Japan's Official Development Assistance White Paper 2007
Next PageMain Text > Part II ODA DISBURSEMENTS IN FISCAL YEAR 2005 > Chapter 2 Details about Japan's ODA > Section 2. Measures for Each of the Priority Issues > 3. Addressing Global Issues > (5) Energy
(5) Energy
<Record for FY2006>
In FY2006 commitments for the energy sector came to approximately ¥164.6 billion in loan aid (to eight countries) and disbursements approximately ¥4.3 billion in grant aid (to six countries). Moreover, through technical cooperation 352 trainees were accepted and 99 experts were dispatched.
<Current Status>
In order to realize economic development and improve living standards, developing countries need to ensure a stable energy supply. It is estimated that there are approximately 2.5 billion people in developing countries who do not have access to modern energy services.54 The lack of modern energy services leads to greater poverty due to the underdevelopment of industry and fewer employment opportunities and to low availability of medical services and education opportunities. Thus, it is a constraint on the qualitative improvement of economic and social life.
It is forecasted that global demand for energy will increase in the future, mainly in developing countries and particularly those in Asia. Without appropriate measures to ensure a stable supply of energy which incorporate appropriate environmental considerations, problems such as a tight supply-demand situation, energy price hikes, and increase in carbon dioxide emissions could become more prominent, which could in turn affect the sustainable development of developing countries, as well as the economy and environment of Japan and the rest of the world.
As described above, energy issues have global dimensions such as poverty, sustainable development, and environmental problems.
<Japan's Efforts>
Japan, with a view to ensuring the sustainable development of developing countries and to securing energy for its own needs, has been cooperating for stable energy supply in developing countries in the way tailored to their specific circumstances. Specifically, it is making efforts to promote anti-poverty measures through the provision of modern energy services and to ensure a stable supply of electric power in order to develop industry in developing countries. At the same time Japan is also actively advancing environmentally-friendly cooperation in the energy sector. This includes the development of energy-related infrastructure such as power generation facilities that take advantage of reduced energy loss, more efficient energy use, and renewables.
Through ODA, Japan has been assisting projects that are difficult to implement via the private sector or through OOF and that can contribute to improvements in energy efficiency, promotion of energy conservation, and promotion of the use of renewables. In addition, when assisting countries which possess natural resources, Japan is putting its efforts into promoting resource development for the acquisition of foreign currencies and self-development, and is creating strong relations with these countries in the resource field.
Japan approved loan aid in FY2006 in order to upgrade the electricity distribution equipment in the Bangalore metropolitan region in India.57 In India, the serious shortage of electricity and the power outages which frequently occur pose significant problems. The Bangalore metropolitan region is home to numerous companies, including Japanese ones, and has been achieving rapid growth in recent years as India's premier industrial base. However, problems like power outages serve as a hindrance to economic activities and to raising living standards. Japan is looking to contribute to regional economic growth and raising living standards by supporting the development of a distribution automation system and ensuring the stable supply of electricity.
Furthermore, taking the burden on the environment into account, Japan also promotes cooperation that uses renewable energy that does not emit carbon dioxide during power generation, such as hydropower and geothermal and solar energy. Japan also approved loan aid for the construction of a hydropower generating station in Kenya. Kenya lacks fuel resources such as coal and petroleum, and the deterioration of its power stations is advancing. On top of this, neighboring Uganda, from which it obtains electricity, is itself experiencing energy shortages, all of which are putting pressure on Kenya's ability to cope with the demand for electricity. It is expected that the project will expand power supply by utilizing the country's precious hydropower generation resources more effectively.
Through grant aid to Cambodia, Japan is also supporting the construction of a small-scale power facility by means of the renewable energy of hydropower.61 The background to this is the fact that there is no public power supply in the city of Senmonorom in the mountainous region on the Viet Nam border, and the city is subject to chronic electricity shortages. Electricity charges there are roughly four times those of Phnom Penh, and are priced at a level that those earning low incomes cannot possibly afford.
In addition, Japan has been carrying out technology transfers and human resources development in such fields as energy management, reduced energy loss, more efficient energy use, and renewables.
The Philippines is working toward the electrification of isolated islands and remote areas through the introduction of renewable energy. As such, Japan is promoting technology transfers and capacity development support related to small-scale hydroelectric and solar power generation.62
Rural Electrification Project, Indonesia (Loan Aid Project, FY1993 and FY1996, ¥15.09 billion)
As of December 1992, the rural electrification ratio58 on Java Island was approximately 60%, while it remained as low as little over 30% on other islands.59 To reduce the gap, the Indonesian government took initiative in developing the infrastructure, to which Japan extended assistance through loan aid.
As result of nationwide efforts, including Japan's assistance to electrify 1,562 villages, in 2002 rural electrification ratio on Java Island improved to 98.6% and that on other islands to 73.9%, significantly reducing the gap.60 The progress in electrification brought about other positive effects. For example, access to information was facilitated with the widespread use of televisions and radios, and learning environment for children improved as they could read in the nighttime.
As of December 1992, the rural electrification ratio58 on Java Island was approximately 60%, while it remained as low as little over 30% on other islands.59 To reduce the gap, the Indonesian government took initiative in developing the infrastructure, to which Japan extended assistance through loan aid.
As result of nationwide efforts, including Japan's assistance to electrify 1,562 villages, in 2002 rural electrification ratio on Java Island improved to 98.6% and that on other islands to 73.9%, significantly reducing the gap.60 The progress in electrification brought about other positive effects. For example, access to information was facilitated with the widespread use of televisions and radios, and learning environment for children improved as they could read in the nighttime.