Japan aims for 40-50% renewable energy supply by 2040

Japan's government has unveiled a draft of its revised basic energy policy, targeting renewable energy to account for 40-50% of the country's electricity supply by fiscal year 2040. The plan also includes nuclear power contributing another 20%, showcasing Japan's commitment to a sustainable energy future amid rising demand.

As the world’s second-largest importer of liquefied natural gas (LNG) and a significant consumer of Middle Eastern oil, Japan's energy strategy is closely watched by global oil, gas, and coal markets.

The draft energy policy outlines a shift away from coal-fired thermal power plants, aiming to reduce their share in electricity generation from 68.6% in 2023 to between 30% and 40% by 2040, though the specific breakdown of coal, gas, and oil usage remains unspecified.

The policy draft highlights the importance of LNG-fired power as a transitional measure, with both government and private sectors working together to secure long-term LNG contracts to mitigate risks of price fluctuations and supply disruptions.

Japan's nuclear energy strategy also reflects a return to reliance on nuclear power. Despite challenges following the 2011 Fukushima disaster, the draft policy sets a 2040 nuclear contribution target of 20%, aligning with the 2030 goal of 20-22%. In 2023, nuclear power only made up 8.5% of Japan's energy supply.

The new plan removes the previous objective of minimizing reliance on nuclear energy and proposes constructing advanced next-generation reactors at sites where existing reactors are being decommissioned.

Japan's energy policy demonstrates a significant step forward in balancing renewable sources, nuclear energy, and LNG imports to ensure a stable and sustainable electricity supply for the future.