Japan’s New Prime Minister Centers Energy Policy on Nuclear Power

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Japan’s New Prime Minister Centers Energy Policy on Nuclear Power

Japan’s new Prime Minister, Sanae Takaichi, is set to prominently feature nuclear power in the nation’s energy policy. Her strategy aims to address rising inflation and public discontent, primarily by reviving nuclear reactors to reduce reliance on expensive fuel imports.

Appointment of Energy Minister

As part of her energy initiatives, Takaichi has appointed Ryosei Akazawa as the new Minister of Trade and Industry. Akazawa previously negotiated Japan’s tariffs with the U.S. His experience positions him as a vital player in enhancing the bilateral relationship, particularly concerning liquefied natural gas (LNG) purchases.

Japan’s Energy Expenditure

In the previous year, Japan incurred a staggering cost of 10.7 trillion yen (approximately $71 billion) on imported LNG and coal, constituting about 60% to 70% of its electricity generation. The high costs of fossil fuel imports have intensified public discontent with the ruling Liberal Democratic Party, underscoring the need for a strategic energy pivot.

Pushing for Nuclear Revival

Under Takaichi’s leadership, Japan is expected to pursue a more ambitious agenda for restarting nuclear reactors. Before the 2011 Fukushima disaster, the country operated 54 nuclear reactors, with only 14 currently in operation. This ambitious relaunch aims to mitigate wholesale power prices while decreasing fuel import dependency.

Concerns Over Renewable Energy

Takaichi has shown reservations about large-scale renewable projects, especially those involving major solar developments reliant on Chinese imports. Instead, her focus remains on sustainable technologies like next-generation fusion energy and potentially exportable perovskite solar cells.

Energy Security and Future Prospects

With rising energy demands anticipated from data center expansions, securing a stable power supply is becoming increasingly urgent. As pressure mounts from international allies to cease purchasing Russian energy, particularly LNG, Takaichi’s nuclear strategy may offer a solution. This comes alongside recent U.S. LNG purchase deals, although commitments to the Alaska LNG project are still lacking.

Conclusion

Takaichi’s administration is at a critical juncture, balancing domestic energy needs with international relations and environmental concerns. The renewed focus on nuclear energy may reshape Japan’s energy landscape for years to come.