Self‑Driving Cars and Virtual Power Plants: Japan’s Bold Playbook for the 2020 Olympics
When Prime Minister Shinzo Abe kicked off a strategy meeting on June 4, 2018, the agenda was clear: get the capital city racing toward the 2020 Games powered by cutting‑edge tech. The plans are a mix of forward‑thinking ideas—an autonomous vehicle rollout, a virtual power plant rollout, and a fresh look at higher‑ed qualifications—all aimed at giving Japan a leg up in the global economy.
Getting the Cars Kicking on Public Roads
- Target: By the end of this fiscal year, the government will start testing driverless car systems on Tokyo’s public streets.
- Olympic Launch: A fully operational self‑driving service is on the docket for the Tokyo Olympics, a high‑profile showcase for the technology.
- Commercialization Goal: The pilots will be pushed toward commercial viability as early as 2022.
Why it matters? Japan’s workforce is aging and shrinking. Autonomous vehicles could help businesses keep moving forward without a shrinking talent pool. The challenge has been that local firms lag behind the Chinese, European, and U.S. companies in actually deploying AI solutions in daily operations.
Turning Power into “Power Plants” With a Twist
- What’s a Virtual Power Plant? It’s a network of tiny generators and storage units that act together like a giant power plant—saving grids money and boost reliability.
- Regulation to Go, so companies can spread this energy across the grid without legal hiccups.
- Deadline: The plan is to have this rolling out by the fiscal year ending March 2022.
Other Tweaks to Fuel Growth
Abe’s 2012‑onward reform agenda has slowly nudged Japan toward a more inclusive economy:
- Women getting back into the workforce.
- Reducing the wage gap between regular and contract employees.
- Increasing inbound tourism.
- Gradual opening up to foreign labour.
Now the focus tightens on technology. Key moves include:
- Regulatory changes to make it easier for firms to adopt new tech.
- University policy tweaks that allow students to earn cross‑disciplinary degrees needed for AI careers.
Economic Context
Japan’s economy hit a roadblock in Q1 of 2018, ending a streak of eight straight quarters of growth—an unprecedented slump since the 1980s bubble. The government’s undertaking to blast through this slowdown is, in part, a rallying cry: “The road to progress is paved with driverless cars and smart energy, and we’re ready to roll out.”
Stay tuned—Tokyo’s roads and power grids are about to get a high‑tech makeover, and we’re all on board for the 2020 Olympic spectacle!
