Market Trends of Japan Coal Industry
This section covers the major market trends shaping the Japan Coal Market according to our research experts:
Power Stations Segment to Dominate the Market
- In 2019, Japan accounted for more than 3.1% of the global share in the total coal consumption, and about 26% of primary energy consumption in the country came from coal.
- The country closed down all of its nuclear-based power plants after the Fukushima Nuclear disaster in 2011, this led to an extra load on the already existing power plants.
- The country s actively building new coal-fired plants to meet its energy needs. The country is planning to build at least 22 new coal-based power plants, at 17 different sites in the next five years.
- Japan is an energy-poor country that relies on imports for the bulk of its energy needs. This is another factor for the rise of coal consumption in the country, as coal is cheap and easily available.
- Although there are several restraints in Japan, leading to decreased use of coal, the construction of coal power plants is still going on and is bolstering the market growth in the country.
Understand The Key Trends Shaping This Market
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Rising Environmental Concerns to Restrain the Market
- Japan has witnessed high rates of demand for electricity, owing to the growth of the economy, coupled with factors such as the closing down of all nuclear reactors in the country. This has led to a high growth rate in the usage of coal in recent years. Over 87% share of Japan's primary energy comes from oil, natural gas, and coal, while renewables, hydropower, and nuclear energy combined only account for only 12.5% of the country's primary energy.
- In recent times, Japan has been facing severe pollution problems, especially in summer, leading to extreme temperatures and heatwaves. This has forced the citizens and the government to think and act on the problem.
- Japan has witnessed heat waves repeatedly in recent years. In 2018, the heatwave was estimated to have killed over 1,000 people in the country. In the summer of 2019, the heatwave led to the death of over 57 people and hospitalized around 18,000 people.
- With the rising environmental concerns over pollution and greenhouse gas emissions from coal-based power plants and Japan's huge steel industry, the growth rate has slowed down. The country witnessed a rapid growth in its renewable sector in recent years, which is expected to outpace the expansion of its coal-power fleet in the current decade, given the country's broader plan to cut its dependence on the thermal fuel.
- The decrease in the growth rate of coal consumption due to environmental policies and increasing renewable share, the market for coal in Japan is expected to hamper the growth of the market during the forecast period.
