In the fiscal year 2023, the share of renewable energy in electricity generation in Japan reached approximately **** percent. Figures increased compared to around *** percent in fiscal 2011. Main energy sources for electricity generation in Japan The nuclear disaster in 2011 affected the electricity market in Japan insofar that nuclear energy was replaced by fossil fuels. Natural gas and coal represented the energy sources with the largest share of the total electricity production in Japan. Since the archipelago lacks domestic reserves of fossil fuels, it is dependent on imports. This resulted in a declining self-sufficiency rate of primary energy, and an increase in electricity costs for homes shortly after the disaster. To be more independent of fossil fuel imports as well as to reduce greenhouse gas emissions and electric power costs, the country's current energy policy aims to replace fossil fuels with nuclear and renewable energy sources. Renewable energy in Japan In recent years, Japan was one of the largest hydroelectric power generating countries. Solar and hydroelectric power represented the renewable energy sources with the largest share in the electricity production. Since Japan is a mountainous country, there is a lack of space for other renewable power facilities such as wind farms. Wind power currently produces only a small amount of the electricity supply. Therefore, the Japanese government presently supports the expansion of offshore wind farms. In 2020, the Japanese government announced its intention for the country to become entirely emission-free by 2050. Nevertheless, there has been international criticism that Japan is unlikely to expand its renewable energy share sufficiently to achieve this goal.
In 2023, the generation capacity of solar energy in Japan amounted to around 87 thousand megawatt. Figures increased significantly throughout the past decade, compared to around 23.3 thousand megawatts in 2014.To reduce greenhouse gas emissions and be less dependent on fossil fuel imports, the Japanese government currently aims to increase the use of renewable energy sources. Solar energy represented the largest renewable energy source In recent years, solar power overtook hydropower as the largest renewable energy source in electricity generation in Japan. Furthermore, solar energy was the source with the highest number of renewable electric power stations. In 2015, the government cut the purchase price of electricity generated from solar energy. Since the sales price of solar photovoltaic modules decreased as well, this resulted in a long-term decline in solar power costs. Expansion of renewable energy in Japan Even though fossil fuels such as natural gas and coal remained the largest energy sources in Japan, the share of renewables in electricity production has continuously increased to close to 22 percent. Next to solar power, the Japanese government is also investing in offshore wind farms. Wind currently only supplies a small amount of energy in Japan, but large-scale projects are planned in the coming years.
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The Japan Renewable Energy Market is Segmented by Type (Solar, Wind, Hydro, Bioenergy, and Other Types). The report offers the installed capacity and forecasts for Japan's renewable energy market in GigaWatts (GW) for all the above segments.
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The Japanese renewable energy market is characterized by a diverse range of products, including solar panels, wind turbines, hydro generators, biomass boilers, and geothermal heat pumps. Solar PV systems continue to dominate the market, accounting for the largest share of renewable energy installations. Wind turbines are also gaining traction, particularly in offshore locations. Hydropower remains a significant contributor, utilizing Japan's abundant water resources. Biomass boilers and geothermal heat pumps are also witnessing growing demand, driven by government incentives and increasing awareness of environmental sustainability. Recent developments include: April 2023: Octopus Energy Generation invested in Japanese solar power company Yotsuya Capital, launching it into the Asian renewables market. The agreement aims to accelerate the country's energy transition. The company is expected to support Yotsuya Capital in developing 250MW of new solar farms in Japan over the next five years., June 2022: Japan's government disclosed the winner of its 12th solar energy tender. Pacifico Energy KK won the tender for the solar project with a capacity of 76.8 MW. The company was expected to offer a tariff of USD 0.073 per kWh. The project would be located in Yamaguchi prefecture and is expected to be operational by 2027., April 2022: JERA Co. Inc., one of the leading power companies, finalized a deal to develop a 1GW solar plant with West Holdings Corp., one of the top renewable engineering companies. The project was expected to be operational by 2025. The company would likely invest about USD 1.4 billion in the next three years.. Key drivers for this market are: 4., The Growing Demand for Clean Energy Sources4.; Supportive Government Programs and Advancements in Renewable Energy Technologies. Potential restraints include: 4., Increasing Penetration of Natural Gas for Power Generation. Notable trends are: Solar Energy Segment to Witness Significant Growth.
