Japan’s Incoming Leader to Put Nuclear at Center of Energy Plan
(Bloomberg) -- The woman expected to be Japan’s next prime minister is set to keep nuclear power at the core of the nation’s energy strategy, while reducing emphasis on readily available renewables like solar.
Sanae Takaichi, newly elected leader of Japan’s ruling party, has pushed to accelerate the development of advanced nuclear technologies, like fusion, and has previously called for making the country 100% energy self-sufficient by deploying next-generation reactors.
Shares of nuclear reactor operators rose Monday. Kansai Electric Power Co., which is currently considering building a new reactor, jumped as much as 5.8%, while Tokyo Electric Power Co. — which has long been struggling to restart Japan’s biggest nuclear plant — rose as much as 6.5%.
A pro-nuclear stance would continue the policies of previous administrations, which have pushed to build new units and restart reactors idled after the 2011 Fukushima disaster. Japan is among those countries backing nuclear power to help reduce reliance on imported fossil fuels and curb emissions.
Takaichi’s victory in the Liberal Democratic Party leadership election is “a win for nuclear, newer technologies such as fusion and perovskite solar, and a loss for renewable energy, especially those relying on foreign equipment,” said Umer Sadiq, a Japan analyst at BloombergNEF.
Takaichi, who would be Japan’s first female prime minister, has at times expressed concerns about the use of solar power. The 64-year-old has said she opposes “further covering our beautiful land with foreign-made solar panels,” and that she would reform current subsidy programs that support this form of renewable energy. Japan currently imports most of its solar modules from overseas.
The presumptive PM has also expressed support for perovskite panels, next-generation solar films that are said to be more energy efficient and flexible.
While she backs nuclear power, it’s unclear what Takaichi can do to help accelerate the restart of Japan’s idled reactors. The country has 33 commercially available units, 14 of which have managed to resume operation under stringent post-Fukushima rules. Restarts face high regulatory hurdles and need local government support.
Takaichi’s atomic technology of choice — fusion — is also largely in its infancy, and likely decades away from being commercially viable. Japan most recently revised its national fusion strategy in June, aiming to develop demonstration projects in the 2030s. She is also promoting investment in unlocking fossil fuel resources at home and abroad to help boost energy security.
The new LDP leader could also nudge Japan to retire its power plants more gradually, while advocating for carbon-capture and storage and ammonia to decarbonize those facilities, BNEF’s Sadiq said.
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