Japan Power Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Volume (2024) | 326.95 gigawatt |
| Market Volume (2029) | 346.01 gigawatt |
| CAGR (2024 - 2029) | 1.14 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Japan Power Market Analysis
The Japan Power Market size is estimated at 326.95 gigawatt in 2024, and is expected to reach 346.01 gigawatt by 2029, growing at a CAGR of 1.14% during the forecast period (2024-2029).
The market was negatively impacted by COVID-19. Presently the market has now reached pre-pandemic levels.
- Over the medium period, the growth in renewable energy projects is expected to drive the Japanese power market.
- On the other hand, the relatively stagnant electricity demand is expected to hinder market growth during the forecast period.
- New and efficient technologies like supercritical and ultra-supercritical coal power plants, which reduce the amount of pollution (per KW), are expected to replace the aging power plants and will likely create several opportunities for the Japanese power market in the future.
Japan Power Market Trends
This section covers the major market trends shaping the Japan Power Market according to our research experts:
Thermal Power Generating Source is Expected to Dominate the Market
- Thermal power plants in Japan are mostly powered by natural gas. The country is the largest importer of liquefied natural gas (LNG) after China and uses a major portion of the LNG to produce electricity. In 2021, the country imported 101.3 billion cubic meters (bcm) of the total imported LNG in the world, which is approximately 19.6% of the LNG imported.
- After the 2011 tsunami, Japan had to close down most of its nuclear power plants, which made Japan use natural gas as a significant source of energy generation to fill the void. In the past decade, natural gas has emerged as a significant source of energy in the country.
- The Japanese thermal power sector is dominated by LNG-fired plants, which account for nearly 49.5% of the total power capacity. According to the Ministry of Economy, Trade, and Industry (METI) statistics, as of 2021, Japan has 69 plants with an average installed capacity of 1.1 GW. This is followed by coal-fired power plants, which account for nearly 95 plants and 32.2% of the total installed capacity.
- However, since the pandemic has subsided and demand has recovered, and the Russia-Ukraine conflict continues to have economic effects, global energy prices have spiked rapidly. This has created a huge demand spike in Japan, which has been dealing with high energy prices, as a result of which the country has been shifting to coal and natural gas to maintain energy security.
Growth in Renewable Energy Market is Likely to Drive the Market
- Japan is one of the countries leading the development of the renewable energy sector to reduce its dependency upon imported fossil fuels. Solar is one of the leading segments that has contributed significantly to renewable energy growth in Japan. In 2021, solar energy had an installed capacity of around 74.19 GW.
- The solar energy market in Japan is poised for growth in the coming years on account of the government's policy to implement clean energy measures in the country, the declining cost of solar energy generation, and reduced energy storage prices.
- The country has several renewable energy projects that are likely to replace old thermal power plants. Moreover, the adoption of renewable technologies is expected to reduce the country's expenses on imported fuel, thus saving its revenue for other developmental work.
- Yatsubo Solar Power Plant, Ikeda Solar Power Plant, and Miyagi Osato Solar Park are a few upcoming prominent projects that are likely to expand the country's renewable sector.
Japan Power Industry Overview
The Japan power market is moderately fragmented. The key players in the market (not in a particular order) include Hokkaido Electric Power Company, Tohoku Electric Power Company, Tokyo Electric Power Company, Chubu Electric Power Company, and Hokuriku Electric Power Company, among others.
Japan Power Market Leaders
Hokkaido Electric Power Company
Tohoku Electric Power Company
Tokyo Electric Power Company
Chubu Electric Power Company
Hokuriku Electric Power Company
*Disclaimer: Major Players sorted in no particular order
Japan Power Market News
- In October 2022, Wartsila's technology group supplied gas-fuelled 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.
- In September 2022, Pattern Energy Group LP, a US-based renewable energy developer, and its Japanese affiliate Green Power Investment Corp (GPI) closed financing on Japan's 112-MW Ishikari offshore wind project and started construction of the project, which also includes a battery storage system.
- In May 2022, IHI Corporation and JERA Co., Inc. planned to conduct a demonstration project at the Hekinan Thermal Power Station under the New Energy and Industrial Technology Development Organization (NEDO) grant program to demonstrate the feasibility of co-firing large volumes of fuel ammonia.
Japan Power Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Installed Power Generation Capacity and Forecast in GW, till 2028
4.3 Electricity Generation and Forecast in TWh, Global, till 2028
4.4 Renewable Energy Mix, Japan, 2021
4.5 Recent Trends and Developments
4.6 Government Policies and Regulations
4.7 Market Dynamics
4.7.1 Drivers
4.7.2 Restraints
4.8 Supply Chain Analysis
4.9 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 Power Generation Source
5.1.1 Thermal
5.1.2 Hydroelectric
5.1.3 Nuclear
5.1.4 Renewable
5.2 Power Transmission and Distribution (T&D)
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Hokkaido Electric Power Company
6.3.2 Tohoku Electric Power Company
6.3.3 Tokyo Electric Power Company
6.3.4 Chubu Electric Power Company
6.3.5 Hokuriku Electric Power Company
6.3.6 Kansai Electric Power Company
6.3.7 Chugoku Electric Power Company
6.3.8 Shikoku Electric Power Company
6.3.9 Kyushu Electric Power Company
6.3.10 Okinawa Electric Power Company
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Japan Power Industry Segmentation
The generation of electricity through various sources like fossil fuels, renewable energies, nuclear energy, etc., and the transmission and distribution of electricity to the end user constitute the power market.
The market is segmented by Power Generation Source and Power Transmission & Distribution. By power generation source, the market is segmented into thermal, hydroelectric, nuclear, and renewable. The market sizing and forecasts have been done based on electricity generation capacity and installed power generation capacity in gigawatts (GW).
| Power Generation Source | |
| Thermal | |
| Hydroelectric | |
| Nuclear | |
| Renewable |
Japan Power Market Research FAQs
How big is the Japan Power Market?
The Japan Power Market size is expected to reach 326.95 gigawatt in 2024 and grow at a CAGR of 1.14% to reach 346.01 gigawatt by 2029.
What is the current Japan Power Market size?
In 2024, the Japan Power Market size is expected to reach 326.95 gigawatt.
Who are the key players in Japan Power Market?
Hokkaido Electric Power Company, Tohoku Electric Power Company, Tokyo Electric Power Company, Chubu Electric Power Company and Hokuriku Electric Power Company are the major companies operating in the Japan Power Market.
What years does this Japan Power Market cover, and what was the market size in 2023?
In 2023, the Japan Power Market size was estimated at 323.26 gigawatt. The report covers the Japan Power Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Japan Power Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Japan Power Industry Report
Statistics for the 2024 Japan Power market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Japan Power analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
