Last week, I journeyed into the heart of Japan’s power infrastructure, invited on a unique tour led by JERA, the nation’s largest power generation company. Responsible for a staggering one-third of Japan’s annual electricity, JERA is a relatively young giant, forged in 2015 from the combined strengths of Tokyo and Chubu Electric Power.
Today, JERA commands a $22.4 billion revenue stream and a formidable 72.7 gigawatt power generation capacity, extending its influence across 15 countries, with a significant footprint in Asia and the Middle East. Their investments reach the Philippines through partnerships in established plants and a substantial equity stake in Aboitiz Power.
The tour revealed a surprising aesthetic – “beautiful” coal and gas plants, as I described them. These weren’t grim industrial landscapes, but meticulously maintained facilities representing a pivotal chapter in Japan’s remarkable post-war recovery. We explored the immense Hekinan Coal Thermal Plant near Nagoya and the Futtsu Gas Thermal Plant outside Tokyo, the largest of their kind in Japan and among the world’s largest.
Japan’s rapid industrialization was undeniably fueled by these thermal plants. By 1970, just decades after the devastation of World War II, Japan’s economy had surged to $1 trillion, eclipsing China, India, Indonesia, and South Korea.
For years, Japan held the lead in Asian power generation, reaching 1,011 terawatt-hours in 1995, neck and neck with China. But the landscape has dramatically shifted. The Fukushima disaster led to a temporary shutdown of nuclear plants, placing immense pressure on thermal power, and a subsequent decline in overall generation.
Now, Japan faces a concerning trend: declining power generation, falling from a peak of 1,183 terawatt-hours in 2008 to 1,016 terawatt-hours in 2024. This is a pattern shared by most G-7 nations, with a stark contrast to the explosive growth seen across Asia, particularly in China, which now generates nearly ten times Japan’s output.
Vietnam’s power generation has tripled in just thirteen years, a testament to the link between energy production and economic momentum. Data suggests a clear correlation: economies with rising power generation, even from sources like coal, often experience faster GDP growth than those with declining production.
This shift is reflected in global trade patterns. The Philippines, for example, is witnessing a dramatic increase in imports from China, rising from 20% in 2020 to nearly 29% in 2025, while the market share of the US, Japan, and Korea diminishes. This signifies a clear value proposition for Philippine businesses and consumers.
The increasing dominance of nations like China and Vietnam underscores a critical point: developing countries prioritize economic growth and prosperity over rapid “decarbonization.” They seek “net growth,” not “net zero,” recognizing the fundamental need for affordable and reliable energy.
JERA’s history is inextricably linked to Japan’s industrial success, and their continued expansion of thermal power remains vital. For partners like Aboitiz Power, collaborating with such an experienced and established company offers a significant advantage in navigating the complexities of the energy sector.
