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Climate & Environment
17 December 2024

Japan Unveils New Energy Basic Plan

The revised plan emphasizes nuclear and renewable energy to meet ambitious carbon neutrality goals

Japan's energy policy is undergoing significant changes as the government unveils the revised Energy Basic Plan which reflects shifting priorities and strategic approaches to energy production. At the heart of this plan lies the contentious topic of nuclear energy, alongside increasing commitments to renewable energy sources.

On December 17, 2024, the Ministry of Economy, Trade and Industry (METI) disclosed the draft of the revamped Energy Basic Plan which is expected to significantly influence the country's energy strategies for years to come. This draft openly endorses maximizing the use of both renewable energy and nuclear power, aiming for ambitious targets for electricity generation by 2040.

The newly introduced energy mix targets place renewable energy sources, such as solar and wind power, at approximately 40-50% of total electricity generation, marking the first time these sources are identified as the primary power supply. Meanwhile, fossil fuel generation is aimed to constitute around 30-40%, and nuclear power is set to represent about 20% of the nation's energy portfolio.

Historically, since the Fukushima Daiichi disaster, Japan had been grappling with public concerns over nuclear safety, which led to phrases like 'reducing dependence' becoming prominent fixtures of national energy policy. This draft surprisingly omits the long-standing commitment to minimize reliance on nuclear power, signaling a stark shift. Now, it frames the discussion around nuclear energy as 'maximizing its potential' alongside renewable sources, aimed at achieving carbon neutrality goals.

Particularly noteworthy is the change concerning the decommissioning of aging reactors. The revised proposal facilitates conditions for replacing decommissioned plants more liberally, allowing construction within the premises of existing facilities, which expands options for operators significantly. This move indicates the government's readiness to support not only the existing nuclear fleet but also the establishment of next-generation reactors.

Critics of the plan have raised concerns about the potential risks of returning to increased nuclear energy reliance, pointing to unresolved safety issues and public skepticism. Yet, proponents argue it is necessary for ensuring energy security amid the global energy transition and rising fossil fuel prices exacerbated by the geopolitical instability rooted largely in events such as the Russia-Ukraine conflict.

During discussions at the Strategic Policy Subcommittee of the Advisory Committee for Natural Resources and Energy, various stakeholders, including industry leaders and governmental advisors, expressed strong support for nuclear energy enhancements. Prominent figures noted the necessity for new nuclear facilities to stabilize electricity supply, particularly as Japan forecasts increased energy demands due to digitization and economic growth.

NTT's Chairman, Jun Sawada, emphasized, "If supply does not stabilize, demand will shift overseas. Restarting and building new nuclear power plants is imperative for stable energy supply." His sentiments were echoed by other influential business leaders who see nuclear energy as pivotal for reducing carbon emissions.

Japan's agricultural sector, vulnerable to energy fluctuations, also highlights the urgency of stabilizing energy supplies. With discussions around agricultural productivity intertwined with energy security, the stakes are high for the effective implementation of these policies. Farmers have been vocal about the detrimental impacts of energy shortages on crop yields, leading to calls for firmer energy sources and reliability.

The balancing act of energy policy, weighing between sustainability, security, and affordability, continues to ignite debate across communities, industries, and environmental groups. The plan’s promise to maximize both nuclear and renewable sources aims at fulfilling the government's aspirations for carbon neutrality by 2050.

This new direction stands as Japan's answer to the increasingly urgent global dialogue on energy transitions—the need for balanced and environmentally sound energy policies. With the final approval expected soon, public input is anticipated to remain hot as citizens assess the direction their energy policy is headed.

Observers are eagerly watching how this all shapes up, particularly as the plan’s implementation starts to reflect these commitments. The anticipated focus on developing nuclear technology and enhancing renewables, pledges made under the shadow of global climate commitments, will certainly be pivotal factors as Japan steps forward, attempting to redefine its energy sector.

Japan's renewed Energy Basic Plan may very well be the catalyst for transforming how the nation powers itself moving forward, aiming to harmonize economic growth with environmental sustainability.