Japan to fast-track nuclear restarts to cut fuel costs

Japan’s new Prime Minister, Sanae Takaichi, plans to accelerate nuclear reactor restarts to reduce reliance on imported fossil fuels and curb inflation. Reactor restarts are seen as key to lowering electricity costs and securing a stable domestic supply.

Trade and Industry Minister Ryosei Akazawa, responsible for energy policy, stressed balancing nuclear expansion with local community support and decarbonisation goals. Japan spent 10.7 trillion yen ($71 billion) on imported LNG and coal in 2024, covering 60–70% of electricity generation.

Of 33 operable reactors, 14 have restarted since Fukushima. Rising electricity demand, including from data centres, adds urgency. Takaichi also supports fusion and perovskite solar technology, but large-scale solar and offshore wind may receive limited backing.

Japan has signed new U.S. LNG deals but avoided firm commitments to the $44-billion Alaska LNG project. Reducing Russian LNG imports adds pressure for nuclear restarts, though most Sakhalin-2 contracts run to 2028–2033.