Japan to Maintain Nuclear Energy and Expand Renewables, Says New Industry Minister

Japan will continue the safe restart of nuclear power plants while maximizing the use of renewable energy, Industry Minister Yoji Muto announced on Wednesday, suggesting that there will be no significant policy changes under newly appointed Prime Minister Shigeru Ishiba.

Prior to winning the leadership race of the ruling Liberal Democratic Party, Ishiba had committed to eliminating nuclear power. He was the only candidate opposed to nuclear energy in Japan, a country that depends on fossil fuel imports for two-thirds of its electricity.

However, just before assuming office, Ishiba shifted his stance. Instead of advocating for a nuclear-free future, he now promotes expanding renewable energy sources such as hydropower and improving energy efficiency.

"We will utilize renewable energy to the fullest and restart nuclear plants, the ones deemed safe, as much as possible," Muto said during his first press briefing as the minister of economy, trade, and industry (METI).

With electricity demand expected to rise due to the increase in data centers and semiconductor manufacturing, Muto emphasized that securing a stable energy supply would be "vital for Japan's economic growth."

Last year, renewable energy, including solar, wind, and hydropower, contributed to over a quarter of Japan's power generation, while coal and liquefied natural gas (LNG) made up the majority, according to consultancy firm WoodMackenzie. Nuclear power accounted for 9% of the energy mix.

Japan shut down all of its nuclear reactors following the 2011 earthquake and tsunami that caused the Fukushima disaster, the worst nuclear crisis since Chernobyl. Today, the country operates only 11 reactors, about one-fifth of its pre-disaster total, generating nearly 11 gigawatts of electricity. The restarting of these reactors has led to an 8% reduction in LNG imports, the lowest level in 14 years.

However, the cost of importing LNG and coal for thermal power plants reached 12.4 trillion yen ($86 billion) last year, representing 11% of Japan's total import expenses and contributing to the rising cost of living, a key issue for Prime Minister Ishiba.

Tokyo Electric Power Co (TEPCO) is attempting to restart the Kashiwazaki-Kariwa nuclear power plant, the largest in the world, but has not yet secured approval from the Niigata prefecture, whose governor is demanding further safety guarantees.

Muto acknowledged that TEPCO still needs to address local safety concerns but stressed the importance of restarting nuclear plants to ensure energy supply, control power prices, and reduce carbon emissions.

Mika Ohbayashi, director at the Renewable Energy Institute in Tokyo, noted that the outcome of the upcoming House of Representatives election on October 27 and internal dynamics within the ruling LDP will shape the future discussions on nuclear energy. "It's possible to phase out nuclear power," Ohbayashi said, referring to the period following the Fukushima disaster when Japan temporarily halted all 54 reactors.