Japan is facing its worst power crisis in over a decade. It's an issue that the nation won’t be able to quickly shake
apan’s worst power crisis in over a decade is a culmination of events starting from the Fukushima disaster, and is an issue that the nation won’t be able to quickly shake.
What’s happening in Japan is playing out across other power grids from Texas to Taiwan. The energy transition and natural disasters are throwing new challenges at utilities, stretching grids and triggering blackouts that threaten economies, especially resource-poor and isolated ones like Japan. In the immediate aftermath, Japan closed all its 54 reactors that supplied about 30% of its electricity needs. Only 10 have restarted under post-Fukushima safety rules due to strong public opposition and a cumbersome regulatory process. Nuclear power now supplies less than 10% of Japan’s electricity. It’s been replaced by a mix of natural gas, coal and solar facilities.
to break up monopolies held by regional utilities like Tokyo Electric Power Co. The idea was that more companies would enter the power retail market, increase competition, boost security of supply and ultimately lower electricity rates for consumers.
Meanwhile, Japan introduced a feed-in tariff program in 2012 that boosted installations of solar panels. While wildly successful, it also crowded the nation’s grid with intermittent power output, making it difficult—and sometimes not very cost effective—to replace retiring thermal power plants.
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