Japan's Energy Policy Shift Emphasizes Nuclear and Renewables

Japan is on the verge of updating its energy policy to place a stronger emphasis on both nuclear power and renewable energy sources in light of increasing electricity demands and the need to meet decarbonization targets. A panel of experts that the government commissioned reviewed the draft policy plan, which envisions maximizing the use of nuclear energy while significantly expanding renewable energy production by the year 2040.

According to the proposal from the Industry Ministry, the contribution of nuclear power to Japan's overall energy mix is projected to rise from 8.5% last year to approximately 20% by 2040. In parallel, renewable sources are anticipated to grow substantially, potentially constituting between 40% to 50% of the energy mix, compared to 22.9% in 2022. In contrast, the reliance on coal-fired power is expected to decrease dramatically, dropping from almost 70% to a range of 30% to 40%.

The surge in demand for low-carbon energy is being driven by the increasing requirements of emerging technologies like AI-powered data centers and semiconductor manufacturing facilities. Industry Minister Yoji Muto emphasized the crucial need for Japan to diversify its energy sources, stressing that the future economic growth of the country hinges on securing decarbonized energy. He asserted that the conversation should no longer be about choosing between renewable energy and nuclear power; rather, both should be optimized.

The draft plan also sets forth Japan's objective to reach net-zero emissions by 2050, aiming for a remarkable 73% reduction in emissions by 2040 from 2013 levels. It positions renewable energy as the cornerstone of its energy strategy while promoting the incorporation of innovative technologies, including solar batteries and portable solar panels.

Nonetheless, the proposal has met with skepticism, as critics point out the absence of a clear strategy for phasing out fossil fuels and raise concerns about the ambitious nuclear targets, which may be difficult to meet. To achieve the goal of 20% nuclear energy, all 33 operational reactors in the country would need to be restarted; however, only 14 have been brought back online since the Fukushima disaster in 2011.

The outlined plan suggests speeding up the reactivation of reactors that comply with post-Fukushima safety regulations and constructing next-generation reactors at locations where older reactors are being decommissioned. Even though there are significant concerns regarding the practicality of these initiatives, Japan remains focused on advancing nuclear reactor technology and overcoming challenges related to its spent fuel reprocessing program in order to complete a sustainable nuclear fuel cycle. Following a period of public consultation, the government is targeting March for Cabinet approval of the revised energy plan.