GlobalData’s latest report, Japan Power Market Trends and Analysis by Capacity, Generation, Transmission, Distribution, Regulations, Key Players and Forecast to 2035, provides a detailed assessment of Japan’s power sector. The report analyses installed capacity (GW), electricity generation (terawatt hours or TWh), and technology shares across the historical period 2020–2024 and the forecast period 2025–2035. It also examines key policies, market drivers and challenges, infrastructure developments and the competitive landscape. The analysis is based on GlobalData’s proprietary databases, primary and secondary research, and in-house expertise.
Japan’s power sector is undergoing a transition, driven by the dual imperatives of reducing carbon emissions and strengthening energy security. In 2024, renewables represented 30.9% of total capacity, thermal accounted for 48%, large hydropower and pumped storage made up 12.5% and nuclear stood at 8.5%. By 2035, renewable capacity is projected to reach 49.5%, with thermal falling to 33.2% and nuclear to 7.2%, highlighting the growing role of solar photovoltaic (PV) and offshore wind in reshaping Japan’s power mix.
Offshore wind is emerging as one of the fastest-growing technologies in Japan. Installed capacity stood at just 59MW in 2020 but is expected to increase to 5.9GW by 2030 and further expand to 16.7GW by 2035. Government-backed auctions, regulatory reforms and investment in port infrastructure are accelerating the deployment of offshore wind projects.
Policy support remains central to Japan’s transition. The Sixth Basic Energy Plan targets renewables to account for 36–38% of the power mix by 2030, while the government has committed to cutting greenhouse gas emissions by 46% from 2013 levels by 2030 and achieving net-zero emissions by 2050. Complementary measures, including the introduction of feed-in premiums (FiPs), hydrogen and ammonia co-firing initiative and the Green Transformation (GX) Strategy, further reinforce the shift towards clean energy.
The expansion of offshore wind, together with solar PV and emerging low-carbon fuels, highlights Japan’s commitment to diversifying its generation portfolio and reducing reliance on imported fossil fuels. The continued build-out of renewable capacity, supported by long-term government targets, is expected to position Japan on a steady path towards balancing energy security, affordability and decarbonisation by 2050.
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