Four months after Japan signed off on its revised energy strategy, the government shows little sign of deviation — despite mounting geopolitical frictions, war-driven supply risks, and policy reversals elsewhere. Tokyo’s stance is pragmatic: it remains committed to the long slog of energy transition, but not at the expense of economic stability or energy security. Japan, in effect, is walking a narrow path between resilience and reinvention.

Already in 2025, developments are piling up across the sector. Power trading volumes are surging as derivatives markets deepen. Interest in grid-scale batteries is rising — but so are doubts about the profitability of some subsidized BESS projects and their grid connection.

Meanwhile, Japan is nudging forward with a hydrogen subsidy scheme few currently fully understand and fewer still will be able to access and build around. Nuclear plants are edging back online, though coal and gas seem to remain indispensable. The power grid is due for a long-awaited upgrade.

The following outlines key movements in Japan’s energy landscape this year, from LNG and nuclear to electricity markets, hydrogen and ammonia. The themes are familiar: slow acceleration, cautious innovation, and a government hoping that coordination can do what speed alone cannot.