Japan’s New PM Puts Nuclear Power at Forefront of Energy Strategy

Summary:

Japan’s energy policy is undergoing a significant shift under the new prime minister, Sanae Takaichi, who is prioritizing the revival of nuclear power to combat inflation and reduce reliance on costly fossil fuel imports. With public discontent over rising prices, Takaichi’s administration views accelerated nuclear reactor restarts as crucial to stabilizing the economy and achieving energy security.

The appointment of Ryosei Akazawa, a seasoned negotiator with strong ties to the U.S., as the Minister for Economy, Trade, and Industry underscores Japan’s commitment to international engagement, particularly concerning energy procurement. Akazawa has emphasized the importance of maximizing power sources that contribute to both energy security and decarbonization, signaling a clear path forward for nuclear energy. His immediate focus will be on gaining local community understanding for reactor restarts, a process that has historically faced significant hurdles.

Before the Fukushima disaster in 2011, Japan operated 54 nuclear reactors. Currently, only 14 of the remaining 33 operable reactors have been restarted, a process that often takes years due to stringent safety regulations and public apprehension. The urgency to secure stable new power supply is heightened by the anticipated increase in demand from expanding data centers across the country.

Takaichi is a vocal advocate for nuclear power, including the development of next-generation fusion energy. She also supports perovskite solar cells, a technology with potential export opportunities for Japan, but has expressed opposition to large-scale solar projects. Her concerns stem from their heavy reliance on panels imported from China and their potential environmental impact. This stance suggests a potential shift away from costly large-scale renewable projects like offshore wind, which have already seen a dip in political support.

The new administration’s focus on nuclear power also aligns with international pressure on Japan to reduce its purchases of Russian energy, particularly liquefied natural gas (LNG). While Japan has signed new U.S. LNG purchase deals this year, a complete cessation of Russian energy imports, especially from the Sakhalin-2 project, presents challenges due to existing long-term contracts. The push for nuclear reactor restarts is therefore seen as a strategic move to diversify Japan’s energy mix and lessen its vulnerability to geopolitical fluctuations in the global energy market. This robust nuclear strategy aims to reduce Japan’s significant import bill for LNG and coal, which last year amounted to 10.7 trillion yen ($71 billion) and accounted for 60% to 70% of the nation’s electricity generation.

Source: Reuters