2024

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T he El ec t r ic Power Indus t r y in Jap an 2 02 4

The Electric Power
Industry in JapanThe Electric Power
Industry in Japan2024

JEPICJapan Electric Power Information Center, Inc. (JEPIC) was established in 1958 as a non-profit association of
the electric utility industry in Japan. Our primary purpose is to meet the increasing need for a systematicand sustained exchange of information with the electric utility industries around the world.
In response to government policy, JEPIC also initiated technical cooperation programs for developing
countries in the field of electric power soon after our founding. These programs remain one of our main
activities today.
Research and Information Activities
JEPIC conducts research on the electric power industry in foreign countries in light of situations and issues
facing the industry in Japan currently. We provide information from those studies in various ways tocontribute to the industry worldwide. JEPIC also works to enhance cooperation with foreign electricutilities and other related organizations.
International Exchange Activities
JEPIC is promoting information exchanges with the foreign electric utilities and organizations in theelectric utility industry by holding regular meetings, and taking part in international conferences andsymposia.
International Cooperation
With the support of the member companies, JEPIC promotes integrated international cooperation
programs for developing countries, mainly in Asia, for the purpose of improving power infrastructure andnuclear power safety in those countries and sharing of general information. These programs include
human resource development efforts such as seminars that JEPIC coordinates. JEPIC both receives theparticipants of these seminars to Japan and dispatches experts to their countries. Including these seminarprograms, JEPIC carries out the following tasks:• Cooperation with electric utilities in ASEAN countries• Technical cooperation under ODA programs• Technical cooperation for nuclear power safety

Contents
EXECUTIVE SUMMARY

2

I. STRUCTURE OF THE ELECTRIC POWER INDUSTRY

6II. ENERGY AND ENVIRONMENTAL POLICY

12

III. SUPPLY AND DEMAND

30

IV. ELECTRIC POWER FACILITIES

36

V. RETAIL BUSINESS AND TRADING MARKETS

50TOPICS: Electric Power Company Initiatives for Strengthening Disaster
Prevention and Resilience60

Statistical Data

65

Overseas Activities of Member Companies

69

Member Companies Data

85

1

The Electric Power Industry in Japan 2024

EXECUTIVE SUMMARY
The information in this document, including the Executive Summary, was current as of September 8, 2023, unless otherwise specified.

Extreme weather conditions and increasingly devastating natural disasters around the world have madeclimate change a critical issue that requires action by the entire international community. Japan has
internationally expressed its strong commitment to tackling this challenge as a nation, pledging to reduce its
greenhouse gas emissions by 46% by fiscal 2030 and to become carbon neutral by 2050. Meanwhile, in thewake of the Russian invasion of Ukraine, the need to secure a stable supply of the energy that provides thefoundation for everyday life and economic activities has become all the more a crucial challenge.
The Japanese government is seeking to simultaneously realize decarbonization, stable supply of energy, andeconomic growth by advancing “Green Transformation” (GX). This initiative aims to shift industry and society
from a structure that has heavily depended on fossil fuels since the Industrial Revolution to one that uses
an energy mix centered on clean energy. In February 2023, the Cabinet approved the Basic Policy for the
Realization of GX, which rests on two pillars: (1) maximizing the use of renewable energy, nuclear power, andother decarbonized energy sources that help increase Japan’s energy self-sufficiency, while also thoroughly
implementing energy efficiency improvements, and (2) putting into action the Pro-Growth Carbon Pricing
Concept, including by supporting bold initial investment that leverages GX Economy Transition Bonds.
In May 2023, the Diet passed the Act on Power Sources for Green Transformation and Decarbonization and
the GX Promotion Act, resulting in the amendment of various related laws. The first one includes concretemeasures for promoting maximum utilization of renewable energy in harmony with local communities, andfor utilizing nuclear power based on the overriding premise of ensuring safety. The nuclear energy measures
include building innovative next-generation reactors at nuclear power plants whose existing reactors arescheduled for decommissioning, and effectively making it possible for reactors to operate for more than 60
years after their commissioning by excluding periods of shutdown due to difficult-to-foresee circumstancesfrom the calculation of the one-time 20-year extensions that may be added to the 40-year limit on operation.
These and the other nuclear energy measures represent a profound shift from the policy of reducing nuclear
dependence that the government adopted following the Great East Japan Earthquake.
The GX Promotion Act mandates the government’s issuance of GX Economy Transition Bonds worth 20 trillion
yen over a ten-year period starting in fiscal 2023. The funds will be used to support innovative technologicaldevelopment and capital investment that promise to help decarbonize energy and raw materials, improveearnings, and achieve other benefits.
Acceleration of the GX initiative is expected to provide impetus for realizing stable supply of energy and for
putting Japan’s economy back on a growth trajectory.
This year’s Topics section presents some of the initiatives that electric power companies are implementing tostrengthen disaster prevention and resilience.

I. STRUCTURE OF THE ELECTRIC POWER INDUSTRY
Liberalization of entry to the power generation sector commenced in 1995 at a time when generation andtransmission were integrated along regional lines under 10 general electric utilities. Liberalization of theretail supply of electricity to all except low-voltage customers was then implemented in stages between
2000 and 2005.

2

E XECUTIVE SUMMARY

Policy on reform of the electricity system was adopted in April 2013, and liberalization of the electric power
retailing and generation sectors was completed in April 2016. The legal separation of transmission anddistribution from vertically integrated businesses was implemented in April 2020, resulting in the spin-off of
new transmission and distribution companies from the former general electricity utilities. Meanwhile, plans
to abolish regulated electricity rates in April 2020 have been deferred.
Today, Japan’s electrical power industry comprises three major sectors: electricity generation, transmission
and distribution, and retailing. As of August 1, 2023, the number of operators in these sectors was 1,084, 39,
and 730, respectively.

II. ENERGY AND ENVIRONMENTAL POLICYThe Prime Minister announced in October 2020 the goal of making Japan carbon neutral by 2050. In April
2021, the Prime Minister also declared that Japan would seek to reduce its greenhouse gas emissions by 46
percent in fiscal 2030 from its fiscal 2013 levels, and would thereafter further strive toward 50%. To lay out thepath to realizing these goals, the Cabinet issued a draft of the Sixth Strategic Energy Plan in July 2021, andthen approved the plan in October.
International developments surrounding the crisis in Ukraine have brought into relief the risks posed bydependence on a single country for the supply of fossil fuels and resources. Resource-poor Japan has cometo recognize the importance of putting together a well-balanced electric power portfolio.
The government held the first meeting of the GX Implementation Council in July 2022 as part of its efforts
to achieve energy security and decarbonization. The Basic Policy for the Realization of GX was approved by
the Cabinet in February 2023, followed in May by the Diet’s passage of the Act on Power Sources for Green
Transformation and Decarbonization and the GX Promotion Act.
Prior to the March 2011 Fukushima Daiichi Nuclear Power Plant accident, Japan had 57 nuclear reactors inoperation. All were provisionally shut down in 2014. Of them, 24 were selected for decommissioning. As of
October 2023, 12 of the remaining 36 (including three under construction) were back in operation.
The operational life of nuclear reactors is capped at 40 years in principle, and may not be extended without
the permission of the Minister of Economy, Trade and Industry. The maximum extension of 20 years now
excludes periods of reactor shutdown due to circumstances that the nuclear power plant operator could
not readily foresee (such as changes in safety regulations, or the issuance of administrative guidance or
injunctions), and thus reactors could effectively operate for more than 60 years after their commissioning.
Installed capacity of renewables (especially solar) began increasing in 2012 as the result of a feed-in tariff(FIT) scheme. In April 2022, the government launched a feed-in premium scheme that adds premiums to
the market prices of power sources such as large-scale commercial solar and wind power, with the aim of
firmly establishing renewables as the main source of electricity.
The government’s current energy policy positions offshore wind power, which can be introduced on a large
scale at comparatively lower cost, as the trump card for making renewables the main source of electric power.
The goal is to achieve a total installed capacity of 10 GW by 2030, and of 30 to 45 GW by 2040. In 2021, thegovernment selected developers by tender to carry out projects in promotion zones it designated.

3

The Electric Power Industry in Japan 2024

In fiscal 2021, Japan’s GHG emissions measured 1,170 million tons (CO2 equivalent), and emissions of CO2
accounted for 90.9% of this total, down 19.2% from the fiscal 2013 level.

III. SUPPLY AND DEMAND
In fiscal 2022, electricity demand1 in Japan was 866.5 TWh (down 1.7% YoY) and the peak load 3-day averagecame to 160.5 GW (down 1.1% YoY).
In fiscal 2022, electric power generated2 in Japan came to 832.7 TWh (down 3.6% YoY), of which 21.8 TWh
was generated by solar power and 7.4 TWh by wind power.
Deterioration of the electric power generation industry’s operating environment has led to a spate ofthermal power plant shutdowns and closures in recent years, prompting concern over the stability ofelectricity supply. There is concern that a one-in-ten-year weather event could reduce power reserves below
the 3% margin in some service areas.
Electricity supply was strained in the early half of 2022 by abnormal weather events that occurred outside
the summer and winter peak demand periods. Unseasonal cold and heat waves prompted the government
to issue an electricity supply warning in March and an advisory in June.
Measures being taken to ease strain on electricity supply include changing the timing of inspection andmaintenance, securing supply capacity through markets, demand response, and interregional electric power
sharing, and implementing energy efficiency programs for customers.
The Russian invasion of Ukraine prompted ongoing concern over the uncertain future of fuel procurement.
As a step toward ensuring stable supply of liquified natural gas (LNG), the government is considering
establishing a new scheme whereby businesses would maintain extra inventory.

IV. ELECTRIC POWER FACILITIES
Total generating capacity in Japan came to 318.6 GW at the end of fiscal 2022. This consisted of 47.5%
thermal power (15.9% coal, 24.8% LNG, and 6.8% oil), 10.4% nuclear power, 15.4% hydro, and 26.0%
renewables (excluding hydro). Development of 120 GW of generating capacity is planned to be completed
by the end of fiscal 2032. This portion made up by new power plants to be constructed and plannedchanges in capacity of existing plants, excluding planned decommissioning, consists of 0.4 GW of hydro, 1.7
GW of thermal power, 7.9 GW of renewables (excluding hydro), and 10.3 GW of nuclear power.
The Agency for Natural Resources and Energy issued the Guidelines for the Long-term Decarbonized Power
Supply Auction in July 2023 to encourage new investments in power sources. In order to achieve greater
predictability of investment returns, electricity generation utilities are provided with capacity revenue for 20
years, in principle.
Plans have been laid out for the enhancement of the electrical grid’s interregional interconnections in orderto improve infrastructure resilience and realize interregional utilization of distributed energy sources.
With regard to the cost burden of construction for expanding interregional interconnections, the Act onPower Sources for Green Transformation and Decarbonization has made it possible to use FIT surcharges

4

1 Total of utilities’ net system energy demand, specified service demand, and self-consumption demand.
2 Electric power generated by electricity utilities.

E XECUTIVE SUMMARY

to offset the costs associated with the decrease in electricity value expected to result from the adoptionof renewable energy, and with providing the social benefit of CO2 emissions reduction. The remainder iscovered by general electricity transmission and distribution utilities nationwide and by grants from OCCTO.

V. RETAIL BUSINESS AND TRADING MARKETSThe number of registered electricity retailers has trended upward since the full liberalization of the retailelectricity market in April 2016. As of March 2023, there were 721 retailers, with PPSs accounting for a 17.7%
share of the total volume of electricity sold.
The sharp rise in fuel prices and wholesale power market prices that has persisted since the early fall of 2021
was exacerbated by the Ukrainian crisis, placing electricity retailers under considerable strain. As of March
2023, 195 PPSs had been forced to file for bankruptcy, close, or exit the market.
In May 2023, seven former general electricity utilities received government approval for rate hikes in order toavoid having the financial pressures on them jeopardize the stable supply of energy. The rate hikes ranged
from 14% to 42%.
The volume of trades on the JEPX spot market in fiscal 2022 was 318.6 TWh (equivalent to approximately
40% of all electric power sold nationwide). The wholesale power market price was 11.49 yen/kWh in August
2023, and has fallen from fiscal 2022 levels due to skyrocketing fuel prices.
In order to ensure the stable and fair supply of electric power, Japan has four markets that engage in trading
other than electricity volume: (a) baseload power market, (b) capacity market, (c) balancing market, and (d)nonfossil value trading market.
The “long-term decarbonized power supply auction” is scheduled to be held for part of the capacity market
in fiscal 2023.
The Ministry of Economy, Trade and Industry is considering launching a new market in which both spot
market procurement and balancing market procurement would occur in parallel.

5The Electric Power Industry in Japan 2024

I. STRUCTURE OF THE ELECTRIC POWER INDUSTRY

1. H
 istory of Electric Power Industry
in Japan1970s, they lowered rates several times between the 1980s
and 2000s, successfully providing the power that supported
the development of Japan’s economy.

(1) Establishment of a System Comprising
10 Electric Utilities(2) Beginning of Liberalization of the Electricity
MarketJapan’s electric power industry came into being in 1886 withthe commencement of operations by the Tokyo ElectricLight Company, which was formed with private capital.
Numerous electric utilities were subsequently establishedaround Japan to serve growing demand for electricity driven
by increasing industrialization. By the early 1930s there
were more than 800 utilities. However, fierce rate reduction
competition engendered by the prolonged depression led
to a series of mergers and acquisitions, and Japan’s electric
power industry ultimately developed into an oligopoly of
five utilities.

Following the trend toward deregulation in the electric
power industry in Western countries, the liberalization ofentry into the electricity generation sector started in 1995 in
Japan, followed by retail supply liberalization for customers
receiving extra-high voltage (20 kV or above) in 2000. The
scope of deregulation was expanded further in stages
thereafter: to high voltage (6 kV) customers with contracted
demand of 500 kW or above, in principle, in April 2004, andto all customers in the high voltage category (those with acontracted demand of 50 kW or above) in April 2005.

As Japan headed into World War II, the electric utilities
came under the control of the government. In 1939, thegovernment established the Japan Electric Generation
and Transmission Company, electricity generation andtransmission facilities came under centralized control. The
government also consolidated the electricity distribution
business into nine separate regional blocks. Following
World War II, the Japan Electric Generation and Transmission
Company was dissolved in May 1951, the company’s
facilities and functions were transferred to nine privatelyowned electricity distribution utilities. As a result, a regimeof regional monopolies was established based on integrated
systems of electricity generation and transmission in nine
regions. The number of utilities then increased to 10 withthe establishment of Okinawa Electric Power Co. following
the reversion of Okinawa to Japanese control in 1972.
These electric utilities made focused investments in power
supply facilities to meet a growing demand for electricity
driven by Japan’s rapid economic growth. As private
enterprises, they simultaneously sought to deliver affordable,
stable supplies of electricity while emphasizing the interestsof shareholders. As a result, they contributed significantly
to Japan’s nearly 20-year period of rapid economic growthby providing high-quality, affordable electricity with aminimum of outages. Although these utilities introduced
electricity rate hikes in the wake of the global oil crises of the

6

However, power shortages and other issues caused by the2011 Great East Japan Earthquake prompted discussion of theideal configuration of the nation’s electric power system andits reform. Based on this discussion, reform of the electricity
supply system has been pursued in three stages since 2015.

(3) Electricity System Reform
The Policy on Electricity System Reform describing theoverall shape of reform was approved by the Cabinet in
April 2013. This policy divided the reform process into threephases: (1) establishment by 2015 of an Organization for
Cross-regional Coordination of Transmission Operators(OCCTO) to act as a command center responsible formanaging supply and demand spanning different service
areas; (2) full liberalization of entry into the retail electricity
market by 2016; and (3) the legal unbundling of thetransmission and distribution sector, and elimination ofregulated retail rates by 2020.
Based on this policy, a new entity called the Organization
for Cross-regional Coordination of Transmission Operators(OCCTO) was established in April 2015 with the aim ofenhancing the capacity to adjust supply and demandnationwide in both normal and emergency situations.
In preparation for the second phase of liberalization of
the retail market, another entity, the Electricity Market
Surveillance Commission (now called the Electricity and
Gas Market Surveillance Commission) was established inI. S TRUC T URE OF THE ELEC TRIC POW ER INDUS TRY

Roadmap to Electricity System Reform

Implementation: April 2013

[Phase I][Phase 2][Phase 3](Establishment of the OCCTO)(Deregulation of entry into
retail electricity market)(Ensuring neutrality in transmission anddistribution; Deregulation of electricity rates)

Implementation: April 2015

Implementation: April 2016

Implementation: April 2020

Approval of establishment

Preparation for establishmentof the OCCTO

Determination of policy on electricity system reform

Figure 1 . 1

1) Formulation of plans for cross-regional supply and demand

Establishment of
the OCCTO

2) Formulation of plans for improvement of interconnected lines and cross-regional transmission lines
3) Cross-regional supply and demand/grid operation4) Supply and demand adjustment in times of supply shortages

Full deregulation ofretail sales
Preparation of environment for full deregulationof retail sales(liberalization of entry into
retail electricity market)

Customer freedom to select electric utilities and supplier freedom
to set electricity rates extended to small-customer sector(including households)
Period of transitional
measures foreliminating rate
regulations

Elimination of Establishment of
requisite systems forrate regulations customer protection(end of transitional
measures)(last-resort service,universal service, etc.)

