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

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Very strong Typhoon No. 29 (Koguma) was moving north near the Ogasawara Islands on the evening of October 11, bringing the risk of high waves and powerful swells along Japan's Pacific coast, particularly around the Izu Islands and coastal areas of the Kanto region, despite expectations of limited direct impacts from the storm. At 9 p.m. on October 11, the typhoon had a central atmospheric pressure of 950 hectopascals and maximum sustained winds of 45 meters per second near its center, maintaining its classification as a very strong typhoon. It was moving north at approximately 15 kilometers per hour.

Japan is expected to experience a warmer-than-normal winter as the El Nino phenomenon currently affecting the Pacific Ocean has reached its strongest level on record, with the Japan Meteorological Agency announcing on October 10th that unusually high sea surface temperatures are likely to persist through the coming winter months.

The Otsu Festival, one of Shiga Prefecture's three major traditional festivals, was held in Otsu City on October 11th, featuring a procession of 13 elaborately decorated floats carrying traditional mechanical puppets through the streets, following the festival's addition to UNESCO's Intangible Cultural Heritage list in December last year.

A series of cyberattacks has disrupted business operations and exposed millions of customer records across Japan, with a ransomware attack on a cloud service provider affecting 495 companies and local governments nationwide, while convenience store operator Lawson has disclosed a separate breach involving more than 2.15 million personal information records.

Japan's first 360-degree projection mapping show will open at the Osaka City Museum of Fine Arts on October 10, transforming the historic building into an immersive world of light, music, and seasonal imagery, with organizers hoping the attraction will also help stimulate the city's nighttime economy.

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Japan is stepping up efforts to reduce its dependence on China for essential medicines and rare earth minerals, with pharmaceutical giant Meiji Seika Pharma working to restart domestic penicillin production after more than three decades and a government-backed research project achieving a breakthrough in extracting rare earth-rich mud from the seabed near Minamitorishima Island.

Corporate bankruptcies caused by labor shortages in Japan reached a record 240 cases in the first half of the current fiscal year, highlighting the growing financial strain on small businesses as Prime Minister Sanae Takaichi pledges to protect household livelihoods through economic growth while pursuing consumption tax cuts that could place additional pressure on the restaurant industry.

Tokyo stocks fell sharply on June 26 as investors locked in profits from Japan’s record-setting AI-driven rally, with SoftBank Group and chip-related shares leading a broad retreat after reports that OpenAI may delay its initial public offering.

Japan recorded a current account surplus of 4.062 trillion yen in August, an increase of 12% from a year earlier, driven primarily by a sharp rise in income from overseas investments, even as higher crude oil prices pushed the country's trade balance into deficit.

Household spending in Japan fell 3.1% in August from a year earlier, marking the ninth consecutive month of decline as rising food prices continued to weigh on consumer budgets, according to the latest household expenditure survey released by the Ministry of Internal Affairs and Communications on October 9.

Tokyo stocks ended nearly unchanged on August 12, with the Nikkei 225 at 66,988.82, as gains in energy and financial shares offset weakness in electronics and pharmaceuticals while investors weighed higher crude oil prices, a weaker yen and growing expectations for another Bank of Japan rate increase.

Japan is entering a more difficult phase in its cybersecurity challenge, as a succession of major data breaches and ransomware attacks exposes weaknesses not only in corporate IT systems but also in supplier networks, governance structures and operational resilience.

Japan's four largest beer makers were subjected to simultaneous compulsory searches on October 7 over suspicions they coordinated wholesale prices for beer and other alcoholic beverages, in a rare cartel investigation that could lead to criminal charges.