Imagine a country that must import over 90% of the fuel that powers its entire economy, a staggering reality that defines Japan's energy landscape and its relentless quest for security and transition.
Key Takeaways
- Japan's crude oil imports in 2022 totaled 2.85 million barrels per day, primarily from Middle East suppliers accounting for 93% of total imports
- Japan consumed 3.2 million barrels per day of petroleum products in 2022, with transportation sector using 1.8 million b/d
- LNG imports to Japan reached 65.9 million tonnes in FY2022, down 4.5% from previous year due to high prices
- Coal consumption in Japan was 104.7 million tonnes of oil equivalent (Mtoe) in 2022, 23% of primary energy
- Japan imported 207.5 million tonnes of coal in 2022, 98% for power and industry
- Thermal coal imports from Australia were 120 million tonnes in FY2022
- Nuclear power generation in Japan was 75.2 TWh in FY2022, 7.5% of electricity mix
- Japan has 33 operable nuclear reactors with 31.7 GW capacity as of 2023
- Restarted reactors numbered 12 by end-2023, producing 40 TWh
- Renewable electricity generation reached 230 TWh in FY2022, 22.9% of total
- Solar PV capacity installed 83 GW by end-2023, generating 100 TWh
- Onshore wind capacity 5.3 GW, offshore floating 100 MW pilots in 2023
- Total electricity generation in Japan was 1,002 TWh in FY2022
- Peak demand hit 179 GW in summer 2022
- Transmission losses 4.2% of generation in 2022 grid
Japan relies heavily on imported oil and gas to meet its high energy consumption.
Coal
- Coal consumption in Japan was 104.7 million tonnes of oil equivalent (Mtoe) in 2022, 23% of primary energy
- Japan imported 207.5 million tonnes of coal in 2022, 98% for power and industry
- Thermal coal imports from Australia were 120 million tonnes in FY2022
- Coking coal for steelmaking imported 60 million tonnes, mainly Indonesia/Australia
- Coal-fired power generation share was 32% of total electricity in FY2022
- Japan's coal fleet capacity is 33 GW as of 2023, with 10 GW high-efficiency USC plants
- Coal imports value hit ¥3.5 trillion in 2022 due to price surge
- Domestic coal production ceased in 2021, reserves estimated 1.3 billion tonnes
- Coal use in cement industry was 15 Mtoe in 2022
- Japan phased out 4 GW subcritical coal plants by 2023 under GX plan
- Coal ash recycling rate is 98% in Japan, used for construction
- Metallurgical coal imports declined 5% to 55 Mt in 2022 amid steel decarbonization
- Coal for IPPs generated 150 TWh in FY2022
- Japan-Australia coal trade volume 130 Mt in 2022
- Coal stockpile levels at ports averaged 20 Mt in 2022
- Ultra-supercritical coal plant efficiency reaches 43% in Japan
- Coal CCS pilot at Tomakomai stored 100,000 tonnes CO2 by 2022
- Coal-fired capacity retirements planned 7 GW by 2030
- Steam coal price paid by Japan averaged $250/tonne in 2022
- Coal use in ironmaking dropped 3% to 45 Mt in 2022
- Hokkaido coal mines historically produced 2 billion tonnes until 1970s
- Coal handling ports like Kita-Kyushu handle 50 Mt/year capacity
- Coal ammonia co-firing trials at 20% blend in 2023 plants
- Coal fleet CO2 emissions totaled 250 Mt in FY2022
- Japan funds coal projects abroad via JBIC $10B in 2022
- Coal slurry pipelines not developed in Japan due to geography
Coal Interpretation
For a nation that ceased domestic production, Japan's coal dependence remains a stubbornly expensive and high-stakes poker game, where the hand it's dealt—overwhelmingly imported, powering a third of its grid, and backed by impressive but eye-wateringly costly technology—is a tough one to fold despite the decarbonizing bluffs being called around the world.