Review of competition conditions

Detailed system design

Transition to
new regulatory
systemVitalization of wholesale electric power market

Preparation for creation of new system forsecuring supply capacity

Preparation for hour-ahead market

1) Regulation of transmission and distribution (wheeling service fees, conduct of business, etc.)
2) Wholesale/retail market transaction monitoring, competition condition review, and rule development3) Operations related to stable electric power supply, including issuance of supply orders andimplementation of appropriate rolling blackouts in emergencies
Market monitoring

Elimination of regulations
on wholesale market

Conducting acapacity market main
auction (2020)

Creation of new system
for securing supply
capacity

1) Obligation tosecure supply capacity
2) Establishment of capacity market for future supply capacitytransactions
3) System for power source procurement bidding in anticipation of
future shortages

Creation of hour-aheadmarketMarket-based cross-regional supply and demand adjustment

Review, development and issuance of rules as preconditions for improving neutrality in transmission anddistribution operations Verification and implementation of means of securing power supply stability,
including disaster response measures, cooperation on transmission and distribution facility maintenanceand operation, and supply securement
Preparation for system transition

Gradual creation ofbalancing market(from April 2021)

Legal separationof transmission
and distribution
from the verticallyintegrated business

Regulation oftransmission anddistribution andmonitoring of neutrality
assurances

Realization ofcompetitive market
environment

Source: Compiled from the Report of the Expert Committee on Electricity Systems Reform (February 2013)

7

The Electric Power Industry in Japan 2024

September 2015 to strengthen oversight of the liberalized
electric power market. A licensing system was thenlaunched in April 2016, liberalization of the electric power
retailing and generation sectors was completed. In the third
phase, legal unbundling of the transmission and distributionsector was implemented in April 2020, and new spin-off
transmission and distribution companies were establishedby eight former general electricity utilities other than Tokyo
Electric Power Company Holdings, which was ahead on
setting up new companies, and Okinawa Electric Co., which
was not subject to legal unbundling. Meanwhile, plans
to abolish regulated electricity rates scheduled for theend of March 2020 have been deferred due to insufficientcompetition. The Ministry of Economy, Trade and Industry(METI) is basing its decision on when to abolish thesystem on criteria such as the degree of public awarenessof electricity market liberalization, trends in customer
switching, and the sustainability of competitive pressure andthe competitive environment. However, as of June 2023,
the system remained in effect in all supply areas due to theministry’s determination that the competitive pressure/environment sustainability requirements had yet to be met(see Figure 1.1 and “1. Electricity Rates” in Section 1, Chapter V).
The necessary legal groundwork for the third phase ofelectricity system reform was completed with the enactmentof revisions to the Electricity Business Act in November 2013,
June 2014, and June 2015. As a side note, it came to lightin December 2022 that certain former general electricity
utilities had been viewing customer data owned by generalelectricity transmission and distribution utilities. Also, it was
discovered in February 2023 that certain former generalelectricity utilities had been accessing a renewable energy
business management system that it provided to generalelectricity transmission and distribution utilities. In response
to METI orders to improve their business practices, theoffending utilities have formulated improvement plans andare working to prevent recurrence of similar infractions.

(4) Updated System Design
The Ministry of Economy, Trade and Industry (METI)
emphasized the need to increase economic efficiency byfostering further competition in the electric power sector,
while addressing a number of issues that could not be
resolved solely by relying on the market alone. These issues
include ensuring safety, supply stability, and implementationof climate change measures, including promotion ofrenewable energies. METI also indicated that in order tosolve these issues, steps should be taken to make existing

markets more liquid and to actualize new forms of value by
creating completely new markets, such as a capacity market
and a non-fossil value trading market.
Based on these guidelines, a number of new types of market
were considered, including (1) a baseload power market, (2)a capacity market, (3) a balancing market, and (4) a non-fossil
value trading market. Trading has started in those markets.
Trading in certain products commenced in (3) in April 2021
and April 2022, and will be gradually expanded to otherproducts. Market (4) was split into two markets in fiscal
2021, a market for achieving the target mandated by theSophisticated Methods Act, and a renewable energy value
trading market. As part of the auctions held in (2), the Longterm Decarbonized Power Supply Auction is scheduled tobe conducted in fiscal 2023 (see “Trading Markets” in Section 3,
Chapter V).

2. Current Electricity Supply System(1) Classification of Electricity Utilities
Japan’s electricity utilities had been divided into thefollowing five categories: general electricity utilities,
wholesale electricity utilities, wholesale suppliers, specified
electricity utilities, and power producer and suppliers (PPSs).
Subsequently, with the implementation of full liberalizationof the retail market, these classifications were reviewed anda new system of issuing licenses to business operators wasintroduced in April 2016. At present, the licenses define
three main categories of electricity generation, transmission
and distribution, and retailing. METI’s Agency for Natural
Resources and Energy imposes necessary regulations foreach sector. The 10 general electricity utilities that havehistorically been engaged in power supply since 1951 arenow called “former general electricity utilities” (see Figures 1. 2
and 1. 3).
Data show that 1,084 entities had obtained power
generation licenses in the electricity generation sector as ofAugust 1, 2023, and generating capacity was 270 GW 3 as ofJuly 2023. The group of former general electricity utilities,
J-POWER, and the Japan Atomic Power Co. accounted for
80% of generating capacity. In addition, power generation
licenses have been obtained by firms from industries suchas paper manufacturing, steel manufacturing, and gas andpetroleum, as well as by some local governments. As a resultof a partial revision of the Electricity Business Act in May

3 Figure represents the total of electricity utilities’ generating capacity, and excludes that of non-electricity utilities.

8I. S TRUC T URE OF THE ELEC TRIC POW ER INDUS TRYElectricity Supply System after Introduction of Licensing

Figure 1 . 2

A. Electricity generation business[notification only]

D. Specified wholesale supply business[notification only] *Commencing in April 2022

JERA, The Kansai Electric Power
Company, J-POWER, JFE Steel,
local governments, etc.
(1,084 entities)TEPCO Energy Partner, The Kansai ElectricPower Company, Tokyo Gas, NTT AnodeEnergy, ENEOS , etc. (32 entities)
Aggregation

B. Electricity transmission anddistribution business ( (1)-(4) )(4) Specified electricity transmission
and distribution business[notification only](1) General electricity transmission anddistribution business [license required]
TEPCO Power Grid, Kansai Transmission
and Distribution, etc. (10 companies)

System of general electricity transmission
and distribution utilities(3) Electricity distribution
business [license required]

SUMITOMO JOINT ELECTRIC
POWER, JR East, etc. (39 entities)*Commencing in April 2022

(2) Electricity transmission business[license required]

Grid operated byelectricity distributor

J-POWER Transmission Network Co., Ltd.,North Hokkaido Wind Energy Transmission,etc. (3 companies)

Specified supply area

C. Retail electricity business[registration required]
TEPCO Energy Partner,
The Kansai Electric Power Company, ENNET,
Tokyo Gas, KDDI, etc. (730 entities)

Specified service points
distinguished fromgeneral demand.

Homes, businesses, stores, etc.

Utilities maintaining and operating electricity transmission and distribution facilities
General electricity transmission
Electricity transmission utilities
and distribution utilities

Electricity distribution utilities

Specified electricity transmission
and distribution utilities

Source: Compiled from Agency for Natural Resources and Energy, “(Reference) Electricity Power Supply Structure (from April 2016)”

General Electricity Transmission and Distribution Utilities Spun Off
from Former General Electricity Utilities following Legal Unbundling (after April 1, 2020)

Figure 1 . 3

Former general electricity utilities

General electricity transmission and distribution utilities• Hokkaido Electric Co.

• Hokkaido Electric Power Network, Inc.

• Hokkaido Electric Power Co. (generation & retail)• Tohoku Electric Co.

• Tohoku Electric Power Network, Co.

• Tokyo Electric Power Co.

• TEPCO Power Grid, Inc.*2• Chubu Electric Power Co.

• Chubu Electric Power Grid Co.

• Hokuriku Electric Power Co.

• Hokuriku Electric Power Transmission & Distribution Co.

• Tohoku Electric Power Co. (generation & retail)• Tokyo Electric Power Company Holdings, Inc.,JERA*3, TEPCO Renewable Power, Inc. (generation),
TEPCO Energy Partner, Inc. (retail)*2• Chubu Electric Power Co., JERA (generation),
Chubu Electric Power Miraiz Co. (retail)• Hokuriku Electric Power Co. (generation & retail)• Kansai Electric Power Co.

• Kansai Transmission and Distribution, Inc.

• Kansai Electric Power Co. (generation & retail)• Chugoku Electric Power Co.

• Chugoku Electric Power Transmission & Distribution Co.

• Chugoku Electric Power Co. (generation & retail)• Shikoku Electric Power Co.

• Shikoku Electric Power Transmission & Distribution Co.

• Shikoku Electric Power Co. (generation & retail)• Kyushu Electric Power Co.

• Kyushu Electric Power Transmission and Distribution Co.

• Kyushu Electric Power Co. (generation & retail)• Okinawa Electric Power Co.

• Okinawa Electric Power Co.

• Okinawa Electric Power Co. (generation & retail)*1 Only major utilities are listed.
*2 TEPCO Power Grid, Inc. and TEPCO Energy Partner, Inc. were spun out in April 2016.

Electricity generation utilities and retailers*3 JERA took over the thermal power generation business of TEPCO and Chubu ElectricPower in April 2019.

9

The Electric Power Industry in Japan 2024

2022, large storage batteries are now regarded as a power
generation business.
In the transmission and distribution sector, a total of 10
utilities (the 9 utilities spun out from the former generalelectricity utilities other than Okinawa Electric Co., andOkinawa Electric Co.) have been conducting business as
general electricity transmission and distribution utilities.
Three other companies, including J-POWER Transmission
Network Co., Ltd., are conducting business as electricity
transmission utilities. In addition, 39 corporations (as ofAugust 1, 2023), including Sumitomo Joint Electric Power
Co., Ltd., are operating as specified electricity transmission
and distribution utilities.

(2) Regulatory Organizations
a. Agency for Natural Resources and Energy

The Agency for Natural Resources and Energy is an externalorgan of METI. It is responsible for policies regarding energy
conservation, new energies, and securing a stable, efficient
supply of energy from oil, electricity, gas, and other sources.
With regard to the electric power industry, the agency
is responsible for developing the electricity market andelectricity sources, adjusting electricity market supply anddemand, and planning, devising, and promoting policies
relating to nuclear power, renewables and smart communities
to ensure a stable and efficient supply of electricity. The
agency is given the role of supervising electric utilities.
b. Electricity and Gas Market Surveillance Commission

In the electricity retail sector, data released by Agency
for Natural Resources and Energy show that a total of
730 entities had obtained retail licenses (as of August 1,2023). In addition to the former general electricity utilities,
electricity retailers include telecommunications carriers,
trading companies, gas and petroleum companies, steel
manufacturers, and subsidiaries of former general electricity
utilities. Net system energy demand in fiscal 2022 cameto 805 TWh, of which former general electricity utilities
accounted for about 80%.
Amidst the spread of distributed energy resources (DER),
the Electricity Business Act was partially revised by the
Act for Establishing Energy Supply Resilience enacted inJune 2020. The revisions included licensing provisions
regarding the (1) specified wholesale supply business andthe (2) electricity distribution business, effective from April
2022. Also known as aggregators, (1) licensees aggregate
and adjust the electricity of many DER, including throughdemand response, and supply the electricity to electricity
retailers and other buyers. According to data released by the
Agency for Natural Resources and Energy, 57 entities wereoperating as (1) licensees as of August 7, 2023. (2) licenseesbalance electricity supply and demand by matching
local renewables and power consumers, and engage inother distribution operations in a specified area, using the
distribution grid of a general electricity transmission anddistribution utility. As of August 1, 2023, no entities had been
licensed for (2). (For more information on (2), see section 2-5,
“Efforts to Improve Resilience and Increase Use of Renewables inPower Transmission and Distribution Sector,” in Chapter IV.)

10The Electricity and Gas Market Surveillance Commission
was established in September 2015—as a separate entity
from the Agency for Natural Resources and Energy directly
reporting to the Minister of Economy, Trade and Industry—inadvance of the liberalization of electricity, gas, and heating
supply, with the aim of further strengthening monitoring of
the energy markets and related functions and encouraging
sound competition. The Commission’s powers include
the ability to collect reports, conduct on-site inspectionsof utilities, recommend business improvements, act as anarbitrator/mediator, approve wheeling service charges, andcarry out reviews of retailer registrations. It also has the power
to monitor the fairness of transactions and regulate businessconduct to safeguard the neutrality of the electricity and gas
network sectors.

(3) Organization for Cross-regional Coordination ofTransmission Operators (OCCTO)
OCCTO was established in April 2015 as a governmentauthorized organization that all electricity utilities are
required to join. Its objectives are to promote developmentof the transmission and distribution networks required
to make cross-regional use of generating sources, andto strengthen the industry’s capacity to adjust supply
and demand nationwide in both normal and emergency
situations. OCCTO is operated as a public organization
authorized under the Electricity Business Act.
OCCTO’s main functions include:
Securing stable electricity supply on short-, medium-, andlong-term basis• Collect all supply plans and use this information to perform
centralized evaluation of supply-demand balance nationwide• Study, design in detail, and run the capacity market, andI. S TRUC T URE OF THE ELEC TRIC POW ER INDUS TRY

study and design in detail the balancing market• Formulate cross-regional network long-term policy anddevelopment plans
Promoting the fair, equitable, and efficient use of electricity
transmission and distribution facilities• Formulate/revise guidelines on implementation oftransmission/distribution businesses• Review the methods of interconnection line use• Accept system impact studies of generation facilities• Take action to facilitate network use and lower the cost
• Study new rules for network use
Monitoring nationwide conditions of supply-demand andnetwork operation• Monitor supply-demand and network operation
conditions 24 hours a day, 365 days a year
• Track nationwide supply-demand balance by managing
the annual, monthly, weekly and day-ahead plans• I nstruct electricity companies to transmit or receive power
when their supply-demand balance becomes unstable• Provide training for dealing with supply shortages
New functions added by the Act for Establishing Energy
Supply Resilience (enacted in June 2020)• Check the content of disaster response coordination plans• Operate a mutual assistance system for disaster recovery costs• Formulate cross-regional network development plans andsubmit them to the government• Grant subsidies related to the feed-in tariff (FIT) scheme
for renewable energy and grant premiums related to thefeed-in premium (FIP) scheme• Manage the reserve fund for the disposition of solar
panels and other hardware components

11

The Electric Power Industry in Japan 2024

II. ENERGY AND ENVIRONMENTAL POLICY

1. Strategic Energy Plan
In October 2020, the Japanese government announced its
goal of making Japan carbon neutral by 2050, and unveiled
the “Green Growth Strategy Through Achieving Carbon
Neutrality in 2050” in the following December. This strategy
sets ambitious targets for 14 industries with strong growthpotential and specifies diverse measures for an all-out
commitment to building a carbon-neutral society. In April
2021, the government declared that it would seek to reducegreenhouse gas emissions in fiscal 2030 by 46% from thelevel in fiscal 2013, and thereafter further strive toward 50%.
The Sixth Strategic Energy Plan was approved by the Cabinet
in the following October to lay out the path toward realizing
those goals.
In formulating the Plan, the government reviewed the ten
years following the Fukushima Daiichi Nuclear Power Plant
accident (hereafter, “the Fukushima Daiichi accident”) andaffirmed its responsibility to work toward the full recoveryof Fukushima Prefecture. It also focused on two key points:
addressing climate change and overcoming challenges inthe structure of Japan’s energy supply and demand. The
basic concept of the Plan is to achieve “S+3E”—namely,
striving for energy security in way that gives top priority
to safety and balances both economic efficiency andenvironmental protection. The Plan identifies challenges inachieving carbon neutrality by 2050 and defines actions fortackling them, while also outlining policy measures toward
reaching the interim goals for 2030.

(1) C hallenges and Actions for Achieving Carbon
Neutrality in 2050
The Plan emphasizes the importance of securing a stable
and affordable supply of energy while giving top priority toensuring safety. Working from this premise, it calls for steady
implementation of decarbonization efforts for achieving thegoal of carbon neutrality in 2050, using currently practical
decarbonized electric power sources. It also advocatesmaximizing the adoption of renewable energy, under the
principle of giving top priority to shifting to renewables as
the main energy source. At the same time, it looks beyond
currently practical decarbonization technologies to pursue
new options that need to be innovated, such as hydrogen/12

ammonia power generation, or thermal power generation
founded on carbon storage and reuse through CCUS
(see “(2) Future Plans” in Section 1, Chapter IV). With regard tonuclear power, the Plan states that the necessary amountwill be continuously utilized based on the major premise of
ensuring public trust and safety.
The Plan emphasizes the importance of securing a stable
and affordable supply of energy while giving top priority toensuring safety. Working from this premise, it calls for steady
implementation of decarbonization efforts for achieving thegoal of carbon neutrality in 2050, using currently practical
decarbonized electric power sources. It also advocatesmaximizing the adoption of renewable energy, under the
principle of giving top priority to shifting to renewables as
the main energy source. At the same time, it looks beyond
currently practical decarbonization technologies to pursue
new options that need to be innovated, such as hydrogen/ammonia power generation, or thermal power generation
founded on carbon storage and reuse through CCUS (see “(2)Future Plans” in Section 1, Chapter IV).

(2) Policy Measures towards 2030
The Plan specifies the following actions for each elementof its core concept of S+3E: increase energy self-sufficiency
by around 30% (energy security); seek to lower costs in
response to an expected rise in surcharge payments driven
by greater adoption of renewable energy (economic
efficiency); set the energy-related CO2 reduction rate amonggreenhouse gas reduction targets to approximately 45%(environment); and work to improve the safety of nuclear
energy (safety).
According to the Plan’s outlook for energy supply anddemand in fiscal 2030, electricity demand will be contained
at 864 TWh despite anticipated economic growthby pursuing thoroughgoing energy (electric power)
conservation efforts. Regarding the power generation
mix, the Plan aims to realize a well-balanced mix thatenables simultaneous achievement of the S+3E by making
renewables the main power source, restarting nuclear
power plants with top priority placed on safety, andreducing dependence on thermal power generation as
much as possible. Specifically, the energy mix (in terms ofelectric power generated) in fiscal 2030 will be raised theII. ENERGY A ND ENV IRONMENTA L POLIC Y

Power Generation Mix in Fiscal 2030

Figure 2 .1

Total power generation
approx. 1,024 TWh

Non-fossil
24%

Total power generation
approx. 934 TWh

Renewableenergy18%
Nuclear 6%

Hydrogen &ammonia1%

Non-fossil
59%

LNG
37%

Nuclear20–22%

Fossil
76%

Coal
32%

Renewableenergy36%–38%LNG
20%Fossil
41%

Coal
19%

Oil, etc. 7%

FY2019

Breakdown ofrenewables
Solar 14-16%
Wind 5%
Geothermal 1%
Hydro 11%
Biomass 5%

Oil, etc. 2%

FY2030Source: METI, “Energy Supply and Demand Outlook for FY2030” (2021)

which specifies the following actions for strengthening
Japan’s energy security.
Accelerating decarbonization efforts and increasing
Japan’s energy self-sufficiency, under the key premisethat the stable supply of affordable energy be secured
amid the energy market effects of the Russian invasion of
Ukraine. To achieve these aims, Japan will pursue thoroughenergy conservation measures and make maximum useof renewables, nuclear power, and other energy sourcesthat contribute to energy security and have a highdecarbonizing effect.
At the same time, Japan will strive to reduce its
dependence on Russian-supplied fossil fuel and resources
and prevent disruption of its energy supply by diversifying
suppliers, working with other major energy consumers toencourage producers to ramp up production, and taking
action to reduce energy consumption. The policy also
recommends strengthening Japan’s fuel supply systemthrough measures such as increasing the government’s
involvement in LNG procurement.

