Japan Distributed Energy Generation Market Assessment, By Technology (Diesel and Oil Gensets, Natural Gas Gensets, Mini Hydropower Grids, Gas & Steam Turbine, Fuel Cells, Solar Photovoltaic, Wind Turbine, and Biomass Generators), By End-user (Residential, and Commercial and Industrial), By Region, Opportunities, and Forecast, FY2017-FY2031

The size of the Japan distributed energy generation market was assessed at USD 8.12 billion in FY2023. It is projected to expand to USD 18.52 billion in FY2031, exhibiting a CAGR of 10.86% during the forecast period spanning FY2024 to FY2031.

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With a forecasted CAGR of 10.86%, Japan distributed energy generation market is expected to expand from USD 8.12 billion in FY2023 to USD 18.52 billion by FY2031 driven by the expansion of renewable energy sources, rising adoption of rooftop solar panels in residential and commercial spaces, and government efforts for offering incentives and support programs for the construction of hydropower projects in rural areas.  Japan is a country susceptible to natural catastrophes like earthquakes, typhoons, and tsunamis, and faces ongoing risks associated with these phenomena. Moreover, Centralized power plants are more susceptible to damage and disruption during these events, leading to widespread blackouts and extended power outages. Distributed energy generation, with a focus on renewable energy sources, can help decentralize the power grid and make it more resilient in the face of natural disasters which in turn is fuelling its demand all across the country. Moreover, Japan’s main electricity distribution source is hydropower, followed by solar, wind, and biomass. Hence, the Japanese government has been actively promoting the development of small-scale hydropower projects as these projects utilize smaller streams and rivers and can be implemented at a lower cost compared to large-scale hydropower plants.

Alongside, financial incentives and support programs are available to encourage the construction of such projects, particularly in rural areas. For example – On Jan 2023, Mitsubishi Materials Corporation recently initiated the commercial operation of the Komatagawa New power plant, which boasts a capacity of 10.326MW. This power plant holds significance as it is the first hydroelectric facility to be built in Akita Prefecture, Japan, in the past 69 years. The primary objective behind the planning and construction of the Komatagawa New Power Plant was to enhance the hydropower distribution by optimizing the operation of the existing Komatagawa power plants, which are situated along the Komata river water system near Moriyoshi Dam. Through the efficient utilization of previously untapped water resources, the power generation capacity of the Komata river system has increased by 2860 kW, resulting in an approximate annual power generation increase of 13,400 MWh. This, in turn, has accelerated the growth of distributed hydropower energy in Japan extensively.

Rise in Solar Power Capacity

Japan has witnessed a remarkable rise in solar power capacity over the past decade. Moreover, the introduction of the Feed-in-Tariff (FiT) program led to a solar power boom in Japan. Numerous solar power projects, including utility-scale and distributed generation systems, were developed across the country. Developers and investors capitalized on the favorable economic incentives and favorable regulatory framework to install solar power capacity. Thus, the Japanese government is taking crucial steps to increase the solar power capacity within the country. According to a recent analysis conducted by RTS Corporation, Japan is projected to have 111GW of solar power capacity installed by 2025 under a business-as-usual scenario. This capacity is expected to further increase to 154GW by 2030. However, if Japan adopts an accelerated scenario and sets more ambitious goals, it could reach 115GW of installed solar capacity by 2025 and exceed 180GW by 2030. The analysis suggests that Japan has the potential to achieve higher levels of solar power capacity with stronger efforts and commitments towards renewable energy expansion, thereby driving the market growth.

Development of offshore Wind Farms

Japan has numerous remote islands that are not connected to the main power grid. These islands often rely on expensive and polluting diesel generators for electricity. Offshore wind farms can be considered a sustainable alternative to meet the energy needs of these island communities. The generated electricity can be distributed to the islands via undersea cables, providing a cleaner and more reliable source of power. Japan has taken a significant step in its transition towards clean energy with the launch of a new offshore wind farm at Noshiro Port in Akita Prefecture. This milestone was achieved on December 22, 2022, as the 20 turbines of the wind farm became operational, making it the first large-scale facility of its kind in the country to commercially generate electricity. The project is operated by the Akita Offshore Wind Corporation, with support from major Japanese trading firm Marubeni and other stakeholders.

Government Regulations

Japan has implemented various schemes and programs to promote distributed energy generation. These initiatives aim to encourage the adoption of renewable energy sources, enhance energy efficiency, and support the development of decentralized energy systems. Moreover, the Japanese government provides subsidies and financial incentives for solar photovoltaic (PV) installations. These subsidies help homeowners offset the initial costs of installing solar PV systems, promoting distributed generation at the residential level. For example - The Ministry of the Environment in Japan has allocated a budget of USD 2.1 million (¥300 million) to provide subsidies for solar power generation initiatives implemented on farmland, reservoirs, and waste disposal sites. The ministry has called for proposals for such projects, and systems ranging from 10 kW to 50 kW and those exceeding 50 kW can also participate and it can be installed on designated farmland, reservoirs, or waste disposal sites. Thus, it can be concluded that the initiative taken by the government to provide subsidies for solar power generation and distribution is fueling the market growth rate.

Impact of COVID-19

The COVID-19 pandemic had induced some positive as well as adverse effects on the Japanese market. Moreover, the economic impact of the pandemic has affected the financing and investment landscape for distributed energy projects. Uncertainty and financial constraints have made it more challenging for individuals, businesses, and communities to invest in renewable energy systems, thus slowing down the growth of distributed energy generation. On the other hand, the pandemic has also accelerated the adoption of digital technologies and remote monitoring solutions. This trend has the potential to enhance the monitoring, management, and optimization of distributed energy systems. Remote monitoring and control systems can facilitate the efficient operation and maintenance of distributed energy assets, improving their performance and reliability.

Japan Distributed Energy Generation Market: Report Scope

Markets & Data's report titled "Japan Distributed Energy Generation Market Assessment, Opportunities, and Forecast, FY2017-FY2031" offers a thorough examination and assessment of the current state of the Japan Distributed Energy Generation market. The study provides a detailed analysis of the industry's dynamics, opportunities, and future projections from FY2024 to FY2031. Moreover, the report delves into the key players within the industry, focusing on their business models, market share, competitive intelligence, and other relevant aspects.

 

Report Attribute

Details

Base Year of the Analysis

FY2023

Historical Period

FY2017-FY2022

Forecast Period

FY2024-FY2031

Projected Growth Rate

CAGR of 10.86% between FY2024-FY2031

Revenue Forecast in FY2031

USD 18.52 billion

Units

Revenue in USD billion

Segments Covered

Technology, and End-user

Regions Covered

North (Hokkaido, and Tohoku), Central (Kanto, and Chubu), and South (Kansai, Chugoku, Shikoku, and Kyushu and Okinawa)

Key Companies Profiled

Mitsubishi Heavy Industries Ltd., Japan Hydro-power Development Inc., Toshiba Energy Systems and Solutions Corporation, Hitachi Energy Ltd., Fuji Electric Co. Ltd., Solar Frontier K.K., Panasonic Holdings Corporation, LG Electronics, Kyocera Corporation, JA Solar Technology Co. Ltd., etc.  

Customization Scope

15% free report customization with purchase

Pricing and Purchase Options

Avail the customized purchase options to fulfill your precise research needs

Delivery Format

PDF and Excel through email (subject to the license purchased)

 

In this report, Japan Distributed Energy Generation Market has been segmented into the following categories: 

1.       By Technology

1.1.    Diesel and Oil Gensets

1.2.    Natural Gas Gensets

1.3.    Mini Hydropower Grids

1.4.    Gas & Steam Turbine

1.5.    Fuel Cells

1.6.    Solar Photovoltaic

1.7.    Wind Turbine

1.8.    Biomass Generators

2.       By End-user

2.1.      Residential

2.2.      Commercial and Industrial

3.       By Region 

3.1.      North (Hokkaido, and Tohoku)

3.2.      Central (Kanto, and Chubu)

3.3.      South (Kansai, Chugoku, Shikoku, and Kyushu and Okinawa)

Key Players Landscape and Outlook

The continuously rising market for distributed energy generation in Japan has led Japanese companies to understand the importance of preserving their market presence and expanding globally by emphasizing quality and brand positioning. These companies are allocating more resources to testing and establishment of renewable energy plants, conduction of research and development, expansion of distribution networks, engagement in mergers and acquisitions, etc. Additionally, Japanese manufacturers are actively researching consumer behaviour to gain a deeper understanding of their requirements and preferences, constantly introducing new products to meet changing demands.

On June 13th,2022, Panasonic Holdings Corporation unveiled plans to transform its Kusatsu manufacturing plant into a trial facility aimed at evaluating the feasibility of operating a manufacturing plant solely powered by renewable energy. This initiative reflects the company's intention to adopt a renewable energy-based system across its factories and eventually bring it to market by 2023. The endeavor will involve close cooperation among governments, industry associations, and other stakeholders, thereby fostering the expansion of renewable energy production and distribution.

Key Players Operating in Japan Distributed Energy Generation Market

·         Mitsubishi Heavy Industries Ltd.

·         Japan Hydro-power Development Inc.

·         Toshiba Energy Systems and Solutions Corporation

·         Hitachi Energy Ltd.

·         Fuji Electric Co., Ltd.

·         Solar Frontier K.K.

·         Panasonic Holdings Corporation

·         LG Electronics

·         Kyocera Corporation

·         JA Solar Technology Co., Ltd.

