Vol.189 Restart Calculus: Nuclear Gains Electoral Momentum as TEPCO Tests Operational Reality
All eyes on Sunday's Lower House election. How do you think the results will shape Japan's climate and energy policy going forward? 🗳️
*Editor’s note: This article was originally published on 2/5/2026 on Linkedin.
Welcome to issue 189 of Japan Climate Curation! 📬 I’m Hiroyasu Ichikawa (ichi), curating Japan’s climate news weekly since 2022 for 500+ subscribers on this Substack & [3,100+ on Linkedin].
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Disclaimer: Generative AI tools (Gemini, ChatGPT, Claude, NotebookLM) have been used for summary and translation assistance. 🙂
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【1】⚡ Nuclear power gains parties’ support as energy becomes key election issue [02/01 JIJI / The Japan Times]
Energy policy has emerged as a major issue in the February 8, 2026 Lower House election. While many parties advocated for phasing out nuclear power after the 2011 Fukushima disaster, support for nuclear has grown amid rising electricity costs and increasing AI-driven demand. The LDP, Japan Innovation Party, and Democratic Party for the People support reactor restarts. The Centrist Reform Alliance (CDP-Komeito coalition) aims for a nuclear-free future but takes a realistic approach, tolerating restarts with local consent. The Communist Party, Social Democratic Party, and Reiwa Shinsengumi maintain anti-nuclear stances. Recent earthquake data fraud at Chubu Electric’s Hamaoka plant has renewed safety concerns.
【2】⚛️ TEPCO plans to restart reactor early next week after alarm trouble [02/05 Kyodo News]
TEPCO plans to restart the No. 6 reactor at Kashiwazaki-Kariwa nuclear plant in Niigata Prefecture early next week. The utility restarted its first reactor since the 2011 Fukushima disaster last month, but operations halted about 5.5 hours later due to an alarm during control rod withdrawal. TEPCO attributes the incident to a setup error and has replaced parts and conducted investigations. The commercial operation start date, originally scheduled for February 26, will be postponed. Facing massive compensation costs from the Fukushima accident, TEPCO aims to increase revenues by restarting the world’s largest nuclear power station.
【3】🏛️ Can Sanae Takaichi govern Japan on star power alone? [02/04 Financial Times]
Prime Minister Sanae Takaichi boasts approval ratings of 57-82% just three months into office, with a landslide predicted in the February 8 election. While criticizing the Ministry of Finance’s austerity and advocating long-term investment through elimination of supplementary budgets, she campaigns on “vibes” rather than detailed policy. As Japan’s first female PM, she has galvanized enthusiastic support, yet faces mounting challenges including China tensions over Taiwan remarks, persistent yen weakness, and record-high bond yields. Markets fear a “Liz Truss moment” of fiscal indiscipline. The short campaign has exposed opposition unpreparedness, favoring Takaichi. Higher turnout could secure an outright LDP majority. Her post-election challenges will center on foreign policy management and market communication capabilities.
【4】⛽ Qatar in Deal to Sell LNG for 27 Years to Japan’s Jera [02/03 Bloomberg]
Qatar and Japan’s largest utility Jera signed a 27-year LNG supply agreement, the first long-term deal between the two countries in over a decade. Jera will purchase approximately 3 million tons annually starting 2028. Qatar’s LNG exports to Japan declined from 10 million tons in 2017 to 3.3 million tons in 2025, as Japanese utilities favored more flexible suppliers like the US. Qatar needs customers for its expansion plan to nearly double export capacity to 142 million tons by 2030. Despite concerns over strict destination clauses and uncertain Japanese gas demand due to potential nuclear restarts, Jera secured new supply to replace contracts not renewed in 2021. A separate non-binding agreement covers emergency LNG supply.
【5】🏭 Japan’s Green Steel Transition: Green Iron EAFs, Carbon Pricing & Renewable Electricity [01/29 Transition Asia]
Japan’s GX-ETS (starting FY2026) will narrow the cost gap between traditional blast furnace steel and green hydrogen-powered electric arc furnace steel. Carbon pricing improves green steel’s competitiveness, but Japan’s high renewable energy costs and PPA structure problems—intermittent solar supply versus steel mills’ continuous power needs—hinder adoption. Middle East green iron imports cost USD 258/t less than Australian sources. Nippon Steel’s LNG-powered furnaces cut near-term emissions but risk long-term carbon lock-in compared to using an increasingly clean grid. Decarbonizing Japan’s steel sector requires integrated policies combining carbon pricing, renewable energy expansion, and demand-side incentives.
