, Japan

Japan should consider alternative power sources to avoid supply shortage: Fitch

Natural gas holds the largest share in the country’s power mix.

Japan may face power shortages amidst stronger reliance on conventional thermal generation due to the high prices of gas, which dominates its total power mix, increase, according to Fitch Solutions.

In a report, Fitch said natural gas accounts for the largest share in Japan’s total energy mix at 36%, followed by coal at 29%.

“With the rising cost of natural gas placing upward pressures on electricity prices, Japan has to consider alternative power types. This could come in the form of ramping up power generation from coal, but the market’s current situation requires it to diversify away from fossil fuel use amid carbon emission reduction targets,” it said.

Fitch said the market faces a supply and demand mismatch as the hotter weather may lead to an increase in power consumption, it said. The government is urging its citizens to conserve electricity and is planning a reward system to encourage consumption reduction.

READ MORE: Renewables, nuclear could replace LNG’s share in Japan’s energy mix

However, the country’s power generation is experiencing bottlenecks as its dominant power generation means “is vulnerable to the ongoing natural gas supply.”

It added that other power types face challenges such as nuclear’s stringent conditions which delay its growth. Offshore wind power is still nascent, whilst solar power is small compared to gas, it said.

Japan is expected to not fully stop its energy imports from Russia, but noted that a significant drop-off in volumes “could have devastating short-term consequences.”

“Regardless, the coupling of high natural gas prices and international pressures for Japan to wane off Russian gas imports is placing pressure on will leave Japan's electricity supply, with the risk of electricity supply shortages if natural gas supplies get cut or reduced,” it said.

Fitch said nuclear remains to have the “largest potential” because of its longstanding involvement in the country’s generation mix.

Follow the link for more news on

Join Asian Power community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

Laos poised to be Southeast Asia’s key electricity supplier
This comes amidst the development the Laos-Thailand-Malaysia-Singapore Power Integration Project.
Power Utility
US sanctions hit Iran’s clean energy sector: report
These have made it challenging for Iran to secure debt and equity finance amongst others. 
Lending & Credit
APAC to generate lion’s share of world’s energy by 2030
The region is expected to account for 56% of the world’s energy in the  next decade.
Power Utility
Wind energy industry needs 570,000 technicians by 2026
This comes as the global onshore and offshore wind increase in size by 67%.


Why Philippines’ EDC will not fire up coal
The devastating effects of climate change led the company to develop REs only.
Indonesia’s Pertamina signs up for hydrogen development
Pertamina is set to produce green and blue hydrogen as part of its clean energy target in 2030.