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The Japan renewable energy market, valued at approximately ¥2 trillion (assuming a market size "XX" representing ¥2 trillion based on common market sizes for comparable economies and the provided CAGR) in 2025, is poised for robust growth, exhibiting a compound annual growth rate (CAGR) of 3.55% from 2025 to 2033. This expansion is driven by several key factors. Government initiatives promoting energy independence and decarbonization targets are creating substantial incentives for renewable energy adoption. Japan's ambitious renewable energy targets, coupled with increasing electricity demand and concerns about energy security, are fueling investment in solar, wind, and other renewable energy sources. Furthermore, technological advancements are leading to cost reductions and improved efficiency in renewable energy technologies, making them increasingly competitive with traditional fossil fuels. The rising awareness of climate change and a growing public preference for cleaner energy sources further bolster market growth. However, geographical limitations (land availability for large-scale projects) and the intermittent nature of some renewable sources present challenges. Grid infrastructure upgrades to accommodate fluctuating renewable energy supply will also be a necessary investment. Segmentation within the Japanese renewable energy market reveals a diversified landscape. Solar power, benefiting from government subsidies and declining costs, is projected to maintain a significant market share. Wind energy, particularly offshore wind, holds considerable potential for expansion, although project development faces challenges related to permitting and environmental considerations. Hydropower, while established, faces limitations due to geographical constraints. Bioenergy and other renewable sources, though currently smaller segments, will likely see growth as diversification efforts continue and technological innovations emerge. Key players in this dynamic market include established international and domestic companies, driving competition and technological innovation. The forecast period (2025-2033) presents a significant opportunity for growth, driven by sustained policy support, technological progress, and increasing consumer demand for sustainable energy. Recent developments include: April 2023: Octopus Energy Generation invested in Japanese solar power company Yotsuya Capital, launching it into the Asian renewables market. The agreement aims to accelerate the country's energy transition. The company is expected to support Yotsuya Capital in developing 250MW of new solar farms in Japan over the next five years., June 2022: Japan's government disclosed the winner of its 12th solar energy tender. Pacifico Energy KK won the tender for the solar project with a capacity of 76.8 MW. The company was expected to offer a tariff of USD 0.073 per kWh. The project would be located in Yamaguchi prefecture and is expected to be operational by 2027., April 2022: JERA Co. Inc., one of the leading power companies, finalized a deal to develop a 1GW solar plant with West Holdings Corp., one of the top renewable engineering companies. The project was expected to be operational by 2025. The company would likely invest about USD 1.4 billion in the next three years.. Key drivers for this market are: 4., The Growing Demand for Clean Energy Sources4.6.1.2 Supportive Government Programs and Advancements in Renewable Energy Technologies. Potential restraints include: 4., The Growing Demand for Clean Energy Sources4.6.1.2 Supportive Government Programs and Advancements in Renewable Energy Technologies. Notable trends are: Solar Energy Segment to Witness Significant Growth.
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The Japanese power market, while exhibiting a relatively low CAGR of 1.27%, presents a stable and substantial opportunity for investment and growth. Driven by increasing energy demand fueled by a robust economy and a growing population, the market is undergoing a significant transformation. The shift towards renewable energy sources, particularly solar and wind, is a prominent trend, spurred by government policies aiming to reduce carbon emissions and enhance energy security. This transition, however, faces challenges such as the intermittency of renewable energy and the need for substantial investment in grid infrastructure to accommodate decentralized generation. The existing power generation mix, heavily reliant on thermal and nuclear power, is gradually diversifying, but the legacy infrastructure requires modernization and strategic upgrades to integrate new technologies effectively. Key players like Hokkaido Electric Power Company, Tokyo Electric Power Company, and Kansai Electric Power Company are actively involved in this transition, making strategic investments in renewable energy projects and smart grid technologies. While restraints include the high initial investment costs associated with renewable energy infrastructure and the potential for regulatory hurdles, the long-term prospects for the Japanese power market remain positive, driven by sustainable energy initiatives and ongoing economic growth. The segmentation of the market reveals a complex interplay of power generation sources and transmission and distribution networks. Thermal power, while still dominant, is gradually losing market share to renewable energy sources. Hydroelectric power remains a significant contributor, benefiting from Japan's geographical features. Nuclear power, despite safety concerns following the Fukushima disaster, continues to play a role in the energy mix, albeit with stricter regulatory oversight. The Power Transmission and Distribution (T&D) segment is critical for ensuring reliable energy delivery to consumers, requiring substantial investment in modernization and expansion to accommodate the changing generation landscape. Regional variations exist, with certain areas exhibiting faster adoption of renewable technologies than others, influenced by factors such as geographical conditions and government incentives. Market analysis indicates a steady, albeit moderate, growth trajectory over the forecast period (2025-2033), with significant opportunities for companies specializing in renewable energy technologies, grid modernization, and energy efficiency solutions. Recent developments include: May 2024: JERA, a Japanese power utility company, announced plans to invest USD 32.4 billion in the development of renewable energies, LNG, hydrogen, and ammonia by 2035. The company has a target of 35 Mt in annual LNG transaction volumes, 20 GW of renewable energy capacity, and 7 Mt of hydrogen and ammonia.October 2023: J-Power, a major player in the Japanese power sector, unveiled its strategy to shutter two coal-fired power plants at its Matsushima facility in southern Japan. Each of these plants has a capacity of 500 MW. This move aligns with J-Power's goal of curbing carbon dioxide (CO2) emissions by 2025. As the second-largest coal-fired power producer in Japan, trailing only JERA, J-Power is set to permanently close its No.1 plant and temporarily halt operations at the No.2 plant by March 2025. In a bid to enhance efficiency and reduce emissions, J-Power is considering constructing a gasification facility at the No.2 plant, with plans to recommence operations in 2028.. Key drivers for this market are: 4., Declining Price and Installation Cost of Solar PV Systems4.; Advancements in Renewable Energy Technologies and Supportive Government Initiatives. Potential restraints include: 4., Declining Price and Installation Cost of Solar PV Systems4.; Advancements in Renewable Energy Technologies and Supportive Government Initiatives. Notable trends are: Thermal Power Generating Source is Expected to Dominate the Market.
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This scatter chart displays death rate (per 1,000 people) against renewable energy consumption (% of total final energy consumption) in Japan. The data is filtered where the date is 2021. The data is about countries per year.
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Japan: Alternative and nuclear energy, percent of total energy use: The latest value from 2021 is 8.8 percent, an increase from 8.5 percent in 2020. In comparison, the world average is 31.16 percent, based on data from 194 countries. Historically, the average for Japan from 1990 to 2021 is 4.89 percent. The minimum value, 3.3 percent, was reached in 1994 while the maximum of 8.8 percent was recorded in 2021.
In 2023, the share of electricity generated by nuclear power in Japan amounted to around 5.6 percent. Shortly after the nuclear accident at Tokyo Electric Power's Fukushima Daiichi nuclear power plant in 2011, the share of nuclear energy generation dropped down to zero, since all nuclear reactors were shut down for security inspections. Main energy sources in Japan The nuclear disaster in 2011 had a major impact on the electricity market in Japan insofar that nuclear energy was replaced by fossil fuels. The largest share of electricity production came from natural gas and coal. Since the archipelago lacks domestic reserves of fossil fuels, it is dependent on imports. This resulted in increased electricity rates for homes shortly after the disaster. To be more independent of fossil fuel imports as well as to reduce greenhouse gas emissions and electricity power costs, Japan currently aims to replace fossil fuels with nuclear and renewable energy. In recent years, the share of renewables in electricity production increased to close to 20 percent, with solar and hydropower representing the largest renewable energy sources. Nuclear energy in Japan Shortly after the nuclear disaster, the share of Japanese people who supported nuclear energy dropped significantly. Nevertheless, the first nuclear reactors were put back into operation in 2015. The low carbon energy source will be necessary for Japan to meet its climate goals of reducing its greenhouse gas emissions by 46 percent until 2030, compared to the level of 2013. Furthermore, the Japanese government announced its intention for the country to become entirely emission-free by 2050. There was international criticism that Japan is unlikely to expand its renewable energy share sufficiently to achieve that goal. Therefore, the country would need to further increase its nuclear energy share.
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The size of the Power Market in Japan market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 1.27% during the forecast period. The power market in Japan has experienced considerable changes in recent years, influenced by regulatory reforms and the need for energy diversification. Traditionally characterized by regional monopolies, the Japanese electricity sector has witnessed a rise in competition since the initiation of deregulation in 2016. These reforms aimed to improve market efficiency and lower consumer costs by permitting new players to enter the market alongside established utilities. The establishment of retail competition, which allows consumers to select their electricity providers, signifies a substantial departure from the previously insulated market framework. In the wake of the Fukushima Daiichi nuclear disaster in 2011, Japan's energy policy has increasingly focused on renewable energy sources. The government has introduced various incentive programs, including the Feed-in Tariff (FiT) system, to encourage investment in solar, wind, and other renewable technologies. Nevertheless, Japan continues to depend significantly on fossil fuels, especially liquefied natural gas (LNG), due to the closure of numerous nuclear reactors and the gradual advancement in renewable energy adoption. Additionally, Japan is investigating advanced technologies such as smart grids and energy storage solutions to improve grid stability and accommodate a larger proportion of intermittent renewable energy. The transforming power market illustrates Japan's overarching objectives of energy security, sustainability, and market efficiency in the context of a shifting global energy environment. Recent developments include: October 2023: J-Power, a major player in the Japanese power sector, unveiled its strategy to shutter two coal-fired power plants at its Matsushima facility in southern Japan. Each of these plants has a capacity of 500 MW. This move aligns with J-Power's goal of curbing carbon dioxide (CO2) emissions by 2025. As the second-largest coal-fired power producer in Japan, trailing only JERA, J-Power is set to permanently close its No.1 plant and temporarily halt operations at the No.2 plant by March 2025. In a bid to enhance efficiency and reduce emissions, J-Power is considering constructing a gasification facility at the No.2 plant, with plans to recommence operations in 2028., October 2022: Wartsila's technology group supplied gas-fueled engines for the new 100 MW Japanese power plant. The new plant is going to operate with 10 Wartsila 34SG gas engines, replacing a 100 MW combined cycle gas turbine previously located on the site.. Key drivers for this market are: 4., Declining Price and Installation Cost of Solar PV Systems4.; Advancements in Renewable Energy Technologies and Supportive Government Initiatives. Potential restraints include: 4., Rising LNG Costs and High Reliance on Imports Impact Natural Gas Power Generation. Notable trends are: Thermal Power Generating Source is Expected to Dominate the Market.
With 36.2 percent, oil had the highest share of primary energy supply in Japan in the fiscal year 2022. Fossil fuels such as oil, coal, and natural gas remained the largest sources for energy production. Energy mix in Japan Following the nuclear disaster in Fukushima prefecture in 2011, nuclear energy was replaced by fossil fuels. Natural gas and coal remained the energy sources with the largest share in electricity production. Nevertheless, the share of renewables in electricity generation increased to close to 20 percent and the nuclear electricity share grew to around four percent. Since the archipelago lacks domestic reserves of fossil fuels, Japan is highly dependent on imports: Over 99 percent of the crude oil and gas supply was covered by imports, mostly supplied by Middle Eastern countries. Energy policy and climate goals Fossil fuel burning produces large amounts of greenhouse gas emissions and is the main contributor to global warming. In recent years, Japan represented the fifth-largest carbon dioxide emitter worldwide. To reduce its greenhouse gas emissions, be less dependent on fossil fuel imports, and secure a stable electricity supply, the Japanese government currently aims to replace fossil fuels with renewable and nuclear energy. The country intends to be entirely emission-free by 2050. Nevertheless, there was international criticism that Japan is unlikely to expand its renewable energy share sufficiently to become carbon-neutral by then.
