Both coal and liquefied natural gas are front runners to become major contributors with oil a possibility, but dependent upon global prices.

The recent closure of the last of Japan's 54 reactors may cause campaigners to celebrate, but it comes with significant economic stress.

The world’s third biggest economy, already struggling to cope with a growing trade deficit, faces estimated peak hour power shortages of approximately 10% next summer.

The government's National Policy Unit projected a 5% power shortage for Tokyo, while power companies predict a 16% power shortfall in western Japan, which includes the major industrial city of Osaka, responsible for about 50% of the gross regional product.

While Prime Minister Yoshihiko Noda has announced Japan will switch on two reactors at the Ohi plant in central Fukui prefecture next month, there is little doubt the country will need to address its energy requirements through additional power sources.

In early 2011, pre-Fukushima, nuclear power accounted for about 30% of the nation’s total electricity production. Coal and gas accounted for about 25% each, about 7% was hydro and the remainder wind, solar and geothermal.

The situation is so bad the government has introduced restrictions on some businesses and appealed to consumers to reduce their power usage.

“In response to the negative impacts of the great East Japan earthquake, Tokyo Electric Power and Tohoku Electric power strived to enhance their maximum supply capacities in eastern Japan for this summer,” the National Policy Unit stated.

“However, the total supply capacities in the service areas of Tokyo, Tohoku and Hokkaido Electric Powers are estimated to fall short of peak hour electric power demand.

“To avoid such electric power shortage, the government has requested consumers in Tokyo and Tokyo Electric Powers’ services areas to reduce their consumption by 15% and has also imposed 15% electricity consumption restrictions on large-lot customers with contract demand of 500 kilowatt or larger.”

In a statement last year Japan’s Energy and Environment Council proposed a three-year plan to minimise peak hour electric power shortage and rising electricity cost.

“Japan’s electricity supply stands at approximately 900 billion kW a year,” the council said. “Thirty per cent of this supply comes from nuclear power stations.

“If they can’t resume their operations, utilities will select thermal power generations as a main alternative. As a result, electricity cost will be rising by approximately 20 per cent because of their fuel cost.”

Both thermal coal and LNG imports have leapt since Fukushima.

Australia has been the main thermal coal supplier according to Japan’s Ministry of Finance with Japan importing 19.275 million tonnes to the end of April, an increase of 14% year on year.

The US, where the government is placing increasing pressure on coal-powered stations, has become an exporter as miners look for new markets for their products.

Japan has few natural resources of its own and depends on imports for more than 80% of its primary energy needs.

It was the world's biggest importer of LNG even before last year’s earthquake. The country bought record amounts last year to replace nuclear, but soaring gas prices are threatening the ongoing honeymoon with gas.

The Japanese Gas Association says the demand exists, but oil-linked contracts are sending prices higher.

Association chairman Mitsunori Torihara told a media conference at the World Gas Conference in Kuala Lumpur that linking the natural gas price to the oil price at this time had “lost any economic rationale”

“Looking at the main uses of natural gas right now, it’s for power generation and such use of natural gas is becoming more prevalent, which means it’s not really in competition with oil, but rather in competition with nuclear and coal” he explained.

“So to still link it with the crude oil price will no longer be that reasonable.”

Spot LNG prices have continued to rise as Japan tries to offset the loss of nuclear power generation.

Before the Fukushima disaster the Asian spot LNG price was about $US10 per million British thermal units. The price was $16 MMBtu recently, down from $18 last month, however in the US, natural gas prices were as low as $2.60 per MMBtu.

At the moment exports from the US are confined to Cheniere Energy’s Sabine Pass project.

Despite surging shale gas exploration and production, international importers of LNG have started lobbying US regulators to give permission to other producers to export the fuel to overseas markets.

Cheniere is able to compete with LNG producers in Indonesia, Yemen, Qatar and Australia that charge customers in Japan and South Korea as much as 10 times the price of US gas.