Japan was the world’s fifth-largest electricity consumer in 2024, while importing around 90% of its energy needs.

With limited domestic energy resources – particularly coal, oil and natural gas – Japan has long used imports to support a globally relevant economy that ranks as the second largest in Asia.

Because of this, Japan has an enduring focus on energy security, particularly around oil, coal and LNG, which make up around 83% of the country’s primary energy mix. Oil is the largest source of primary energy in Japan (37% in 2023), while LNG and coal provide the bulk of electricity generation (34% and 32% in 2024). Solar power (around 10%) has been rising in recent years, while the contribution of wind power (1.0%) is minimal and hydropower (7.6%) has remained steady over the past decade.

Japan’s Energy Mix

Japan’s Seventh Strategic Energy Plan, which was decided upon by the Cabinet in February 2025, identifies outlooks for the country’s energy system  in 2040 – with renewable energy making up 40-50% of power generation, nuclear comprising 20% and thermal power between 30 and 40%. Importantly, the plan underscores the role LNG-fired power will play as a “practical means of transition” and notes a need to secure long-term contracts for LNG in case other energy-related technological innovation does not progress.

Electricity Production

Japan's energy & climate goals in brief

  • Net zero target of 2050
  • Relies on imports for 90% of its energy
  • Has been using LNG for more than 50 years
  • Regional leader in CCS development
  • Advanced plans for hydrogen and ammonia

Natural Gas Consumption

LNG is certain to have a crucial and long-term role to play as a lower-emission alternative in electricity generation to coal as a highly reliable source of power that will help support Japan’s expansion of renewable energy sources. Japan started using LNG in 1969 and for many of the years since it has been the world leader in import volumes.

Natural gas – sourced through LNG – is essential for Japan’s chemical manufacturing industry, and it also supports support industrial electrification that is required to expand clean energy technology manufacturing.

Energy Consumption

Japan’s energy consumption per capita in 2023 was 39,210kWh, below the global high-income country average of 55,454kWh and well under the figures for Singapore (160,277kWh) and South Korea (66,698kWh).

Decarbonisation

Japan has an important leadership role in the energy transition in Asia through its experience with LNG imports and infrastructure and its development of low-carbon fuels and decarbonisation technologies.

Japan is working with countries around the region as they map out decarbonisation plans for coming decades. This includes the currently coal-dependent Philippines, where the Japan Government and a range of Japanese companies – including ANGEA members JERA, JGC and Mitsubishi Heavy Industries – are supporting the development of LNG-import capabilities alongside increasing investment in renewable energy.

The Basic Hydrogen Plan launched by Japan in 2017 was Asia’s first and revised in mid-2023 with ambitions to spend $107 billion in supply of hydrogen and its derivatives over the next 15 years. Japan is targeting 12 million tonnes a year by 2040 and 20 million tonnes by 2050. The 7th Strategic Energy Plan forecasts hydrogen and its derivatives (including ammonia, e-methane, and e-fuels) to be utilised in a wide range of fields, including decarbonisation of thermal power.

In the first half of 2024, JERA announced successful trial results from ammonia substitution (alongside coal) at the Hekinan Thermal Power Station. The pilot will now move to a larger-scale demonstration and there is optimism that 50% subsitution and perhaps even full substitution of coal may be possible in the future. Japan committed at COP28 to ending the construction of unabated coal-fired power plants and ammonia substitution technology could have region-wide decarbonisation benefits given relatively young coal fleets in emerging Asia.

Carbon capture and storage (CCS) is another area in which Japan has emerged as a global leader. In July 2024 the Japan Oil, Gas and Metals National Corporation (JOGMEC) identified nine projects for “advanced” status for fiscal year 2024. Because of limited domestic storage space, Japan will largely have to “export” captured CO2 for sequestration elsewhere, making it central to the development of cross-border CCS value chains in Asia.

Japan’s progress towards its net zero 2050 goal will have a strong bearing on the progress of decarbonisation region-wide. Its approach to the energy transition features a broad range of technologies and fuels rather than a narrow scope.

Japan’s updated Nationally Determined Contribution – published in February 2025 – outlines ambitions to reduce greenhouse gas emissions by 60% in 2035 and by 73% in 2040, compared to FY 2013 levels

Renewable Energy In Japan

Japan currently uses a range of renewable energy resources, including solar, hydropower, wind and bioenergy. Solar holds the biggest share of electricity generation at close to 10% but Japan’s ability to continue expanding solar power will be challenged by terrain difficulties and also lack of available land space.

Japan has considerable potential for geothermal energy but this has also been difficult to realise, partly due to the concentration of resources in volcanic areas.

The case for LNG + renewables

A 2025 study by S&P Global Commodity Insights identified a combination of increased use of LNG and expansion of renewable energy as a viable pathway for Japan to accelerate the phaseout of coal and decarbonisation of the power sector.

The analysis found that Japan could use existing infrastructure and gas-fired power capacity to pursue this approach and reduce power sector emissions by 34% by 2035, while investing only 8% more in the energy system. This was possible because LNG from Australia, the US and Qatar – the world’s three biggest exporters – had 47% lower average lifecycle carbon intensity when used in power generation than coal.

The study revealed a sharp contrast in the affordability of Japan pursuing full decarbonisation by 2035. This would require energy system investment to increase by 75%, while the average marginal electricity prices – the costs paid by communities and industries – would triple.

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