Sustainability and Energy
Overview

Promoting Renewable Energy to Achieve Stable Energy Self-Sufficiency and Carbon Neutrality

The recent global situation has led to a sharp rise in energy prices. In the first half of 2022, JKM (Asian LNG spot price), TTF (Dutch gas price), and NBP (UK gas price) prices for crude oil, natural gas, etc. reached a global record high of 84.8 USD, 99.5 USD, and 70.4 USD, respectively1.

In addition, the global trend towards de-carbonization, including the Paris Agreement, has led to increasing interest in self-sufficient and renewable energy in Japan.

Renewable energy accounted for 11% of domestic energy supply composition in 2022 and it has been increasing steadily (Figure 1). Furthermore, the energy self-sufficiency rate in 2022 was 12.6%, with renewable energy sources accounting for 8.3%, and the proportion is on an increasing trend (Figure 2).

Figure 1: Trends in source composition of primary energy supply in Japan (%)

The share of renewable energy in the domestic energy supply, which consists of nuclear energy, natural and city gas, coal, petroleum, unutilized energy, and renewable energy, etc. was 6% in 1990, 4% in 2000, 5% in 2010, 6% in 2011, 5% in 2012, 6% in 2013 and 2014, and 7% in 2015 and 2016, 8% in 2017, 9% in 2018 and 2019, and 10% in 2020, 11% in 2021 and 2022, showing a gradual increase.

Source: Created by JETRO based on data from ANRE 2

Figure 2: Trends in energy self-sufficiency rate and composition of its contribution (%)

The 11.7% energy self-sufficiency rate in 2018 breaks down into 4.0% for nuclear energy, 7.0% for renewable and unutilized energy, and 0.8% for fossil fuels. The 12.1% energy self-sufficiency rate in 2019 breaks down into 4.0% for nuclear energy, 7.4% for renewable and unutilized energy, and 0.7% for fossil fuels. The 11.3% energy self-sufficiency rate in 2020 breaks down into 2.6% for nuclear energy, 7.9% for renewable and unutilized energy, and 0.7% for fossil fuels. The 13.3% energy self-sufficiency rate in 2021 breaks down into 4.6% for nuclear energy, 8.1% for renewable and unutilized energy, and 0.7% for fossil fuels. The 12.6% energy self-sufficiency rate in 2021 breaks down into 3.7% for nuclear energy, 8.3% for renewable and unutilized energy, and 0.6% for fossil fuels. The self-sufficiency rate of renewable and unutilized energy is on the rise.

Source: Created by JETRO based on data from ANRE3

In 2020, the Japanese government announced Carbon Neutrality, and consequently, the Ministry of Economy, Trade and Industry (METI) formulated the Green Growth Strategy. The strategy identified four energy-related sectors with growth potential: (i) offshore wind energy, solar, and geothermal energy; (ii) hydrogen and fuel ammonia; (iii) next-generation thermal energy; and (iv) nuclear energy4.

Furthermore, the energy composition target for 2030 aims for a 36–38% share of renewable energy sources, with target figures identified for solar, hydro, wind, biomass, and geothermal. (Figure 3).

Figure 3: Energy composition targets for FY2030

The energy composition targets for 2030 include 36% to 38% from renewable energy, consisting of 14 to 16% solar energy, 11% hydraulic energy, 5% wind energy, 5% biomass, and 1% geothermal. Also include are 20% to 22% nuclear energy, 1% hydrogen and ammonia, and 41% thermal energy from fossil fuels.

Source: Created by JETRO based on data from METI5

  1. *

    Calculated based on the Bank of Japan exchange rate of 1 USD at 150.07 JPY (as of March 1, 2024)

References
  1. Agency for Natural Resources and Energy. Energy White Paper 2023, Part 1, Chapter 1, Section 1 (JP).
  2. Agency for Natural Resources and Energy. "Primary Energy Supply Rate in Japan," Comprehensive Energy Statistics (JP), time-series table (published on November 29, 2023).
  3. See Note 2, "Energy Self-Sufficiency Rate."
  4. METI. Green Growth Strategy Through Achieving Carbon Neutrality in 2050.
  5. Agency for Natural Resources and Energy. Renewable Energy Policies for the Future (JP), p. 5.

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