Japan is a major consumer of energy, ranking fifth in the world by primary energy use. Fossil fuels accounted for 67% of Japan's primary energy in 2023. Japan imports most of its energy due to scarce domestic resources. As of 2022, the country imports 97% of its oil and is the largest liquefied natural gas (LNG) importer globally.
Japan is increasing its reliance on renewable energy to replace imported fossil fuels, and in 2019 renewable energy accounted for 7.8% of primary energy supply. Japan has committed to reaching net zero emissions by 2050, setting a target to reduce GHG emissions by 60% from year 2013 levels by 2035 and by 73% by 2040. In addition, the 7th Strategic energy Plan has also set the renewable share goal to be 40-50% by the year 2040. As of 2024, the share of renewable energy in total electricity generation reached 26.7%, an increase from 25.7% in 2023.
Japan initiated its first commercial nuclear power reactor in 1966, establishing nuclear energy as a strategic national priority from 1973 onwards. Following the Fukushima nuclear accident in 2011, this strategy underwent re-evaluation and new plans were introduced to proactively utilize nuclear power. They had added new plans in the 7th Strategic Energy Plan: planning to build and use a safer and more efficient nuclear power, with consideration for the consent of the local community, changing the rule for the 60 year limit to exclude the period during the shutdown, and to implement plutonium to at least 12 nuclear power plants by Fiscal year 2030.
Prior to the accident, nuclear reactors contributed about 30% of Japan's electricity, with the country now aiming for nuclear energy to account for at least 20% of its electricity production by 2030. The Fukushima accident also led to a 16% reduction in total primary energy supply (TPES) from 2010 to 2019. However, because of current needs of Digital Transformation (DX) and Green Transformation (GX) from the massive need of electricity from AI, data centers, and semiconductor manufacturing, the demand for electricity is expected to increase. Moreover, the government has also made a goal to raise Japan's energy self-sufficiency rate to about 30 to 40% by Fiscal year 2040.Therefore, it is more likely that the usage of nuclear power will increase.
Overview
+ Energy in JapanIEA Key World Energy Statistics Statistics 2015 , 2014 (2012R as in November 2015 + 2012 as in March 2014 is comparable to previous years statistical calculation criteria, 2013 , 2012 , 2011 , 2010 , 2009 , 2006 IEA October, crude oil p.11, coal p. 13 gas p. 15 https://www.iea.org/countries/japan Year Population (million) Prim. energy (TWh) Production (TWh) Import (TWh) Electricity (TWh) CO2-emission (Mt) 2004 127.7 6,201 1,125 5,126 1,031 1,215 2007 127.8 5,972 1,052 5,055 1,083 1,236 2008 127.7 5,767 1,031 4,872 1,031 1,151 2009 127.3 5,489 1,091 4,471 997 1,093 2010 127.4 5,778 1,126 4,759 1,070 1,143 2012 127.8 5,367 601 4,897 1,003 1,186 2012R 127.6 5,260 329 5,062 989 1,223 2013 127.3 5,288 325 5,082 998 1,235 2020 125.8 4,642 1004.8 – 969 1,024 Change 2004–10 −0.2% −6.8% 0.0% −7.2% 3.7% −5.9% Mtoe = 11.63 TWh, Prim. energy includes energy losses that are 2/3 for nuclear powerEnergy in Sweden 2010 , Facts and figures, The Swedish Energy Agency, Table 8 Losses in nuclear power stations Table 9 Nuclear power brutto 2012R = calculation criteria changed, numbers updated
History In the post-war period, Japan's energy policy underwent significant transformation as it grappled with limited domestic energy resources. Initially, Japan relied heavily on coal, which accounted for over 80% of its energy needs in the 1950s, fueling its rapid industrialization and supporting its economic recovery. Coal was integral to powering factories, railways, and other critical infrastructure. However, by the late 1950s and early 1960s, Japan shifted towards oil due to its cost-effectiveness, higher energy density, and the challenges posed by domestic coal supply disruptions. By the 1970s, oil dominated Japan's energy mix, accounting for over 70% of its energy requirements, driven by rapid urbanization and the expansion of the transportation and manufacturing sectors. The 1973 oil crisis marked a turning point, exposing Japan's vulnerability to external supply shocks and triggering efforts to diversify its energy sources. This period saw the emergence of liquefied natural gas (LNG) as a viable alternative, valued for its lower environmental impact, flexibility, and increasing global availability. Japan signed its first LNG import agreement in 1967, and by the 1990s, partnerships with countries in the Middle East, particularly Qatar, solidified LNG as a cornerstone of its energy policy. These energy shifts—from coal to oil to LNG—reflect Japan's strategic adaptation to global energy dynamics, ensuring a stable supply while fostering deeper economic and political ties with resource-rich regions like the Gulf.Steven Wright, "The LNG Sector in Japan's Relations with the Middle East," in Japan and the Middle East: Foreign Policies and Interdependence, ed. Satoru Nakamura and Steven Wright, Palgrave Macmillan, 2023, pp. 243–267. https://doi.org/10.1007/978-981-19-3459-9.
Japan's rapid industrial growth since the end of World War II doubled the nation's energy consumption every five years into the 1990s. During the 1960–72 period of accelerated growth, energy consumption grew much faster than GNP, doubling Japan's consumption of world energy. By 1976, with only 3% of the world's population, Japan was consuming 6% of global energy supplies.
Compared with other nations, electricity in Japan is relatively expensive,Nagata, Kazuaki, "Utilities have monopoly on power", Japan Times, 6 September 2011, p. 3. and, since the loss of nuclear power after the earthquake and tsunami disaster at Fukushima, the cost of electricity has risen significantly.
