Japan power market size reached 965.4 TWh in 2024. Looking forward, IMARC Group expects the market to reach 1,348.5 TWh by 2033, exhibiting a growth rate (CAGR) of 3.50% during 2025-2033. The increasing demand for green energy solutions, energy-efficient appliances, and sustainable practices in daily life is primarily driving the Japan power market growth. Renewable energy policies, international collaborations, surging awareness regarding sustainable development, technological advancements, climate change mitigation, etc., are also driving the regional market.
Report Attribute
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Key Statistics
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Base Year
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2024 |
Forecast Years
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2025-2033
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Historical Years
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2019-2024
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Market Size in 2024 | 965.4 TWh |
Market Forecast in 2033 | 1,348.5 TWh |
Market Growth Rate (2025-2033) | 3.50% |
Renewable Energy Growth
Renewable energy growth is a significant driver of the expansion and transformation of Japan's power market. The rising government efforts to reduce carbon emissions and alleviate the usage of fossil fuels in the power sector are driving the adoption of renewable resources. For instance, according to the article published by the U.S. Energy Information Administration, the Japanese government has established energy policies aiming at achieving carbon neutrality, or net-zero greenhouse gas (GHG) emissions, by 2050 through emissions reductions in the electric generation, industrial, and transportation sectors. In the electric power sector, government regulations set 2030 targets for expedited investment in renewable capacity, greater nuclear generation, and reduced usage of fossil fuels for electricity generation. Moreover, the expansion of renewable energy, including solar, wind, biomass, and geothermal, diversifies Japan's energy sources. This reduces reliance on imported fossil fuels, enhancing energy security and resilience against supply disruptions and price volatility in global markets. For instance, Japan's GX (Green Transformation) Decarbonization Power Supply Bill (approved in April 2023) aimed to increase the contribution of non-fossil fuel generation sources to 59% of the generation mix by 2030, up from 31% in 2022. Policies aimed to raise the share of renewable electricity sources, including solar, wind, hydropower, geothermal, and biomass, from 26% in 2022 to 36%-38% by 2030. These factors are further proliferating the power industry in Japan.
Adoption of Hydrogen Power Energy
Japan has developed a comprehensive vision for a "hydrogen society" as part of its efforts to decarbonize the economy and reduce reliance on fossil fuels. The government has set ambitious targets to become a global leader in hydrogen technology and aims to establish a supply chain for producing, transporting, and utilizing hydrogen across various sectors, including power generation, transportation, industry, and residential applications. For instance, in June 2023, the Japanese government amended its "Hydrogen Basic Strategy" launched in 2017. The updated Hydrogen Basic Strategy outlines Japan's hydrogen strategy over the next five years. The basic strategy set new goals that include increasing the supply of hydrogen and ammonia in Japan, to 3 million tons by 2030, to 12 million tons by 2040 and to 20 million tons by 2050. It also aimed to expand the number of water electrolysis equipment with Japan-made parts to roughly 15GW globally by 2030. In addition to this, in terms of power generation, Japan would promote the development of high-hydrogen-mixed combustion systems, as well as 30%- and 100%-hydrogen combustion systems. These factors are further contributing to the Japan power market share. Moreover, establishing a hydrogen infrastructure is critical for the widespread adoption of hydrogen energy in Japan. The government and private companies are investing in infrastructure development, including hydrogen production facilities, storage tanks, transportation networks, and refueling stations for hydrogen-powered vehicles and fuel cell buses. For instance, in April 2024, Mitsui O.S.K. Lines (MOL) started Hanaria, a hydrogen and biofuel hybrid passenger ship in Kitakyushu. Also, in September 2023, Mitsubishi Power, a power solution brand of Mitsubishi Heavy Industries, Ltd. (MHI), launched Takasago Hydrogen Park, the world's first complete hydrogen validation facility, which is located in west central Japan.