If you can't find what you're searching for or have any custom requirements for Japan Distributed Energy Generation Market, you may approach our team at info@marketsandata.com

Table of Contents

1.       Research Methodology

2.       Project Scope & Definitions

3.       Impact of Covid-19 on Japan Distributed Energy Generation Market

4.       Executive Summary

5.       Voice of Customer

5.1. Product and Market Intelligence

5.2. Sources of Information

5.3. Factors Considered in Purchase Decisions

5.3.1.       Overall Expenses

5.3.2.       Facility Requirement

5.3.3.       Operational Manpower Expertise

5.3.4.       Number of Installation Units

5.3.5.       Experience in the Industry

5.3.6.       Efficiency

5.3.7.       After-Sales Support

5.4. Purpose of Installation

5.5. Demand and Supply Mechanism

5.6. Consideration and Understanding of Safety Regulations

5.7. Application of Legal Compliances

5.8. Existing User or Intended Purchaser

6.       Japan Distributed Energy Generation Market Outlook, FY2017-FY2031

6.1. Market Size & Forecast

6.1.1.       By Value

6.1.2.       By Volume

6.2. By Technology

6.2.1.       Diesel and Oil Gensets

6.2.2.       Natural Gas Gensets

6.2.3.       Mini Hydropower Grids

6.2.4.       Gas & Steam Turbine

6.2.5.       Fuel Cells

6.2.6.       Solar Photovoltaic

6.2.7.       Wind Turbine

6.2.8.       Biomass Generators

6.3. By End-user

6.3.1.       Residential

6.3.2.       Commercial and Industrial

6.4. By Region 

6.4.1.        North (Hokkaido, and Tohoku)

6.4.2.        Central (Kanto, and Chubu)

6.4.3.        South (Kansai, Chugoku, Shikoku, and Kyushu and Okinawa)

6.5. By Company Market Share (%), FY2023

7.       Market Mapping, FY2023

7.1. By Technology

7.2. By End-user

7.3. By Region

8.       Macro Environment and Industry Structure

8.1. Supply Demand Analysis

8.2. Import Export Analysis

8.3. Value Chain Analysis

8.4. PESTEL Analysis

8.4.1.       Political Factors

8.4.2.       Economic System

8.4.3.       Social Implications

8.4.4.       Technological Advancements

8.4.5.       Environmental Impacts

8.4.6.       Legal Compliances and Regulatory Policies (Statutory Bodies Included)

8.5. Porter’s Five Forces Analysis

8.5.1.       Supplier Power

8.5.2.       Buyer Power

8.5.3.       Substitution Threat

8.5.4.       Threat from New Entrant

8.5.5.       Competitive Rivalry

9.       Market Dynamics

9.1. Growth Drivers

9.2. Growth Inhibitors (Challenges and Restraints)

10.   Key Players Landscape

10.1.   Competition Matrix of Top Five Market Leaders

10.2.   Market Revenue Analysis of Top Five Market Leaders (in %, FY2023)

10.3.   Mergers and Acquisitions/Joint Ventures (If Applicable)

10.4.   SWOT Analysis (For Five Market Players)

10.5.   Patent Analysis (If Applicable)

11.   Pricing Analysis

12.   Case Studies

13.   Key Players Outlook

13.1.      Mitsubishi Heavy Industries Ltd.

13.1.1.    Company Details

13.1.2.    Key Management Personnel

13.1.3.    Products and Services

13.1.4.    Financials (As reported)

13.1.5.    Key Market Focus and Geographical Presence

13.1.6.    Recent Developments

13.2.       Japan Hydro-power Development Inc.

13.3.       Toshiba Energy Systems and Solutions Corporation

13.4.       Hitachi Energy Ltd.

13.5.       Fuji Electric Co., Ltd.

13.6.       Solar Frontier K.K.

13.7.       Panasonic Holdings Corporation

13.8.       LG Electronics

13.9.       Kyocera Corporation

13.10.    JA Solar Technology Co., Ltd.

*Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work

14.   Strategic Recommendations

15.   About Us & Disclaimer

List of Figure - Japan Distributed Energy Generation Market

Figure 1. Japan Distributed Energy Generation Market, By Value, In USD Billion, FY2017-FY2031F

Figure 2. Japan Distributed Energy Generation Market, By Volume, In Gigawatts, FY2017-FY2031F

Figure 3. Japan Distributed Energy Generation Market Share, By Technology, In USD Billion, FY2017-FY2031F

Figure 4. Japan Distributed Energy Generation Market Share, By End-user, In USD Billion, FY2017-FY2031F

Figure 5. Japan Distributed Energy Generation Market Share, By Region, In USD Billion, FY2017-FY2031F

Figure 6. By Technology Map-Market Size (USD Billion) & Growth Rate (%), FY2023

Figure 7. By End-user Map-Market Size (USD Billion) & Growth Rate (%), FY2023

Figure 8. By Region Map-Market Size (USD Billion) & Growth Rate (%), FY2023

 

List of Table- Japan Distributed Energy Generation Market

Table 1. Pricing Analysis of Products from Key Players

Table 2. Competition Matrix of Top 5 Market Leaders

Table 3. Mergers & Acquisitions/ Joint Ventures (If Applicable)

Table 4. About Us - Regions and Countries Where We Have Executed Client Projects

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