(4) Actions for Advancing GX
share of renewables from the previous Plan’s target of 22%–
24% to 36%–38% (the actual level in fiscal 2019 was 18%),
while nuclear power’s contribution will be kept at 20%–22%.
The share of thermal power will be minimized as muchas possible by steadily phasing out inefficient coal-fired
generation, while retaining the installed capacity needed toprovide a supply capacity capable of countering momentaryor sustained drops in electricity generation from renewables.
Specifically, the Plan aims to reduce dependence on LNG
and coal from 37% and 32% in 2019 to 20% and 19% (seeFigure 2.1).

(3) Strengthening Energy Security
International developments surrounding the crisis in Ukraine
have brought into relief the risks posed by dependence ona single country for the supply of fossil fuels and resources.
It is imperative for Japan, as a resource-poor country, to
put together a well-balanced electric power portfolio thattakes into account the characteristics of each type of fuel.
Moreover, given that the stable supply of energy is thefoundation for many different economic and social activities,
carbon neutrality cannot be achieved without energy
security. In June 2022, the Cabinet approved the Basic Policy
on Economic and Fiscal Management and Reform 2022,

Green Transformation, or GX, is an initiative that seeks to shift
the structure of industry and society, which has long beenheavily dependent on fossil fuels, to an energy mix centeredon clean energy that does not emit CO2. In line with the
Sixth Strategic Energy Plan, the Japanese government isstriving to realize a decarbonized society by leveraging
renewable energy, nuclear power, and other forms of clean
energy. However, the global energy situation dramaticallychanged after Russia invaded Ukraine in February 2022 andmany countries retaliated by banning imports of Russianproduced fossil fuels. This led to sharp rises in energy
resource prices and electricity rates in Japan, providing aclear reminder of the importance of securing a stable energy
supply for this energy-resource-poor country. Working
through the GX Implementation Council, the government
laid out the Basic Policy for the Realization of GX as aroadmap for realizing both a decarbonized society and thestable supply of energy. To accomplish this, the policy calls
for transforming the energy supply and demand structureand for driving economic growth by strengthening Japan’s
industrial competitiveness in decarbonization and othertechnologies. As supporting legislation, the Diet passed the
Act on Promotion of a Smooth Transition to a Decarbonized
Growth-Oriented Economic Structure (GX PromotionAct) on May 12, 2023, and the Act Partially Amending the13The Electric Power Industry in Japan 2024

Electricity Business Act, etc. to Establish a Resilient andSustainable Electricity Supply System (Act on Power Sources
for Green Transformation and Decarbonization) on the
31st. Also, the Cabinet adopted the Strategy for Promoting
Transition to a Decarbonized, Growth-Oriented Economic
Structure (GX Promotion Strategy) on July 28 as a strategy
for implementing the various GX measures under the GX
Promotion Act.
The Basic Policy for the Realization of GX sets forth two
key actions for ensuring stable energy supply: thoroughimplementation of energy efficiency improvements tohomes, industries, and other consumers; and making
renewable energy the main source of all electric powerby fiscal 2030 by increasing its share of the energy mix,
including by utilizing nuclear power based on the overriding
premise of ensuring safety. Since locations suitable forrenewable energy production are geographically limited,
the government will also develop the nationwide power
grid to support large-volume transmission of renewableelectricity to consumer areas.
As another strategy for achieving GX, the government will
support related investment and introduce carbon pricing.
For details, see “b. Green Transformation” under “4. Global
Warming Countermeasures.”
In order to ensure the effective implementation of the
new measures for realizing GX, the government will workthrough the GX Implementation Council and other bodies
to regularly assess progress in the public and private sectors
based on factors such as GX investment progress, economic
impacts, and trends in technological development, and willrefine the measures if necessary.

2. Nuclear Power Generation(1) Action on Nuclear Safety
a. Establishment of the Nuclear Regulation Authority

The March 2011 accident at the Fukushima Daiichi
Nuclear Power Plant led to an overhaul of the system ofadministration of nuclear power in order to separate safety
regulation from its use and to unify nuclear safety regulation
work. The Nuclear Regulation Authority (NRA), comprisinga chairman and four commissioners, was established in
September 2012 as an affiliated agency of the Ministry of
the Environment. As a result of this change, the resumptionof a nuclear power plant’s operation is predicated on the14

acquisition of licensing through a safety review performedin accordance with the NRA’s New Regulatory Requirements(described below), and on the local governments’ consents(not a legal requirement).
b. New Regulatory Requirements

The Act on the Regulation of Nuclear Source Material,
Nuclear Fuel Material, and Reactors (Nuclear Reactors
Regulation Act) was revised following the Fukushima Daiichi
accident. The main revisions are as follows.
• Thorough reinforcement of regulatory standards fornuclear facilities to include measures against severe
accidents (see Figure 2.2).
• Requirement for bringing existing nuclear power facilities
into conformance with new standards informed by thelatest insights (introduction of a backfitting program).
• Integration of nuclear power safety regulations with the
Nuclear Reactors Regulation Act (separation from theElectricity Business Act).
The NRA verifies whether the installation, operation, etc.
of electricity-generating nuclear reactors conform to the
New Regulatory Requirements through the following
3-tier regulatory review process. Tier 1 grants permission
for changes in reactor installation; Tier 2 approves theconstruction plan; and Tier 3 approves the operational safety
program and requires the passing of pre-service inspections.
c. Initiatives by the Private Sector

Alongside the measures being taken by the regulatory
agencies, in November 2012 the nuclear power industry,
seeking to prevent the occurrence of accidents like the
Fukushima Daiichi accident, launched the Japan Nuclear
Safety Institute (JANSI) as an organization for encouraging
nuclear power plant operators to voluntarily strive for safety
excellence. The nuclear power industry also establishedthe Atomic Energy Association (ATENA) in July 2018 as anorganization whose role is to draft effective safety measuresby leveraging insights and resources across the industry andby engaging in dialogue with regulatory authorities. JANSI
and ATENA are working together to encourage nuclear
power plant operators to introduce more effective safetymeasures, with the goal of raising the safety standards ofnuclear power plants.

(2) Legislation Supporting Nuclear Energy
Utilization and Reactor Decommissioning
The Basic Policy for the Realization of GX, approved by the
Cabinet in February 2023, calls for replacing the existingII. ENERGY A ND ENV IRONMENTA L POLIC Y

Safety Measures Required by New Regulatory Requirements
Establishment of emergency
response center
Measures against
deliberate plane crashes

Securing of electricity
supply capabilities

Figure 2 . 2

Strengthening of offsite
power supply
Securing of water supply capabilities
Measures against
natural disasters

Measures against flooding:door replacement for water-tightness
Measures against tsunami:
strengthening of seawalls

Securing of alternative
water injection capabilities

Installation offilter vents
Subsurface structure survey(over 1,000 m deep)
Measures against fire:
installation of earthquake-resistant firefighting equipment
Measures against tsunami: deeper pump inlets
Installation of bulkheads in reactor auxiliary seawater pump area

Source: Federation of Electric Power Companies of Japan (FEPC), “Energy and Environment” (2018)

reactors that have been decommissioned or are scheduled
for decommissioning with innovative next-generation
reactors4 incorporating new safety mechanisms. The
following four related acts were amended in May 2023
to support the utilization of nuclear energy based on theoverriding premise of ensuring safety.
• Clarification of principles pertaining to use of nuclear
power (Atomic Energy Basic Act)
Clarification of: the overarching priority of safety; the valueof nuclear power use, including its contributions to stableenergy supply and GX; and the responsibilities of thegovernment and operators.
• Tightening of regulations on aging nuclear reactors(Reactor Regulation Act)
Requirement that degradation of equipment of nuclear
reactors operating for over 30 years be technicallyassessed every ten years thereafter, that long-term facility
management plans be formulated based on those
assessments, and that those plans be approved by the
NRA.

• Refinement of regulation of operational life (Electricity
Business Act)
Limiting of nuclear reactor operational life to 40 years,
while allowing an extension contingent upon the Ministerof Economy, Trade and Industry’s approval of the reactor’s
contributions to stable energy supply and GX, voluntary
safety improvements, and continuous improvements todisaster countermeasures. The extension is limited to a
maximum of 20 years, but periods of shutdown due tocircumstances that the nuclear power plant operator could
not readily foresee (such as changes in safety regulations,or the issuance of administrative guidance or provisional
disposition order for suspension of operation) are notcounted, thus enabling reactors to effectively operate formore than 60 years after their commissioning.
• Efficient and steady decommissioning of reactors (Spent
Nuclear Fuel Reprocessing Implementation Act)
Expansion of the Nuclear Reprocessing Organization ofJapan’s responsibilities to include general coordinationof reactor decommissioning nationwide, joint
implementation of R&D, among other duties; requirementfor operators to contribute funds for decommissioning.

4 This refers to five types: advanced light-water reactors (LWRs; aimed at entering commercial operation in the 2030s) that add enhanced safety
features to existing LWR technology; small modular reactors (SMRs) with a capacity of up to around 300,000 kW that would reduce construction
period and cost because many of their components would be factory built; high-temperature gas-cooled reactors that achieve high-temperature
output and could be used to produce hydrogen; fast reactors that utilize fast neutrons for highly efficient combustion, resulting in less nuclear
waste; and nuclear fusion reactors that would harness the energy released by the nuclear fusion of hydrogen atoms. Examples of advanced LWRs:
Mitsubishi Heavy Industries’ SRZ-1200 (PWR, 1.20 million kW) and Hitachi-GE Nuclear Energy’s HI-ABWR (BWR, 1.35 million kW). Examples of SMRs:
Hitachi-GE Nuclear Energy’s BWRX-300 (BWR, 0.30 million kW) and Toshiba’s MoveluX (heat-pipe reactor, 3,000–4,000 kW).

15

The Electric Power Industry in Japan 2024

Current State of Nuclear Plant Reviews and Restarts

Tier 1 review
completed(change ininstallation
license granted)(17 units)

Table 2 . 1

12 units

Restarted

Pending completion of Tier 2 and 3 reviews(construction approval, safety regulations, pre-service
inspections), and consents of local communities

5 units

Under Tier 1 review (including 2 units under construction)

10 units

Applications not yet filed (including 1 unit under construction)

9 units

Total (including 3 units under construction)

36 units

To be decommissioned

24 units

Note: Excludes the three reactors of JPDR, Fugen, and Monju.

(3) S tate of Nuclear Power Generation
Prior to the March 2011 Fukushima Daiichi accident,
Japan had 57 nuclear reactors in operation, and nuclear
power accounted for roughly 25% of the total electric
power generated in fiscal 2010. In 2014, all nuclear reactors
were provisionally shut down. After it became possible
to determine the economic viability of each plant in lightof the New Regulatory Requirements, 24 of the reactors,
representing aging small and medium-sized models, wereselected for decommissioning. As a result, the numberof reactors fell to 36 (including three under construction)
as of October 2023. Of those, 27 (including two underconstruction) applied for permission for changes in reactor
installation under the Tier 1 review. Permission was granted
to 17 reactors, and as of October 2023, twelve of them wereable to resume operation after passing the Tier 2 and 3
reviews and gaining their local governments’ consents (seeTable 2.1). However, all 27 need to return to full operation inorder for Japan to achieve the goal of raising nuclear energy’s
contribution in the fiscal 2030 power generation mix to
20%–22%, as envisioned by the Sixth Strategic Energy Planapproved by the Cabinet in October 2021.

16

Electric Power
Plant
Company
KansaiTakahama Unit 1

Aug. 28, 2023

KansaiTakahama Unit 2

Oct. 16, 2023

KansaiTakahama Unit 3

Feb. 26, 2016

KansaiTakahama Unit 4

Jun. 16, 2017

KansaiOhi Unit 3

Apr. 10, 2018

KansaiOhi Unit 4

Jun. 5, 2018

Kansai

Mihama Unit 3

Jul. 27, 2021

Shikoku

Ikata Unit 3

Sep.7, 2016

KyushuGenkai Unit 3

May 16, 2018

KyushuGenkai Unit 4

Jul. 19, 2018

KyushuSendai Unit 1

Sep. 10, 2015

KyushuSendai Unit 2

Nov. 17, 2015

Restart date

Note: Pluthermal reactors are highlighted in pink.

Source: Compiled from Japan Atomic Industrial Forum, Inc.,“Current Status of Nuclear Power Plants” (October 10, 2023)
and other materials

In 2022, nuclear power accounted for around 6% of Japan’s
total electricity output, and the capacity factor of nuclear
power plants was 18.7%.

(4) Nuclear Fuel Cyclea. Basic Policy

Japan, a country lacking in energy resources, has adopted abasic policy that seeks to make effective use of resources andreduce the volume and harmfulness of high-level radioactive
waste by pursuing a nuclear fuel cycle that reprocesses
spent fuel and effectively utilizes the plutonium and uranium
recovered (as outlined in the Fifth Strategic Energy Planapproved by the Cabinet in July 2018 and retained as abasic policy of the Sixth SEP). To this end, the Federationof Electric Power Companies of Japan (FEPC) unveiled in
December 2020 its new “Pluthermal Program” (“pluthermal”
is a portmanteau of “plutonium” and “thermal [reactor]”),the main focus of which is to expeditiously maximize theuse of MOX made from plutonium as a fuel for light water
reactors. This program responds to several needs, such as
maintaining energy security and fulfilling Japan’s principle ofnot possessing plutonium stocks that have no purpose. FEPCII. ENERGY A ND ENV IRONMENTA L POLIC Y

studied all operating reactors for inclusion in the program,and announced in December 2020 that it would implement it
for at least 12 reactors5 by fiscal 2030. In conjunction with thespent MOX fuel reprocessing demonstration research projectby 11 power companies, in June 2023 Kansai Electric Powerannounced a plan to ship 200 tons of spent fuel (including 10
tons of MOX fuel) to France in the latter half of the 2020s.

of operational changes needed to conform with the
New Regulatory Requirements. Following a review, theapplication was approved by the NRA in July 2020. However,a portion of the construction plan remains under review andconstruction work for adding the required safety features isstill underway. JNFL is seeking to complete construction as
early as possible in the first half of fiscal 2024.

b. JNFL’s Nuclear Fuel Cycle Operations• Construction of the MOX fuel fabrication plant (maximum
capacity: 130 tHM/year) started in 2010. Approvalof operational changes for complying with the New
Regulatory Requirements was received in December 2020.
The ongoing construction work is tentatively scheduled
for completion in the first half of fiscal 2024.

Japan Nuclear Fuel Ltd. (JNFL), which is owned by electric
power companies and other private-sector enterprises,
engages in five nuclear fuel cycle operations at its sites in
Rokkasho Village, Aomori Prefecture.
• Its enrichment plant began operating in 1992. In May
2017, JNFL received the NRA’s approval of its application
for permission to switch to using a new, cost-efficient
type of centrifuge offering improved performance andto introduce other operational changes in compliancewith the New Regulatory Requirements enacted after the
Fukushima Daiichi accident. JNFL voluntarily suspended
its operation of enrichment in the following September
in order to carry out construction for the upgrades being
made to its enrichment plant. Operation resumed inAugust 2023 following completion of construction of
the safety facilities mandated by the New Regulatory
Requirements.
• JNFL’s reprocessing plant (maximum capacity: 800 tU/year), the construction of which began in 1993, started
accepting spent fuel in 2000 and launched active testingin 2006. An application was filed with the NRA for approval• The Vitrified Waste Storage Center receives vitrified highlevel waste (HLW) of ten Japanese utilities from theirreprocessing contractors in the UK and France, and holds
it in interim storage for 30 to 50 years. The return of HLWgenerated through reprocessing in France (1,310 casks
in total) started in 1995 and completed in 2007. JNFL has
been receiving the HLW processed in the UK since 2010.
• The Low-Level Radioactive Waste Disposal Center has
been disposing of low-level waste (LLW) from nuclear
power plants in Japan since 1992 in underground pits.
c. Recyclable-Fuel Storage Center (interim storage of spent
fuel)Tokyo Electric Power Company Holdings (TEPCO) and theJapan Atomic Power Company are currently building afacility in Mutsu City, Aomori Prefecture, for dry-cask interim

Emergency Countermeasure
Center (on-site) (The Japan
Atomic Power Co.)

Entrance door and equipment
hatch of Tokai II Power Station
made watertight (The Japan
Atomic Power Co.)
Tokai II Power Station enteredoperation in November 28, 1978

5 In December 2009, the No. 3 reactor at Kyushu Electric Power Company’s Genkai Nuclear Power Plant became the first in Japan to commencecommercial operation using MOX fuel made from recovered plutonium. Since then, four other reactors have followed suit.

