While Germany publicly praises its renewable energy model, the government is in fact struggling to prevent further expansion of renewables due to grid instability, soaring electricity prices, and massive deficits faced by power companies. Laws have already been revised to restrict additional renewable projects. Japanese newspapers, however, ignore this reality, continuing to promote the false narrative that Japan should emulate Germany and shut down nuclear power plants. This discussion also exposes the misleading nature of an Asahi Shimbun article on shareholder meetings, revealing a fundamental misunderstanding—or deliberate misrepresentation—of corporate governance. The dialogue highlights the economic irrationality of abandoning nuclear power and the dangers of relying on unstable renewables.

Kawaguchi
I have no objection to the development of renewable energy technologies.
Without question, they will become important forms of energy in the distant future, and Japan should advance research in fields such as storage batteries.
Right now in Germany—and Japan is the same—there are many people making money in the renewable energy industry.
Because all electricity is purchased at a fixed price and with priority, as long as you build facilities, you profit.
So as an industry, renewable energy creates some jobs and revenue, but as energy policy it only drags down the national interest.
The economic waste is far too great.
That negative cost is passed onto consumers’ electricity bills, which is why Germany’s electricity prices are the second highest in the EU.
Japan’s prices will also continue to rise.

Takayama
If renewable energy is really cheap, then they should end the feed-in tariff.
If they did that, nobody would buy renewable power.

Kawaguchi
Recently, Germany’s Environment Minister Hendricks visited Japan, and all she did was brag about Germany’s energy policy.
But in reality, the German government is desperately trying to keep renewable energy from expanding any further.
They are changing laws to do so.
Aren’t there many Japanese newspaper reporters who have no idea about any of this?

Takayama
That’s what’s strange!

Kawaguchi
Even stranger was the Asahi Shimbun on June 27 of this year.
Since power companies with nuclear plants were scheduled to hold their shareholders’ meetings on the 28th, the article covered that.
It said, “The nine major electric utilities that operate nuclear plants will hold their shareholders’ meetings tomorrow. More than 70 proposals have been submitted, most urging a phase-out of nuclear energy, but the management of all nine companies intends to have them rejected.”
But management cannot force shareholder proposals to be rejected.

Takayama
Because shareholders decide (laughs).

Kawaguchi
Whether a proposal is approved or rejected at a shareholders’ meeting is entirely the decision of the shareholders, who are the owners of the company.
The purpose of the meeting is for management to listen to shareholders.
The Asahi Shimbun may be pretending not to know this rule, but the article is written as if all shareholders want to abandon nuclear energy and management might thwart them.
The final line reads, “We hope that management will listen more closely to shareholders and work together to explore a future that does not rely on nuclear power.”
It makes no sense at all.

Takayama
When you put it that way, it certainly is strange.

Kawaguchi
If even someone like Mr. Takayama, who pays attention to these matters, did not notice, then others surely didn’t either.
But think about it.
At this shareholders’ meeting, the anti-nuclear motions were minimal, and in the end they were rejected.
Why?

Takayama
Because nuclear power is the most profitable and has the most promising future.

Kawaguchi
Japan is currently buying oil and natural gas at the highest prices in the world.
We are being taken advantage of.
And yet there is still pointless debate about whether nuclear plants older than 40 years should continue operation.
Some people imagine that after 40 years the facilities must be worn out, but nuclear plants undergo constant inspections and equipment replacements, so even after 40 years they are spotless and almost like new.
Those who imagine a “rusty old bicycle” should go see one for themselves.

Takayama
Because of excessive periodic inspections, the operating rate is extremely low, though.

Kawaguchi
Even with a clock—if you disassemble and clean it while it’s running smoothly, it will start working worse (laughs).

This chapter continues.