• Renewable growth: Japan aims for renewables to supply 40-50% of its electricity mix by 2040, doubling the 2023 share.
• Nuclear revival: Nuclear power will account for 20% of the mix, supported by next-generation reactors.
• Energy security: Long-term LNG contracts will hedge against supply disruptions during the energy transition.

The News:

Japan has unveiled a draft energy policy targeting 40-50% renewable energy in its power mix by fiscal year 2040, alongside a steady reliance on nuclear power at 20%. The planreflects a shift toward energy security while pursuing decarbonization goals amid growing geopolitical risks.

Why it matters:

Japan, the world’s second-largest LNG importer, must balance rising energy demand—expected to grow by up to 22%—with carbon reduction targets and stable supply.Key Measures:

1. Renewables Expansion:
   • Renewables’ share will rise from 22.9% in 2023 to 40-50% by 2040.
   • Critics argue the wind power target—4-8%—is too low compared to nuclear’s 20%.
   “Japan risks falling behind in wind power globally,” noted Mika Ohbayashi, Director at the Renewable Energy Institute.
2. Nuclear Power Revival:
   • Nuclear power will maintain a 20-22% share, supporting 24/7 power needs for industries like data centers.
   • Plans include building next-generation reactors at sites where older units are decommissioned.
   “Nuclear power and data centers go well together,” said Naomi Oshita of Wood Mackenzie.
3. LNG as Transition Fuel:
   • The government emphasizes LNG-fired power as a “realistic” transition measure.
   • Long-term LNG contracts will help mitigate price spikes and supply risks.

Related Article: IBM Launches Tool to Optimize Renewable Energy Asset Management

Broader Climate Goals:

Japan’s draft energy plan aligns with its greenhouse gas reduction pathway:

• 60% cut by 2035.
• 73% cut by 2040.
• Net-zero emissions by 2050.

The final greenhouse gas strategy will be submitted to the UN in February.

What’s next:

Japan’s energy plan will be finalized and approved by the cabinet early next year. The strategy signals a pragmatic approach to balancing clean energy investments, nuclear resurgence, and energy security amid rising demand.

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