【6】⛏️ Japan’s rare-earth project succeeds in retrieving sample from seabed [02/02 Nikkei Asia]
Japan’s Cabinet Office and JAMSTEC successfully retrieved rare-earth-containing mud from 6,000 meters beneath the Pacific Ocean near Minamitorishima Island. This achievement is part of the Strategic Innovation Promotion Program aimed at reducing dependence on China, which controls nearly 70% of global rare-earth mining. The research vessel Chikyu successfully pumped up slurry containing elements like dysprosium and neodymium, essential for high-performance magnets in EV motors. Large-scale extraction of 350 tons daily is planned for February 2027. While seabed mud contains fewer hazardous substances than land-based ores, key challenges include establishing deep-sea remote operation and refining technologies, with economic feasibility being the primary obstacle.
【7】☀️ Solar PV Strengthens Japan’s Energy Security and Economy [02/02 Renewable Energy Institute]
Solar PV strengthens Japan’s energy security and economy despite criticism of Chinese dependence. In 2024, Japanese manufacturers accounted for 34% of domestic shipments, with 78% of imports from China but diversification through India is possible. Solar PV is the most cost-competitive electricity generation technology in Japan, even competing with existing gas turbines when paired with batteries. 76% of economic value remains domestic through installation, grid connection, and soft costs, while modules represent only 13% of total costs. Japanese companies hold 43% of inverter market share, and recycling can reduce imports. Italy’s example shows minimal cost increase from Chinese equipment ban.
【8】💡 UK’s Octopus Energy eyes tie-ups with more Japanese gas utilities [02/02 Nikkei Asia]
UK-based Octopus Energy is expanding its Japanese electricity retail business through partnerships with four major gas utilities: Tokyo Gas, Osaka Gas, Toho Gas, and Saibu Gas. Using its AI-powered system for rate plans and customer management, Octopus operates via TG Octopus Energy (70% Tokyo Gas, 30% Octopus) and became the only foreign-owned provider among the top 15 new power companies with over 500,000 customers. While other foreign entrants withdrew due to volatile wholesale prices, Octopus sources directly from Tokyo Gas and renewable energy generators, stabilizing prices and limiting wholesale market exposure. This strategy has succeeded in Japan’s heavily regulated electricity market, with partnerships rolling out through 2027.
【9】🚗 Daihatsu debuts mini commercial EVs with industry-leading 257-km range [02/03 Nikkei Asia]
Daihatsu launched mini commercial EVs “e-Hijet Cargo” and “e-Atrai” with industry-leading 257km range, exceeding Honda by 12km. Jointly developed with Toyota and Suzuki, the system accommodates large-capacity batteries without sacrificing interior space through suspension redesign. Priced at ¥3.14M, they’re the most expensive mini commercial EVs but include fast charging as standard. Delayed by safety testing fraud, Daihatsu follows Mitsubishi, Nissan, and Honda to market. Targeting 300 monthly sales, the company prioritizes commercial EVs (50% of sales) to meet customer decarbonization needs. Passenger EV development continues with flexible timeline, revising 2030 full electrification goal.
【10】💧 Why renewable powerhouse Fukushima is also pursuing hydrogen [02/02 The Japan Times]
The Fukushima Hydrogen Energy Research Field (FH2R) in Namie has been producing green hydrogen using renewable energy since 2020. Japan’s government expects 20 million tons of annual hydrogen demand by 2050 and has earmarked ¥3 trillion in subsidies over 15 years. However, the national strategy includes both green and fossil fuel-derived “blue” hydrogen, drawing criticism from environmental groups. Fukushima Prefecture aims to meet all energy needs through renewables by around 2040, positioning hydrogen as a storage solution for surplus renewable power. Cost reduction remains the key challenge.
📬 That’s a wrap for this week! Thank you for reading.
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