This paper analyzes Japan's national power generation strategy with a view to explaining Japan's phlegmatic approach to wind energy development. The analysis concludes that Japan's current power generation strategy is not optimized to achieve the government's three strategic energy objectives of simultaneously enhancing economic security, national energy security and environmental security (3Es). To achieve long-run energy sustainability, Japan needs to strive to phase out nuclear power, which is the centerpiece of its current power generation strategy. The analysis concludes by offering four suggestions for a sustainable 3E power generation strategy: (1) internalize all external costs associated with power generation technologies in order to level the economic playing field, (2) increase feed-in mandates for renewable energy to 20%, (3) fully liberalize the power generation industry and (4) intensify R&D in energy storage technologies to support intermittent renewable technologies. (C) 2009 Elsevier Ltd. All rights reserved.