Regionally Independent Energy Systems and the Future of the Electric Industry

ABSTRACT

Increasing the independence of energy supplies in Japan's regional areas will help to strengthen regional economies as well as reduce environmental burdens. Though deregulation in the energy field is currently underway, the independence and efficient use of energy at the local level must be enhanced by the use of market mechanisms. To achieve this goal, it will be necessary to improve the price competitiveness of locally obtained energy.

Electricity price trends are the subject of much attention in the energy field. Fluctuations of electricity prices have a profound effect on the introduction of new energies, as well as on the implementation of energy-saving programs. The competitiveness of diversified energy sources such as microgas turbines and fuel cells is likely to improve in the future. By compiling a projection of the price of electricity until the year 2010, it can be predicted that the use of diverse energy sources will make it feasible to provide electricity prices equivalent to or cheaper than those of Tokyo Electric Power Company-the power company with the strongest management structure in Japan. Accordingly, an energy supply system that will complement a sudden increase in the introduction of diverse energy sources should be developed with haste.

An array of new methods is currently being proposed in the fields of energy, the environment, and waste disposal. According to estimates regarding the effects of introducing the so-called "nega-watts" method, substantial energy savings could be achieved.

Establishing an environmental system that includes local and diverse energy sources and resource recycling will become a possibility in the future. A stable energy supply is fundamental to local economic development; diverse energy sources will lead to the diffusion of safe, disaster-proof facilities, as well as contribute to lower electricity prices. Local governments should hasten to introduce decentralized energy source development policies.

Since biomass resources vary greatly from region to region, however, each region must take a close look at creating resource-circulating systems with a low environmental burden and adopt the system most appropriate for their individual areas.