17

The Electric Power Industry in Japan 2024

storage of spent fuel until it is transported to a reprocessing
plant, which will start with 50-year storage of up to 3,000t, and its capacity will be ultimately expanded to 5,000
t. Approval of the application for operational changes
to comply with the New Regulatory Requirements was
granted in November 2020, and receiving of spent fuelis scheduled to begin in the second half of fiscal 2023 or
the first half of fiscal 2024, following the completion of
additional safety features and other construction.
d. Disposal of High-level Radioactive Waste

As for high-level radioactive waste generated from spent
fuel, the Nuclear Waste Management Organization ofJapan (NUMO) was established in 2000 by mainly electric
power companies to implement final disposal of the waste.
In October 2020, Suttsu Town and Kamoenai Village in
Hokkaido each voted to accept a literature review,6 whichis the first step in the process of host selection. NUMO
initiated literature reviews in both municipalities in thefollowing month. As of August 2023, the literature and datacollected for each municipality were being used to evaluate
and examine its fulfillment of requirements such as theabsence of significant stratum changes due to volcanic or
fault activity.
e. Development of Fast Reactors and High-temperature
Gas-cooled Reactors

The Japan Atomic Energy Agency (JAEA) constructed
the Joyo experimental fast-breeder reactor (thermal
output: 140,000 kW), and later the Monju prototype
fast-breeder reactor (electrical output: 280,000 kW).
However, in December 2016, the government decided todecommission Monju for several reasons, including poor
economic viability. In line with the strategic roadmap
for fast reactor development, which was revised by theInter-Ministerial Council for Nuclear Power in December
2022, the government decided to adopt a sodium-cooled
fast reactor for the design of a demonstration fast reactor
planned to go into operation in the 2040s. In July 2023,
Mitsubishi Heavy Industries (MHI) was selected as the leadcompany for developing the reactor’s conceptual designin fiscal 2024–2028. Meanwhile, the Joyo experimental
fast reactor was found to be compliant with the New
Regulatory Requirements in July 2023, and constructionof the new safety facilities is underway, with the aim ofresuming operation in the middle of fiscal 2026.
In July 2021, the JAEA restarted the HTTR (High Temperature
Engineering Test Reactor; thermal output: 30,000 kW) at

18

Oarai Research & Development Institute after a hiatus of ten
and a half years. The HTTR is a high-temperature gas-cooled
reactor that was built to perform demonstration tests suchas extracting high-temperature helium gas (950˚C) andusing it to produce hydrogen. The JAEA and MHI were
contracted by METI’s Agency for Natural Resources andEnergy in April 2022 to conduct a hydrogen production
demonstration project that is planned until March 2031. In
July 2023, the Agency selected MHI as the lead company
for development of a high-temperature gas-cooled
reactor. MHI will oversee the basic design, production,and construction processes for the demonstration reactor,
aiming to launch operation in the 2030s. In July 2023,
the UK’s National Nuclear Laboratory (NNL), a partner of
the JAEA, was selected to carry out the basic design for
UK’s high-temperature gas-cooled demonstration reactor
program. Supported by a £15 million grant from the British
government, the NNL plans to complete the basic designand economic viability assessment by March 2025.

(5) Decommissioning Work at Fukushima Daiichi
Nuclear Power Plant
Efforts to decommission the Fukushima Daiichi Nuclear
Power Plant’s reactors are being carried out throughan inter-ministerial council that reports to the Nuclear
Emergency Response Headquarters, which is led by thePrime Minister, so that the full support of the government
can be marshalled for the decommissioning process.
a. Decommissioning Roadmap

In December 2011, nine months after the Fukushima Daiichi
accident, Fukushima Daiichi’s reactors were declared to
be in cold shutdown and TEPCO released a roadmap fordecommissioning Units 1–4 and dealing with radioactive
contaminated water resulting from the decommissioning
process. Since then, the roadmap has been continuallyreviewed and revised as needed. Radiation levels in thesurrounding area have decreased (see Figure 2.3) andgradual progress was being made in reconstruction and thereturn of displaced residents. TEPCO is giving top priority
to safety and early reduction of risk under an approachthat seeks to simultaneously advance both reconstruction
and decommissioning work. Phase 3-1 of the roadmap(completion of fuel removal from all reactors by 2031)
began in December 2021, and the entire decommissioning
project is expected to last for 30 to 40 years (see Figure 2.4).
b. Removing Fuel from Spent Fuel Pools

After the accident, it was decided in the interests of risk

6 The literature review is followed by two more steps: an “overview survey” that includes drilling and other assays, and then a “detailed survey” thatinvolves studies in an underground facility. This three-stage process takes around 20 years to complete. At the conclusion of each stage, NUMO
takes comments from the heads of local governments, and does not proceed to the next step if doing so goes against the opinions expressed.

II. ENERGY A ND ENV IRONMENTA L POLIC Y

Comparison of Radiation Air Dose Rates in Fukushima Prefecturewith Major Cities around the World

Figure 2 . 3

Fukushima
μSv/hLondon0.11 μSv/h
0.08 μSv/h

0.05

Paris

0.04 μSv/h

BeijingTokyo

0.07 μSv/h

0.04 μSv/h

Minamiaizu
μSv/h

0.04

Koriyama
μSv/h

0.07

ShirakawaμSv/hHong Konge
μSv/h

0.06

0.15

Example of an areawith high backgroundradiation
Kerala (India)
μSv/h

0.13

0.05

0.12 μSv/h

Berlin

New York
μSv/h

Aizuwakamatsu
μSv/h

Seoul

Minamisoma
μSv/h

0.06

TEPCO
Fukushima Daiichi
Nuclear Power Plant
Iwaki

0.06 μSv/h

Singapore0.10 μSv/h

1.05

Notes
Sv (sievert): unit expressing the degree of impact radiation has on the human body.
Figures are current as of March 2020 for Tokyo, January 2018 for London, January
2019 for New York, September 2019 for Berlin, Singapore, Hong Kong, Beijing, andSeoul, and March 2020 for the various locations in Fukushima Prefecture.
•1,000 μSv (micro sievert) = 1 mSv (millisievert)•1,000 mSv (millisievert) = 1 Sv (sievert)

Radiation levels in the main cities of Fukushima
Prefecture are no different from those in Tokyo andmajor cities around the world. Compared to
immediately after the Great East Japan Earthquake
in 2011, due to decontamination efforts and theproperties of radioactive materials (theirradioactivity gradually decreases), radiation levels inFukushima Prefecture are coming down. For
example, the air dose rate in Fukushima City has
dropped to one-twentieth.
“Fukushima Prefecture Strategy for Strengthening Measures toAddress Misinformation and Forgetfulness of the Past (4th Edition)”;the figure for Kerala is based on “UNSCEAR 2008 Report”.
Source: Reconstruction Agency, “Air Radiation Dose Rates in Fukushima and Overseas”

Milestones on the Mid- to Long-Term Roadmap
Initiatives toward stabilization
Achievement of cold shutdown
Major reduction in radiation
releaseDecember 2011

Phase 1
Period from start of spent fuelassembly removal(2 years or less)Figure 2 . 4

Phase 2
Period unit start of fuel debris
retrieval(10 years or less)November 2013

December 2021

(start of spent fuel assembly
removal from Unit 4)

Phase 3
Period until completion of
decommissioning measures(30 to 40 years later)

Phase 3-1

End of 2031

30 to 40 years later

Source: TEPCO website (https://www.tepco.co.jp/en/hd/decommission/project/roadmap/index-e.html)

mitigation to remove the spent fuel then being stored in
the spent fuel storage pools at Units 1–4 and to store it in ashared pool at the site. The removal of spent fuel from thepool in Unit 4, where the most spent fuel was stored, wascompleted in December 2014, and work to remove spent
fuel from Unit 3 ended in February 2021. Currently, a platform
for aiding fuel removal at Unit 2 is being constructed, andrubble impeding fuel removal at Unit 1 is being taken away.
The entire removal process is slated for completion in 2031.

c. Retrieval of Fuel Debris

Extensive fuel debris, consisting of fuel and internal reactor
structures that melted during the accident and then cooled
and solidified, is believed to be present in Units 1, 2, and 3.
Because the debris emits extremely high levels of radiationthat preclude entry by personnel, the debris in the Unit
2 reactor will be removed using a robotic arm, with work
tentatively scheduled to start in the latter half of fiscal 2023.

19

The Electric Power Industry in Japan 2024

d. Control of Radioactive Contaminated Water

The amount of radioactive contaminated water has
increased in Units 1–3 as a result of the mixing of inflowing
groundwater with water pumped into the reactor buildings
to cool the fuel debris. In response, three strategies havebeen implemented: treatment of the contaminated water,
prevention of groundwater intrusion, and preventionof leakage of the contaminated water. The radioactive
contaminated water is being treated to a level below thedischarge standards using a Multi-nuclide Removal Facility(Advanced Liquid Processing System: ALPS) and otherequipment, and the treated water is stored on site. Since theamount of this water has continued to grow, the government
decided in April 2021 to release the water into the ocean
after diluting the concentration to below the legal limit.
In July, an agreement was reached with the International
Atomic Energy Agency (IAEA) concerning the scope of its
technical assistance for the discharge of the treated water.
In July 2023, the IAEA issued a comprehensive report basedon findings from the five inspections it conducted in Japanover two years, its six technical reports, and other sources.
The report concluded that the plan for discharging thetreated water into the sea conformed with the IAEA’s safety
standards, and that the discharge would have negligible
radioactive impact on humans and the environment.
Specifically, TEPCO’s plan is to dilute the treated water witha large volume of seawater until the tritium concentration
reaches one seventh of the WHO standards for drinking
water, and then discharge it via an undersea tunnel boredthrough the bedrock, with the outlet positioned about
one kilometer offshore from the plant. Construction of thetunnel and other components of the discharge facility wascompleted in June 2023. TEPCO received a certificate ofcompletion of the facility’s pre-service inspection from the
NRA in July, and commenced the discharging operation in
August following final approval from the government. The
IAEA plans to maintain a continuous presence at the power
plant and provide live online monitoring on its website fromthe discharge facility.

3. Renewable Energy(1) Current Status and Targets
The Sixth Strategic Energy Plan, approved by the Cabinetin October 2021, sets as its top priority the transformationof renewable energy into the main electric power source.

20

It thus calls for maximizing the adoption of renewables. To
this end, it lays out the goal of raising the established target
for renewable energy’s contribution to power generationin 2030 from 22%–24% to 36%–38% (see “1. Strategic Energy
Plan” in this chapter).
To assist the adoption of renewables, a system forpurchasing excess electricity generated by solar power
plants was launched in November 2009, and a feed-in tariff(FIT) scheme covering a wider range of power sources (seebelow for details) was introduced in July 2012. This scheme
accelerated capital investment in renewables, with installedcapacity growing by 71.5 GW between the launch of the
FIT scheme and the end of December 2022. Including preFIT capacity, total installed renewables capacity reachedapproximately 92.1 GW. Renewables accounted for 20.3% of
the 1,032.7 billion kWh of total electric power generated infiscal 2021. In April 2022, the government launched a feedin premium (FIP) scheme for large-scale commercial solar
power, among other power sources.

(2) Launch of FIT Scheme
The government passed the Act on Special Measures
Concerning Procurement of Electricity from Renewable
Energy Sources by Electricity Utilities in August 2011,
which requires the general electricity utilities to purchase
all the electricity generated from renewable energy sources(including hydropower plants with a capacity of under 30
MW). This act led to implementation of the FIT scheme forrenewable energy on July 1, 2012.
The electricity supply sources, purchase prices, and purchaseperiods covered by the FIT scheme for each fiscal year are
to be determined by METI. The purchase prices and periods
for fiscal 2022 onward are shown in Table 2.3. Under the FIT
scheme, electricity utilities are permitted to pass on theircosts for the purchase of electricity generated by renewableenergy sources to their customers in the form of a surcharge
by including them in the electricity bill. The surcharge
for fiscal 2023 is 1.40 yen per kWh (1.1124 trillion yen forJapan as a whole), or 6,720 yen per year for the standard
model household. Under this system, electricity utilities
collect the surcharge from customers based on electricity
sales volume and transfer the funds to a cost-bearing
adjustment organization (the Organization for Cross-regional
Coordination of Transmission Operators), which refunds theirpurchase costs to them in due course (see Figure 2.5).
The scheme also contains a provision that reduces theII. ENERGY A ND ENV IRONMENTA L POLIC Y

Installed Capacity of Renewable Energy (as of end December 2022)

Table 2 .2

[Unit: MW]

Combined total
by end June 2012

Combined capacity
installed under FIT

Total

Solar power (residential)

4,700

9,312

14,012

Solar power (non-residential)

900

54,55155,451Wind power

2,600

2,284

4,884

Small / medium hydropower

9,600

1,076

10,676

Biomass

2,300

4,148

6,448

500

95

595

20,60071,46592,065Type

Geothermal power
Total

Source: FIT scheme public information website: https://www.fit-portal.go.jp/PublicInfoSummary

Outline of the FIT Scheme

Figure 2 . 5Those engaged in
the power generation
business using renewableenergy sources

Sale of electricity produced fromrenewable energy sources

Solar power

Purchase of electricity at a fixedprice for a governmentguaranteed period

Wind power

Small- andmedium-scalehydro power

Electric powercompanies

Electricity customers
Electricity supply

Collection of surcharge together
with electricity charge
Submission ofcollected surcharge

Payment forpurchase cost

Green Investment
Promotion Organization(organization to collect anddistribute the surcharge)

GeothermalPower

BiomassThose who generate power
at home

Decision on tariffs and durations,
respecting the opinion of the special
committee (each fiscal year)

Qualification of facilities(Government confirms whether
the facility can generate electricity
stably and efficiently. Qualification
is cancelled if the facility no longer
satisfies those requirements.)

Decision of surcharge
unit price per kWh(each fiscal year)

Minister of Economy,
Trade and Industry
Opinion on tariffs and duration
Special committee fordetermination of tariffs anddurations

Government

Source: Green Investment Promotion Organization website

21

The Electric Power Industry in Japan 2024

Purchase Prices and Durations under the FIT Scheme

Table 2 .3

Purchase price [yen/kWh]Purchase category

Solar (household)Solar (commercial, ground-mounted)
Solar (commercial, roof-mounted)

Onshore wind power

FY2022

17

16

16

11

10

10

50 kW or above, ineligible for bids

10

10 kW–50 kW

11

10

12

12

50 kW or above

10

9.5

12

12

Less than 50 kW

16

50 kW or above

9.5

15

14

–

Bidding system

–

40
26

Geothermal(with all facilities upgraded)30

15,000 kW or above

20

Geothermal(with original underground facilities in use)Less than 15,000 kW

19

15,000 kW or above

12

Less than 200 kW

34

200 kW–1,000 kW

29
27

1,000 kW–5,000 kW

20

5,000 kW–30,000 kW

25

200 kW–1,000 kW

21

16

12

9

9
24

Less than 10,000 kW

24

24

10,000 kW or above

Biddingsystem

Bidding system–

Less than 2,000 kW

40

40

40

2,000 kW or above

32

32

32

Construction material
All capacities
waste

13

13

13

General waste/other All capacities

17

17

17

39

35

35

Biddingsystem

Bidding system–

Biogas from methane
All capacities
fermentation
Liquid fuel* Upgrades to electrical facilities and penstocks utilizing existing conduits.

20

15

1,000 kW–5,000 kW
5,000 kW–30,000 kW

Biomas15

27
16

Less than 200 kW

Unused materials

20

36

Less than 15,000 kW

General wood, etc.

10

14

13

Less than 15,000 kW

Small & medium-sized hydrousing existing conduits*

9.2[years]Bidding system

15,000 kW or above

Small & medium-sized hydroFY2024

10 kW–50 kW

Offshore wind power
Bottom-fixed offshore wind power(not covered by the Act on Promoting theUtilization of Sea Areas for theDevelopment of Marine Renewable Energy
Floating offshore wind power
Power Generation Facilities)

22

2nd half

Less than 10 kW

Replacement capacity

Geothermal

FY2023
1st half

Duration

All capacities

20

Source: Compiled from METI website
https://www.meti.go.jp/press/2022/03/20230324004/20230324004.html

II. ENERGY A ND ENV IRONMENTA L POLIC Y

Results of FIT Tenders in Fiscal 2021 & 2022
Technology

Table 2 .4

TimingEligible facilities

Successful bids

Solar power

June 2022

250 kW–1,000 kW (FIT eligible)

Total output: 24,764.7 kW (39 bids)
Successful bid prices: 9.80–10.00 yen/kWh

Solar power

June 2022

1,000 kW or above (FIP eligible)

Total output: 128,940.0 kW (5 bids)
Successful bid prices: 9.85–9.90 yen/kWh

Solar power

August 2022

250 kW–1,000 kW (FIT eligible)

Total output: 11,862.5 kW (18 bids)
Successful bid prices: 9.50–9.88 yen/kWh

Solar power

August 2022

1,000 kW or above (FIP eligible)

Total output: 14,322.9 kW (10 bids)
Successful bid prices: 9.70–9.87 yen/kWh

Solar power

November 2022

250 kW–1,000 kW (FIT eligible)

Total output: 11,301.4 kW (17 bids)
Successful bid prices: 9.50–9.75 yen/kWh

Biomass power

kW or more using general wood
November 2022 10,000
material and other biomass / Biomass

Total output: 0 kW (no bids)
Successful bid prices: 0 yen/kWh

November 2022

Onshore wind power generation facilities

Total output: 1,289,803.9 kW (30 bids)
Successful bid prices: 14.80–16.00 yen/kWh

Solar power

March 2023

1,000 kW or above (FIP eligible)

Total output: 16,204.5 kW (9 bids)
Successful bid prices: 9.48–9.63 yen/kWh

Solar power

June 2023

500 kW or above (FIP eligible)
250 kW–500 kW (FIT power sources)kWh

Total output: 105,000.0 kW (20 bids)
Successful bid prices: 9.00–9.49 yen/kWh

Biomass power facilities that generate

power facilities that use liquid biomass fuelOnshore wind power

Source: Compiled from Organization for Cross-regional Coordination of Transmission Operators website

Electricity storage technology research site at Komekurayama(Yamanashi Prefecture) (Tokyo Electric Power Company Holdings, Inc.)TEPCO, the Yamanashi Prefectural Government, and Toray Industries, Inc.,
established Yamanashi Hydrogen Company (YHC), Inc., Japan’s firstpower-to-gas (P2G) company.
YHC produces, supplies, and sells hydrogen derived from renewable powersources.
It also develops and demonstrates technologies relating to hydrogenproduction, storage, and transportation and engages in businesses to drivehydrogen energy uptake.

