Japan Diversifies Its Energy Mix

In September 2015, Japan's Ministry of Economy, Trade and Industry ("METI") created a new council for the development of renewable energy policy and flagged the establishment of common energy-mix targets for Japan's power sector. The Subcommittee for Reforming Systems Related to the Introduction of Renewable Energy, a body made up of legal experts, engineers, scientists, and economists, is responsible for formulating and reviewing policies for the "sustainable introduction and spread" of renewable energy in Japan.

METI's energy-mix plan would require liquefied natural gas ("LNG") to account for at least 50 percent of power companies' energy production deriving from fossil fuels, with coal and other sources to account for 50 percent or less. Entities that fail to comply with these requirements after a grace period may be subject to improvement orders and fines.