Why is future looking good for geothermal in Japan?

Japan is one of the world’s most geothermal-rich countries due to its location on the Pacific “Ring of Fire.” With over 100 active volcanoes and thousands of hot springs (onsen), it has significant potential for geothermal power generation.


Why Japan Has Strong Geothermal Potential

  • Located along tectonic plate boundaries
  • ~23–25 GW estimated geothermal resource potential (among the top globally)
  • Third-largest geothermal resource potential in the world (after the U.S. and Indonesia)

Current Geothermal Power Capacity

  • Installed capacity: ~600 MW (relatively small compared to its potential)
  • Supplies less than 1% of Japan’s electricity
  • Around 20 commercial geothermal power plants in operation

Some major plants include:

  • Hatchobaru Geothermal Power Plant (one of the largest in Japan)
  • Matsukawa Geothermal Power Plant (Japan’s first commercial geothermal plant, started in 1966)

Why Development Has Been Limited

Despite strong potential, geothermal expansion has been slow due to:

  1. Onsen (hot spring) industry concerns
    • Japan’s hot spring resorts are culturally and economically important.
    • Operators worry geothermal drilling could reduce water flow or temperature.
  2. Environmental regulations
    • Many geothermal resources are inside national parks.
    • Strict environmental protection laws limit development.
  3. High upfront costs
    • Exploration and drilling are expensive and risky.

Post-Fukushima Energy Shift

After the Fukushima Daiichi nuclear disaster, Japan reduced reliance on nuclear power and increased focus on renewable energy, including geothermal.

Government policies now:

  • Encourage small and medium geothermal projects
  • Provide feed-in tariffs (FIT) for renewable energy
  • Support binary-cycle technology (works with lower-temperature resources)

Advantages of Geothermal for Japan

  • Stable baseload power (unlike solar/wind)
  • Very low CO₂ emissions
  • Domestic energy source (improves energy security)
  • Small land footprint

Future Outlook

Japan has the technical capability to expand geothermal significantly, especially with:

  • Smaller modular plants
  • Improved drilling technology
  • Better cooperation with hot spring communities

If regulatory and social barriers ease, geothermal could become a much larger part of Japan’s clean energy mix.