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The de-nuclearization of power generation

Since May 2012, Japan’s de-nuclearization of its power sector is a result of growing opposition from various citizen groups, especially after the Fukushima Daiichi incident. While measures have been initiated to seamlessly switch to alternate fuels, this decision could adversely impact industrial activities due to outages.

However, this is an opportunity for renewable energy equipment manufacturers. The government is expected to announce a new energy strategy that targets at increasing the share of renewable power generation. Currently, renewable sources account for only 9% of Japan’s generation capacity; and the government is expected to spend billions to develop its renewable energy sector.

The test for the Japanese government would be how well it can transit to alternate fuels with the least pain to its already embattled economy.

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