Clean energy is becoming a key driver of competitiveness for Japan’s energy-intensive industries. Commissioned by SEMI, this report examines how reforms to Japan’s power sector can unlock decarbonisation for the semiconductor industry. Drawing on detailed analysis and insights from 28 stakeholders, including semiconductor manufacturers, other energy-intensive industries, renewable energy developers, think tanks and NGOs, the report highlights growing concern about grid constraints, limited clean power access, and regulatory bottlenecks.

It sets out seven priority opportunity areas to better align Japan’s energy transition with the needs of globally competitive industries, ensuring that power sector reform keeps pace with the urgency of industrial decarbonisation:

• Streamline permitting and accelerate solar PV deployment to reduce project timelines and costs.
• Unlock renewable potential through community-based land use, such as agrivoltaics and local co-ownership models.
• Modernise electricity markets to prioritise low-cost, low-carbon technologies and improve investment signals.
• Upgrade grid infrastructure and scale battery storage to improve system flexibility and reduce renewable curtailment.
• Develop floating offshore wind through regulatory clarity, grid readiness, and domestic supply chain support.
• Plan for a phased coal power exit to attract private investment in clean alternatives.
• Deploy low-carbon fuels in industrial clusters to support decarbonisation of hard-to-abate sectors.

Explore how Japan can decarbonise its power system in line with industry needs, and how clean energy access can become a strategic enabler for future economic growth.