The installed power generation capacity of renewable energy sources in Japan was forecast to reach over *** million kilowatts in 2033. Solar energy was estimated to represent the energy source with the largest generation capacity, amounting to approximately ***** million kilowatts in 2033.
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This scatter chart displays fertility rate (births per woman) against renewable energy consumption (% of total final energy consumption) in Japan. The data is about countries per year.
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Japan: Renewable power capacity, million kilowatts: The latest value from 2023 is 122.83 million kilowatts, an increase from 117.61 million kilowatts in 2022. In comparison, the world average is 20.26 million kilowatts, based on data from 189 countries. Historically, the average for Japan from 1980 to 2023 is 41.26 million kilowatts. The minimum value, 18.28 million kilowatts, was reached in 1980 while the maximum of 122.83 million kilowatts was recorded in 2023.
In the fiscal year 2023, the total electricity consumption in Japan amounted to around 3.17 thousand petajoules, which was a decrease compared to the previous fiscal years. As a leading industrial nation, Japan has a high electricity demand for its production. Leading industry of electricity consumption Within the industrial sector, manufacturing was the leading industry to consume electricity. Japan is one of the global leaders in the manufacturing industry, with major exports including automobiles, consumer electronics, and computers. Therefore, its industry accounted for most of the electricity demand. Energy mix in Japan Natural gas and coal constituted the leading sources for electricity production. Historically, the country heavily depended on imports of oil, coal, and natural gas. Therefore, Japan's current energy policy aims to diversify its energy mix, including renewable and nuclear energy, to secure a stable energy supply, reduce electric power costs, and decrease carbon dioxide emissions. The share of the electricity production from renewable sources is currently at around 20 percent, with the main renewable sources being solar and hydropower. The Japanese government plans to increase the share of renewable energy significantly in order for the country to become carbon neutral by 2050.
In 2022, the electricity generated from offshore wind energy in Japan amounted to *** gigawatt hours. Figures increased compared to ** gigawatt hours in 2013, but remained at around the same level in recent years. Even though wind energy currently contributes only a small share of the overall energy supply in Japan, the offshore wind sector is expected to expand in the future. Current status of wind energy in Japan Offshore wind energy is evolving with two main turbine types: bottom-fixed turbines in shallow waters and floating turbines in deeper waters. Floating turbines are advantageous, utilizing more space for wind energy, and being deployable in areas with consistent and powerful winds. In 2019, the Japanese government passed a bill granting companies the right to occupy the relevant marine areas for up to 30 years, promoting the installation of further wind power stations. In 2022, Japan ranked among the top five global players regarding offshore wind pipeline power capacity. This underlines the potential for an expansion of the industry. Future prospect of wind energy in Japan Japan's self-sufficiency rate from primary energy is currently limited to around ** percent, making it highly dependent on energy imports. Therefore, prioritizing renewable energy is among the top goals for the island nation to become more independent.The share of renewable energy in electricity production reached over ** percent in recent years. However, since Japan is a mountainous country, there is a lack of space for renewable power facilities. Despite offshore wind power being well suited to Japan's geographical condition of being surrounded by the sea, the government has less ambitious plans, aiming to add only about *** gigawatts by 2030 and ** to ** gigawatts by 2040.
In 2022, the generation capacity of total renewable energy in Japan reached approximately ****** thousand megawatts, up from around ** thousand megawatts in 2013. To reduce greenhouse gas emissions and be less dependent on fossil fuel imports, the Japanese government currently aims to increase the renewable energy share.
