Japan has approved its 7th Strategic Energy Plan with solar energy as the key focus among renewables
Through this plan, METI aims to encourage the development of next-generation energy sources especially perovskite solar
It will also aggressively promote rooftop solar and storage, targeting domestic manufacturing base of 150 GWh/year by 2030 for storage
Japan will target to achieve between 40% and 50% renewable energy share in its total electricity mix by FY2040 under its 7th Strategic Energy Plan that has been approved by the cabinet. This will be an increase from the 22.9% it reached in FY2023, making renewables the center of its energy system.
Solar is the key focus technology among renewables, according to the plan shared by the Japanese Ministry of Economy, Trade and Industry (METI). Considering the lack of suitable locations for solar in the island nation, the government aims to promote flexible and lightweight solutions under the Next-generation Solar Cell Strategy. By 2040, it aims to introduce 20 GW of perovskite solar cell capacity to promote its installation on roofs and building walls with low load-bearing capacity.
It will promote perovskite’s technological development, achieving economies of scale with the aim to achieve a cost of JPY 20 ($0.13)/kWh by 2025, JPY 14 ($0.093)/kWh by 2030, and finally JPY 10 to 14 ($0.067 to $0.093)/kWh or even lower by 2040.
This is also aimed to contribute to the overarching ambition to reduce Japan’s GHG emissions by 60% by 2025 from 2013 levels, and by 73% by 2040. It has been raised from the government’s previous target of 46% by 2030 as set in the 2021 plan.
The government has also voted for nuclear power to account for 20% of the country’s energy supply. Coal-fired capacity is to be reduced from around 70% now to between 30% and 40%.
“In order to make renewable energy the main source of power, we will work to integrate it into the electricity market, minimize the integration costs for society as a whole associated with system development and ensuring adjustment capabilities, and work to make renewable energy a long-term stable source of power,” reads the plan.
According to the ministry, Japan needs to ensure a stable energy supply as its energy self-sufficiency rate was about 12.6% as of FY2022, the lowest among G7 member nations, leaving it vulnerable to a stable energy supply. Renewable energy, along with other energy sources will be necessary for it to decarbonize itself and become energy self-sufficient. This plan targets to achieve an energy self-sufficiency rate of about 30% to 40% by FY2040.
The following are some of the major features approved in the plan by the cabinet:
At the federal level, the idea is to select at least 100 regions as decarbonization pioneers by FY2025 where self-consumption of renewable energy will be promoted through rooftop solar, battery storage, electric vehicles (EV), etc. in a phased manner. Public facilities including disaster prevention centers and evacuation facilities will also be powered by renewable energy and battery storage.
The government will make rooftop solar installations mandatory on close to 50% of government buildings and other structures by 2030, covering 100% by 2040.
For the residential segment, the administration desires to have rooftop solar systems installed in homes and buildings where ‘reasonable’ by 2050 and to have solar power systems installed in 60% of the newly built independent houses by 2030.
Solar projects will be expanded to utilize infrastructure spaces such as airports, roads, railways and ports.
Agrivoltaics will be encouraged with the involvement of local governments. Renewable energy generation on abandoned agricultural land where farming cannot be done will be promoted.
Recycling of renewable energy systems, particularly solar panels, will be mandatory.
Local governments will be encouraged to set their own renewable energy targets and promote them by setting specific zones for ground-mounted PV projects. Japan will develop inter-regional transmission lines to ensure renewable energy is supplied to the major demand centers.
Additionally, the plan stresses the need for storage for electrification. It aims to establish a domestic manufacturing base of 150 GWh/year by 2030, including the entire supply chain.
Commenting on the Japanese new energy plan, the independent think-tank Renewable Energy Institute (REI) expressed disappointment as it believes more than 90% of the country’s electricity can be supplied by renewables in 2040 to truly ensure low-cost and self-sufficient energy supply, driven by massive deployment of wind and solar power.
It explained, “The power generation mix in the approved 7th Strategic Energy Plan requires large amounts of hydrogen, ammonia, and CCS to decarbonize thermal power generation, which is to provide 30-40% of the power. This will make the cost of power generation higher than in the scenario with more than 90% renewables.”
The REI further adds, “According to our scenario in which more than 90% of electricity in 2040 will come from renewable energy sources, the country will achieve a self-sufficiency ratio of about 75% in primary energy as a whole. The self-sufficiency rate in the approved 7th Strategic Energy Plan is 30-40% even if nuclear power is included, which means that the exposure to geopolitical risks is still high.”
The complete 7th Strategic Energy Plan of Japan, also referred to as the 7th Basic Energy Plan, in Japanese is available on METI’s website.
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