Hydrogen production equipment
Hydrogen production equipment installed at electricity storage technology
research site at Komekurayama

Hydrogen transport trailer
Trailers for transport of thehydrogen produced tonearby factories

23

The Electric Power Industry in Japan 2024

Results of Tenders under the Act on Promoting the Utilization of Sea Areasfor the Development of Marine Renewable Energy Power Generation Facilities
Technology

Timing

Location

Operators

Floating

Goto Floating Wind Farm LLC
Off the coast of(Members: Toda Corporation, ENEOS Corporation,
June 2021 Goto City,
Osaka Gas Co., Ltd., Kansai Electric Power Co., Inc.,
Nagasaki Prefecture
INPEX Corporation, Chubu Electric Power Co., Inc.)

Installed Successful Start ofcapacity bid price operation
16.8 MWSee note–

Offshore Wind Power Project off the Coast of
Off the coast of
Noshiro City, Mitane Town and Oga City,
Noshiro City, Mitane
Akita Prefecture
Town, and Oga City,(Members: Mitsubishi Corporation Energy Solutions Ltd.,
Akita Prefecture
Mitsubishi Corporation, C-Tech Corporation)

478.8 MW

13.26
yen/kWh

December
2028

Bottom- December southern coasts of
2021
fixed
Yurihonjo City,

Offshore Wind Power Generation Project off
the Coast of Yurihonjo City, Akita Prefecture(Members: Mitsubishi Corporation Energy Solutions Ltd.,
Mitsubishi Corporation, Venti Japan Inc., C-Tech
Corporation)

819.0 MW

11.99
yen/kWh

December
2030

Off the coast of
Choshi City,
Chiba Prefecture

Offshore Wind Power Generation Project off
the Coast of Choshi City, Chiba Prefecture(Members: Mitsubishi Corporation Energy Solutions Ltd.,
Mitsubishi Corporation, C-Tech Corporation)

390.6 MW

16.49
yen/kWh

September
2028

Off the northern/
Akita Prefecture

Note: Only one bidder participated in this auction. The bidder’s plan was subjected to a review,
and was judged to satisfy the criteria set.

surcharge for industrial customers who use extremely highvolumes of electricity and who satisfy certain conditions.
As the investment in renewable energies has increased
and FIT-approved capacity has grown since 2012, problems
have emerged and the government revised the FIT scheme
in 2016. This included the introduction of a tender scheme
for solar power generation and biomass generation above
a certain level of capacity to bring down purchase prices.
The results of FIT tenders made in fiscal 2022 and 2023 areshown in Table 2.4.

(3) Transition to the FIP Scheme
Under the FIT scheme, a number of problems emergedwith the growing adoption of renewables. For example, therising cost of purchasing renewables, which reached 4,203.3
billion yen in fiscal 2022, drove the renewable surcharge up
to 3.45 yen/kWh, while the increasing number of projects
made it difficult for the grid side to receive renewable
power. In response, the government decided to overhaul
the FIT system in order to integrate renewables into theelectricity market as an economically self-sustaining coreelement of the power generation mix, maintain incentives
for investment, and contain the cost burden on the public.
In June 2020, the government revised the Act on Special
Measures Concerning Procurement of Electricity from

24

Table 2 .5

Source: Compiled from METI website

Renewable Energy Sources by Electricity Utilities throughthe enactment of the Act on Special Measures Concerning
Promotion of Utilization of Electricity from Renewable
Energy Sources (part of the Act for Establishing Energy
Supply Resilience). Under the amended act, a feed-in
premium (FIP) scheme was rolled out in April 20227 to add
premiums to the market price of renewables expected
to evolve into competitive power sources, such as largecommercial solar power generation and wind power
generation. Similar to the FIT scheme’s setting of a fixed unit
price per kWh for the purchase of renewable power, the FIP
scheme sets a base price through bidding, and a reference
price is calculated from this. The reference price represents
the expected revenue of electricity generation utilities and isrevised monthly by subtracting the balancing cost from thesum of the wholesale power price and the non-fossil value
trading market price. The difference between the base priceand the reference price is paid to the electricity generation
utilities as a premium. On the whole, the revenues for theelectricity generation utilities are on par with those under
the FIT scheme, but the FIP scheme is expected to provide
an incentive for power generation during hours when themarket price is high, and to contain the balancing cost,among other benefits. The FIP tender results published inJune of fiscal 2022 are shown in Table 2.4.

7U
 nder the government’s plan for a phased transition from the FIT scheme to the FIP scheme, in fiscal 2023 electricity from renewables other thanoffshore wind power is no longer eligible for FIT certification (FIP certification only) when its installed capacity equals or exceeds the following
thresholds: solar, 500 kW; onshore wind, 50 kW; geothermal & small/medium hydropower, 1,000 kW; biomass (general wood, etc.), 2,000 kW; biomass(liquid fuel), 50 kW. Also, operators whose capacity from all power sources is 50 kW or higher can opt to participate in the FIP scheme.

II. ENERGY A ND ENV IRONMENTA L POLIC Y(4) Installation Targets for Offshore Wind Power, andStart of Bidding

as members of the fishing industry. Under this act, which
went into effect in April 2019, the government designates
certain offshore areas suited for wind power generation aspromotion zones and selects developers by tender to carryout projects in those areas. Developers were selected inJune and December 2021 (Table 2.5).

Because of the potential for installing large generation
capacity and reducing costs, the government sees offshore
wind power as a trump card for making renewable energy
the main source of electricity. Accordingly, it has set long-term
project creation targets as part of its policy for advancing thisform of energy: 10 GW by 2030, and 30–45 GW by 2040. The
government enacted the Act on Promoting the Utilization of
Sea Areas for the Development of Marine Renewable Energy
Power Generation Facilities to lay out, among other things,
rules for exclusive occupancy and use of sea areas and theprocess for coordinating the interests of stakeholders such

Following the December 2021 auction, the government
proposed changes to bidding rules and gatheredstakeholder feedback on the proposal. This led to theadoption of two key revisions: providing an incentive forspeeding up project launches by giving higher weight tobids with earlier start-up dates, and a new rule limiting bids

Okuhida-Onsengo Nakao Geothermal Power Station
COD: December 2022 / Owners*: Toshiba Energy Systems & Solutions
Corporation (55%), Cenergy Co., Ltd (45%)*This power station is jointly operated by Cenergy, a wholly owned
subsidiary of Chubu Electric Power Miraiz Co., Inc., and by Toshiba Energy
Systems & Solutions.

Shimonoseki Biomass Power Station (Kyuden Mirai Energy Company Inc.)
COD: February 2022 / Operators: Kyuden Mirai Energy Company Inc., Nishinippon
Plant Engineering and Construction Co., Ltd. and Kyuden Sangyo Co., Inc.
Special note: Shimonoseki Biomass Power Station at night. Biomass power
generation can generate electricity steadily for 24 hours regardless of theweather conditions.

Nikaho No. 2 Windfarm (J-POWER)
COD: 2020 / Owner: J-POWER / Capacity: 41,400 kW

Onikobe Geothermal Power Station (J-POWER)
COD: 2023 / Owner: J-POWER / Capacity: 14,900 kW

25

The Electric Power Industry in Japan 2024

to a maximum capacity of 1 GW for each bidder. Auctions
were resumed under the revised system in December
2022. The first auction covers four locations, all of which are
eligible for the FIP program.
As a step toward accelerating the formation of new offshore
wind power projects in the future, the government isdesigning a centralized model whereby it becomes involvedin project development from the early stage so that surveys
and other preliminary actions can be implemented fasterand more efficiently. As a part of this effort, a law wasamended to add the implementation of geological andother site surveys to the duties of the Japan Organization for
Metals and Energy Security (JOGMEC).

4. Global Warming Countermeasures(1) I nternational Frameworks and Japanese
Government Initiatives
a. Greenhouse Gas Emission Reduction Targets

At the 21st Conference of the Parties to the United Nations
Framework Convention on Climate Change (COP21) heldin December 2015, 195 countries and regions adopted theParis Agreement, which addresses greenhouse gas (GHG)

emission reductions from 2020 onward. The Paris Agreement
sets forth various long-term shared global targets, including
containing the average global temperature increase at 2°C
above pre-industrial revolution levels and striving to keep it
no higher than 1.5°C.
The Japanese government set in 2015 the goal of reducing
emissions in fiscal 2030 by 26.0% from fiscal 2013, andestablished in June 2019 a reduction target of 80% for fiscal
2050. Both goals were reported to the UN Secretariat.
Subsequently, amidst the rise in the international
community’s interest in addressing global warming, in
October 2020 Prime Minister Yoshihide Suga declared in apolicy speech October 2020 that “by 2050 Japan will aim
to reduce greenhouse gas emissions to net-zero, that is, torealize a carbon-neutral, decarbonized society.” The goal ofachieving carbon neutrality in 2050 was codified as a corepolicy through a revision of the Act on Promotion of Global
Warming Countermeasures that was passed in May 2021.
Speaking at the Leaders Summit on Climate hosted onlineby the USA in April 2021, Prime Minister Suga stated thatJapan “aims to reduce its greenhouse gas emissions by 46
percent in the fiscal year 2030 from its fiscal year 2013 levels,
setting an ambitious target which is aligned with the long-

Government Action on GHG Reduction Targets
Date

Table 2 .6

Trend

December 1997

Kyoto Protocol adopted at COP3. Japan’s GHG reduction target set at 6% below 1990 levels.

October 1998

Act on Promotion of Global Warming Countermeasures instituted in response to adoption of the Kyoto Protocol.

April 2005

Kyoto Protocol Target Achievement Plan outlining the measures necessary to attain Japan’s 6% GHG reduction
target approved at a meeting of the Cabinet.

July 2015

The Japanese government submits to the UNFCCC Secretariat its INDC target of reducing emissions by 26%
below fiscal 2013 levels by fiscal 2030.

December 2015

Paris Agreement adopted.

June 2019

The Long-term Strategy under the Paris Agreement approved by the Cabinet (decision to reduce emissions in
2050 by 80%).

October 2020

Prime Minister Suga declares goal to make Japan carbon neutral by 2050.

December 2020

Green Growth Strategy announced as plan for achieving carbon neutrality by 2050.

April 2021

Japan announces that its GHG emission reduction target for 2030 will be raised to 46% at US-hosted Leaders
Summit on Climate.
Source: Compiled from Agency for Natural Resources and Energy website, etc.

26II. ENERGY A ND ENV IRONMENTA L POLIC Y

term goal of achieving net-zero by 2050” and “will continue
strenuous efforts in its challenge to meet the lofty goal of
cutting its emission by 50 percent.”b. Green Transformation

Amid the growing global competition in investment
toward realizing green transformation (GX), the Japanese
government enacted the Act on Power Sources for Green
Transformation and Decarbonization and the GX Promotion
Act in May 2023 to help Japan to meet its international
commitments such as the pledge to achieve carbon
neutrality by 2050, while also strengthening its industrial
competitiveness and driving economic growth.
The GX Promotion Act requires the government toformulate and refine a strategy for advancing GX, andmandates the issuance of GX Economy Transition Bonds
worth 20 trillion yen over a ten-year period starting in fiscal
2023 in order to support initial investment toward realizingthat strategy. These funds will be used to support innovativetechnological development and capital investment thatpromise to help decarbonize energy and raw materials,
improve earnings, and achieve other benefits. The law also
calls for the adoption of pro-growth carbon pricing and thecreation of a scheme that provides incentives to companies
that make an early start in GX. Specifically, from fiscal 2028
onward, fossil fuel importers will be required to pay a fuelsurcharge commensurate with the carbon emissions of
the fuel imported. Moreover, starting in fiscal 2033, when
the total renewable energy surcharge revenue is expected
to begin declining, the government will launch a carbon
emissions trading scheme in which electricity generation
utilities will be allocated carbon emissions allowances on apaid basis. The revenue from these schemes will be applied
to the redemption of GX Economy Transition Bonds.
The Act on Power Sources for Green Transformation and
Decarbonization aims to promote maximum utilizationof renewable energy in harmony with local communities
through amendments to the Electricity Business Act and the
Act on Renewable Energy Special Measures. In particular,
it establishes a framework in which plans for developing
critical power transmission lines are subject to approval by
the Minister of Economy, Trade and Industry, and it provides
projects contributing to the use of renewable energy withearlier access to the cross-regional development subsidy
funded by renewable energy surcharges—starting fromthe construction stage, rather than operational start-up
as previously designed. The new law is also aimed at

encouraging follow-on investments for achieving maximum
utilization of existing renewable energy assets. Specifically, itseeks to promote early follow-on investments (upgrades andexpansions) in solar power generation facilities by creatinga system that applies new purchase prices to follow-on
investments separately from the portion for existing facilities,
with the premise that those investments will be in harmony
with the local community and will ensure smooth disposalof decommissioned equipment.
c. Asia Zero Emission Community

One important key to achieving carbon neutrality globallyis the decarbonization of Asia, where energy demand is
expected to rise with economic growth. In January 2022,
Prime Minister Kishida proposed the establishment of the
Asia Zero Emission Community (AZEC) as a framework for
decarbonizing all of Asia under a common ideal of achieving
economic growth while advancing decarbonization
measures tailored to Asia’s own circumstances. The Japanese
government hosted AZEC’s first ministerial meeting on
March 4, 2023, bringing together ministers from Japan,
Australia, Indonesia, Malaysia, the Philippines, and othercountries for discussion of action policies and specificinitiatives. They issued a joint statement affirming theiragreement to collaborate in efforts toward decarbonization/
carbon neutrality under a shared commitment to: (1)ensuring energy security while pursuing decarbonization,(2) achieving both carbon neutrality and economic growth,and (3) carrying out an energy transition tailored to thecircumstances of each country.

(2) GHG Emissions and Efforts by the Private Sector
a. GHG Emissions in Japan

In fiscal 2021, Japan’s GHG emissions measured 1,170 million
tons (CO2 equivalent), and emissions of CO2 accounted
for 90.9% (1,064 million tons) of this total. CO2 emissions
decreased by 19.2% versus fiscal 2013 (see Figure 2.6).
CO2 emissions in individual sectors began trending
downward in 2013, declining by 19.5%, 19.8%, and 24.8%
respectively in the industrial sector, the commercial
sector, and the residential sector between fiscal 2013 and2021. This was due largely to lower energy consumption
resulting from energy conservation in all sectors and to
improvements in the CO2 emission intensity for electricity.
The industrial and commercial sectors subsequently saw
a rise in their CO2 emissions in conjunction with theeconomy’s recovery from the downturn brought on by thecoronavirus pandemic in fiscal 2020–2021.

27

The Electric Power Industry in Japan 2024

Changes in CO2 Emissions by Sector

Figure 2 . 6[Emissions (Million tons) ]
500

503

464

<relative to fiscal 2013>(relative to preceding fiscal year)

Industrial (plants, etc.)
400373 <-19.5%>(+5.4%)

354
300

Transportation (vehicles, etc.)
237

Operations and others

208(commercial operations,services and offices, etc.)

224

Residential

131
129

100

Energy conversion (excluding statistical errors

Waste (incineration, etc.)

Industrial processes and use of products
48.6
29.9

Other emissions (agriculture, indirect CO2 emissions, etc.)

