How Japan's efforts to harness local energy supports communities

A stable and secure energy supply is essential for a well-functioning society. In response to recent geopolitical uncertainty and the ongoing climate crisis, Japan is actively transitioning to greener energy by leveraging local resources and diversifying its energy mix to secure stable energy sources.

According to data from the Agency for Natural Resources and Energy (ANRE), Japan’s energy self-sufficiency rate has dropped from 20.2% in 2010 to 15.2% in 2023. This positions Japan as the second lowest among the 38 OECD member countries. The decline is largely due to the shutdown of nuclear power plants as part of safety measures following the 2011 Great East Japan Earthquake and the subsequent nuclear accident. To compensate for the shortfall from the lack of nuclear power, Japan has relied heavily on thermal power generation.

As a result, the share of thermal power in the country’s energy mix has increased from 65.4% in 2010 to 72.8% in 2022, the highest among G7 countries. Since Japan imports nearly all of its fossil fuels, including oil, coal, and liquefied petroleum gas, its electricity supply is highly vulnerable to external factors. In other words, both daily life and industry in Japan are significantly impacted by geopolitical risks, resource price fluctuations, and exchange rate shifts. In addition, thermal power generation is the largest source of carbon dioxide emissions in Japan’s power sector, raising serious environmental concerns.

To address these challenges, the country is shifting towards a more stable, secure and sustainable energy future. By strengthening domestic electricity generation through collaboration between the public and private sectors, Japan aims to build a greener and more resilient energy supply.

In February 2025, the Japanese government approved the Strategic Energy Plan, a mid-to-long-term energy policy updated every three years, along with the GX2040 Vision, a national strategy for decarbonization. The plan outlines a policy to make renewable energy the primary power source in the future while also utilizing nuclear power. Minister of Economy, Trade and Industry Muto states, "this plan aims to create a power mix that does not overly rely on any specific energy source or fuel."

In order to increase Japan’s energy self-sufficiency rate to 30% by 2030, ANRE aims to expand renewable energy, with the target of raising its share from the current 20% to 36-38%. In order to achieve this goal, Japan is focusing on scaling up domestically produced renewable energy sources, including solar and offshore wind power.

Japan has one of the highest solar power capacities per land area amongst major countries. On the other hand, with only 34% of its land being flat and much of the country covered by mountains, further expansion will require next-generation solar cells that can be installed on building roofs and walls.

One of the promising technologies in this field is perovskite solar cells, which are lightweight and highly flexible in shape. Japan holds a strategic advantage in this area, as it produces 30% of the world’s iodine, a key material for these cells. This ability to domestically secure an essential material is a major benefit, ensuring stable local energy supply.

In order to accelerate the adoption of perovskite solar cells, ANRE is supporting the development of mass production technology, manufacturing systems, and market demand through the “Next Generation Solar Cell Development Project”, costing JPY 64.8 billion. The goal is to bring these advanced solar cells into widespread use by 2030.

Efforts are also underway to expand offshore wind power. While the country’s installed capacity stood at just 0.15 GW as of March 2024, ANRE aims to increase this to 5.7 GW by 2030. In order to achieve this, ANRE plans to extend the scope of offshore wind projects from territorial waters to Exclusive Economic Zones (EEZ) and promote the adoption of floating offshore wind technology.

To support these developments, ANRE has secured offshore areas for demonstration tests, with agreements from local fishery associations. These test sites include waters off the southern coast of Akita Prefecture in northern Japan and off the coast of Toyohashi and Tahara City in Aichi Prefecture in central Japan. The demonstration tests will be funded through the Green Innovation Fund, which has a total budget of JPY 123.5 billion.

Private-sector initiatives are also making progress. One notable example is the push to commercialize rock thermal storage technology, led by a Toshiba subsidiary, Toshiba Energy Systems, along with Chubu Electric Power Company and other partners. This system uses rocks, which efficiently absorb and release heat, to store thermal energy. The stored heat is then used to generate electricity by heating water and driving a turbine. Rock thermal storage offers several advantages: it does not require rare metals including cobalt and nickel, which are essential for battery storage, and it has a long lifespan with minimal site constraints.

Alongside the development of regional renewable energy initiatives, these advancements contribute to reducing Japan’s reliance on thermal power and cutting carbon dioxide emissions. ANRE is accelerating efforts to lower energy-related CO₂ emissions from 960 million tonnes in 2022 to 680 million tonnes by 2030.

The Ministry of Agriculture, Forestry and Fisheries (MAFF) is promoting stronger collaboration with local industries to enhance energy efficiency, regional resilience, and self-sufficiency. According to its report, The Situation Concerning Renewable Energy Power Generation in Agriculture, Forestry, and Fishing Villages, MAFF envisions integrating renewable energy sources with specific industries. Examples include linking forestry with biomass energy, fisheries with offshore wind power, livestock farming with biogas, and agriculture with solar power.

These tailored approaches align renewable energy development with the unique needs of each sector. Beyond improving regional recycling systems, this initiative aims to minimize environmental impact, return energy benefits to local communities, and prevent challenges such as environmental degradation and landscape disruption caused by external developers with no ties to the area. Additionally, fostering collaboration between different regions leads to opportunities for mutual support, not just at the local level, but for the whole society.

Japan’s actively working to utilize domestic resources and expand regional energy cooperation. These efforts align with the World Economic Forum's Clean Power, Grids and Electrification initiative, accelerating the transition to clean energy. The widespread adoption of such initiatives will not only ensure a stable and secure energy supply but also drive local economic growth, reduce carbon emissions, and create communities that are more resilient to unforeseen challenges.