What is energy?

Energy is the ability to do work, a term derived from the Greek word "energeia" which means "ability to work." The "work" referred to here involves applying force to move an object and denotes "motion, heat, sound, light." Various forms of energy abound in our surroundings, and these can be classified into the following seven categories.

Primary energy refers to energy that can be directly obtained from nature, such as oil, natural gas, coal, firewood, hydropower, atomic energy, wind power, tidal power, geothermal energy, solar power, and cow dung, among others. On the other hand, secondary energy refers to electricity, city gas, Oil and gas products such as gasoline and kerosene, and petrochemical products like plastic that are obtained by converting and processing primary energy. In addition, secondary energy is the final form of energy that we consume in our lives, and it is also known as final energy.

Secondary energy is used for industrial purposes (electricity, raw materials, fuel), transportation (mainly fuel), and residential use (mainly electricity). Fossil energies such as oil, natural gas, and coal are used not only for electricity, but also for fuel and raw materials, whereas nuclear power and renewable energy are primarily used for electricity. In recent years, hydrogen, which has been drawing attention as a new source of energy, is classified as secondary energy because it is scarce on the Earth in its pure form and needs to be produced from other substances.

Significant energy loss occurs when primary energy is converted and processed into secondary energy, particularly when fossil energy is converted into electricity.

Energy is essential for our daily lives and business activities. Energy consumption continues to increase worldwide, and according to the International Energy Agency (IEA), by 2040, the consumption of energy is expected to increase by 1.3 times compared to 2014, driven by economic growth in India, China, and emerging nations in Asia.

Economic growth isn't the only factor; population growth also has a direct correlation with energy consumption. Population growth is expected to continue in South Asia, centered on India, and Sub-Saharan Africa. The global population was 7.7 billion as of 2019. Future predictions by the United Nations suggest that it will reach 8.5 billion by 2030, 9.7 billion by 2050, and further increase to 10.9 billion by 2100, eventually stabilizing around 11 billion. Accompanying this population growth, securing energy stability is an important issue, particularly in Japan, which has a low energy self-sufficiency rate.

On the other hand, dependence on fossil energy leads to an increase in the concentration of carbon dioxide in the atmosphere, which is a major factor causing global warming (climate change) and an increasing incidence of abnormal weather. Therefore, reducing carbon dioxide emissions is an urgent issue that the entire world should work on.

An energy mix is the variety of energy sources used to provide essential electricity for living. It expects to deliver electricity in a balanced manner by leveraging the characteristics of oil, natural gas, nuclear power, and renewable energy, and securing these sources is an essential task.

Despite a declining population in Japan, future electric power demand is predicted to increase due to the introduction of electric vehicles (EVs) and advancements in the IT industry.

An important principle in Japan, which has a low energy self-sufficiency rate, is the S+3E (Safety plus Three E's) policy. Considering geopolitical risks such as the invasion of Ukraine, the Israeli-Palestinian conflict, and responses to climate change, an energy mix (power source composition) that integrates four ideals: Energy Security, Economic Efficiency, and Environmental compatibility, while ensuring Safety, is essential.

On the other hand, it's crucial to also take into account the potential drawbacks of an energy mix. Particularly for Japan, which depends almost totally on imports for fossil fuel sourcing, it's necessary to consider diversifying procurement sources and measures against price surges when demand exceeds supply. Additionally, ensuring the safe operation of nuclear power plants and waste disposal is mandatory.

Solar and wind power, which are considered primary renewable energies, are often referred to as environmentally friendly energies that never exhaust and emit little CO₂. However, they are dependent on weather and climate conditions, and in Japan, with its small land area, potential sites for installation are limited. Furthermore, extracting renewable energy requires significant mineral resources. Securing the logistics of these resources is another concern that must be noted.

The Japanese government has set a goal to reduce greenhouse gas emissions by 46% by 2030 compared to the fiscal year 2013. To realize this, Japan aims to increase its energy self-sufficiency ratio, which is about 13%, to 30%. Concurrently, it's also essential to improve the technological self-sufficiency rate to compete with the West from an economic security perspective.

Regarding energy conservation, Japan has set a goal to increase its energy-saving target to 20% more than the current target by fiscal 2030. For renewable energy, the goal is to double the current proportion of electricity generation by fiscal 2030. For thermal power in the energy mix, the plan is to reduce the generation ratio as much as possible, with stable supply as a premise. For nuclear power, they expect it to be around 20–22%, as indicated by the current energy mix. Furthermore, new targets have been set for Hydrogen and ammonia power generation, expected to cover 1% of the power composition by 2030.

Finding the proportion of each individual energy to be supplied in the future is not easy, as it involves predicting the progress of technology. However, the ultimate goal is to realize decarbonization through various routes. Under these complex circumstances, INPEX has a responsibility to provide a stable supply of cleaner energy.