, Japan

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

LNG’s share in the power mix is expected to fall to 20% from 37%.

The signs of public sentiment gradually shifting to nuclear would support the Japanese government's target to veer away from importing fossil fuels such as gas, and ramp up the share of renewable energy and lower-carbon alternatives in its energy mix.

In a report, Fitch Solutions noted that the draft strategic energy plan last year showed that the government is planning to slowly shift away from imported fossil fuel and cut its carbon emissions by 46% by 2030, and reach net zero by 2050.

The share of liquified natural gas (LNG) in the power mix is expected to fall to about 20% from the current 37% in the country’s bid to veer away from fossil fuels.

“LNG inflows into Japan have already been on a slowly declining trend since 2016, more recently due to unfavourable prices and COVID-19-related disruptions, but also due to conscientious national efforts to integrate alternative power sources into the mix. This trend looks set to be maintained over the coming decade,” the report read.

“If targets set out in the new draft plan are realised, LNG stands to face strong competition from a host of renewable and lower-carbon energy sources such as solar, onshore and offshore wind, hydrogen, ammonia and biofuels,” it added.

Domestic companies are also doing their part to reduce exposure to LNG, citing leading LNG importer JERA which is planning for a 42% reduction in long-term LNG contracts by 2030, and building greater flexibility.

Meanwhile, nuclear energy resurgence could be achieved if the risks and regulatory, and safety barriers of shut nuclear reactors would be addressed. Fitch noted that the draft expected nuclear0fired generation to grow to about 20 % to 22% by 2030, from the current about 6%, as part of the decarbonisation plans.

If this is fulfilled, the growth of nuclear power “spell further downsides” to the already bearish forecasts for gas consumption and LNG import for Japan, it said, but noted that the decline expectations are conservative given the continued regulatory and social obstacles to nuclear restart plan.

Of the 33 nuclear reactors classified to be operable in Japan, Fitch said only six are active, a sharp fall from the 54 reactors in operation before the Fukushima incident, with plans to restart.

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!


SMRs may deliver their climate promise too little, too late 
As these nuclear reactors are still in development, their wide deployment is unlikely, analysts say. 
How grid enhancements can ignite Malaysia's solar energy boom
Experts warn that grid enhancements will be crucial for the solar energy mix, which accounted for 18% of the country's RE.
ASEAN’s energy security is at risk as it prepares for gas and coal imports
The region’s reliance on fossil fuel imports threatens its energy security due to price volatility and lack of affordability.

Event News

Event News

Indonesia unleashing potential in new and renewable energy
Nine speakers at Jakarta 2023 Asian Power Forum flex government-private sector team-up to power up Indonesia’s energy landscape into the future. Indonesia’s power sector is poised for growth, thanks to new renewable energy initiatives, modernized transmission infrastructure, and the country’s unique archipelagic and resource-rich environment. These conditions were the center of discussions among industry leaders and stakeholders at Jakarta 2023 Asian Power Forum held at the Pullman Hotel last May 4.