Japan Creating 'smart City' Of The Future

There were gadgets and robots galore at Japan's premier electronics show last week. But one of the biggest attractions wasn't anything you could touch - an energy-efficient city of the future.

For the first time, the Combined Exhibition of Advanced Technologies, better known as CEATAC, devoted one area of the show floor to selling a vision of urban life in 2020 and beyond.

'Smart city'
The Japanese version of the "smart city" exists in a post-fossil fuel world. Alternative sources like the sun, wind and nuclear power are harnessed in mass quantities. That power is then distributed to buildings, homes and electric cars connected to each other through smart grids, which monitor energy use throughout the network to maximize efficiency.

The goal is to drastically cut carbon emissions, which many scientists believe cause global warming - ideally to zero. The bigger dream is for the smart city to become Japan's next big export, fueling new growth and ambition at a time when the country finds itself in an economic rut and eclipsed by China as the world's second-biggest economy behind the United States.

The city of Yokohama, just southwest of Tokyo, is the site of a social and infrastructure experiment to create a smart city for the rest of the world to emulate. Begun this year, the Yokohama Smart City Project is a five-year pilot program with a consortium of seven Japanese companies - Nissan Motor Co., Panasonic Corp., Toshiba Corp., Tokyo Electric Power Co., Tokyo Gas Co., Accenture's Japan unit and Meidensha Corp.

"We want to build a social model to take overseas," said Masato Nobutoki, the executive director of Yokohama's Climate Change Policy Headquarters, during a keynote event at CEATAC. "Yokohama is a place where foreign cultures entered Japan 150 years ago and then spread to the rest of the country."

Now, he said, it's where the best of Japan is converging, preparing for expansion to the wider world.

Japan is not alone
Japan certainly isn't the only country working on smart grids.

Australia has committed $100 million and is developing its first commercial-scale smart grid in Newcastle, a city in New South Wales state. South Korea is embarking on a $200 billion smart grid project on Jeju Island as part of efforts to cut national energy consumption by 3 percent by 2030. China is expected to invest a world-leading $7.3 billion toward smart grids and related technologies this year, ahead of the United States' $7.1 billion in Energy Department grants, according to market research firm Zpryme.

Zpryme estimates that the global smart grid market will be worth $171.4 billion in four years, up sharply from $69.3 billion in 2009.

Also last week, Toyota Motor Corp. separately announced the introduction of its own home smart grid system in Japan to coincide with its plug-in hybrid cars going on sale in early 2012.