Letter from Nikkei Asia's editor: The green energy crunch

Shin Nakayama shares his weekly reflections and recommendations

20240919 Vietnam hydropower plant thumbnail for editor's newsletter

Hoa Binh Hydropower Plant in Vietnam. (Photo by Reuters) © Reuters

Hello from Tokyo. I am a big fan of streaming services and I watch a lot of overseas dramas. I particularly like dystopian stories, such as those involving extreme situations without electricity. This is probably because it is hard to imagine how we would manage without electricity. There is also a Japanese SF drama series that reimagines the Edo-Samurai era of the 17th century by introducing a tablet device. It is a reflection of how modern technology changes our lives.

It is usually the case that the more advanced the technology, the more energy it consumes. That's why one of the biggest challenges, especially for today's cutting-edge tech sector, is securing massive amounts of power. As AI becomes more integrated into everyday applications, the energy required to produce the necessary chips and keep resource-hungry data centers running is increasing dramatically.

This week's Big Story delves into the energy-intensive demands of Asia's tech sector, exploring how the rapid growth of these technologies is straining power supplies across the region. It raises important questions about sustainability and the challenges economies face in balancing technological progress with the need for green energy solutions.

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Like AI, electric vehicles consume a lot of electricity, but many countries, including Japan, are shifting to EVs because they think they can significantly reduce carbon emissions compared to gasoline-powered vehicles. Japan, home to many auto parts manufacturers, faces the challenge of adapting to the EV shift because electric vehicles require fewer parts than traditional gasoline-powered cars. The Business Spotlight in this week's magazine examines how Japan's auto parts industry is responding to the growing demand for EVs and the challenges it presents.

With one week to go before Japan's ruling Liberal Democratic Party holds its leadership election, which will effectively decide the country's next prime minister, the outcome remains difficult to predict. Polls suggest three leading candidates, each with varying levels of support depending on the poll. Regardless of the winner, this election will have significant implications for the party and Japanese politics. This week's Asia Insight explains why.

Finally, this week's issue of Nikkei Asia will be our last in print, and I would like to take a moment to thank you for reading our magazine up to this point. No matter how far digital media evolves, there are still advantages to print, and many people still prefer to read on paper rather than on a screen. I, for one, still carry a book with me everywhere I go and enjoy the old medium, especially on the train.

However, as I mentioned in my message in the last issue, which featured a collection of memorable covers from the past, this is not the end of our publication. We will continue to deliver our content in a more dynamic way through our website, which will be redesigned in the coming days. Most of our feature content will also be renewed, and I guarantee you will enjoy this new beginning for Nikkei Asia.

My newsletter will continue as we move to an all-digital format, although there will be a brief break next week. I look forward to reconnecting with you soon.

Wishing you a wonderful weekend!

Shin Nakayama

Editor-in-chief, Nikkei Asia

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