The Power consumption in Japan reached 886,365 GWh in 2020
The indicator recorded a historical decline at a CAGR of 2.66% between 2017 to 2020
Why did the power consumption in Japan decline in 2020?
Power consumption has been consistent with economic performance. After the Fukushima incident in 2011, power consumption declined due to the Japanese government appealing to its citizens to reduce power consumption, due to the unavailability of sufficient nuclear power generation. Power consumption is expected to continue to decrease, mainly due to a decrease in residential consumption and Japan having to rely on thermal power until its nuclear power reactors restart, which has forced the government to implement energy-efficiency measures.
Power consumption is the net electricity consumed by the end users by excluding losses and own consumption and after adjusting exports and imports in a calendar year (fiscal year in some cases). The unit is represented in Gigawatt hours (GWh) and the scope is limited to historic period.
Challenges
The principal challenge for the power sector is its lack of energy security. The fundamental lack of domestic energy reserves means that Japan’s focus is on keeping its power demand from growing too quickly and strongly. After the Fukushima disaster, the Japanese government appealed to citizens to reduce their power consumption to reduce the strain on the grid. Benchmark targets were also issued to different regions, but these were not mandatory. This may not be enough to prevent pressure on the grid from increasing. After the government completes its review of the nuclear reactors and those reactors meeting its safety standards become operational again, the focus on reducing power consumption may be relaxed, once again increasing the pressure on the country’s generation resources. A way of solving this problem would be to put in place an effective smart grid network that would effectively balance supply and demand, leading to a high level of generation adequacy. This would allow Japan to meet increasing peak demand effectively without investing too much in increased capacity. It could also reduce energy expenditure for consumers.
Impact of COVID-19
Like several other east Asian countries, Japan was also impacted by the spread of COVID-19 pandemic. Although the country did not announce any nation-wide lockdown like many other countries, it did announce a state of emergency in most regions with heavy restrictions being placed in Tokyo and seven other high-risk areas, including Osaka, Kyoto and Hokkaido. These restrictions severely impacted the economic actives related to almost all sectors within the country.
The economic downturn was also witnessed in the power sector of the country. The rapid spread of pandemic led to the shutdown of numerous non-essential services in several sectors. The power demand in the country was hit by a slowdown in industrial activity leading to a steep decline in power prices. Electricity consumption dropped significantly in cities like Tokyo and Kansai due to closure of public facilities and industrial centers. Overall, power consumption in Japan declined in 2020 as compared to 2019.
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