[Column Series] Key Issues to Address in Japan's Strategic Energy Plan (No.10) "24/7 Carbon-Free" Achievable with RenewablesConcern about Nuclear with Radioactive Waste

in Japanese

[Special Contents] Key Issues to Address in Japan's Strategic Energy Plan

The Climate Group, organizing an international initiative “RE100”, has launched a new project to promote the electricity decarbonization following RE100. Called the “24/7 (twenty-four seven) Carbon-Free Coalition,” the project encourages corporate energy consumers to use carbon-free electricity 24 hours a day, 7 days a week, regardless of the day of the week. It is an effort to mitigate climate change by eliminating fossil fuel-based electricity from the global power grid. Founding partners in the project include Google and Iron Mountain Data Centers from the United States (US), AstraZeneca and Vodafone from Europe, Shree Cement and AirTrunk from Asia Pacific. The project is expected to expand participating members and begin full-scale activities in 2025 (press release¹).

Of the six companies, Google commits to procuring 24/7 carbon-free electricity for the data centers operated around the world by 2030. Google already achieved the RE100 goal in 2017 by procuring 100% renewable electricity on an annual basis. Since then, the company has continued to procure 100% renewable electricity. However, an analysis of the electricity used in the data center shows that it contains electricity with carbon (Chart 1). Google is working to mitigate climate change by using carbon-free electricity during all hours of the day and accelerate its activities toward 24/7 carbon-free.

Chart 1. Hourly Electricity Consumption at the Google Iowa Data Center in 2019

A Japanese company is now operating a data center with 24/7 carbon-free electricity. Kyocera Communication System opened the Zero Emission Data Center in Ishikari City, Hokkaido on October 1, 2024. In addition to its own solar power plant, the company procures electricity from an offshore wind farm that began operation in January 2024 at the nearby Ishikari Bay. This is an attempt to achieve 24/7 carbon-free only with renewable electricity.

Corporates Responsible for Radioactive Waste by Procuring Nuclear Power

One of the reasons why major data center operators are actively involved in 24/7 carbon-free is because the demand for data centers is expected to further increase in the future, leading to an expansion of electricity usage. If they do not reduce carbon emissions associated with electricity use as much as possible, they will not be able to fulfill the corporate social responsibilities. Global leaders of data center business, Google, Microsoft and Amazon recently signed long-term contracts to purchase nuclear power in the US, in addition to electricity from solar, wind, geothermal, and other renewables.

By purchasing nuclear power and supporting power producers, corporates become responsible for the disposal of radioactive waste associated with electricity generation. So far Google, Microsoft and Amazon do not mention that procuring nuclear power will increase radioactive waste. In addition to spent nuclear fuel, nuclear power generation requires a strict system for the management and disposal of high-level radioactive waste generated by decommissioning nuclear power plants after they are no longer in operation. If corporates actively procure nuclear power, they should be considered responsible for the disposal of such radioactive waste. However, in the United States, where the three companies have signed contracts to purchase nuclear power, there are no plans to build a final disposal facility to strictly manage and dispose of high-level radioactive waste.

Sustainability is always required for corporates to implement activities to mitigate climate change. It is required when using renewables. For example, RE100 has a requirement for hydro and bio energy to meet sustainability criteria. The decarbonization of electricity must be done in a sustainable manner, and the use of nuclear power for 24/7 carbon-free must be sustainable.

The European Union (EU) defined a “taxonomy” of economic activities for achieving carbon neutrality by 2050. Regarding nuclear power, taxonomy requires a concrete plan to have a final disposal facility for high-level radioactive waste operational by 2050. Currently, Finland, France and Sweden are the only countries meeting this requirement.  Considering the EU requirements, no other countries including the US and Japan are eligible for producing nuclear power in a sustainable manner. Corporates need to take this into account and should be cautious about procuring nuclear power.

Nuclear Power Remains Only 9% Globally and Costs More than Double

According to the World Energy Outlook 2024 (WEO2024) published by the International Energy Agency (IEA) on October 16, 2024, the share of nuclear power in the global electricity generation is estimated to be only 9% in 2023, 2030 and 2050 in the Announced Pledges Scenario (APS). Renewables, on the other hand, go from 30% in 2023 to 52% in 2030 and reach 83% in 2050 (Chart 2, Table 1). Nuclear power is only a complement to renewables in decarbonizing the global electricity and will not be a major option in the 24/7 carbon-free deployment.

Chart 2. Global Electricity Generation in Different Scenarios

 Table 1. Global Electricity Generation and Shares in the APS

One of the reasons the IEA does not anticipate significant growth in nuclear power is the high cost of electricity generation. WEO2024 estimates the cost of electricity generation in the US, EU, China, and India (Table 2). In the APS, the Levelized Cost Of Electricity (LCOE) for nuclear power in the U.S. will remain unchanged at USD110/MWh (US Dollar/Mega-watt hour) from 2023 to 2050. In contrast, solar PV (Photovoltaic) will decline from USD55/MWh in 2023 to USD35/MWh in 2030 and to USD25/MWh in 2050. Onshore wind will be USD35/MWh in 2050, and offshore wind USD50/MWh less than half of nuclear. In the EU, China and India, the cost of solar and wind power will also be significantly lower than nuclear. In each country and region, nuclear power will increase costs for corporates over the long term. Purchasing nuclear power in a large amount is not feasible. When purchased, it must be limited as a supplement to renewables.

Table 2. Generation Costs in Selected Regions in the APS

It is reasonable to expect similar trends in generation costs in Japan in the future. When the issues of economy, safety and radioactive waste disposal are considered, it is desirable to promote 24/7 carbon-free using only renewables. There is a large amount of renewable energy potential in Japan, especially for solar and wind. Combined with batteries, which are becoming less expensive, and the use of digital technologies to manage electricity supply and demand, it is possible to achieve 24/7 carbon-free only with renewables. In Japan, where the Fukushima Daiichi nuclear power plant accident caused extensive damage, earthquakes continue to occur frequently. We see no reason for corporates to procure nuclear power and take significant risks including disposal of radioactive waste.

[Special Contents] Key Issues to Address in Japan's Strategic Energy Plan