Paths to drive the low-carbon energy transition process in the electrical energy sector: A comparative analysis between Germany and Japan

The following paper analyzes the public policy paths to drive the low-carbon energy transition from a comparative perspective between the German and Japanese cases. For this purpose, qualitative research was carried out based on the comparative study between both countries and of literature about Policy Mix. Therefore, a mapping of the public policy packages adopted in each country to drive the decarbonization of the electric matrix was performed, allowing to identify the type of instruments considered, the scope of the governmental efforts implemented, and the technological options contemplated to replace fossil sources. Among the main results, it was found that the incentive policies to increase the capacity to generate electricity from renewable sources are moving from pricing schemes with an impact on the consumers' tariffs to the establishment of pricing schemes that respond to market signals, due to the reduction of the installation and electricity generation costs from variable renewable sources. The study identified differences in the technological options considered to drive decarbonization, such as phasing out nuclear power generation in Germany and its reactivation in Japan. In both cases, it was identified that public policies are also moving towards an adaptation of the electricity systems to the dynamics of variable renewable sources. Finally, the scope of the governmental policies in both countries aims at boosting economic development through the construction of new productive and technological capacity.