Big Bang in Japan's energy policy

• Japan is at the crossroads of energy policy making after the Fukushima.
• Nuclear should remain an important part of the new energy mix for Japan.
• Iranian crisis may trigger the compounding economic crisis of Japan.

Japan is at the crossroads of a major energy policy change after the Fukushima Daiichi accident. Only two nuclear reactors are operating and there is a persisting risk of an Iranian oil crisis. A new nuclear regulatory commission will be established to review all the safety regulations. Japan is paying billions of dollars for additional oil and natural gas for its power sector. Renewable feed in tariffs are implemented. High electricity costs may likely disturb industrial activities and citizens life in Japan. Power market reforms are imminent while TEPCO is nationalized. Russia wishes to sell electricity to Japan through a new grid interconnection. A post-Fukushima Energy Big bang is certainly in the making in Japan – but the choosing the right energy transition strategy will help to get lasting solutions in place.