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Quick take: For years, Japan was resistant to the smart grid. Their "traditional" grid was already so solid, so reliable, so much better than the U.S. grid that they felt no need to modernize. Then came Fukushima. Suddenly, a big chunk of Japan's baseload generation was gone. For good. Suddenly they had to rely much more on highly variable renewables. Suddenly they urgently needed demand response and peak load reductions. Suddenly, they needed a smart grid.

Enter Itron in partnership with Panasonic. You'll note that (as far as I can tell from the release on page 2), Itron is doing in Japan what Echelon is doing in Brazil and China -- namely, selling its technology and expertise help a local partner, rather than attempting to compete head on with the locals. -- Jesse Berst

Japan is expected to install nearly 80 million smart meters in the next decade – and

Itron said it will design, develop and deliver a smart meter solution to Panasonic that will support multiple communication options, including 3G cellular, RF mesh and power line carrier to meet specific business needs and geographies in Japan.

Itron of course isn't the only company eyeing the Japanese market. We thought it was worth a look at what else is happening on smart grid landscape now that more than 18 months have passed since the Fukushima disaster and Japan tries to compensate for the loss of nearly a third of its nuclear power generation capacity.

Nuclear disaster still taking a toll

A DNV KEMA report suggests that with only two of its 50 nuclear reactors in operation, Japan is relying heavily on imported liquefied natural gas, which is creating a trade deficit for the world's third biggest economy.

The answer? The country has its eye on renewables and has set a goal of getting 30 percent of its energy from renewables by 2030. Some think in its post-Fukoshia mindset, Japan could emerge as a clean energy leader – much as they've led the world in other sectors.

Among them is Johan Sandberg, Head of Renewables, DNV KEMA Norway, who said: “With the right resources and approach, the Japanese developments can become a tipping point for renewable energy in this decade. It is a must-win battle. What we have seen Japan do before, leading the world in IT, telecoms, household electronics and vehicles, we might very well see again in the renewable energy sector.”

Sandburg sees offshore wind as a natural given Japan's relatively deep waters. One demonstration project currently under construction is a venture between the New Energy and Industrial Technology Development Organization (NEDO) and Tokyo Electric Power Company (TEPCO). It is expected to have a 2400 kW output that will be sent to TEPCO's grid via a submarine cable.

But others see great potential in Japan's photovoltaic power generation business which, according to a report by ElectroIQ, has been booming since the country implemented a Feed-in Tariff (FIT) system last summer. "Traditionally, power generation for residential systems accounted for more than 80 percent of total systems. However, since July we have observed a significant increase in non-residential use, ranging from tens of kilowatts to the megawatt class," said Hisao Kayaoka, secretary general of the Japan Photovoltaic Energy Association.

With a focus on renewables, energy storage systems can't be far behind. A Pike Research report anticipates the  market for advanced batteries for utility-scale applications in Asia Pacific will reach $12.6 billion by 2022.

As efficiency on the grid becomes increasingly important in countries such as Japan, Australia, and South Korea, Pike says direct attention is being paid to the overall system efficiency of the grid, the management of existing assets, and the maintenance of more efficient balance between load and generation on the grid - all issues that advanced battery technologies can help address,

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