Electricity and Overall Energy
- Total electricity generation in Japan was 1,002 TWh in FY2022
- Peak demand hit 179 GW in summer 2022
- Transmission losses 4.2% of generation in 2022 grid
- Household electricity consumption average 4,500 kWh/year per capita
- Industrial sector uses 55% of final electricity
- Smart meter penetration 95% by 2023
- Electricity price for industry ¥20/kWh in 2023, up 30%
- Grid capacity 360 GW total, 50Hz/60Hz split
- HVDC links interconnect islands, 1.4 GW capacity
- Energy intensity GDP declined 2.5% in 2022
- Final energy consumption 380 Mtoe in 2022
- Primary energy supply 460 Mtoe, import dependency 90%
- CO2 emissions from energy 1,100 Mt in FY2022
- Demand response programs curtail 5 GW peak annually
- Battery storage capacity 1.7 GW by 2023
- Cross-regional grid use fee ¥1 trillion collected 2022
- Retail electricity competition since 2016, 30M contracts switched
- Hokkaido grid renewable curtailment 1.2 TWh in 2022
- Substation transformers 50,000 units, average age 25 years
- Electricity self-sufficiency ratio 12% from domestic sources 2022
Electricity and Overall Energy Interpretation
Despite Japan's grid being as meticulously monitored as a Zen garden, with smart meters tracking nearly every electron and HVDC lines stitching its islands together, the sobering reality is that this high-wire act of balancing 90% imported energy against peak demand and aging infrastructure means its celebrated efficiency is, for now, powered more by precarious imports and industrial grit than by true energy independence.
Nuclear Energy
- Nuclear power generation in Japan was 75.2 TWh in FY2022, 7.5% of electricity mix
- Japan has 33 operable nuclear reactors with 31.7 GW capacity as of 2023
- Restarted reactors numbered 12 by end-2023, producing 40 TWh
- Fukushima Daiichi decommissioning cost estimated ¥21.5 trillion by 2022
- Nuclear share target is 20-22% by 2030 under Strategic Energy Plan
- MOX fuel loaded in 4 reactors by 2023, 2 tonnes annually
- Nuclear fuel cycle R&D budget ¥200 billion in FY2023
- Kashiwazaki-Kariwa plant 7.1 GW capacity, world's largest, under restart review
- Radiation exposure from nuclear ops averaged 0.1 mSv/person/year
- New reactor construction approvals halted since 2013
- Spent fuel storage at reactor sites 18,000 tonnes as of 2023
- Monju fast breeder reactor decommissioned 2016 after ¥1 trillion spent
- Nuclear exports to Turkey (Akkuyu) valued $20B by Japanese firms
- Stress tests passed by 14 reactors for restart by 2023
- Uranium imports 8,000 tonnes U in 2022, from Australia/Canada
- Rokkasho reprocessing plant capacity 800 tonnes HM/year, delayed to 2026
- Nuclear power plant utilization rate 18% in FY2022
- TEPCO nuclear assets valued ¥4 trillion post-Fukushima
- Small modular reactor R&D funded ¥40B for 2030s deployment
- Nuclear liability insurance capped ¥120B per incident
- Genkai-3 restart in 2024 first post-2023 safety upgrades
- Plutonium stockpile 45 tonnes as of 2023
- Nuclear training centers train 5,000 personnel annually
Nuclear Energy Interpretation
Japan's nuclear industry, with its dormant giants and ambitious targets, is like a patient recovering from a major surgery: it's cautiously restarting its vital functions while still carrying the immense cost of its past trauma and the heavy baggage of its plutonium stockpile.