190 (+3.3%)
184<-17.6%>185 (+0.8%)
183
167

106

in the distribution of electricity and heat)

96.2
64.6
23.7
6.8
0

<-19.8%>

208

200

3.6

156 <-24.8%>(-6.3%)

82 89.5 <-15.7%>(+9.1%)

41.5 43 <-11.4%>(+3.7%)
29.8 29.9 <-0.1%>(+0.3%)
2.9 2.9<-20.2%>’90 ’91 ’92 ’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19 ’20 ’21 (-2.1%)[ FY ]

Note 1: Emissions by sector are calculated by distributing the emissions that accompany power
generation and thermal generation among the respective final consumption sectors.
Note 2: Percentages in angle brackets indicate change in emissions in each sector relative to fiscal
2013, and percentages in parentheses indicate change relative to fiscal 2005.

b. CO2 Emission and Global Warming Countermeasures
Implemented by the Electric Power Industry

Both the Act on Rationalizing Energy Use (Energy EfficiencyAct) and the Act on Sophisticated Methods of Energy
Supply Structures (Sophisticated Methods Act) require theelectric power industry to reduce its CO2 emissions. The
Energy Efficiency Act, which targets electricity generation
utilities, specifies benchmarks for thermal power generating
efficiency (for each fuel type and overall) and requires
those utilities to achieve them. The Sophisticated Methods
Act mandates that electricity retailers whose sales volume
exceeds a certain level work to increase the non-fossil shareof the electricity they supply to at least 44% in 2030. The
government has established a market for achieving thattarget through trading in non-fossil fuel certificates, as away to help the utilities reach the target level.
The Federation of Electric Power Companies of Japan(FEPC) (consisting of former general electricity utilities)
is participating in the Commitment to a Low Carbon
Society that was announced by Japan Business Federationin 2013, and has been promoting measures on both the28

Source: Ministry of the Environment, “Japan’s National Greenhouse
Gas Emissions in Fiscal Year 2020 (Final Figures)” (2022)

supply and demand sides of the electricity. In July 2015,
the 10 FEPC members, J-POWER, the Japan Atomic Power
Co., and 23 PPSs announced their own Commitment toa Low-Carbon Society in the Electricity Industry, which
commits them to achieving a CO2 emission factor in theelectricity in fiscal 2030 of approximately 0.37 kg-CO2/
kWh (equivalent to a reduction of 35% from the fiscal 2013
level). The Electric Power Council for a Low Carbon Society(ELCS) was established in February 2016 with the aim ofmoving forward with the attainment of these targets for all
electricity generation utilities as a whole. According to data
released by ELCS, CO2 emissions in fiscal 2021 (final figures)came to 326 million tons-CO2 and the CO2 emission factor
was 0.435 kg-CO2/kWh.
For some time, ELCS has worked to reduce carbon emissions
from both electric power supply and demand, including by
establishing interconnections with renewable energy grids
and improving the efficiency of thermal power plants.
With the Japanese government’s decision to raise theemissions reduction target, ELCS announced that it would
step up its efforts. In June 2022, ELCS partially revised theII. ENERGY A ND ENV IRONMENTA L POLIC Y

CO2 Emissions in the Electric Power Industry

Figure 2 . 7(CO2 emission factor [kg-CO2 /kWh]) 0.75

600 (CO2 emissions [million tons CO2 equivalent])

0.70
500

484

409

400

CO 2 emissions

317
301

275

0.476

200

0.423

0.65

430

411
0.60

0.552
332

0.417

441

0.570

373

300

100

415

469

0.487

372
0.531
0.516
0.496

345

0.55

329 326
0.50

0.463

0.45

0.444

0.441 0.435

0.40

CO2 emission factor
0.373
0.351

0.35

0.350

0

0.30

’90 ’91 ’92 ’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18

Note: Reflected adjustments made for Kyoto Mechanism credits

Commitment to a Low-Carbon Society in the Electricity
Industry to indicate its intention to contribute to theachievement of the nationwide reduction goal for 2030
(46% decrease from fiscal 2013) by striving to attain thegovernment’s ambitious emissions factor target (around0.25kg-CO2/kWh). Recognizing that the government’s
support is essential for reaching that target, ELCS has stressed
the importance of having the government establish a clear
positioning for nuclear power within its policies, and having
the government directly take part in awareness-raising efforts
for acquiring the understanding and cooperation of local
governments and other stakeholders in communities hosting
nuclear power plants. ELCS has already been promoting theuse of nuclear power under a firm commitment to ensuringsafety, and endeavoring to maximize the use of renewables
such as hydro, geothermal, solar, wind, and biomass
power. Going forward, it will also pursue low-carbon anddecarbonization approaches such as co-firing with hydrogenor ammonia as promising next-generation fuels. On the
demand side, ELCS will strive to reduce the CO2 emissionsof customers by promoting the efficient use of electricity,
including efforts to spread the use of high-efficiency’19 ’20 ’21

Source: Compiled from FEPC and ELCS

electrical equipment and to encourage customers to adopt
energy-saving and emissions-reducing practices.
The Transmission and Distribution Grid Council, comprising
the ten general electricity transmission and distribution
utilities, announced in May 2021 “Toward Carbon Neutrality
in 2050: A Roadmap to the Next-generation Electric Power
Network.” Among other policies, the roadmap states thatthe council members will contribute to the achievement ofcarbon neutrality in 2050 by realizing smooth and flexible
grid access and utilization for renewables, etc. This will
involve efforts to secure the proper balancing, inertial,
and synchronization capacity necessary for maintaining
quality, develop grid codes, and establish demand control
technologies utilizing demand response, VPP, and other
distributed energy resources (DER).
Figure 2.7 shows CO2 emission trends in the electric powerindustry.

29

The Electric Power Industry in Japan 2024

III. SUPPLY AND DEMAND
to the impact of the COVID-19 pandemic, but has shifted
upward since December 2020.

1. Electricity Demand and Peak Load

Power consumption in fiscal 2021 breaks down by use as
follows: 27% residential demand, 35% commercial demand,and 36% industrial demand (see Figure 3.2). Industry remains
the largest consumer of electricity. Since the 1990s, however,industrial demand has entered a downward trend due
to changes in industrial structure and growing energy
conservation. Over the longer term, the growth in power
consumption has thus been driven by consumption in
nonindustrial sectors, namely the residential and commercial
sectors. Growth in consumption in the commercial sector
has been propelled by growth in offices and commercial
facilities triggered by development of a service economy
and the accompanying use of air conditioners and otherappliances. In the residential sector, the rapid spread ofheating and cooling appliances, such as air conditioners andelectric carpets and other household appliances, driven byrising living standards, ensured that power consumption
continued to grow until fiscal 2005. Growth then leveled off
as the population continued to decline, appliance ownershipreached a saturation point, and appliances became moreenergy efficient. In fiscal 2011, increased awareness of theimportance of saving electricity in the aftermath of theJapan’s annual electricity demand increased more or lessconsistently up through the early 2000s, reaching a record
high of 959.7 TWh in fiscal 2007. Since then, it has either
declined moderately or remained mostly unchanged.
Meanwhile, the real GDP growth rate in fiscal 2022, a year
in which social and economic activity began returning tonormal levels following the lifting of COVID-19 pandemic
restrictions, was 1.4% versus the preceding year (forcomparison, it was -4.5% in fiscal 2020). Electricity demand8
for fiscal 2022 totaled 866.5 TWh (down 1.7% from previous
fiscal year) (see Figure 3.1). Peak national demand has also
remained largely unchanged since fiscal 2011 and theaverage of the three highest daily loads in fiscal 2022 cameto 160.5 GW (down 1.1% from previous fiscal year).
These trends are attributable to several factors, including
the slowing of economic growth, improved energy
conservation, and demographic decline. More recently,
however, growing solar power generation in the residential
sector, which is not included in these statistics, also appears
to have played a part.
Demand had been trending downward since April 2020 due

Changes in Electricity Demand, 1975 – 2022

Figure 3 . 1[ TWh ]

1,000

918
858

931
884

875

876

900
855

914

896

842

877

863

882

867

777

750
678

541

500

464
374

250

0

1975 1980 1985 1990 1995 2000 2005 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

[ FY ]
Source: Compiled from Agency for Natural Resources and Energy, “Handbook of Electric Power Industry” (2022) and “Surveys and Statistics of Electricity” (2023)

8 Total of utilities’ net system energy demand, specified service demand, and self-consumption demand.

30

III. SUPPLY AND DEMAND

Japan Earthquake, power conservation, wider adoption ofsolar power generation, and other measures have curbed
daytime grid power demand, thus shrinking the disparities
between daytime and nighttime hours (see Figure 3.4).

Fukushima Daiichi accident caused consumption to go into
decline. In fiscal 2021, non-industrial consumption accounted
for 62% of final power consumption.
In recent years, the rise in the non-industrial share of demand
widened the gap between summer/winter demand andspring/fall demand (see Figure 3.3) due to the use of electricity
for heating and cooling. Since the March 2011 Great East

Efficiency in the use of generation facilities declines withgrowing variation in demand, pushing up power supply
costs. Nevertheless, while the annual load factor (i.e.,

Breakdown of Power Consumption by Sector, 1975–2021

Figure 3 . 2

Transportation

100%

Industrial

Residential

Commercial

75%

50%

25%

0%

1975

1985

1995

2000

2005

2010

2015

Note: The method of calculation was changed from fiscal 1990.

2016

2017

2018

2019

2020

2021 [ FY ]Source: Agency for Natural Resources and Energy, “Energy Balance in Japan” (2023)

Electric Power Consumption over the Course of a Year
90

Figure 3 .3

[ TWh ]

80

FY2005FY2015
FY2022
FY1995

70
60
50
40

FY198530

FY197520

FY1965

10
0

Apr.

May

June

July

Aug.

Sep.

Note 1: Figures for fiscal 1975 and 1985 exclude Okinawa Electric Power Co.
Note 2: Figures are totals for 10 electric power companies through fiscal 2015, and for
10 areas in fiscal 2016.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Source: Compiled from FEPC, “Electricity Demand” up to fiscal 2015, and OCCTO,“Information on Electricity Supply and Demand” from fiscal 201631

The Electric Power Industry in Japan 2024

energy with low utilization efficiency. In fiscal 2020, a
year when social and economic activity were significantly
reduced by the impact of the coronavirus pandemic, it fell
below 60%. Peak load was driven upward in fiscal 2022
by extremely hot weather and other influences, but theannual peak load factor again dropped slightly below 60%
due to factors such as a mild winter and a slow recovery of
manufacturing levels (see Figure 3.5).

the ratio of annual average load to annual peak load, an
indicator of the efficiency of use of generation facilities)
followed a downward trend up to the mid-1990s, it actually
improved to 60%–70% from the mid-2000s. This was largely
due to the introduction of electricity rates designed tolevel loads and nighttime electricity use. However, theannual load factor started trending downward again fromfiscal 2016 onward, mainly due to the spread of renewable

Power Consumption over the Course of Days on Which Peak Loads Occurred
[GW]
200

Figure 3 .4

(Total for 10 electric power companies)
183

178

180

171

160

160

166
154

Power consumption

140
118

120
100

110

92
90

80

88

92

76

Aug. 29, 1985

73

65

60

July 31, 1975

50

40

32

20
0

July 24, 2001
Aug. 23, 2010
Aug. 5, 2005
Aug. 25, 1995
Aug. 20, 2020
Aug. 7, 2015
Jan. 25, 2023
Aug. 7, 1990

144

1

2

3

4

5

6

7

8

Note: Figures for fiscal 1975 exclude Okinawa Electric Power Co.

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

[Time of day]
Source: Compiled from Japan Atomic Energy Relations Organization, “Graphical Flip-chart of Nuclear & Energy
Related Topics” (2023), and OCCTO, Cross-regional Organization System, “Supply/demand-related Information”

Annual Load Factor, FY1975–FY2022

Figure 3 .5

70%

65%

60%
59.8%

55%

50%

Annual average load / peak load 3-day average
Annual average load / peak load

1975

1980

1985

1990

1995

2000

2005

2010

2015

2022

[FY]

Source: Compiled from Agency for Natural Resources and Energy, “Handbook of Electric Power Industry” for annual average load / peak load 3-day average (up to
fiscal 2015); and OCCTO, “Outlook of Electricity Supply-Demand and Cross-regional Interconnection Lines” for annual average load / peak load (from fiscal 2015)32

III. SUPPLY AND DEMAND

caused thermal’s share of power generated to hover around
80% during the past several years (see Figure 3.6). While
nuclear power’s share stood at 31.4% in fiscal 2010, theshutdown of all nuclear power plants in September 2013
caused this figure to drop to 0% in fiscal 2014 whilethermal’s share rose to 90.8%. Since the restart of Unit 1 ofKyushu Electric Power Co.’s Sendai Nuclear Power Plant in
September 2015, several other plants have gradually come2. E
 lectric Power Generated
Electric power generated9 came to 832.7 TWh in fiscal 2022
(3.6% decrease from previous fiscal year). The progressive
shutdown of nuclear power plants following the March2011 Fukushima Daiichi Nuclear Power Plant accident
increased dependence on thermal power plants andPower Generation Mix, FY1975–FY2021

Figure 3 .6

ThermalNuclear

100
90
80

13%

19%

8%

9%

10%

9%

8%

9%
8%

8%

9%

2%

1%

0%

Hydro

1.5%

1.8%

2.1%

2.5%

3.1%

3.3%

3.7%

10%

9%

10%

10%

10%

1%

10%

10%

2%

10%

3%

7%

7%

4%

8%

6%

81%

81%

83%

79%

80%

2018

2019

2020

2021

2022 [FY]

12%
6%
26%

70

33%

31%

34%

Renewables (excluding hydro)

0.3%

31%

60

90%

50

90%

91%

89%

88%

85%

79%

75%
40

60%

60%

2005

2010

60%

30

57%

56%

1995

2000

20
10
0

1975

1985

2011

2012

2013

2014

2015

2016

2017

Source: Compiled from Agency for Natural Resources and Energy, “Handbook of ElectricPower Industry 2022” and “Surveys and Statistics of Electricity 2022” (both published in 2023)

Note: Figures on electric power generated for electric utilities are generationend figures through fiscal 2015, and transmission-end figures from fiscal 2016.

Trends in Electric Power Generated by Wind and Solar Energy

Figure 3 .7

[TWh]
22

21.8

21
20
19

Wind (for business use)
Solar (for business use)
Wind (self-consumption)
Solar (self-consumption)

18
16
14
12

9.5

10

7.4

8
6
4
2
0

0.8

2000

2005

2010

2011

2012

2013

Note: Figures on electric power generated for electric utilities are generationend figures through fiscal 2015, and transmission-end figures from fiscal 2016.

2014

2015

2016

2017

2018

2019

2020

2021

2022
[FY]

Source: Compiled from Agency for Natural Resources and Energy, “Handbook of ElectricPower Industry 2022” and “Surveys and Statistics of Electricity 2022” (both published in 2023)

9 Electric power generated by electricity utilities.

33

The Electric Power Industry in Japan 2024back online. As a result, nuclear’s share of power generated
in fiscal 2022 rose to 6.4%.
On the other hand, the construction of renewable energy
installations such as wind and solar power plants has
increased. In fiscal 2022, 7.4 TWh of electric power was
generated by wind power, and 21.8 TWh by solar power (seeFigure 3.7). As an effect of the FIT scheme launched in July
2012, the use of solar power has saliently increased sincethen, and solar power installations have been growing witheach passing year, not only for business use, but also for
self-consumption.

3. Electricity Supply and Demand
Balancesummer and winter peak demand periods. Unseasonal
cold and heat waves prompted the government to issue
an electricity supply warning10 in March and an advisory
in June. The warning was made partly due to damage toelectric power facilities by an earthquake that occurred
off the coast of Fukushima Prefecture earlier in March, andthe advisory reflected the potential impact of power plantinspections and maintenance scheduled in preparation forthe high-demand months of July and August.
Along with the increased adoption of renewables, power
balancing during periods of low demand is done throughapproaches such as curtailment of thermal power plant
output and utilization of interregional interconnections,and in cases where these are not enough to prevent excess
surplus, the output of renewable power is controlled.
b. Supply and Demand Projections(1) P resent and Projected State of Supply and
Demand Balancea. Recent Developments

More than a decade since the Great East Japan Earthquake,Japan’s electricity supply and demand situation is improving.
Due to the prolonged shutdown of many nuclear power
plants, however, the country still remains dependent on
thermal power to ensure a stable supply of electricity.
Moreover, a grim outlook has been forecast for supply anddemand going forward. This is mainly because increased
trading in the wholesale electricity market and the growing
volume of electricity generated from renewable energy
have given rise to a very challenging business environment
for the power generation sector, leading to a spate ofthermal power plant closures and idlings. The authorities
have responded by instituting, ahead of the launch of thecapacity market, auctions for covering supply shortages
during periods of high demand, and by establishing asystem requiring electric power plant operators to fileadvance notice before closing or idling their plants.
Also, some other remedies have been proposed, suchas changing the timing of inspection and maintenanceof generation facilities, and ensuring supply capacity byleveraging markets, demand response, and interregional
electric power sharing. Notably, demand-side measures
include expanding the deployment of demand response
and encouraging customers to conserve electricity during
supply tightness by awarding them points for their efforts.
Electricity supply was strained in the early half of 2022
by abnormal weather events that occurred outside the34

As for the electricity supply and demand situation, it hasremained possible in recent years to maintain the minimum
3% reserve margin needed to ensure supply continuity inall areas of Japan. However, there is concern that power
reserves could fall below the 3% margin in some service areas
during the actual power supply planning or a one-in-tenyear weather event. Measures for addressing this concern
are being taken, including the implementation of kW/kWhauctions. The average rate of change in both electricity
demand and supply capacity over the 10-year period fromfiscal 2023 to fiscal 2032 will be almost 0%, and electricity
demand and supply capacity are expected to remain atcurrent levels (see Figure 3.8).
Japan experienced a severe electricity supply crunch startingin mid-December 2020 due to a chain of factors, despite aforecast in October that a sufficient reserve margin could
be secured for the winter. First, LNG-fired power plant
production had to be ramped up due to an unexpectedly
strong cold wave in mid-December, resulting in a nationwide
shrinkage in LNG inventories. This was compounded laterthat month by a supply facility problem in one of Japan’s LNG
suppliers, leading to curtailment of LNG-fired power plant
operation. Moreover, several coal-fired power plants had
technical issues that resulted in unscheduled stoppages. In
January, a second cold wave hit the country, driving power
demand to above once-in-ten-year levels on the 8th and12th. The supply crunch persisted up through late January
due to the continuation of the LNG fuel shortage andfurther unscheduled stoppages of coal-fired production.
The uncertainties surrounding Japan’s fuel procurement

10 Electricity supply advisories are issued when the area’s power supply reserve margin is between 3% and 5%. Warnings are issued when the margin
falls below 3%.

III. SUPPLY AND DEMAND

Projected Electricity Demand and Supply Capacity[GW]

Electricity demand [GW]

250

Figure 3 .8

Supply capacity [GW]Reserve margin [%]

[%]
25

200

20

150

15

100

10

50

5

0

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032 [FY]011

Source: OCCTO, “Aggregation of Electricity Supply Plans for FY2023 ” (2023)

capabilities were made murkier by the February 2022
Russian invasion of Ukraine. In response, the Japanese
government plans to launch a new scheme in December
2023 that aims to ensure a stable supply of LNG byenabling energy companies to secure surplus inventories.
From December through the following February, certain
businesses certified by METI (power/gas companies, etc.)
will be able to use a new fund established at the Japan
Organization for Metals and Energy Security (JOGMEC) by
the ministry to acquire monthly LNG procurements at levels
above normal (approx. 70,000 t). During normal conditions,they will be able to sell their surpluses to foreign markets
mainly in Asia, and during emergencies they will be able tosell to the Japanese market. This scheme will thus enable
the domestic power industry to prepare for the risk of LNG
supply shortages or stoppages. Losses incurred by thecertified traders will be offset by the fund, and profits will be
paid back into it.

and distribution utilities in order to ensure that balancing
capacity is procured in a fair and transparent manner.

(2) S ecuring Balancing Capacity

In fiscal 2021, a balancing market was established as aplatform for facilitating efficient procurement and operationof cross-regional balancing capacity. The market launchedtrading in capacity for balancing errors in renewable energy
predictions in April 2021. Trading in all other balancing
capacities is being phased in, with completion of thisprocess scheduled for 2024.

