Japanese Cabinet approved the Seventh Strategic Energy Plan 
On February 18, 2025, the Japanese Cabinet approved the Seventh Strategic Energy Plan. This Strategic Plan was formulated in a manner consistent with the 73% greenhouse gas emission reduction target for 2040 as newly formulated by the Japanese Government. Reflecting the changes in the energy landscape after the Sixth Strategic Energy Plan formulated in October 2021, the Seventh Plan incorporates the expansion of diverse and realistic approaches to energy issues and the simultaneous realization of stable energy supply, economic growth, and decarbonization via conversion of the energy structure, while maintaining energy security requirements, increased power demand associated with the progress of digital transformation (DX) and green transformation (GX), and ambitious targets towards carbon neutrality.
According to the Plan’s chapter V “Policy Direction Towards 2040”, the key to Japan’s industrial competitiveness lies in its ability to secure decarbonized power sources at internationally comparable prices that meet the expected increase in power demand due to the progress of DX and GX. For this purpose, it is necessary to introduce as much renewable energy as possible as a main power source and seek to achieve a well-balanced combination of power sources to avoid excessive dependence on specific power or fuel sources.
The section V-3 “Expansion of and System Development for Decarbonized Power Sources” suggests using decarbonized power sources to the extent possible, rather than engaging in binary discourses on, for example, renewable energy vs nuclear energy. In this context, the concept of “thorough use of renewable energy as a main power source” also aims to promote growth and expansion of domestic renewable energy. The growth and expansion of domestic renewable energy, which requires the enhancement of the technology self-sufficiency rate, will lead not only to decarbonization but also to the enhancement of Japan’s industrial competitiveness. The use of renewable energy as a main power source requires steady reinforcement of the cross-regional interconnection lines, intra-regional bulk power systems, and the like, as well as securing the energy balancing capacity via storage batteries and demand responses. Sophistication of grid systems and supply-demand operations is also needed. The section states that the use of nuclear energy will be sustained at a necessary scale on the major premise of safety assurance, as it meets the emerging needs of data centers, semiconductor factories, and other facilities, through its remarkably stable power supply and high rate of technology self-sufficiency, cost level comparable with other power sources, and lower susceptibility to price fluctuations.
The section V-4 “Securing of Next-Generation Energy Sources, and Their Supply Systems” states that hydrogen (including ammonia, synthetic methane, and synthetic fuels) is expected to be applied in a wide range of areas, and that strong support will be provided to the development of supply chains thereof based on the “price gap focused support” and other means under the Hydrogen Society Promotion Act enacted in May, 2024, and related laws and regulations.
Related URLs
- News Release by the Ministry of Economy, Trade and Industry on the Seventh Strategic Energy Plan:
https://www.meti.go.jp/press/2024/02/20250218001/20250218001.html - Seventh Strategic Energy Plan:
https://www.meti.go.jp/press/2024/02/20250218001/20250218001-1.pdf
- Overview of the Seventh Strategic Energy Plan:
https://www.meti.go.jp/press/2024/02/20250218001/20250218001-2.pdf
