Japan’s New Economy Minister Seeks to Maximize Nuclear Restarts

Shoko Oda and Yoshiaki Nohara
Tue, October 1, 2024


(Bloomberg) -- Japan’s new economy minister said the country will need to maximize the use of existing nuclear power plants as artificial intelligence and data centers are expected to boost electricity demand.

It’s “natural” for Japan to pursue both atomic and renewable energy in order to meet the growing needs without increasing carbon emissions, said Yoji Muto, who was appointed to the role on Tuesday. The new administration will eye restarting as many reactors as possible so long as they are safe, he said Wednesday.

Muto’s comments point to a continuation of former Prime Minister Fumio Kishida’s work that shifted Japan back toward nuclear energy as a major power source, with many reactors still offline in the wake of the 2011 Fukushima disaster. His successor, Shigeru Ishiba, had said during his campaign that Japan should reduce its dependence on the energy source but later said that he would support the restart of existing plants.

Ishiba’s comments led to a decline in utility shares earlier this week, as investors speculated that the new government would negatively impact the push to embrace nuclear. That move is part of a global revival as countries turn to fission for stable and emissions-free electricity to meet demand.

Muto also said that Japan will need to protect its atomic industry by developing next-generation reactors. The nation is in the process of revising its strategic energy plan that will dictate the power mix, which is currently 70% fossil fuels such as natural gas and coal, beyond 2030.

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