Japan Renewable Energy Market Size
| Study Period | 2019-2028 |
| Base Year For Estimation | 2022 |
| Market Volume (2023) | 144.39 gigawatt |
| Market Volume (2028) | 171.90 gigawatt |
| CAGR (2023 - 2028) | 3.55 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Japan Renewable Energy Market Analysis
The Japan Renewable Energy Market size is expected to grow from 144.39 gigawatt in 2023 to 171.90 gigawatt by 2028, at a CAGR of 3.55% during the forecast period (2023-2028).
COVID-19 negatively impacted the market in 2020. Presently the market has now reached pre-pandemic levels.
- Over the long term, the growing demand for clean energy sources is expected to stimulate the market growth of Japan's renewable energy market. Furthermore, supportive government programs and advancements in renewable energy technologies are also expected to drive the growth of the market studied.
- On the other hand, increasing penetration of natural gas for power generation is expected to restrain Japan's renewable energy market during the forecast period.
- Nevertheless, the technological advancements in solar PV manufacturing are likely to create lucrative growth opportunities for the Japanese renewable energy market in the forecast period.
Japan Renewable Energy Market Trends
Solar Energy Segment to Witness Significant Growth
- The solar energy segment will likely hold the largest market share during the forecast period, owing to the declining costs of solar modules and the versatility of these systems for various applications, like electricity generation, water heating, etc.
- As of 2022, Japan installed 78.83 GW of solar energy capacity, all of which comes from solar PV, and the country is the fastest-growing nation in promoting solar PV. It leads the world's photovoltaic market, with 45% of photovoltaic cells manufactured in Japan.
- According to Japan's Environment and Trade Ministries, the country aims to have 108 GW of solar capacity by 2030. The country plans to achieve the target by installing solar panels on 50% of the central government and municipality buildings, corporate buildings, and car parks.
- In April 2022, Japanese utility Jera Co. Inc. and domestic renewable engineering firm West Holdings finalized a deal for developing and constructing at least 1 GW of solar projects on the local market. Under the agreement, the tie-up will install photovoltaic (PV) parks at new and former power plant sites owned by the Tokyo-based electric company, and the work is expected to be carried out over four years.
- Additionally, In February 2023, TotalEnergies began commercial operation of a 51-MW solar power facility in Tsu, Mie Prefecture, Japan. The facility is connected to the energy distribution system. It will supply electricity to Chubu Electric Power Miraiz Co. Inc., a subsidiary of the regional utility company, under a 17-year power purchase agreement.
- Hence, increasing investments in the solar energy sector is expected to aid the growth of the Japanese renewable energy market during the forecast period.
Supportive Government Policies Expected to Drive the Market
- The Japanese Government has introduced numerous supportive policies to achieve 36-38% of its power supply from renewable sources by 2030. These policies are expected to help achieve the targets during the forecast period.
- As of 2022, the country had an installed capacity of 117.5 GW of renewable energy, which projected an annual growth of 5% compared to 2012. With the upcoming projects and government green energy targets, the renewable installed capacity is expected to increase.
- In February 2022, the Ministry of Economy, Trade, and Industry (METI) allocated 675 MW of PV capacity across three different auctions in 2021. The average bid price ranged from JPY 10.31/kWh to JPY 10.82/kWh, with the lowest bid price at JPY 10.23/kWh. Thus, such government programs to encourage solar energy growth in the country will likely drive the market during the forecast period.
- Moreover, in December 2022, according to new regulations passed in Tokyo, all new houses in Tokyo built by large-scale homebuilders after April 2025 must install solar power panels to cut household carbon emissions. The Government in the capital aims to halve greenhouse gas emissions by 2030 compared with 2000 levels.
- Therefore, efforts from the Government to boost the share of renewable energy sources in the total electricity generation mix of the country, primarily through wind and solar power auctions, are expected to drive the renewable energy market in Japan during the forecast period.
