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Japan is a major consumer of energy, ranking fifth in the world by primary energy use. Fossil fuels accounted for 88% of Japan's primary energy in 2019. Japan imports most of its energy due to scarce domestic resources. As of 2022, the country imports 97% of its oil and is the largest liquefied natural gas (LNG) importer globally.

Japan is increasing its reliance on renewable energy to replace imported fossil fuels, and in 2019 renewable energy accounted for 7.8% of primary energy supply. Japan has committed to reaching net zero emissions by 2050, setting a target to reduce GHG emissions by 46% from 2013 levels by 2030.

Japan initiated its first commercial nuclear power reactor in 1966, establishing nuclear energy as a strategic national priority from 1973 onwards. Following the Fukushima nuclear accident in 2011, this strategy underwent re-evaluation but was ultimately upheld. Prior to the accident, nuclear reactors contributed about 30% of Japan's electricity, with the country now aiming for nuclear energy to account for at least 20% of its electricity production by 2030. The Fukushima accident also lead to a 16% reduction in total primary energy supply (TPES) from 2010 to 2019.

Overview

History

Japan's rapid industrial growth since the end of World War II doubled the nation's energy consumption every five years into the 1990s. During the 1960–72 period of accelerated growth, energy consumption grew much faster than GNP, doubling Japan's consumption of world energy. By 1976, with only 3% of the world's population, Japan was consuming 6% of global energy supplies.

Compared with other nations, electricity in Japan is relatively expensive, and, since the loss of nuclear power after the earthquake and tsunami disaster at Fukushima, the cost of electricity has risen significantly.

Energy sources

In 1950, coal supplied half of Japan's energy needs, hydroelectricity one-third, and oil the rest. By 2001, the contribution of oil had increased to 50.2% of the total, with rises also in the use of nuclear power and natural gas. Japan now depends heavily on imported fossil fuels to meet its energy demand.

Oil

In the wake of the two oil crises of the 1970s (1973 and 1979), Japan made efforts to diversify energy resources in order to increase energy security. Japan's domestic oil consumption dropped slightly, from around 5.1 million barrels (810,000 m) of oil per day in the late 1980s to 4.9 million barrels (780,000 m) per day in 1990. While the country's use of oil declined, its use of nuclear power and natural gas rose substantially. Several Japanese industries, for example electric power companies and steelmakers, switched from petroleum to coal, most of which is imported. Japan's proved oil reserves total an estimated 44 million barrels.

The state stockpile equals about 92 days of consumption and the privately held stockpiles equal another 77 days of consumption for a total of 169 days or 579 million barrels (92,100,000 m). The Japanese SPR is run by the Japan Oil, Gas and Metals National Corporation. Japan was the fifth-largest oil consumer and fourth-largest crude oil importer in the world in 2019.

Oil demand has been waning in Japan, especially leading up to and since the Tohoku earthquake in 2011. While oil consumption was over 5 million barrels per day (bpd) for decades, this had declined to 3.22 million bpd by 2017. As of 2016, India, Saudi Arabia and Texas have overtaken Japan in oil consumption. A further decline to 3.03 mln bpd or just under 176 million kiloliters (preliminary) was posted in 2018. Crude consumption further declined during first half of 2020 to 303/141 = 2.15 million bpd, but that figure probably doesn't include refined products that are directly increasingly imported rather than converted.

In 2022, Japan's crude oil imports rose to 2.5 million barrels per day (b/d), an increase from 2.3 million b/d in 2021, despite a decade-long trend of declining imports, which are now almost 0.9 million b/d less than the 2013 levels. The Middle East remained the predominant source, accounting for 93% of imports. Concurrently, Japan's crude oil acquisitions from Russia declined to 1% of the total, a decrease from 4% in the preceding year, in the aftermath of Russia's invasion of Ukraine.

Natural gas

Japan ranked as the world's largest importer of liquefied natural gas (LNG).

