Japan to boost nuclear power as electricity demand rises

In order to meet the rising demand for power and accomplish its carbon reduction targets, Japan has revealed an updated energy strategy.

The plan, which was presented to a panel of experts by the Industry Ministry, aims to increase nuclear energy and renewable electricity by 2040, with a goal of 40–50% renewables and 20% nuclear, marking a significant shift from the post-Fukushima phaseout policy, which followed the 2011 nuclear disaster.

The plan emphasizes the need of low-carbon energy sources to meet data centers’ and semiconductor factories’ growing demand for power. Japan will promote renewable energy as the primary power source and decrease its reliance on coal-fired power, which now accounts for almost 70% of the country’s electricity, to 30–40%.

The strategy calls for building next-generation reactors at decommissioned locations and restarting all 33 operational nuclear reactors, of which only 14 are currently in operation. However, obstacles including regulatory barriers and reactor licensing timelines make it difficult to fulfill the 20% nuclear ambition.

Critics contend that the strategy is devoid of specific implementation plans, especially with regard to ramping up investments in renewable energy sources and phase-out fossil fuels.

Japan’s larger net-zero aim by 2050 includes a commitment to reduce greenhouse gas emissions by 60% by 2035 and 73% by 2040 relative to 2013 levels. Despite these aims, some experts argue the proposal falls short of meeting global climate targets, according to Japan Today.

With predicted prices of ¥12.5 ($0.08) per kilowatt-hour, nuclear energy is expected to become the most cost-effective baseload power source in Japan by 2040, Bloomberg reports. Nuclear energy however, is still competitive when system expenses like battery deployment are taken into account, even if solar and other intermittent renewables have lower direct prices.

To support its energy shift, the government is also assessing cutting-edge technologies including carbon capture and hydrogen co-firing.