Japan Renewable Energy Industry Overview
The Japanese renewable energy market is moderately fragmented in nature. Some of the major players in the market (in no particular order) include Japan Renewable Energy Co. Ltd., Canadian Solar Inc., JinkoSolar Holding Co. Ltd, Trina Solar Co. Ltd, and Solar Frontier KK.
Japan Renewable Energy Market Leaders
Japan Renewable Energy Co., Ltd
Canadian Solar Inc.
JinkoSolar Holding Co. Ltd
Trina Solar Co., Ltd.
Solar Frontier KK
*Disclaimer: Major Players sorted in no particular order
Japan Renewable Energy Market News
- April 2023: Octopus Energy Generation invested in Japanese solar power company Yotsuya Capital, launching it into the Asian renewables market. The agreement aims to accelerate the country's energy transition. The company is expected to support Yotsuya Capital in developing 250MW of new solar farms in Japan over the next five years.
- April 2022: JERA Co. Inc., one of the leading power companies, finalized a deal to develop a 1GW solar plant with West Holdings Corp., one of the top renewable engineering companies. The project was expected to be operational by 2025. The company would likely invest about USD 1.4 billion in the next three years.
- June 2022: Japan's government disclosed the winner of its 12th solar energy tender. Pacifico Energy KK won the tender for the solar project with a capacity of 76.8 MW. The company was expected to offer a tariff of USD 0.073 per kWh. The project would be located in Yamaguchi prefecture and is expected to be operational by 2027.
Japan Renewable Energy 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 Renewable Energy Mix, Japan, 2022
4.3 Renewable Energy Installed Capacity and Forecast in GW, till 2028
4.4 Government Policies and Regulations
4.5 Recent Trends and Developments
4.6 Market Dynamics
4.6.1 Drivers
4.6.1.1 The Growing Demand for Clean Energy Sources
4.6.1.2 Supportive Government Programs and Advancements in Renewable Energy Technologies
4.6.2 Restraints
4.6.2.1 Increasing Penetration of Natural Gas for Power Generation
4.7 Supply Chain Analysis
4.8 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 Type
5.1.1 Solar
5.1.2 Wind
5.1.3 Hydro
5.1.4 Bioenergy
5.1.5 Other Types
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 Japan Renewable Energy Co. Ltd
6.3.2 Canadian Solar Inc.
6.3.3 JinkoSolar Holding Co. Ltd
6.3.4 Trina Solar Co. Ltd
6.3.5 Solar Frontier KK
6.3.6 INFINI Japan Solar Co. Ltd
6.3.7 Siemens Gamesa Renewable Energy SA
6.3.8 Vestas Wind Systems AS
6.3.9 First Solar Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 The Technological Advancements in Solar PV Manufacturing
Japan Renewable Energy Industry Segmentation
Renewable energy is the energy collected from renewable resources such as sunlight, wind, water movement, and geothermal heat that are naturally replenished.
The Japan renewable energy market is segmented by type. By type, the market is segmented into solar, wind, hydro, bioenergy, and other types. For each segment, the installed capacity and forecasts have been done based on GigaWatts (GW).
| Type | |
| Solar | |
| Wind | |
| Hydro | |
| Bioenergy | |
| Other Types |
Japan Renewable Energy Market Research FAQs
How big is the Japan Renewable Energy Market?
The Japan Renewable Energy Market size is expected to reach 144.39 gigawatt in 2023 and grow at a CAGR of 3.55% to reach 171.90 gigawatt by 2028.
What is the current Japan Renewable Energy Market size?
In 2023, the Japan Renewable Energy Market size is expected to reach 144.39 gigawatt.
Who are the key players in Japan Renewable Energy Market?
Japan Renewable Energy Co., Ltd, Canadian Solar Inc., JinkoSolar Holding Co. Ltd, Trina Solar Co., Ltd. and Solar Frontier KK are the major companies operating in the Japan Renewable Energy Market.
Japan Renewable Energy Industry Report
Statistics for the 2023 Japan Renewable Energy market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Japan Renewable Energy analysis includes a market forecast outlook to for 2023 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