Because domestic natural gas production is minimal, rising demand is met by greater imports. Japan's main LNG suppliers in 2016 were Australia (27%), Malaysia (18%), Qatar (15%), Russia (9%), and Indonesia (8%). In 1987, suppliers were Indonesia (51.3%), Malaysia (20.4%), Brunei (17.8%), United Arab Emirates (7.3%), and the United States (3.2%). In 2017, Japan consumed 4.7 quadrillion Btu (1377 TWh) of imported methane.

The new Japanese LNG strategy published in May 2016 envisages the creation of a liquid market and an international LNG hub in Japan. This promises to radically change the traditional JCC (crude oil) based pricing system in Japan, but also potentially in the Pacific Basin as a whole. But the path to hub creation and hub pricing in the early 2020s envisaged by the Strategy will not be straightforward.

In 2022, Japan's LNG imports decreased to 3.3 Tcf from 3.6 Tcf in 2021, yet it remained the world's leading LNG importer, surpassing China. Australia's contribution to Japan's imports increased from 36% to 42%, affirming its status as Japan's primary LNG supplier. Conversely, Qatar's share fell from 13% to 4%. Despite Japan's commitment to reducing energy dependence on Russia, in line with the G7's price cap on Russian crude oil, its LNG imports from Russia remained steady, supported by an exemption for the Sakhalin-2 project.

Japan has set a policy goal to reduce the share of LNG in its power generation from 34% in 2022 to 20% by 2030. As the largest single source of power in 2022, accounting for 34%, LNG consumption has seen a decline since 2019, influenced by the reactivation of nuclear plants, slow economic growth, high international LNG prices, and enhanced energy efficiency. Japan holds the largest LNG storage capacity in the world, estimated at 425.1 billion cubic feet, which plays a critical role in managing seasonal demand fluctuations and potential supply disruptions. Furthermore, from 2009 to 2023, the levels of LNG inventory in Japan varied between 32% and 66% of its storage capacity.

Coal

As of 2019, a third of the electricity in Japan was generated from coal and is the third-largest importer of coal behind China and India in 2019. Government targets aimed to reduce that proportion to a quarter through closure of older, less efficient coal power plants. In 2017, Japan consumed 4.738 quadrillion Btu (1,388 TWh) of imported coal. In July 2020, the minister of Industry, Hiroshi Kajiyama, announced that around 100 coal plants would be shut down by 2030. In 2023 Japan said it would not start building any more new unabated (without carbon capture and storage) coal plants. Japan plans to phase out unabated coal by 2035.

ThIn 2022, Japan's coal imports remained at 202 million short tons. Russian imports significantly decreased from 22 million to 13 million short tons, offset by increases from Indonesia, Canada, and Australia. Bituminous coal made up 89% of steam coal imports, slightly down from the previous year. The main sources—Australia, Indonesia, Russia, and the United States—contributed 94% of the total, a 3% decrease from 2021.

The contribution of coal-fired power generation decreased from 30.2% in 2016 to 26.5% in 2021, but then saw an increase to 27.8% in 2022.

Japan has set a policy goal to reduce the share of coal in electricity generation from 31% in 2022 to 19% by 2030. As part of this initiative, there are plans to close or suspend about 90% of inefficient coal-fired power plants, which amounts to approximately 100 facilities, thereby reducing Japan’s total installed coal capacity by about 40%. Additionally, to further mitigate environmental impact, new coal-fired power plants are required to incorporate emission reduction measures, such as blending coal with 20% ammonia or 25% wood pellets to significantly lower CO2 emissions.

Nuclear power

Following Eisenhower's Atoms for Peace speech, the United States helped Japan develop their nuclear power program. When Japan decided to embark on the nuclear power field, it imported technology from the United States and obtained uranium from Canada, France, South Africa, and Australia. The first nuclear reactor was commissioned in 1966, from then to 2010, 54 more nuclear reactors had opened, with total generation capacity of 48,847 MW. The ratio of nuclear power generation to total electricity production increased from 2% in 1973 to around 30% in March 2011. During the 1980s, Japan's nuclear power program was strongly opposed by environmental groups, particularly after the Three Mile Island accident in the United States. In the 2000s, Japan had a few of the modern Advanced Boiling Water Reactor, including some of the first new advanced Generation III reactors. At Rokkasho, Aomori a facility was built to enrich nuclear fuel, deal with nuclear waste, and recycle spent nuclear fuel.