After the 2011 Fukushima nuclear accident the government made major revisions, which were first outlined in the 2014 Strategic Energy Plan. These revisions focused on restructuring the FIT (feed-in tariff) system, prioritizing disseminating renewable resources over fossil fuels, and using Fukushima as a hub for non-fossil fuel energy industries.
The COVID-19 pandemic had a significant impact on energy consumption. Although 2020-2021 energy emissions were stable, consumption rebounded in 2022.
Energy sources
In 1950, coal supplied half of Japan's energy needs, hydroelectricity one-third, and oil the rest. By 2001, the contribution of oil had increased to 50.2% of the total, with rises also in the use of nuclear power and natural gas. Japan now depends heavily on imported fossil fuels to meet its energy demand.
As of 2024, electricity generated from fossil fuels fell to 65.1% lower compared to 66.6% the previous year. Yet, both natural gas and coal remained largely unchanged: LNG at 29.1% and coal at 28.2%.
+ Japan—primary energy useCountry Analysis Briefs – Japan , US Energy Information Administration, published January 2004, accessdate 10 May 2007Fuel 1950 1988 2001 2017Oil 17% 57.3% 50.2% 40.6%Natural gas – 10.1% 13.6% 24.6%Coal 50% 18.1% 16.8% 24.3%Nuclear – 9.0% 14.4% 10.4%Hydro 33% 4.6% 4.0% Other – 1.3% 1.0%
Oil In the wake of the two oil crises of the 1970s (1973 and 1979), Japan made efforts to diversify energy resources in order to increase energy security. Japan's domestic oil consumption dropped slightly, from around of oil per day in the late 1980s to per day in 1990. While the country's use of oil declined, its use of nuclear power and natural gas rose substantially. Several Japanese industries, for example electric power companies and steelmakers, switched from petroleum to coal, most of which is imported. Japan's proved oil reserves total an estimated 44 million barrels.
The state stockpile equals about 92 days of consumption and the privately held stockpiles equal another 77 days of consumption for a total of 169 days or . The Japanese SPR is run by the Japan Oil, Gas and Metals National Corporation. Japan was the fifth-largest oil consumer and fourth-largest crude oil importer in the world in 2019.
Oil demand has been waning in Japan, especially leading up to and since the Tohoku earthquake in 2011. While oil consumption was over 5 million barrels per day (bpd) for decades, this had declined to 3.22 million bpd by 2017. As of 2016, India, Saudi Arabia and Texas have overtaken Japan in oil consumption. A further decline to 3.03 mln bpd or just under 176 million kiloliters (preliminary) was posted in 2018. Crude consumption further declined during first half of 2020 to 303/141 = 2.15 million bpd, but that figure probably doesn't include refined products that are directly increasingly imported rather than converted.
In 2022, Japan's crude oil imports rose to 2.5 million barrels per day (b/d), an increase from 2.3 million b/d in 2021, despite a decade-long trend of declining imports, which are now almost 0.9 million b/d less than the 2013 levels. The Middle East remained the predominant source, accounting for 93% of imports. Concurrently, Japan's crude oil acquisitions from Russia declined to 1% of the total, a decrease from 4% in the preceding year, in the aftermath of Russia's invasion of Ukraine.
Natural gas Japan ranked as the world's largest importer of liquefied natural gas (LNG).
Because domestic natural gas production is minimal, rising demand is met by greater imports. Japan's main LNG suppliers in 2016 were Australia (27%), Malaysia (18%), Qatar (15%), Russia (9%), and Indonesia (8%). In 1987, suppliers were Indonesia (51.3%), Malaysia (20.4%), Brunei (17.8%), United Arab Emirates (7.3%), and the United States (3.2%). In 2017, Japan consumed 4.7 quadrillion Btu (1377 TWh) of imported methane. +Natural Gas Consumption in Japan from 2012 to 2022 (ft/Day)2012201320142015201620172018201920202021202211.90012.00012.10011.50011.20011.30011.20010.50010.00010.0009.700 The new Japanese LNG strategy published in May 2016 envisages the creation of a liquid market and an international LNG hub in Japan. This promises to radically change the traditional JCC (crude oil) based pricing system in Japan, but also potentially in the Pacific Basin as a whole. But the path to hub creation and hub pricing in the early 2020s envisaged by the Strategy will not be straightforward.
In 2022, Japan's LNG imports decreased to 3.3 Tcf from 3.6 Tcf in 2021, yet it remained the world's leading LNG importer, surpassing China. Australia's contribution to Japan's imports increased from 36% to 42%, affirming its status as Japan's primary LNG supplier. Conversely, Qatar's share fell from 13% to 4%. Despite Japan's commitment to reducing energy dependence on Russia, in line with the G7's price cap on Russian crude oil, its LNG imports from Russia remained steady, supported by an exemption for the Sakhalin-2 project.
Japan has set a policy goal to reduce the share of LNG in its power generation from 34% in 2022 to 20% by 2030. As the largest single source of power in 2022, accounting for 34%, LNG consumption has seen a decline since 2019, influenced by the reactivation of nuclear plants, slow economic growth, high international LNG prices, and enhanced energy efficiency. Japan holds the largest LNG storage capacity in the world, estimated at 425.1 billion cubic feet, which plays a critical role in managing seasonal demand fluctuations and potential supply disruptions. Furthermore, from 2009 to 2023, the levels of LNG inventory in Japan varied between 32% and 66% of its storage capacity.