Electricity retailers have to be able to always match supply
and demand, and they secure the necessary supply capacity
to do so. It falls upon general electricity transmission anddistribution utilities to secure the supply capacity required
to be able to deliver adequate electricity to retailers tomeet supply and demand fluctuations. Since fiscal 2017,
the capacity required to balance supply and demand has
been procured by tenders conducted by these transmission

The balancing capacity procured is of two main types:
power source I and power source II. Power source I consistsof power provided by dedicated sources of balancing
capacity that are always available to transmission anddistribution utilities; and power source II consists of surplus
power from sources that can be used following gate closurefor electricity retailers. Power source I’ provides balancing
capacity when weather conditions are severe, and isprocured utilizing generated output and demand response
programs.
In fiscal 2023, 10,680 MW of power source I and 126,900
MW of power source II were procured. In addition, 3,410
MW of power source I’ was procured, of which 2,280 MW ofdemand was met by demand response.

11 This refers to the supply plans prescribed by Article 29 of the Electricity Business Act.

35

The Electric Power Industry in Japan 2024

IV. ELECTRIC POWER FACILITIES

1. Power Generation Facilities12
Total generating capacity in Japan was 318.6 GW at the endof fiscal 2022. This consisted of 47.5% thermal power (15.9%
coal, 24.8% LNG, and 6.8% oil), 10.4% nuclear power, 15.4%
hydro, and 26.0% renewables (excluding hydro). Figure 4.1
shows the breakdown of total generating capacity by powersource at the end of fiscal 2022.

(1) Power Generation Facilities for Electric
Utilities
a. Thermal PowerThe total installed capacity of thermal power plants was
151.4 GW as of the end of fiscal 2022. This accounts for
47.5% of Japan’s total generating capacity, making thermal
power the predominant source of electricity. In recent years,
the increasing deployment of variable renewable energy(solar power) has spurred greater need to leverage thebalancing capacity of thermal power to match supply withdemand. The average power generation efficiency (gross

Breakdown of Commercial Power Generation
Figure 4.1
Facilities by Power Source (FY2022)
Wind 1.7% Others 0.9%
Biomass andwaste 2.1%
Coal
15.9%

Solar
22.0%

LNG
24.8%
Hydro
15.4%
Nuclear
10.4%

Oil
6.8%

Total generating capacity 318.6 GW
Source: OCCTO, “Aggregation of Electricity Supply Plans for FY2023”

36

efficiency) of all thermal plants in Japan was maintained at aworld-class level (see Figure 4.2).
Coal-fired generating capacity came to 50.7 GW. Coalgenerates higher CO2 emissions than other fuels, but offers
superb supply stability and economy. Inefficient coal power
plants are being gradually phased out toward 2030,
meanwhile high-efficiency coal power plants are being
developed to further lessen its environmental impact. The
past 20 years have seen emissions reduced by the
introduction of ultra-supercritical (USC) coal power plants. In
fiscal 2021, the government began calling on inefficient coal
power plants to curtail power generation through thecapacity market (curtailing the average annual capacity
factor to no more than 50%, beginning in fiscal 2025). As
another step for phasing out inefficient coal power, thegovernment will establish in fiscal 2023 a new index only forcoal power in the power generation efficiency benchmark
system based on the Act on the Rational Use of Energy,
adding to the existing weighted average index for thermal
power as a whole.
LNG-fired generating capacity totaled 79.1 GW. LNG-fired
power plants produce lower SOx, NOx, and CO2 emissions
than oil- and coal-fired plants. Construction of large LNGfired power plants employing high-efficiency combinedcycle technologies is underway to further reduce emissionsof these substances. A new plant13 added to the grid in 2018
exhibits significant improvements in performance, with gas
turbine inlet temperatures of 1,600°C and power generation
efficiency of approximately 63.08%.
Oil-fired generating capacity was 21.6 GW. Oil plays ameasurable role in power supply during peak demand andbalancing.14
b. Hydro Power

Hydro power generating capacity stood at 49.2 GW at the endof fiscal 2022. Hydro power plants have been promoted inJapan to take advantage of the country’s abundant rainfall.
Conventional hydro accounted for 21.8 GW and pumped
storage for 27.4 GW. Variable speed pumped storage systems
have also been adopted for a portion of pumped storage
power generation. These systems provide a means ofaddressing fluctuations in output from variable renewable

12 The data on power generation facilities include facilities owned by electricity generation utilities and those owned by entities other than electricity
generation utilities from which electricity retailers and general electricity transmission and distribution utilities procure electricity (such as facilities
generating electricity under the FIT scheme).
13 JERA Co.’s Nishi-Nagoya Thermal Power Station Group 7-2 (operation started in March 2018)
14 No new oil-fired plants have been constructed since the IEA declared in 1979 that the use of coal would be expanded.

IV. ELEC TRIC POWER FACILITIES

Average Power Generation Efficiency of Thermal Power Plants in Japan
Compared with Other Countries

Figure 4 .2[%] 52

UK & Ireland (51.4)

50France (49.2)

48

Japan (46.5)

46

US (44.3)
South Korea (43.9)
Northern Europe (42.9)

Power generation efficiency

44
42

Germany (42.0)

40
38India (36.5)
China (36.1)
Australia (35.3)

36
34
32
30
28

'90

'92

'94

'96

'98

'00

'02

'04

'06

'08

'10

'12

'14

'16

'18

'20

[Year]

Note: 1. Power generation efficiency is generation-end weighted average of power generation efficiencies of coal, oil, and gas (low heating value basis).
2. Covers facilities of electricity generation utilities whose main business is selling electricity to third parties.
3. Figures for Japan are for the Japanese fiscal year (April–March).
Source: FEPC, “INFOBASE 2022” (2022)

Comparison of SOx and NOx Emissions per Unit of Power Generated at
Thermal Power Plants of Major Countries (2020)

Figure 4.3[g/kWh]1.6

SOx emissions

1.41

1.4

NOx emissions

1.2
1.0

0.87

0.77

0.8

0.62

0.6
0.4

0.51
0.34

0.29 0.28

0.2
0.0

0.10

US

Canada

UK

0.15

0.10

France

0.17

0.25

0.03

Germany

Italy

Japan

Source: FEPC, “INFOBASE 2022” (2022)

37

The Electric Power Industry in Japan 2024

energy as they are able to control their input power flexibly
during pump operation. Possibilities are being studied formaintaining and strengthening pumped storage power
generation as a means of ensuring balancing capacity while
decarbonizing electricity and promoting the adoption ofintermittent renewable energy.
c. Renewable Energy• SolarInstalled solar power generating capacity at the end of fiscal
2022 was 70.1 GW. The deployment of renewable energies,
mainly solar power, has been progressing in Japan. Solar
power makes up 84.9% of total FIT-certified renewable power
generating capacity. As a result, decrease in net demand15 in
the morning and increase in net demand in the evening
have become more extreme than before. This has become agrid operation issue for some regions. Since it started
becoming difficult to adjust supply and demand versus thefluctuating output of solar power using only the balancing
capacity of thermal power and pumped storage hydropower, the output of solar power was curtailed in the Kyushu
area in 2018, and as of the end of fiscal 2022 renewableenergy output was being curtailed in Tohoku, Kansai,
Chugoku, Shikoku, and Kyushu (see Figure 4.4).16 Resolution ofthis fluctuating output challenge is a critical task foradvancing the further deployment of solar power.
• WindWind power generating capacity was 5.3 GW as of the endof fiscal 2022. The installation of wind power facilities has
lagged behind that of solar power facilities, due to factors
such as the longer time needed to assess environmental
impacts and constraints on grid capacity. The majority of
installed wind power generation facilities are onshore, andonly around 190 MW of capacity is offshore. However, theFIT-certified capacity of offshore wind power has trended
upward, reaching 685 MW at the end of fiscal 2022.
• Biomass and waste
Biomass and waste generating capacity at the end of fiscal
2022 came to 6.7 GW. In Japan, this form of power
generation has centered upon municipal waste incinerationand the direct combustion of black liquor from papermaking
and wood waste from lumber production. Biomass andwaste power, low environmental load type thermal power isa renewable that, unlike variable renewable energy (solar
and wind), can stably generate power with minimal
fluctuation. This means that it can be used to reliably
generate electricity in the wake of disasters, and thus isbeing increasingly introduced as a power source that canhelp to strengthen disaster resilience, even when comparedwith other renewables.
• Storage batteries
The installed capacity of storage batteries was 0.16 GW as ofthe end of fiscal 2022. The growing adoption of intermittent
renewable energy such as wind and solar has made the needto ensure balancing capacity a pressing challenge, elevating
the importance of grid-scale storage batteries as one meansof balancing capacity. As part of the May 2022 revisions to theElectricity Business Act, grid-scale storage battery facilities
with a capacity of 10 MW or higher are now treated as power
generation facilities in the form of energy storage stations. As
a step toward the wider adoption of grid-scale storage
batteries, conditions are being considered to facilitate theconnection of energy storage stations to the grid.
d. Nuclear Power Generation

Total nuclear power generating capacity at the end of fiscal
2022 was 33.1 GW (33 units, excluding 3 under constructionand 24 scheduled for decommissioning). 12 nuclear reactors(all PWRs) have resumed operation as of October 2023 (see“Nuclear Power Generation” in Section 2, Chapter II).

(2) Future Plans
a. Transition of Power Generating Capacity and Power
Development Plans

In March 2023, OCCTO published the “Aggregation ofElectricity Supply Plans for FY2023.”17 Figure 4.5 shows thetrends in generating capacity by power source, and Table 4.1
shows the breakdown of power development plans up to
the end of fiscal 2032 (new installation, uprating/derating,and retirement plans).18
Looking forward, coal-fired generating capacity will trend
upward overall as construction of new plants will outweighongoing decommissioning. As the global trend to reduce
GHG emissions continues, however, the withdrawal of plansfor new coal-fired power plants and the shift to gas-fired
power plants are observed in Japan. Decommissioning ofoil-fired power plants will continue and their generating
capacity will shrink. Note that net gas-fired generating
capacity will increase because the number of new gas-fired
power plant construction projects exceeds the number ofdecommissionings. Renewable generating capacity will
increase driven by construction of new solar power plants
and wind farms, and hydro power generating capacity will
increase marginally.

15 Total of demand, less solar power output. Represents demand for grid power.

38

16 As of July 2023, renewable energy output had been curtailed in all areas except the Tokyo area.
17 All electricity utilities are annually required to submit to the national government (via OCCTO) a supply plan that maps out their supply of electricity anddevelopment of power sources and transmission lines over the ensuing 10 years.

IV. ELEC TRIC POWER FACILITIESA large-scale storage
battery (a redox flow
battery) (Hokkaido ElectricPower Network Co., Ltd.))
COD: April 1, 2022 / Owner:
Hokkaido Electric Power
Network Co., Ltd. /Site: Minami-Hayakita
Substation, Hokkaido ElectricPower Network /Power: 17,000 kW; Capacity:
51,000 kWh

Available storage capacity
doubled by heightening dam(Chugoku Electric Power Co.)
Site: Odomari Dam /Completion: July 1935 / Heightincrease: April 1959

Hydro turbine runner suspended for repowering (Chugoku Electric Power Co.)
Site: Takiyamagawa Power Station / COD: January 1959 / Output: 52.5 MW

Anegasaki Thermal Power Station (New Units 1, 2, 3) (JERA Co., Inc.)
COD: August 2023 (New Unit 3) / Owner: JERA
Anegasaki Thermal Power Station (New Units 1, 2, 3) is a LNG-fired power stationthat utilizes a gas turbine combined-cycle power generation system (GTCC). The
generating capacity is approximately 650 MW per unit (1,950 total) and willcontribute to stable electricity supply. As a world-leading high efficiency power
station, it mitigates environmental impact by reducing CO2 emissions.

b. Actions toward Achieving Carbon Neutrality in 2050

The Sixth Strategic Energy Plan (see “1. Strategic Energy Plan” in
Chapter II) adopted by the government in October 2021 callsfor efforts to steadily advance decarbonization through theuse of currently practical decarbonized electricity (such as
power generated from renewable or nuclear energy), and forthe pursuit of innovation in areas such as hydrogen/ammonia power generation, and thermal power generation
founded on carbon storage and reuse through CCUS andcarbon recycling.
• Hydrogen and Ammonia
Hydrogen and ammonia will be used as fuels for thermal
power generation. These fuels do not release CO2 when
combusted, and thermal power generation with them offers
balancing and inertial functionalities, thereby contributing
to stable grid operation. Moreover, many types of existingShin-Katsurazawa Power Plant (Hydropower) (J-POWER)
COD: 2022 / Owner: J-POWER / Capacity: 16,800 kW

18 Aggregated including facilities for which the date of commercial operation is “uncertain.”

39

The Electric Power Industry in Japan 2024

Power Output

Schema of Renewable Energy Output Curtailment

Figure 4 .4

Solar power is curtailed when total
power output exceeds demand
The red line indicateselectricity demand

Solar power
Thermal power output is adjusted
downward in line with increased
solar power output

Thermal power output is adjusted
upward in line with decreased
solar power output
Thermal power (LNG, coal, etc.)

Baseload Power (nuclear, hydro, etc.)

Morning

Daytime

Evening

Time

Source: Kyushu Electric Power Transmission and Distribution Co., Inc. website

equipment can continue to be used without modification or
replacement. Because of these advantages, hydrogen/ammonia firing is seen as an effective choice among the setof power generation options for achieving carbon neutrality.
Accordingly, Japan will seek to overcome various
technological obstacles so that hydrogen and ammonia
power generation can play a key role in the supply andbalancing capacities of the electric power system in 2050. In
addition to the established mixed combustion rates used inhydrogen- and ammonia-fired power generation, a wide
range of rates, including 100% firing, are to be realized.
Specifically, a goal has been set to introduce and promote
30% hydrogen co-firing with gas, 100% hydrogen firing, and
20% ammonia co-firing with coal by 2030.
Regarding hydrogen, METI formulated the “Basic Hydrogen
Strategy” in 2017 and the “Hydrogen and Fuel Cell Strategy
Roadmap” in March 2019. The Basic Hydrogen Strategy wasrevised in June 2023. Among other goals, this plan aims tocommercialize hydrogen power generation by around 2030,
and ammonia power generation in the latter half of the2020s, as part of actions for advancing decarbonization andstrengthening energy security. It also calls for efforts toestablish the technologies needed and to reduce theproduction cost of hydrogen. It also seeks to make hydrogen
power generation as cost competitive as existing LNG-fired
power generation, including with regard to environmental
value.19• CCUS and Carbon Recycling
Looking at carbon capture and storage (CCS) technologies, agovernment-led project has been carrying out large-scaledemonstration testing toward commercialization of CCS.
Testing began in 2016 with a CO2 injection rate of 100,000 t/
year, reaching a total of 300,000 t in 2019.
Regarding carbon recycling, METI formulated a “Roadmap
for Carbon Recycling Technologies” in June 2019. This statesthat CO2 emissions can be reduced by recycling CO2 inways that capture CO2 from the exhaust gas generated bypower plants and other emission sources and combine itwith “clean” hydrogen produced by surplus variable
renewable energy to synthesize fuel (such as methane).
Using fuel produced from clean hydrogen at thermal power
plants is also expected to reduce CO2 emissions fromthermal power plants.
• Long-term Decarbonized Power Supply Auction
The Agency for Natural Resources and Energy issued the
Guidelines for the Long-term Decarbonized Power Supply
Auction in July 2023. This auction seeks to encourage newinvestments in decarbonized power sources such as natural
gas-fired power plants. It will introduce bidding on newinvestments in addition to the established capacity market
auction, under a scheme that will make it easier for utilities
to visualize long-term returns on the enormous initialinvestments required, and will provide consumers with value

19 The plan aims to reduce the cost of hydrogen delivered from plants to 30 yen/Nm³ in around 2030 and to 20 yen/Nm³ thereafter.

40

IV. ELEC TRIC POWER FACILITIES

Trends in Generating Capacity by Power Source, 2022–2032 (*1)

Generating capacity [GW]

Conventional hydroPumped storage hydro

Coal

LNG

Figure 4 .5

Oil and others (*2)

Nuclear

Wind

Solar

Others

400
350

3.0%

3.1%

22.0%

22.8%

300
250

1.7%
200
150

2.8%

2.8%

27.1%

25.2%

1.9%

5.0%

3.4%

10.4%

10.3%

9.7%

6.8%

5.8%

5.2%

9.2%
4.9%

24.8%

24.8%

24.2%

22.9%

15.9%

16.1%

15.0%

14.2%

8.6%

8.5%

8.1%

7.7%

6.8%

6.8%

6.4%

6.1%

2022

2023

2027

2032

100
50
0

*1 Generating capacity is the sum of the values submitted by electricity utilities.
*2 “ Oil and others” includes the total installed capacities from oil, LPG, and other gas andbituminous mixture fired capacities.

Source: OCCTO, “Aggregation of Electricity Supply Plans for FY2023”

Power Development Plans up to FY 2032 by Stages

Table 4 .1

		Power source

Hydro

Conventional
Pumped storage

Thermal

New installation plan

Updating/derating plan

OutputSites

OutputSites

OutputRetirement plan
Sites

Output

Total

516

62

44

64

-153

28

407

516

62

44

64

-153

28

407

–

–

–

–

–

–

–

8,067

28

–

–

-6,321

29

1,746

Coal

1,800

3

–

–

-850

5

950

LNG

6,237

14

–

–

-2,075

6

4,162

Oil
NuclearRenewables[Output: MW]

30

11

–

–

-3,39618-3,366

10,180

7

152

1

–

–

10,332

8,685

403

-6

2

-826

66

7,853

Wind

3,515

90

–

–

-674

52

2,841

Solar

3,773

262

–

–

-2

2

3,771

Geothermal

75

5

–

–

-24

1

51

Biomass

1,220

41

–

–

-53

4

1,167

Waste

46

3

-6

2

-74

7

-34

Storage batteries

55

2

–

–

–

–

55

27,448

500

190

67

-7,300123

20,338Total

Note: Decimals have been rounded off, so the figures for some items may not add up to the total listed.