After the 2011 earthquake and tsunami, some nuclear reactors were damaged, causing much uncertainty and fear about the release of radioactive material, as well as highlighting the ongoing concerns over seismic design standards (see Nuclear power in Japan §Seismicity). On 5 May 2012, Japan shut down the last nuclear reactor, the first time there has been no nuclear power production since 1970. On 16 June, Prime Minister Yoshihiko Noda ordered the restart of Ōi nuclear plant's reactors number 3 and 4, saying that people's livelihood needs to be protected. Ōi nuclear plant's reactor No. 3 was restarted on 2 July, and No. 4 began operation on 21 July. However, in September 2013 the Ōi nuclear plant was shut down in order to have extensive safety inspections performed. By late 2015, both of the Sendai Nuclear Power Plant's reactors had reopened and restarted producing nuclear energy. Other nuclear plants, such as the Takahama Nuclear Power Plant, have received permission to reopen, and other nuclear reactors are beginning the process of restarting.

In June 2015, the Japanese government released an energy proposal that includes the revival of nuclear power to account for Japan's energy needs. The proposal calls for nuclear energy to increase to about 20% of the total by 2030. This reverses a decision by the previous Democratic Party, the government will re-open nuclear plants, aiming for "a realistic and balanced energy structure".

Currently operating reactors are:

• Sendai Nuclear Power Plant on 11 August 2015 Unit 1 was restarted, followed by Unit 2 on 1 November 2015.
• Ōi Nuclear Power Plant's on 14 March 2018 Unit 3 was restarted, followed by Unit 4 on 9 May 2018.
• Genkai Nuclear Power Plant on 23 March 2018 Unit 3 was restarted, followed by Unit 4 in June 2018.
• Takahama Nuclear Power Plant on 22 May 2017 Unit 4 was restarted, followed by Unit 3 on 6 June 2017.
• Mihama Nuclear Power Plant on 23 June 2021, Unit 3 was restarted.
• Ikata Nuclear Power Plant on 2 December 2021 Unit 3 was restarted.

Following the Fukushima disaster, the general public has opposed the use of nuclear energy.

Renewables

The Fourth Strategic Energy Plan set the renewable share goal to be 24% by 2030. In the next 15 years, Japan intends on investing $700 billion into renewable energy. One initiative the Japanese government has implemented in order to boost the amount of renewable energy produced and purchased in Japan is the feed-in tariff scheme. The scheme encourages companies to invest in renewable energy by providing set prices for various types of renewable energy. The initiatives appear to be working, as renewable energy generation capacity now stands at 26.2 GW, compared to 20.9 GW in 2012.

On 3 July 2018, Japan's government pledged to increase renewable energy sources, including wind and solar, from 15% to 22–24% by 2030. Nuclear power will provide 20% of the country's energy needs as an emissions-free energy source. This will help Japan meet climate change commitments.

In October 2021 Japan's cabinet approved a new target of 36-38% of renewable share in power generation by 2030. The nuclear target of 20-22% remained unchanged.

In 2022, renewables are estimated to make up 22.7% of Japan's overall electricity generation, including consumption at the site of generation, which is a slight rise from 22.4% in the previous year.

Hydroelectricity

The country's main renewable energy source is hydroelectricity, with an installed capacity of about 27 GW and a production of 69.2 TWh of electricity in 2009. As of September 2011, Japan had 1,198 small hydropower plants with a total capacity of 3,225 MW. The smaller plants accounted for 6.6 percent of Japan's total hydropower capacity. The remaining capacity was filled by large and medium hydropower stations, typically sited at large dams. Cost per kilowatt-hour for power from smaller plants was high at ¥15–100, hindering further development of the energy source.

Solar power

Japan was the world's second largest producer of solar power in the early 2000s, although solar was a very minor contribution to the total at that time. The country was overtaken by Germany in 2005, a year in which Japan had 38% of the world supply compared to Germany's 39%. Since then, Japan had been slow to increase solar capacity compared to other countries until 2012.

