We are in the midst of an energy revolution that is occurring on a global scale.
In Europe and other areas, we are steadily proceeding from conventional power sources to supplying 100% of power through natural renewable energy. In addition to reducing CO2 to stop global warming, renewable energy can be supplied stably to various parts of the world by effectively utilizing semi-permanent resources such as the sun, wind, geothermal energy and hydro power.
Furthermore, renewable energy is generally a system of distributed local energy production completely different to the centralised large plant model that electric power companies have been maintaining until now. By using energy sources in each region which best match that region’s needs, it is possible to efficiently supply power even for society as a whole. To become self-sustaining in energy is a big boost to the independence of each region.
So, what about the situation in Japan? After the nuclear accident in Fukushima, a Feed-in Tariff (FIT) system was introduced in order to promote the spread of renewable energy in Japan. However, renewable energy has not spread as much as was expected. For example, the general perception is that solar power generation is a transient boom economy. The Japanese Power Supply Composition of 2030 issued by the Ministry of Economy, Trade and Industry (METI) notes that renewable energy is expected to comprise only 22-24% of power generation, and surprisingly, 20% of the remaining power is expected to come from nuclear power generation.
Japan’s energy self-sufficiency rate is only 6%. Fossil fuels such as oil and coal imported for the remaining 94% will surely disappear in the near future. And fossil fuels suffer not only from unstable market prices but are also greatly influenced by the exchange rate. Given the reality that Japan’s debt exceeds 200% of GDP and that it has become the world’s largest debtor, renewable energy is the only path to self-sufficient energy. That is why it is urgent to shift to infinite natural energy.
In countries that are aware of it, the energy revolution is steadily expanding. Throughout the world, solar power generation and wind power generation have already become cheaper power sources than fossil fuels.
“Grid parity” in which the cost of renewable energy is cheaper than fossil fuel is a process that we have to achieve and we have incorporated this thinking in GPSS: Grid Parity for Sustainable Society.
In order to achieve grid parity and ultimately aim for a society with 100% renewable energy, GPSS Holdings will do all that we can do.