IEEJ：March 2016 © IEEJ2016

Press Briefing Paper
8 March, 2016
The Institute of Energy Economics, Japan

World Economic Forum; Global Energy Architecture Performance
Index Report 2016 and Japan Energy Security Roundtable

BackgroundWorld Economic Forum has released the ‘Global Energy Architecture
Performance Index Report 2016’ which is the 4th edition since 2013 publication.
It creates indexes to analyze energy system in each country in light of following
3 pillars namely; Economic Growth and Development, Environmental
Sustainability, and Energy Access and Security.

In an occasion of 2016 publication of the report, the Institute of Energy
Economics, Japan (IEEJ) and leading experts (from government, academia,and private sector) are gathered at roundtable to discuss its implication forJapan.

Two other reports were provided as materials for thought;
Risk assessment index of fossil fuel import, the Agency for Natural
Resources and Energy (ANRE), government of Japan.

Long-term energy security assessment index, the Economic ResearchInstitute for ASEAN and East Asia (ERIA [edited by IEEJ]).

(see the Reference for outline and characteristic of each analysis)
1.

First, the participants were shared understanding that each analysis has their own
characteristics. The World Economic Forum’s report is distinctive in wider
geographical coverage (126 countries) and wider aspect of assessment. The ERIA’s
report, although it only covers Asian countries and assessment view point isnarrower than World Economic Forum’s one, it is distinctive in looking at long termtransition since 1970s. The ANRE’s report, which is focused on fossil fuel importrisk, is distinctive in its method of creating indexes. It was noted in the roundtablethat discussion shall based on recognition for each characteristic, and analyses cancomplement each other to deriver deeper implication.

2.

All the reports are commonly indicates remarkably low level of Japan’s
self-sufficiency. A recognition was commonly shared that Japan is naturally containvulnerability of heavy dependence for import of her energy supply which arises
from lack of fossil fuel resources, halt of the most of nuclear power plant operation,and being en route to disseminate renewable energy use.

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3.

In terms of energy import risk, difference of analysis result between that of World
Economic Forum and ANRE was drew attention. The latter rank Japan at low
because of low fossil fuel self-sufficiency rate, high Middle East dependence, andsea-lane risk. The report also said that it has further deteriorated after shut downof nuclear power plant since 2011. While the former rank Japan at relatively high(21st among 125). It explains that low self-sufficiency is complemented by sufficientcommercial energy supply and well diversified import partner and fuel choice.
ERIA’s analysis which assesses long-term transition is supporting World Economic
Forum’s analysis. Based on these analysis, participants were shared an idea that it
is importance for Japan to continue promoting diversify import partner and fuelmix to cope with her inherent security risk.

4.

In the World Economic Forum’s report, Environmental Sustainability is the lowest
ranked element for Japan (89th among 125). Environmental Sustainability
evaluates air pollution including CO2, average fuel economy of automobile, andshare of renewable energy and nuclear in primary energy supply. Background of
low rank is lower share of renewable energy and nuclear, and accordingly higher airpollution. Round table was discussed necessity of increase use of renewable energy
to develop more robust energy system. At the same time, rationality of combined
use of nuclear was mentioned since renewable energy still has challenges in its
availability and economic efficiency in particular for short to mid-term.

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Reference) Outline and Characteristic of Each Analysis
World Economic Forum
ication
Assessment

ERIA (IEEJ)

every year since 2013

June 2012
10 yrs. average from 1970 to 2009 年

December 2014

126 countries(assess long term transition)
ASEAN, Australia, China, India, Japan
Korea, New Zealand (16 countries)(before and after of the 2011 earthquake)G7 countries, EU, China, Czech,Denmark, India, Korea, Norway, Poland,Russia, Sweden, Vietnam (18 countriesand region)

3 pillars and 6 elements for each.

Divide energy security into a several

Focus on fossil fuel import risk

- Economic Growth and Development

elements through supply chain.

Calculate expected value and deviationelectricity price, diesel/gasoline price,- Resource acquisitionof crude oil production. Lower deviationenergy import/export cost, GDP/toe

self-sufficiency, R/P, diversity of importis defined as lower risk.

- Environmental Sustainability

partner/TPES/power

Frequency of war/conflict and sea-lane

automobile fuel economy, PM2.5, CH4,

East dependence

N2O,- Resilient domestic supply chain

single year

year
Subjected
countries

Assessment

ANRE

CO2,

shareofitem,

energy/nuclear

method- Energy Access and Security

renewable

supply,Middlecompare 2010 and 2012

risk are added.

reserve margin, blackout frequency /time, access for commercial energy

self-sufficiency,

diversityofimport

partner/TPES,

electrificationrate,- Demand management
energy efficiency

quality of electricity supply, solid fuel- Emergency contingency

useon land oil stock- Environmental sustainability
CO2 emission

Evaluationof Japan- 50th among 126- Has been improved self-sufficiency,- Fossil fuel supply risk is higher than

- Low self-sufficiency

diversity of TEPD/electricity, and energy

other countries- High electricity priceefficiency- Shut down of NPP has increased a risk

- Low non-fossil fuel supply-- Shut down of NPP has worsen adependencesituation

condition

Difficulttoreduce

because

3/4ofMiddle

East

geographical- Import from low risk country (NorthAmerica, Austria) is beneficial

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Contact :report@tky.ieej.or.jp