the electricity system would facilitate the integration of more renewables while

Turkey ’ s success in renewables

The planned commissioning of Turkey ’ s first nuclear power facility in 2023 will further diversify the country ’ s lowcarbon fuel mix .
“ Turkey has seen significant diversification of its energy mix in the past decade . In particular , bolstered by a supportive policy environment , renewable energy has grown impressively , led by hydropower , solar and wind ,” said Dr Fatih Birol , the IEA Executive Director , who launched the report recently with Dr Alparslan Bayraktar , Turkey ’ s Deputy Minister for Energy and Natural Resources .
Turkey ’ s renewable capacity grew by 50 per cent over the last five years . In 2019 , Turkey had the fifth highest level of new renewable capacity additions in Europe and the 15th highest in the world .
The IEA report noted that Turkey could achieve even stronger growth in renewables – especially solar , wind and geothermal – given its considerable resource endowment .
Its rich potential for expansion of renewables is not limited to electricity generation but is also relevant in the heating sector . Notably , Turkey uses only an estimated three per cent of its solar and 15 per cent of its onshore wind potential .
For Turkey to establish a modern and competitive economy , the report enhancing system resilience .
The recent cold snap in January led to very low reserve margins in Japan ’ s electricity systems . This event provided a reminder of the importance of regional interconnections and the need to have sufficient generation capacity .
The IEA welcomed the government ’ s recent announcement to phase out inefficient coal plants by 2030 . This will further improve the already high efficiency of Japan ’ s thermal power fleet .
Yet even efficient coal plants emit more CO2 than any other power generation source , and Japan ranks among the few IEA members that plan to add new coal capacity .
Japan should tackle emissions from those new coal power plants by retrofitting , repurposing them as flexibility sources or able to use other fuels , or through other measures to help them avoid becoming stranded assets .
The IEA report highlighted that Japan ’ s strong innovation and technology base could play a vital role in developing the technologies needed to achieve its 2050 energy and climate ambitions .
“ I applaud Japan for its leadership in advancing low-carbon hydrogen and carbon-recycling technologies , which will be crucial for decarbonising sectors where emissions are hardest to reduce , such as long-distance transport and heavy industry ,” Dr Birol said .
Reducing the costs of these technologies will be essential to promote their deployment at scale . Stronger reliance on market-based instruments is an additional option for Japan to reduce emissions costeffectively , foster innovation for low-carbon technologies and further increase Japan ’ s already high level of energy efficiency .
highlights that the government should pay close attention to the sustainability of its energy sector and its longer-term carbon footprint .
In particular , Turkey should reconsider the role of lignite-based power generation in a low-carbon future . It will be equally important to direct industrial policy to take into account the growing momentum behind global clean energy transitions . This can take the form of further promoting innovation in areas such as electric vehicles , energy storage and digital technologies .
Turkey has already made significant progress on liberalising energy markets in the last decade , successfully improving predictability and transparency in pricing .
However , additional reforms to make gas and electricity markets more competitive will help mobilise the investments needed by these sectors , including for clean energy technologies . “ Turkey has achieved impressive results in the past decade in liberalising its energy markets , boosting the role of renewables and improving its energy security . I hope this report will help inform Turkish policy makers ’ decisions as they look to navigate the next phase of the country ’ s energy development in the most cost-effective , secure and sustainable way possible ,” said Dr Birol .