Green: The Color of Money

Here's what one of The Japan Times writers reports about the future of "smart" cities:


Tuesday, Oct. 4, 2011


'Smart city' projects revived by disasters


By HIROKO NAKATA
Staff writer
Ever since the March 11 disasters exposed the nation's dependence on conventional power sources and infrastructure, energy-efficient "smart city" projects have drawn increasing attention.

So far Japan has bucked the global trend toward smart cities, which take advantage of IT-controlled power grids and renewable energy. But the quake and the subsequent nuclear crisis have persuaded policy-makers and businesses to kick-start the construction of communities that can use multiple energy sources, experts say.

"The sense of need changed after March 11," said Teruyoshi Takesue, an analyst specializing in advanced technology at Nomura Research Institute Ltd.

"Before March 11, the reason to build the cities was unclear," he said. "But after that day, the central and local governments strongly felt the necessity to tackle the issue as a step to protect the infrastructure from natural disasters."

The outlook for related business is bullish as well, experts say.

According to marketing and consulting firm Fuji Keizai Co., the domestic market for related devices is expected to grow more than five-fold from 2010 to 2020, reaching ¥491.3 billion.

The devices include smart meters that send data to utilities for monitoring power consumption and billing, and power conditioners that can improve the quality of the electricity.

The market for electric and other fuel-efficient cars will grow even further — more than 40 times to ¥599.5 billion in the same year, it said in a recent report.