Coal is set for growth in Japan despite solar boom

Subject

The outlook for Japan's energy sector.

Significance

Japan's efforts to restart nuclear power stations have been slow and susceptible to local opposition. Generous subsidies have sparked a boom in solar power, but generators are also planning new coal plant construction, threatening Japan's record on greenhouse gas emissions.

Impacts

• Energy-saving measures mean electricity demand will probably stabilise or fall.
• Growing coal use will provide cheap baseload power, but plants are at risk from future climate regulation.
• A lack of diversity in renewables without nuclear power will entrench dependence on energy commodities.