On 1 July 2012, after the nuclear disaster at Fukushima, new tariffs for renewable energy were introduced by the Japanese government. The tariffs, set at ¥42 per kWh over the next 20 years to solar power producers, were among the highest in the world. With the incentives in place, Japan added 1,718 MW of solar power in 2012. By the end of the year, Japan's total solar capacity was 7.4 GW. Japan has seen sustained growth of solar PV capacity after 2012, reaching a cumulative installed capacity of 34 GW by the end of 2015, generating 3.5% of the national electricity consumption in that year.

In 2022, electricity produced by solar photovoltaic (PV) systems amounted to 9.9% of the total annual electricity output, reflecting a growth of 0.6 percentage points from 9.3% in 2021.

Wind power

In Japan's electricity sector, wind power generates a small proportion of the country's electricity. It has been estimated that Japan has the potential for 144 gigawatts (GW) for onshore wind and 608 GW of offshore wind capacity. As of 2023, the country had a total installed capacity of 5.2 GW.

As of 2018, government targets for wind power deployment were relatively low when compared to other countries, at 1.7% of electricity production by 2030.

In 2022, wind power contributed to 0.85% of electricity production, experiencing a slight decrease from 0.88% in the previous year.

Geothermal energy

Japan has favorable sites for geothermal power because of its proximity to the Izu–Bonin–Mariana Arc. In 2007, Japan had 535.2 MW of installed electric generating capacity, about 5% of the world total. Geothermal power plays a minor role in the energy sector in the country: in 2013 it supplied 2596 GWh of electricity, representing about 0.25% of the country's total electricity supply.

Development of new geothermal power stations essentially stopped since the mid 1990s, mainly due to the strong resistance from local communities. Most of the potential sites are located in government-protected areas and in tourist destinations, thanks to the presence of traditional hot springs or onsen. Local communities in these areas are often dependent on revenue from tourists visiting onsen, and are opposed to geothermal developments because of the negative impact that the industry may have on the scenery and the resulting damage to the tourism industry and the local economy.

However, interest in geothermal energy has been increasing in recent years due to the Japanese energy crisis following the Fukushima disaster and the subsequent closure of most of the country's nuclear power stations. Businesses and the government are currently considering over 60 possible sites for new geothermal power development. Estimates put the total capacity potential of geothermal power at 23 GW, the third largest amount in the world after the United States and Indonesia.

Waste and biomass energy

As of September 2011, Japan had 190 generators attached to municipal waste units and 70 independent plants using biomass fuel to produce energy. In addition, 14 other generators were used to burn both coal and biomass fuel. In 2008, Japan produced 322 million tons of biomass fuel and converted 76% of it into energy.

In 2022, the proportion of electricity generated from biomass power rose to 4.6%, an increase from 4.1% in the preceding year.

Ocean energy

In 2012, the government announced plans to build experimental tidal power and wave power plants in coastal areas. Construction on the projects, the locations for which have not been determined, would begin in 2013.

Electricity sector

In 2014, Japan ranked fifth in the world by electricity production, after the United States, China, Russia, and India with 934 TWh produced during that year. It is estimated that Japan's net electricity generation was at about 950 terawatthours (TWh) in 2019 and has declined overall by about 11% since 2010. In 2019, Japan's net electricity generation decreased nearly 4% from the 2018 level as a result of warm winter weather and lower industrial output.

In terms of per capita electricity consumption, the average person in Japan consumed 8,459 kWh in 2004 compared to 14,240 kWh for the average American. In that respect it ranked 18th among the countries of the world. Its per capita electricity consumption increased by 21.8% between 1990 and 2004.

Japan had 282 GW of total installed electricity generating capacity in 2010, the third largest in the world behind the United States and China. However, after the damage by the 2011 earthquake, capacity is estimated to be around 243 GW in mid-2011. It was one of the world's largest users of solar energy, in fourth place behind Germany, Italy, and China. With 53 active nuclear power generating reactor units in 2009, that year Japan ranked third in the world in that respect, after the United States (104 reactors) and France (59). Almost one quarter (24.93%) of its electricity production was from nuclear plants, compared to 76.18% for France and 19.66% for the United States. However, after the 2011 Tōhoku earthquake and tsunami and the subsequent Fukushima Daiichi nuclear disaster, all plants eventually shut down in May 2012 and Ōi Nuclear Power Plant was restarted and operational between June 2012 and September 2013. On 11 August 2015 and 1 November 2015, the two nuclear reactor of the Sendai Nuclear Power Plant were restarted respectively.

