Energy security drives Japan’s nuclear policy comeback
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Japan’s new prime minister, Sanae Takaichi, has moved quickly to signal a shift in energy policy. Since taking office in October 2025, her administration has elevated nuclear power to the center of Japan’s energy strategy, reversing more than a decade of retreat that followed the 2011 Fukushima Daiichi disaster.
Takaichi’s direction prioritizes energy security and industrial resilience. While renewables remain in the national mix, nuclear energy is now framed as a core domestic resource that supports long-term economic stability. The shift reflects growing pressure from inflation, fossil fuel costs, and supply chain vulnerabilities, as well as political momentum to reduce reliance on energy imports.
The administration argues that Japan cannot sustain an energy model dominated by imported gas and oil. Domestic production, particularly nuclear generation, is now viewed as essential.
The economic and strategic rationale behind the nuclear pivot
Japan’s heavy reliance on imported fossil fuels continues to pose a serious economic risk. About 60 to 70 percent of the country’s electricity comes from hydrocarbons, which exposes the grid to price fluctuations and supply uncertainty. High liquefied natural gas (LNG) prices, intensified by global market disruptions, have contributed to elevated industrial costs and trade imbalances.
Bringing nuclear plants back online is presented as a way to stabilize electricity prices and protect the economy from external shocks. It also supports Japan’s industrial competitiveness by providing a more predictable energy foundation.
From a national security perspective, the logic is equally compelling. With rising concern about access to raw materials and energy infrastructure, nuclear power offers a domestic solution that does not depend on external sources once built and fueled.
Ambitious targets: what Japan plans to achieve by 2040
Japan’s latest Strategic Energy Plan, adopted in early 2025, includes aggressive targets for the country’s energy mix by fiscal year 2040. The plan sets a nuclear share of around 20 percent, up from about 8.5 percent in 2023. At the same time, renewables are expected to account for 40 to 50 percent of total electricity generation.
These benchmarks represent a clear shift in energy priorities. Instead of focusing almost entirely on renewables, Japan is signaling that a dual-track approach is needed—one that balances low-carbon innovation with energy reliability.
Achieving the 20 percent nuclear target will require restarting dozens of idled reactors, streamlining regulatory approvals, and investing in new technologies such as small modular reactors. It will also involve significant upgrades to aging infrastructure, with attention to seismic standards and public safety concerns.
While the plan sets a direction, the implementation timeline remains uncertain. Industry groups and energy analysts caution that the goals are technically feasible but politically and operationally challenging.
The operational roadblocks: reactors, regulation, and public trust
Japan’s nuclear restart effort is constrained by a series of structural and social barriers. Since the Fukushima crisis, more than 30 commercial reactors have remained offline. Restarting these units requires regulatory approval, extensive retrofitting, and local community consent.
Public skepticism continues to slow progress. Many residents remain wary of living near active reactors. Safety remains a dominant issue, and even with improved standards, confidence in the system has not fully recovered.
The Nuclear Regulation Authority (NRA) maintains a stringent review process, often taking years to certify plants. This has discouraged some operators from pursuing restarts altogether. To address the delays, the government is considering centralized review procedures and financial incentives for compliance.
However, these changes will not eliminate the need to engage with local governments, address environmental risks, and build social support.
Japan’s energy plan is not limited to restarting legacy reactors. It also includes investment in new-generation nuclear technologies that align with the country’s broader industrial strategy. Small modular reactors and early-stage fusion projects are gaining interest as long-term solutions.
Major companies such as Mitsubishi Heavy Industries, Hitachi, and Toshiba are leading the charge, positioning nuclear innovation as a competitive export sector. The government sees this as a way to link energy independence with economic growth, job creation, and technological leadership.
Rather than downplaying the legacy of Fukushima, the current administration frames the disaster as a turning point that informed regulatory reform and technological advancement. This narrative is aimed at both domestic and international audiences, signaling that Japan has learned from its past and is prepared to lead on nuclear safety and innovation.
Sources:
Bloomberg