the introduction of measures to cope with global warming may lead to cost savings, while at the level of the overall economy, climate policy measures are believed to be likely to lead to improvements in inefficient energy systems.

Furthermore, as secondary benefits of taking measures to deal with climate change, it can also be expected that health damage from air pollution would be reduced or forests that host the bulk of global biodiversity would be preserved.

Lastly, efforts to enhance energy efficiency and diversify energy sources and energy supply as part of measures to cope with global warming will contribute to securing national energy security and is also instrumental in clarifying a long-term energy-related policy framework.

Thus, what is important is the change in our way of thinking to view the promotion of measures to cope with global warming as one of pillars for new growth, instead of focusing only on increased burdens. The “New Growth Strategy (Basic Policies),” adopted by a Cabinet decision in December 2009, regards environment-related markets as sustainable growth areas with potential short-term and long-term demand, and in order to become “an environment and energy power through ‘green innovation,’” sets the targets of creating over ¥50

## Column Smart Grid

The term “Smart Grid (next-generation power transmission network)” is being used to mean various things. For example, it is used to mean the power transmission and distribution network that incorporates dedicated equipment and software with communication functions and controls the flows of electric power from both the supply and demand sides to optimize them.

The ways in which the so-called “Smart Grid” is visualized differs among countries and regions. In the United States, the Smart Grid has attracted keen attention after the Obama administration placed it as the pillar of the Green New Deal, but appears to be aimed largely at replacing superannuated U.S. power transmission networks. Also in the background is that in the United States, unlike Japan, power demand is expected to keep growing going forward and the necessity is high to upgrade and beef up transmission lines.

In Japan, on the other hand, its power transmission network is known for high efficiency and high reliability. For example, comparison of hours of electric power outage demonstrates that Japan's power supply system is highly reliable. However, if renewable energy such as photovoltaic power generation and wind power generation come to account for a large portion of power supply, as in Europe, due to their vulnerability to weather and climate and unstable output, it will become necessary to take system stabilization measures to ensure the stable supply of electricity. For example, if power supply increases at a time when demand is low, it is necessary to take system stabilization measures such as curbing output of photovoltaic power generation or storing electricity in large stationary storage batteries in order to adjust the power supply and demand balance. In Japan, maintaining the stable supply of power and expanding the introduction of renewable energy are one of the purposes to work on the Smart Grid.

Conceptual Diagram of Smart Grid

source: Ministry of Economy, Trade and Industry, "Toward International Standardization Concerning Next-Generation Energy Systems"