Rapid Technological Advancements
Japan is investing in smart grid technologies to modernize its power grid infrastructures. Smart meters, energy storage, sensors, communication systems, and advanced analytics enable real-time monitoring, control, and optimization of electricity distribution, improving grid reliability, efficiency, and resilience. For instance, in October 2023, JERA Co., Inc. (JERA) and Toyota Motor Corporation (Toyota) launched the Sweep Energy Storage System in Japan. Moreover, innovations in energy storage technologies, such as lithium-ion batteries, flow batteries, and pumped hydro storage, support the integration of intermittent renewable energy sources and enhance grid stability. For instance, in May 2024, Stonepeak, an infrastructure investment firm, collaborated with CHC, a Singapore-based battery energy storage system BESS developer, to progress BESS projects across Japan. In addition to this, Japan invested in EV infrastructure, including charging stations, smart charging solutions, and vehicle-to-grid (V2G) technologies. In addition, innovations in EV batteries, charging protocols, and grid integration support the electrification of transportation and facilitate the transition towards a low-carbon transportation sector. For instance, in April 2024, the Audi charging hub was launched in Tokyo. Situated in the Kioichō business sector, this facility has four fast-charging outlets that can provide up to 150 kW of power each. These factors are positively influencing the Japan power market forecast.
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on generation source.
Breakup by Generation Source:
The report has provided a detailed breakup and analysis of the market based on the generation source. This includes thermal, hydro, renewable, and others.
Thermal power plants, primarily fueled by liquefied natural gas (LNG), coal, and oil, have traditionally been a major source of electricity generation in Japan. These plants use combustion or steam turbines to convert the energy released from burning fossil fuels into electricity. Moreover, hydropower has been a significant source of renewable energy in Japan, contributing to electricity generation through the use of flowing water to drive turbines and generate electricity. Japan's mountainous terrain and numerous rivers provide ample opportunities for hydropower development. Besides this, Japan has been actively promoting the expansion of renewable energy sources, including solar, wind, biomass, and geothermal power. Solar energy, in particular, has experienced rapid growth, with millions of rooftop solar installations and utility-scale solar farms across the country. Wind power capacity is also increasing, especially offshore wind projects along Japan's coastlines. While nuclear power has historically been a significant source of electricity generation in Japan. Before the Fukushima Daiichi nuclear disaster in 2011, nuclear reactors provided around 30% of Japan's electricity.
Breakup by Region:
The report has also provided a comprehensive analysis of all the major regional markets, which include Kanto Region, Kansai/Kinki Region, Central/Chubu Region, Kyushu-Okinawa Region, Tohoku Region, Chugoku Region, Hokkaido Region, and Shikoku Region.
As per the Japan power market overview, the Kanto region, which includes Tokyo and its surrounding prefectures, is Japan's most populous and economically significant region. The power market in the Kanto region is characterized by high electricity demand, diverse energy infrastructure, and a mix of thermal, nuclear, and renewable energy sources. While the power market in the Kansai region is illustrated by a mix of thermal, nuclear, and renewable energy sources, with a significant contribution from hydropower. Moreover, the Chubu region hosts several large power plants and industrial facilities. Okinawa, in particular, has been focusing on renewable energy and energy self-sufficiency due to its geographical isolation. The Tohoku region has a diverse energy infrastructure, including large-scale power plants and transmission networks.
The market research report has also provided a comprehensive analysis of the competitive landscape in the market. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.
Report Features | Details |
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Base Year of the Analysis | 2024 |
Historical Period | 2019-2024 |
Forecast Period | 2025-2033 |
Units | TWh |
Scope of the Report | Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
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Generation Sources Covered | Thermal, Hydro, Renewable, Others |
Regions Covered | Kanto Region, Kansai/Kinki Region, Central/ Chubu Region, Kyushu-Okinawa Region, Tohoku Region, Chugoku Region, Hokkaido Region, Shikoku Region |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
Key Questions Answered in This Report:
Key Benefits for Stakeholders: