Apr 16, 2025
Japan plans to advance geothermal energy as part of its net zero strategy.
The Japanese government is preparing to develop geothermal energy, which can help decarbonize the power sector with reliable output, unlike weather-dependent sources like solar and wind.
On April 14, the trade and industry ministry, Meti, established a public-private council to explore next-generation geothermal energy, aiming to create a draft guideline with capacity and cost targets by around October. This new technology could increase Japan’s geothermal capacity to at least 77GW, compared to the existing 23.5GW from traditional methods.
The draft plan seeks to establish next-generation geothermal technology by the 2030s to promote clean energy at competitive prices by 2040 while addressing geological challenges in Japan. If technologies like closed-loop and supercritical geothermal are successful, Japan could maximize its potential, according to Meti minister Yoji Muto. He noted that Japan might also consider exporting this technology globally, given its 70% share in conventional geothermal turbines.
This geothermal initiative aligns with the country’s new strategic energy plan (SEP) published in February, and with Prime Minister Shigeru Ishiba's commitment to enhance geothermal capacity. Ishiba has emphasized underutilized geothermal and micro-hydropower during his campaign for the ruling Liberal Democratic Party.
The SEP anticipates geothermal will comprise 1-2% of Japan's power mix for the fiscal year April 2040-March 2041, which is modest compared to other renewables, such as solar (23-29%), wind (4-8%), hydroelectric (8-10%), and biomass (5-6%). However, this share would significantly exceed its current contribution of 0.3% in 2023-24.
To meet Japan's goal of reducing greenhouse gas emissions by 60% by 2035-36 and 73% by 2040-41 from 2013-14 levels, diversification of renewable sources is crucial. The SEP aims to reduce reliance on thermal power to 30-40% in 2040-41, down from 71% in 2024.
Japanese private companies are already active in advancing geothermal projects both domestically and internationally. Hokkaido Electric Power and construction firm Obayashi announced on April 16 that they would explore geothermal resources in Hokkaido from April 2025 to February 2026, utilizing subsidies from the state-owned energy agency Jogmec.
Panasonic Energy revealed on April 8 that it has entered a power purchase agreement with Kyushu Electric Power's renewable division to secure approximately 50GWh/year of geothermal electricity starting April 1. This stable geothermal supply, not influenced by weather conditions, could increase its renewable energy ratio in domestic consumption to around 30%.
On April 14, the trade and industry ministry, Meti, established a public-private council to explore next-generation geothermal energy, aiming to create a draft guideline with capacity and cost targets by around October. This new technology could increase Japan’s geothermal capacity to at least 77GW, compared to the existing 23.5GW from traditional methods.
The draft plan seeks to establish next-generation geothermal technology by the 2030s to promote clean energy at competitive prices by 2040 while addressing geological challenges in Japan. If technologies like closed-loop and supercritical geothermal are successful, Japan could maximize its potential, according to Meti minister Yoji Muto. He noted that Japan might also consider exporting this technology globally, given its 70% share in conventional geothermal turbines.
This geothermal initiative aligns with the country’s new strategic energy plan (SEP) published in February, and with Prime Minister Shigeru Ishiba's commitment to enhance geothermal capacity. Ishiba has emphasized underutilized geothermal and micro-hydropower during his campaign for the ruling Liberal Democratic Party.
The SEP anticipates geothermal will comprise 1-2% of Japan's power mix for the fiscal year April 2040-March 2041, which is modest compared to other renewables, such as solar (23-29%), wind (4-8%), hydroelectric (8-10%), and biomass (5-6%). However, this share would significantly exceed its current contribution of 0.3% in 2023-24.
To meet Japan's goal of reducing greenhouse gas emissions by 60% by 2035-36 and 73% by 2040-41 from 2013-14 levels, diversification of renewable sources is crucial. The SEP aims to reduce reliance on thermal power to 30-40% in 2040-41, down from 71% in 2024.
Japanese private companies are already active in advancing geothermal projects both domestically and internationally. Hokkaido Electric Power and construction firm Obayashi announced on April 16 that they would explore geothermal resources in Hokkaido from April 2025 to February 2026, utilizing subsidies from the state-owned energy agency Jogmec.
Panasonic Energy revealed on April 8 that it has entered a power purchase agreement with Kyushu Electric Power's renewable division to secure approximately 50GWh/year of geothermal electricity starting April 1. This stable geothermal supply, not influenced by weather conditions, could increase its renewable energy ratio in domestic consumption to around 30%.