April 17, 2026
TOKYO – Projects to develop next-generation geothermal power technology will receive a total of ¥110.2 billion in subsidies by fiscal 2030, according to a policy set out by the Economy, Trade and Industry Ministry on Wednesday.
The ministry will begin accepting applications for the subsidies in June or later, with aims to draw in major power companies and other operators. It hopes to commence operations in the early 2030s.
The subsidies will utilize the Green Innovation Fund, which supports decarbonization technologies, and will be used to cover costs such as site surveys for suitable locations, design expenses and the drilling of test wells.
Eligible technologies include closed-loop geothermal systems, which circulate water through pipes in high-temperature geological formations and use the generated steam to drive turbines, as well as supercritical geothermal systems, which generate electricity using heat sources that are close to magma located deep underground.
Unlike solar or wind power, geothermal power has the potential to serve as a stable power source unaffected by weather conditions, but its adoption has been slow. The government has set a target of increasing the share of geothermal power in domestic electricity generation to about 1%–2% by fiscal 2040, but the actual figure for fiscal 2024 stood at just 0.3%.
At a council meeting held by the ministry on Wednesday, a decision was also made to increase the GI Fund by about ¥20 billion to support pilot programs introducing next-generation perovskite solar cells — which are lightweight and highly flexible — into public infrastructure.