Japan is gearing up to increase nuclear power in its energy policy update next year to ensure a stable electricity supply amid rising demand and geopolitical risks. Experts believe that the country may struggle to meet its targets due to various challenges.
Following the Fukushima disaster in 2011, Japan reduced its reliance on nuclear power and turned to fossil fuels for energy generation. However, recent coal and gas price spikes and supply disruptions have prompted the government to consider expanding nuclear energy along with wind and solar power for energy security.
While discussions are ongoing, the emphasis is shifting towards energy security rather than carbon emissions. This move could impact exporters of fossil fuels like Australia, Qatar, the U.S., and Indonesia. The energy mix target of 20%-22% nuclear by 2030 may need revision as energy demand rises and geopolitical tensions increase.
Meeting the growing electricity demand with nuclear power poses challenges such as regulatory hurdles, public opposition, high costs, and long development timeframes. Despite these obstacles, Japan aims to set greenhouse gas emissions reduction targets for 2035 and formulate a decarbonization strategy for 2040.
It is crucial for Japan to prioritize renewables growth to achieve decarbonization goals and lower prices, ultimately benefiting domestic companies and the economy.
© Thomson Reuters 2024.