Electricity generation in 2021

Since the generation disruption caused by the Fukushima disaster, rapid steps have been made to liberalize the electricity market. One way this was done in Japan is through the feed-in-tariff scheme. This was announced in 2012 as a direct consequence of the Fukushima disaster. The feed-in-tariff scheme encourages utility operators and companies to purchase and invest in renewable energy. The Ministry of Economy, Trade and Industry set prices for various renewable energy sources to encourage the production and consumption of renewable energy. In April 2016 domestic and small business customers became able to select from over 250 supplier companies competitively selling electricity. Also wholesale electricity trading on the Japan Electric Power Exchange has been encouraged.

Japan produced 1004.8 TWh of electricity in 2021, close to 4% of the electricity generated in the world and 8% of that in Asia-Pacific (3rd largest behind China and India). Japan consumed 17.03 EJ, 3% of the world's consumption and 7% of Asia-Pacific's consumption (3rd largest behind China and India).

Nuclear energy's contribution to electricity generation has fluctuated, dropping to zero in 2014, then climbing to 6.5% by 2019. It fell to 4.3% in 2020, slightly rose to 5.9% in 2021, and then decreased once more to 4.8% in 2022.

National grid

Unlike most other industrial countries, Japan doesn't have a single national grid but instead has separate eastern and western grids. The standard voltage at power outlets is 100 V, but the grids operate at different frequencies: 50 Hz in Eastern Japan and 60 Hz in Western Japan. The grids are connected together by three frequency converter stations (Higashi-Shimizu, Shin Shinano and Sakuma), but these can only handle 1 GW in total. A converter station also exists at Minami-Fukumitsu. The 2011 Tōhoku earthquake and tsunami resulted in 11 reactors being taken offline with a loss of 9.7GW. The three converter stations did not have the capacity to transfer enough power from Japan's western power grid to significantly help the eastern grid.

The two grids were originally developed by separate companies. Tokyo Electric Light Co was established in 1883, which also established electric power in Japan. In 1885, demand had grown enough that TELCO bought generation equipment from AEG of Germany. The same happened in the western parts of Japan with General Electric being the supplier to Osaka Electric Lamp. GE's equipment used the US standard 60 Hz, while AEG's equipment used the European standard of 50 Hz.

Utilities

In Japan, the electricity market is divided into 10 regulated companies:

• Chugoku Electric Power Company (CEPCO/ENERGIA)
• Chubu Electric Power (Chuden)
• Hokuriku Electric Power Company (Hokuden)
• Hokkaido Electric Power Company (HEPCO)
• Kyushu Electric Power (Kyuden)
• Kansai Electric Power Company (KEPCO)
• Okinawa Electric Power Company (Okiden)
• Tokyo Electric Power Company (TEPCO)
• Tohoku Electric Power (Tohokuden)
• Shikoku Electric Power Company (Yonden)

• Tepco
• Kepco
• Chubu
• Tohokuden
• Kyuden

Hydrogen energy

In March 2016, METI set a target of 40,000 hydrogen fuel-cell vehicles on Japan's roads by 2020 and 160 fueling stations.

Carbon emissions

See also

• Electricity sector in Japan
• Energy Law (Japan)
• Geothermal power in Japan
• Hydroelectricity in Japan
• Japan Electric Association
• Japan Oil, Gas and Metals National Corporation
• List of countries by energy consumption per capita
• List of countries by total primary energy consumption and production
• Renewable energy by country
• Solar power in Japan
• Wind power in Japan
• World energy consumption

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• This article incorporates text from this source, which is in the public domain. Country Studies. Federal Research Division. – Japan

External links

• Agency for Natural Resources and Energy
  • Japan's Energy White Paper 2017

• Energy in Japan