Oil and Natural Gas
- Japan's crude oil imports in 2022 totaled 2.85 million barrels per day, primarily from Middle East suppliers accounting for 93% of total imports
- Japan consumed 3.2 million barrels per day of petroleum products in 2022, with transportation sector using 1.8 million b/d
- LNG imports to Japan reached 65.9 million tonnes in FY2022, down 4.5% from previous year due to high prices
- Japan's domestic oil production was only 128,000 barrels per day in 2022, less than 5% of consumption
- Japan refines 3.4 million b/d of crude oil capacity as of 2023, with JXTG Nippon Oil & Energy holding 32% share
- Natural gas consumption in Japan was 109 bcm in 2022, 24% of primary energy mix
- Japan imported 96.8% of its natural gas as LNG in 2022 from Australia (42 bcm)
- Pipeline gas imports via Sakhalin-2 project supplied 9.6 bcm to Japan in 2022
- Japan's LPG imports hit 19.5 million tonnes in FY2022, used mainly for petrochemicals
- Oil product exports from Japan were 0.82 million b/d in 2022, mainly to Asia
- Japan's strategic petroleum reserves hold 252 days of net imports as of 2023
- Fuel oil consumption dropped 15% to 0.25 million b/d in 2022 due to IMO regulations
- Gasoline demand in Japan was 0.45 million b/d in 2022, affected by EV shift
- Diesel oil use for power generation was 0.1 million b/d in summer peaks 2022
- Japan's naphtha consumption for petrochemicals was 22 million tonnes in 2022
- LNG regasification capacity totals 210 million tonnes per year in Japan as of 2023
- Spot LNG imports share rose to 25% of total in FY2022 amid volatility
- Japan's city gas penetration rate is 70% in urban areas, consuming 40 bcm annually
- Offshore oil exploration blocks awarded 5 new in 2023 around Japan EEZ
- Kerosene jet fuel demand recovered to 0.12 million b/d post-COVID in 2022
- Japan's bitumen imports for roads were 4.5 million tonnes in FY2022
- Natural gas vehicle fleet in Japan numbers 3,500 as of 2023, negligible share
- LNG bunkering ports operational at 10 locations in Japan by 2023
- Japan's oil tanker fleet capacity is 45 million DWT, 4th largest globally
- Condensate production from Minami-Aga oil field averaged 2,000 b/d in 2022
- Japan subsidizes domestic gas development with ¥10 billion annually
- LPG air mix ratio in city gas is 10-20% across utilities in 2022
- Oil spill incidents from tankers numbered 12 in Japanese waters in 2022
- Japan's hydrogen from natural gas reforming capacity targets 3 Mt by 2030
- LNG carrier orders from Japan yards totaled 15 vessels in 2022
Oil and Natural Gas Interpretation
Japan's energy strategy is a masterclass in high-stakes dependency, importing nearly all its crucial oil and gas while refining far more than it consumes, which leaves it delicately balancing between Middle Eastern oil tankers, volatile LNG spot markets, and a massive strategic reserve as its ultimate safety net.
Renewable Energy
- Renewable electricity generation reached 230 TWh in FY2022, 22.9% of total
- Solar PV capacity installed 83 GW by end-2023, generating 100 TWh
- Onshore wind capacity 5.3 GW, offshore floating 100 MW pilots in 2023
- Hydropower generation 70 TWh in FY2022, 7% share, mostly existing dams
- Geothermal potential 23 GW, developed 540 MW as of 2023
- Biomass power capacity 5.5 GW, wood pellets imports 7 Mt in 2022
- Feed-in tariff for solar >10kW is ¥10/kWh in 2023
- Offshore wind auctions awarded 1.7 GW in 2023 round
- EV charging stations with renewables integration 30,000 by 2023
- Green hydrogen production from renewables targets 300,000 tonnes by 2030
- Rooftop solar penetration 50 GW residential by 2023
- Wind curtailment rate <1% due to forecasting, FY2022 data
- Floating solar on reservoirs 500 MW pipeline in 2023
- Biofuel blending mandate E3 for gasoline since 2021
- Renewable R&D budget ¥400B in FY2023
- Hokkaido wind farms 2 GW planned by 2030
- Solar irradiance average 4.3 kWh/m2/day in Kyushu
- Waste-to-energy plants generate 5 TWh electricity annually
- Carbon-neutral by 2050 renewables target 36-38% power mix
- Hybrid hydro-solar plants 100 MW operational 2023
- Ammonia co-firing with biomass in trials up to 20%
Renewable Energy Interpretation
Japan is achieving its energy transition not with a single silver bullet but through a deliberate and diverse mosaic of tactics, from blanketing rooftops and reservoirs with solar panels to pioneering floating wind and ammonia co-firing, all while meticulously integrating this surge into a grid that currently curtails almost none of it.
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