News On Japan

Will Iran Crisis Trigger a Spike in Power Costs in Japan?

TOKYO - Long-running tensions surrounding Iran are expected to push up household electricity bills, with Japanese power companies bracing for higher costs this summer as crude oil prices remain elevated, even as Japan has shifted its energy mix toward renewables, now accounting for more than 20% of total power generation following the Great East Japan Earthquake.

Among these, solar power has taken the largest share, supported by government incentives that have driven steady growth in both large-scale solar farms and rooftop installations on homes and offices, although environmental concerns, landscape issues, and regulatory violations involving some mega-solar projects have prompted calls under the Takaiichi administration to reassess Japan’s solar energy policies.

In a residential area of Tokyo, workers were seen installing solar panels on rooftops, each weighing around 20 kilograms, with lighter designs improving ease of installation, while battery storage systems were also added to store generated electricity.

One homeowner, Kirihara Tomomi, decided to install solar panels ahead of the March deadline for Tokyo’s subsidy program, which triggered a surge in last-minute demand, noting that subsidies significantly reduced the total cost of 3.77 million yen, with approximately 2.34 million yen covered by the Tokyo metropolitan government.

The system began operating the following day, generating around 3.3 kilowatts under sunlight, with a maximum output of 4.6 kilowatts from 10 panels depending on weather conditions, while excess energy can be stored in a battery with a capacity of up to 15 kilowatts, enough to cover roughly one day of electricity use for a typical four-person household in the event of a blackout.

Despite growing adoption, the installation rate of solar systems across buildings in Tokyo remains at about 6%, partly due to the weight of conventional panels, which many roofs and factories cannot support, as well as seismic safety concerns, while most panels currently in use are manufactured overseas, with China accounting for roughly 80% of supply.

Against this backdrop, the government is promoting perovskite solar cells, a next-generation technology developed in Japan that uses thin, flexible film weighing about one-tenth of conventional silicon panels and capable of being installed on a wide range of surfaces.

Seen as a potential breakthrough amid rising energy costs driven by geopolitical tensions, domestically produced solar technology could offer Japan a path toward greater energy independence.

At the forefront of this effort is Sekisui Chemical, where researchers are working to commercialize flexible perovskite solar cells, with rooftop test installations demonstrating various configurations designed to maximize solar energy capture.

Morita, a veteran with 34 years at the company, has led the development, which began 13 years ago with a small team of three, initially facing skepticism before gaining momentum as a company-wide strategic project targeting commercialization by fiscal 2025.

Sekisui Chemical, with annual sales of around 1.3 trillion yen, operates across housing materials, high-performance plastics, and protective films used in automotive glass, leveraging its materials expertise to advance the new solar technology.

Perovskite solar cells consist of multiple layered materials, with a key component being a crystalline structure known as perovskite, which converts light into electricity within an ultra-thin film of just one micron, using iodine as a primary raw material.

That iodine, sourced from ancient underground brine deposits, represents a domestic resource that researchers believe could underpin Japan’s competitive advantage in next-generation solar energy, offering hope that the country can reclaim a leading position in the global solar market while addressing rising electricity costs.

Source: テレ東BIZ

News On Japan
POPULAR NEWS

A newly formed tropical depression near Taiwan on June 9th is expected to intensify the seasonal rain front lingering over southwestern Japan, raising the risk of warning-level rainfall across Okinawa and the Amami Islands through around June 11th.

Japan, which records the shortest average sleep duration among OECD countries, is launching new efforts to tackle widespread sleep deprivation, including the opening of specialized sleep disorder departments and programs aimed at improving children's sleep habits through sports and physical activity.

Japan's national soccer team arrived in Nashville, Tennessee, on June 8th from Monterrey, Mexico, where it had been conducting a pre-World Cup training camp, and held its first practice session at its base camp for the FIFA World Cup in North America.

A prolonged eruption at Sakurajima on June 7th blanketed parts of Kagoshima City in volcanic ash, turning roads gray and prompting long lines of vehicles seeking car washes after a plume of smoke rose 1,300 meters above the crater.

A powerful earthquake struck off Mindanao Island in the southern Philippines at 8:38 a.m. (Japan time) on June 8th, generating tsunami waves across parts of the Pacific, causing building collapses and casualties near the epicenter, and prompting the Japan Meteorological Agency to issue tsunami advisories along a wide stretch of Japan's Pacific coastline before lifting all of them at 4:50 p.m.

MEDIA CHANNELS
         

MORE Business NEWS

The Bank of Japan is increasingly expected to raise its policy interest rate to 1.0% at next week's monetary policy meeting, responding to growing concerns that inflation could rise faster than previously anticipated due to soaring oil prices and other cost pressures.

The number of restaurant bankruptcies in Japan reached a record high for the January–May period, highlighting mounting pressures from rising costs, labor shortages, and increasingly cautious consumer spending.

Casio Computer, the company behind some of Japan’s most iconic consumer electronics including calculators, digital cameras, electronic musical instruments, and the G-SHOCK watch, is pursuing a new strategy aimed at reviving its tradition of product innovation.

Nippon Steel plans to invest up to $2.5 billion, or approximately 400 billion yen, over the next three years in the Mon Valley Works steel complex in Pennsylvania, one of the key facilities operated by U.S. Steel, the American steelmaker it acquired in 2025.

Japan's economy grew at an annualized rate of 1.8% in the January–March quarter of 2026, according to revised gross domestic product (GDP) data released by the Cabinet Office, with the figure marked down from the preliminary estimate due largely to weaker-than-expected capital investment.

Japanese stocks suffered a sharp sell-off on June 8th as weakness in U.S. technology shares and growing concerns over higher global interest rates triggered widespread selling, sending the Nikkei Stock Average down 2,563.52 points, or about 3.8%, to close at 64,024.60.

Japan's current account surplus expanded 64.9% from a year earlier to 3.9078 trillion yen in April, marking the 15th consecutive month of positive balance, according to balance of payments data released by the Finance Ministry on June 8th.

Rapid inflation and the weakening yen continue to squeeze household budgets across Japan, prompting renewed debate over the country's economic policies. Former Bank of Japan Governor Haruhiko Kuroda, who spearheaded the central bank's aggressive monetary easing campaign under Abenomics, argues that the overall economy remains on a positive trajectory and that wage growth is now exceeding inflation.