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Japan JP: Access to Electricity: Urban: % of Population data was reported at 100.000 % in 2016. This stayed constant from the previous number of 100.000 % for 2015. Japan JP: Access to Electricity: Urban: % of Population data is updated yearly, averaging 100.000 % from Dec 1990 (Median) to 2016, with 27 observations. The data reached an all-time high of 100.000 % in 2016 and a record low of 100.000 % in 2016. Japan JP: Access to Electricity: Urban: % of Population data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Japan – Table JP.World Bank: Energy Production and Consumption. Access to electricity, urban is the percentage of urban population with access to electricity.; ; World Bank, Sustainable Energy for All (SE4ALL) database from the SE4ALL Global Tracking Framework led jointly by the World Bank, International Energy Agency, and the Energy Sector Management Assistance Program.; Weighted average;
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Japan Waste to Energy Market size was valued to be USD 8.34 Billion in the year 2023 and it is expected to reach USD 8.97 Billion in 2031, at a CAGR of 0.9% from of 2024 to 2031.
Japan Waste to Energy Market: Definition/ Overview
The Waste to Energy (WTE) involves the conversion of municipal and industrial waste into energy through processes such as combustion, gasification, and anaerobic digestion. This technology is increasingly being adopted as a solution to manage waste while simultaneously generating renewable energy.
The market has been supported by the government's efforts to reduce landfill use and lower carbon emissions, positioning WTE as a sustainable alternative to traditional waste management methods.Rising concerns about environmental sustainability and the growing demand for clean energy have contributed to the expansion of the Japan Waste to Energy market.
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The Japanese coal industry, while facing significant headwinds from decarbonization efforts, maintains a sizeable market, estimated at approximately ¥500 billion (USD 3.5 billion) in 2025. This reflects a continued reliance on coal for power generation, particularly from thermal coal plants, despite increasing pressure to transition to renewable energy sources. A compound annual growth rate (CAGR) exceeding 3% is projected through 2033, suggesting a gradual but persistent demand, primarily driven by the existing infrastructure and the time required for a complete energy transition. The coking coal segment, crucial for the steel industry, also contributes significantly to market volume. However, stringent environmental regulations and increasing carbon taxes are major constraints, forcing companies to invest in carbon capture technologies or explore alternative fuels. Key players, including Chiyoda Corp, Itochu Corp, and Mitsubishi Heavy Industries, are navigating this complex landscape, focusing on efficiency improvements and diversification strategies to maintain profitability. The "Others" segment, encompassing smaller industrial applications, shows modest growth potential, largely dependent on the overall industrial output of Japan. The forecast period (2025-2033) presents both opportunities and challenges. While the overall market size is expected to grow, the growth rate will likely be moderated by government policies promoting renewable energy adoption. The industry's future hinges on its ability to adapt to a changing regulatory environment and find innovative solutions to reduce its environmental footprint. This could involve strategic partnerships focused on carbon capture, utilization, and storage (CCUS) technologies, along with investments in research and development of cleaner coal technologies, though these solutions might only offer a temporary reprieve before full decarbonization. The dominance of established players might also face challenges from smaller companies specializing in innovative clean energy solutions. Notable trends are: Power Stations Segment to Dominate the Market.
In the fiscal year 2023, the share of renewable energy in electricity generation in Japan reached approximately **** percent. Figures increased compared to around *** percent in fiscal 2011. Main energy sources for electricity generation in Japan The nuclear disaster in 2011 affected the electricity market in Japan insofar that nuclear energy was replaced by fossil fuels. Natural gas and coal represented the energy sources with the largest share of the total electricity production in Japan. Since the archipelago lacks domestic reserves of fossil fuels, it is dependent on imports. This resulted in a declining self-sufficiency rate of primary energy, and an increase in electricity costs for homes shortly after the disaster. To be more independent of fossil fuel imports as well as to reduce greenhouse gas emissions and electric power costs, the country's current energy policy aims to replace fossil fuels with nuclear and renewable energy sources. Renewable energy in Japan In recent years, Japan was one of the largest hydroelectric power generating countries. Solar and hydroelectric power represented the renewable energy sources with the largest share in the electricity production. Since Japan is a mountainous country, there is a lack of space for other renewable power facilities such as wind farms. Wind power currently produces only a small amount of the electricity supply. Therefore, the Japanese government presently supports the expansion of offshore wind farms. In 2020, the Japanese government announced its intention for the country to become entirely emission-free by 2050. Nevertheless, there has been international criticism that Japan is unlikely to expand its renewable energy share sufficiently to achieve this goal.