EnergyOMNI's Perspectives I Energy Policy of Japan's Next Prime Minister, Sanae Takaichi

Edited by EnergyOMNI

Sanae Takaichi, the newly elected president of Japan’s ruling Liberal Democratic Party (LDP), is set to become the next prime minister of Japan.

Takaichi has stated that her energy policy prioritizes achieving complete energy self-sufficiency while ensuring a stable and affordable electricity supply to protect Japanese industries. She supports the development of next-generation nuclear fusion reactors and encourages research and development in energy-saving technologies.

Takaichi is likely to prioritize nuclear energy as a means to curb Japan’s carbon emissions, said Mika Ohbayashi, director at the Renewable Energy Institute, a think tank that promotes clean-energy use. "She wants energy security over climate ambition, nuclear over renewables and national industry over global corporations,” Ohbayashi said. Nuclear energy could become a promising area for U.S.-Japan collaboration, said Ichiro Kutani, director of the energy security unit at Japan’s state-backed Institute of Energy Economics. The U.S. government is investing in the development of a uranium fuel supply chain, and Japan could participate in this initiative, he said.

Shares of nuclear reactor operators rose Monday. Kansai Electric Power, which is currently considering building a new reactor, jumped as much as 5.8%, while Tokyo Electric Power Company Holdings — which has long been struggling to restart Japan’s biggest nuclear plant — rose as much as 6.5%. Renewable energy developer Renova dropped as much as 15%, while West Holdings, which develops solar power plants, fell as much as 14%.

Regarding renewable energy, Takaichi has expressed opposition to foreign-made solar panels but supports Japan’s competitive advantage in next-generation perovskite solar films. This technology is lighter, thinner, and more efficient than conventional silicon solar panels.

In November last year, Japan’s Ministry of Economy, Trade and Industry (METI) announced a target of achieving 20 GW of installed capacity for perovskite solar cells by 2040. Earlier, in September, METI also announced ¥24.6 billion in subsidies over the next five years to support R&D and verification testing by domestic companies such as Panasonic, Ricoh, and EneCoat Technologies Co. Meanwhile, the Ministry of the Environment will provide subsidies covering up to 75% of installation costs for companies and local governments adopting perovskite solar cells.