Business
Japan’s Energy Shift: Fossil Fuels Dip Below 60% Amid Nuclear Reboot
Japan achieved a noteworthy milestone in its transition to cleaner energy, as fossil fuels accounted for less than 60% of the country’s electricity generation during the first half of 2025. This development marks the first time that fossil fuels have dipped below this threshold in Japan, a nation heavily reliant on energy imports. Despite this progress, Japan’s overall dependence on oil, gas, and coal remains substantial, comprising over 80% of its total energy consumption.
The aftermath of the 2011 Fukushima disaster played a pivotal role in shaping Japan’s energy landscape. Following the catastrophic earthquake, all nuclear reactors were shut down for extensive safety inspections, which eliminated a significant source of low-carbon energy that previously contributed around 30% to the electricity output. Consequently, Japan saw a sharp increase in imports of liquefied natural gas (LNG), oil, and coal, resulting in heightened carbon emissions.
In recent years, especially following the energy crisis of 2022-2023, Japan has gradually reopened some of its nuclear reactors. This strategic move, alongside a marked increase in solar energy installations, has contributed to the decline in fossil fuel reliance. Japan has set an ambitious goal to achieve net-zero emissions by 2050, recognizing that a robust nuclear power sector is essential to reduce emissions and curtail its fossil fuel dependence.
Nuclear Power’s Role in Japan’s Energy Strategy
The latest energy strategy outlines a renewed commitment to nuclear power, aiming to raise its contribution to the national electricity supply from less than 10% currently to 20% by 2040. The shift comes as Japan’s utility-scale electricity generation from fossil fuels fell to its lowest recorded level between January and June 2025, according to data from Ember as reported by Gavin Maguire.
Data compiled by energy analyst John Kemp from the International Energy Agency’s (IEA) World Energy Balances report indicates that Japan’s dependence on fossil fuel imports has decreased to 87% of total energy consumption, down from a high of 96% in 2012. Despite this reduction, the current reliance remains above the pre-Fukushima figure of 81%.
While nuclear energy is a crucial component of Japan’s strategy, it alone cannot drive the country to net-zero emissions. Increased capacity and generation from renewable sources, particularly solar and wind, are also imperative. Solar power has thrived in Japan, now accounting for 10% of electricity generation and experiencing a fivefold increase from 2014 to 2024. In contrast, wind power remains underdeveloped, contributing just 1% of generation in 2024, far behind the G7 average of 11%.
Challenges in Offshore Wind Development
Japan aims to harness its offshore wind potential, which has faced numerous challenges in the global market. The government has set a target for offshore wind projects to achieve a total capacity of 10 GW by 2030 and between 30 GW to 45 GW by 2040. Despite these ambitions, recent developments have raised concerns among major developers.
In a notable setback, Mitsubishi Corporation recently announced the cancellation of three offshore wind projects, citing unexpected changes and rising market challenges. The corporation acknowledged the difficulties in establishing a viable business plan under the current conditions, which include escalating costs and project delays.
This decision coincides with warnings from Ørsted, the world’s largest offshore wind developer, about ongoing challenges in the sector. The company highlighted the mounting near-term obstacles faced by the industry globally, raising questions about the future of offshore wind development in Japan.
Japan’s energy landscape is at a critical juncture, with its commitment to reduce fossil fuel consumption and increase nuclear and renewable energy generation shaping the nation’s path toward a sustainable energy future. The interplay between these energy sources will be crucial as Japan navigates its objectives in the coming decades.
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