Source: OCCTO, “Aggregation of Electricity Supply Plans, FY2023”

41

The Electric Power Industry in Japan 2024

1200

Figure 4 .6

6,000

Second half of fiscal year

1095
5,521

First half of fiscal year
Total shipped capacity

1000

885

4,426

814

800

582

3,453
600

439

497
400

315
200

180

8 12 120 4

FY2011

70

82 45

25

117
199

60

57

379

102
78

FY2012 FY2013 FY2014

177

694

5,000

972

325
1,257
238
932
199

138

133
105

125

Total shipped capacity [MWh]Total capacity (MWh)Shipped capacity [MWh]Shipped capacity (MWh)Trend in Shipped Capacity of Stationary Lithium-Ion Battery Storage Systems

4,000

499

3,000

458

2,568

2,000

1,754
313
376

427

474

513

1,000

185

FY2015 FY2016 FY2017 FY2018

FY2019 FY2020 FY2021 FY2022

0

Source: Compiled from the Japan Electrical Manufacturers’ Association, "Self-reported Statistics on Stationary Lithium-Ion Storage Battery Systems” (FY2022).

in the form of decarbonized electricity. It is also intended toshield profits by containing medium- to long-term risks
concerning supply stability and price increases.
The auction will involve bidding20 on decarbonized powersources using a mixed-source approach. The successful
bidders will receive capacity revenues based on a fixed costlevel for 20 years in principle. The first auction will taketenders on a total of 4 million kW in capacity fromdecarbonized power sources. A cap of 1 million kW will beplaced on each of three categories: projects for upgrading
existing thermal power plants, storage battery systems, andpumped storage hydropower. Prices will also be capped at
amounts calculated using each supply area’s balancing
coefficient for 3-hour continuous operation. Advanceregistration for each category will begin around October
2023, and the auction is scheduled to be held in January2024.
• Storage Batteries
METI is also seeking to further expand the adoption ofrenewable energy21 by using storage batteries and othertechnologies to address the power output fluctuations

related to intermittent renewables.
The use of battery storage systems is rising. A cumulative
total of over 770,000 stationary lithium-ion battery storage
systems with a capacity in excess of 5.5 GWh were in use in
fiscal 2022 (see Figure 4.6). Meanwhile, METI is conducting
experimental projects using battery storage systems.
Themes selected for these projects include the adoption oflarge-scale electricity storage systems for grid stabilization
against variable renewable power and the development of
virtual power plants using customer-side energy resources(such as battery storage system and demand response). An
example of the kinds of projects underway is that being
conducted at the Buzen battery substation by Kyushu
Electric Power Co. using NAS batteries. This commenced
with the installation of NAS batteries with an output of 50
MW and capacity of 300 MWh in fiscal 2016, and it has
demonstrated the possibility of avoiding solar power
curtailment up to 300 MWh per day. Also, a demonstration
project was conducted at Hokkaido Electric Power’s Minami
Hayakita Substation up through 2019 to test the use of aredox flow battery to provide balancing capacity forrenewable energy output fluctuations.

20 The bid prices include 10% of construction costs as reserve against the risk of increased construction costs, and 5% as business compensation.

42

21 The Sixth Strategic Energy Plan sets a target of 36%–38% for renewables’ contribution to the power generation mix in 2030.

IV. ELEC TRIC POWER FACILITIES(3) Digitalization in the Power Generation Sector

Japan’s three major metropolitan areas, Tokyo, Osaka, andNagoya, are served by bulk transmission systems comprising
500 kV multiple outer ring transmission lines surrounding
demand areas with additional transmission lines for demandareas connected to the rings in a radial pattern. In the Tokyo
Metropolitan Region, TEPCO Power Grid, Inc. has constructedtransmission lines designed to handle up to 1,000 kV as athird outer ring, which is currently operating at 500 kV, inorder to accommodate the large-scale grid expansions
expected to accompany the future decentralization or
centralization of power source locations. Ultra-high voltage
underground transmission cables (500 kV, 275 kV, 220 kV,
and 187 kV) are also being installed to enhance the reliabilityof the power supply to the central districts of large cities.

The power generation sector is developing digitaltechnology-driven methods of data analysis and forecasting
to answer various challenges and needs, including reductionof the power generation costs and environmental impact offacility operation and labor-saving approaches to equipment
maintenance. For example, a former general electricity utility
teamed up with an IT firm and a power plant builder tocreate an AI-enhanced combustion adjustment model at athermal power plant. The model achieved reductions in NOx
emissions and fuel costs compared with human operation.

2. T ransmission and Distribution
Facilities

DC transmission lines are used in limited areas such as forthe interconnections between Hokkaido and Honshu (tworoutes), and between Kansai and Shikoku.

(1) Transmission Facilities
Japan’s bulk transmission systems comprise 500 kV, 275 kV,
220 kV, 187 kV, and 132 kV transmission lines. The maximum
transmission voltage is 500 kV for the 10 general electricity
transmission and distribution utilities except Hokkaido
Electric Power Co. (275 kV) and Okinawa Electric Power Co.
(132 kV). As of the end of March 2023, these transmission
lines had a circuit length of approx. 180,000 km (Table 4.2).

(2) Substation Facilities
As of the end of March 2023, Japan’s ten general electricity
transmission and distribution utilities had 7,125 substations
with a total installed capacity of approx. 875,000 MVA (Table
4.2). Almost all substations are now unmanned, with remotemonitoring and control.

Transmission and Distribution Facilities
FY

1975

1985

Table 4 .2

1995

2005

2015

2018

2019

2020

2021

2022

Circuit length of transmission lines [km]220kV or above

14,16723,48629,10735,20936,94936,98637,021

37,216

37,20537,352110kV Under 220kV

28,91335,10636,95235,96235,58835,39035,44135,45735,43135,452

Under 110kV

69,361

78,66088,64895,176106,167

106,494

106,784

107,058

107,286

107,359

Total

112,441

137,252

154,707

166,347

178,704

178,870

179,246

179,731

179,922

180,163

Transformation facility capacities
Substation output capacity (MVA)

234,748447,866

657,536

778,740

833,112846,638

850,313868,556

872,552

874,504

Total Number of substations

3,466

5,152

5,814

6,570

6,718

6,783

6,786

7,137

7,125

7,125

Circuit length of distribution lines [km]Overhead
UndergroundTotal

2,623,787 3,179,970 3,661,963 3,918,743 4,005,974 4,031,278 4,038,426 4,046,028 4,052,015 4,058,023
14,35825,34850,371

65,28770,73372,73573,42073,99574,49475,091

2,638,145 3,205,318 3,712,334 3,984,030 4,076,707 4,104,013 4,111,846 4,120,023 4,126,509 4,133,114
Source: FEPC, “Electricity Statistics Information”

43The Electric Power Industry in Japan 2024

Distribution lines are classified into extra-high voltage lines(33/22 kV), high voltage lines (6kV), and low voltage lines(200/100 V), and the standard for high voltage distribution
systems is the 6 kV multi-divided, multi-connected system. In

densely populated areas, electricity is supplied via extra-highvoltage lines to prevent equipment congestion and improve
supply reliability, and spot network systems are used to meetthe needs of customers who require particularly reliablesupplies. Normally, electricity is supplied to low voltage
customers through 100/200 V single-phase three-wire or 200 V
three-phase three-wire systems. Low voltage distribution lines
are thus generally installed in three-phase four-wire opendelta connection distribution systems used to supply both
single-phase and three-phase power. As of the end of March
2023, the total length of distribution lines in Japan was approx.
4,133,000 km. Of this, approx. 75,000 km (approximately 1.8%)
consisted of underground lines (Table 4.2).

Removing snow from power distribution lines(Hokkaido Electric Power Network)

Power transmission line maintenance (Tohoku Electric Power Network)
Maintenance of transmission and distribution equipment for stable power supply

Assist Arms (Hokuriku Electric Power T&D)
Hokuriku Electric Power T&D utilizes “Assist Arm” robots jointly developed with
universities and manufacturers to aid power distribution workers. In the near
future, these will reduce labor requirements and improve efficiency byautomating some work.

The 500,000-V Hyuga Trunk Line (Kyushu Electric Power Transmission andDistribution)
Construction: June 2022 / Operators: Kyushu Electric Power Transmission andDistribution Co., Inc.
Special note: The 500,000-V Hyuga trunk line was constructed to build the
500,000-V loop system in the area between northern and southern Kyushu.
The facility aims to prevent widespread power outages during planned updates
to aging 500,000-V infrastructure.

It is difficult to find additional sites for substations in urban
areas because of the heavy concentration of commercial
establishments and residences. To address this challenge,
general electricity transmission and distribution utilities are
reducing their footprints with the use of gas insulated
switchgear (GIS) and are installing substations beneath officebuildings, schools, and other existing structures.

(3) Distribution Facilities

44IV. ELEC TRIC POWER FACILITIESSAIFI and SAIDI Trends[events]
7●

Figure 4 .7

SAIFI and SAIDI (Total for 10 electric power companies)[min.]
700

701 min.
[Affected by Great East Japan Earthquake]
6600

514 min.

Duration (right scale)4.85 events

5500

Frequency (left scale)
4400[Affected by earthquake
and typhoons]
3300[Affected by Typhoon Mireille (No.19)][Affected by typhoons, etc.]

187 min.
2

169 min.

128 min.

1.36 events

0.90 events
0.51 events
33 min.
0.35 events

1966

1970

1975

1980

1985

1990

Note: 9 electric power companies up to FY1988

Efforts to improve supply reliability and operating efficiency
in the distribution sector include the widespread use of
distribution automation systems for remote supervision andautomatic control of distribution equipment. In response to
the recent growth of distributed energy sources, switcheswith sensors and static automatic voltage regulators (such as
STATCOMs) are increasingly being installed in distribution
networks in order to maintain supply reliability and power
quality.
Smart meters for customers have also been installed in order to(1) facilitate meter reading by general electricity transmission
and distribution utilities, (2) track individual customers’
electricity usage so as to facilitate power-saving measures, and(3) provide a means of limiting power consumption when the
supply and demand balance is tight. All extra-high voltage andhigh voltage customers and 91.1% of low voltage customers(including households) had been provided with smart meters200

79 min.

88 min.

1

0

225 min.

14 min.
10 min.
0.20 events
0.18 events

1995

2000

0.94 events
0.22 events
14 min.
0.33 events

20 min.
0.16
events0.13 events

2005

0.31
events

2010

2015

100

10 min.
0.13
events
0

2021
(FY)

Source: FEPC, “INFOBASE 2022” (2022)

as of the end of March 2022. All customers should have smart
meters by the end of March 2025.

(4) Supply Reliability (SAIDI, SAIFI)Supply reliability is being kept high compared tointernational standards by conducting patrols to prevent
outages in advance as well as by developing high voltage
distribution network facilities as outlined above. Since the1990s, a high level of supply reliability has been maintained
except for major disasters such as the Great East Japan
Earthquake (see Figure 4.7).
In fiscal 2021, the System Average Interruption Frequency
Index (SAIFI) was 0.13 interruptions and the System Average
Interruption Duration Index (SAIDI) was 10 minutes. The
national averages were lower than in fiscal 2020 despite
severe damage inflicted by Typhoon Chan-hom (No. 14) inmainly Kyushu, Chugoku, and Shikoku in September 2021 (in45The Electric Power Industry in Japan 2024

Kyushu, approx. 350,000 households were without power at
the peak, and service was completely restored 3 days after thepeak).

(5) E fforts to Improve Resilience and Increase
Use of Renewables in Power Transmission
and Distribution Sector
It has become imperative to secure an electrical power
supply system that is tailored to the expanded use ofrenewables and is capable of swift recovery from typhoons,
torrential rains, and other natural disasters that have become
more frequent in recent years. To address this need, the Act
for Establishing Energy Supply Resilience was enacted inJune 2020 to partially revise the Electricity Business Act andother legislation with the aim of securing a resilient andsustainable power supply system through measures
supporting rapid disaster recovery, facilitated investment intransmission/distribution grids, increased implementation ofrenewables, and other enhancements.
The provisions of the act that pertain to the electricity
business can be largely divided into the following threeareas of action.
a.Enhancing inter-business collaboration in disaster
responses•R equire general electricity transmission and distribution
utilities to formulate action plans for collaboration during
disasters, and to update local governments and otherauthorities on the status of power supply service during
disaster recovery.
•C reate a mutual assistance system in which generalelectricity transmission and distribution utilities
accumulate in advance the costs related to temporary
recovery, etc. and general electricity transmission anddistribution utilities that incur damage from a disastercan receive the costs.
b. Enhancement of transmission/distribution grid resilience•A dd to OCCTO’s functions the duty to formulate forwardlooking plans for development of cross-regional
networks (a “push” approach to development).
•R equire general electricity transmission and distribution
utilities to carry out planned upgrades of existing
facilities.22• E stablish a wheeling rate system that would encourage
electricity transmission and distribution utilities topursue cost efficiencies that would keep them below therevenue caps based on their investment plans and46

approved by the Minister of the Economy, Trade andIndustry.
c. Establishment of disaster-resilient distributed power
supply systems• Place in law a distribution business that is able to operateregional distribution networks that include distributed
power supply systems during normal times and operate
their network independently during emergencies; also
approve independent operation of distribution networks
in cases where it would improve the stability/efficiencyof electric power supply to mountainous and otherremote regions.
• Introduce an electricity distribution licensing system tohelp newcomers enter the electricity distribution market
by enabling them to lease or take over the distribution
networks formerly operated by general electricity
transmission and distribution utilities.
The provisions for (a) and (b) were phased into effect startingin July 2020, while those for (c) went into effect in April 2022.

(6) Digitalization in the Transmission andDistribution Sector
To address challenges such as aging facilities and reduced
maintenance staffing, digital technologies are being used in
the power transmission and distribution sector to streamline
maintenance and inspections. For example, generaltransmission and distribution utilities are seeking to shrink
manpower needs and improve maintenance techniquesthrough the development and deployment of solutions
such as an “Autonomous Flight System for Transmission Line
Inspection Drones” that enables drones to autonomously
follow and photograph transmission lines, and systems thatuse imaging analysis and AI tools to automatically detect
failures from photographs of facilities.
In addition, utilities are considering other possibilities for
expanding the adoption of renewables, including the use of
dynamic line rating to achieve flexible operation oftransmission capacity through accurate calculation oftransmission wire temperature based on weather conditions.

22 In December 2021, OCCTO issued a set of guidelines on the upgrading of aging facilities that included standard methods for processes such as facility
risk assessments. The guidelines present a unified approach to the concepts and methods of facility upgrades with the aim of helping generalelectricity transmission and distribution utilities to appropriately and rationally carry out their improvements, and thus ensure resilience while
containing the cost burden on the public.

IV. ELEC TRIC POWER FACILITIES

3. Cross-Regional Operation andInterregional Interconnections(1) Cross-Regional Operation
The Japanese power grid is divided into two frequency
systems: a 50 Hz system in eastern Japan and a 60 Hz systemin western Japan23. The neighboring grids of nine of thegeneral electricity transmission and distribution utilities’service areas are connected to one another (Okinawa area isthe exception). Japan has no international interconnections.
The former general electricity utilities have worked witheach other interregionally in order to improve economic
efficiency and ensure a stable power supply by developing
optimal power sources, conducting capital investment, andexchanging power so as to benefit from differences in theirregional characteristics and demand structures. Today,
OCCTO nationally monitors conditions such as the supply/
demand situation and grid operational status, and instructs
the utilities to interregionally exchange electricity when the
supply/demand situation deteriorates. It is also reviewing
the ways that the interconnections are used.
Traditionally, electricity generation utilities have been allowed
to use these interconnections on a first-come, first-served
basis. However, this model was abandoned in October 2018,
and an implicit-auction approach was introduced underwhich, in principle, use of the interconnections will beassigned based on contracts concluded in the spot market
for next-day delivery. The introduction of these new rules
should expand the use of the interconnections by newmarket participants and put in place a fair and competitiveenvironment. At the same time, by implementing power
generation based on cross-regional merit orders, it is hopedthat increases in electricity rates can be held to a minimum
and additional business opportunities created for operators.
Prior to the legal separation of electricity generation andtransmission into different sectors, the principle was forelectricity utilities to independently operate their own grids,
and they essentially balanced supply and demand
fluctuations in their grids with their own electricity.
Following the separation, it also had been the rule forgeneral electricity transmission and distribution utilities toadjust the supply and demand fluctuations in their service
areas, with load fluctuations in their grids balanced using
electricity acquired from their service areas, in principle.
Subsequently, the general electricity transmission anddistribution utilities (excluding Okinawa Electric Power
Company) established a balancing market in April 2021 to
improve the efficiency of supply and demand management.
As a result, the utilities can use this market to procurebalancing capacity from sources across the country, rather
than just from their own supply areas.

(2) Interregional Interconnections
As of 2023, the interregional interconnections in operation
are mainly AC transmission lines. In the eastern region (50Hz), Tokyo area and Tohoku area are linked by 500 kV ACtransmission lines, while Tohoku area and Hokkaido area arelinked by DC submarine cables that span the approximately
20 km strait between Honshu and Hokkaido. Tohoku areaand Hokkaido area are connected via two ±250 kV links (600
MW, 300 MW). In the western region (60 Hz), Chubu area,
Hokuriku area, Kansai area, Chugoku area, Shikoku area andKyushu area are linked by 500 kV AC transmission lines.
Okinawa is not connected with other regions of Japan.
DC lines are used by Chubu area and Hokuriku area, which
are connected by back-to-back DC linkage facilities (300MW), and by Kansai area and Shikoku area, which are linked
by ±500 kV DC submarine cables (currently operated at±250 kV) that span the Kii Channel.
The 50 Hz and 60 Hz systems are linked by fourinterconnections (totaling 2,100 MW) between the Tokyo
area and Chubu area networks: Sakuma Frequency
Converter (300 MW), Shin-Shinano Frequency Converter(600 MW), Higashi-Shimizu Frequency Converter (300 MW),and a new addition, Hida-Shinano Frequency Converter (900MW), which began operating in March 2021 (see Figure 4.8).
Along with the increasing large-scale adoption of distributed
energy sources in recent years, OCCTO has been studying andformulating plans to enhance these interconnections, taking
into account points raised by itself and the general electricity
transmission and distribution utilities and requests from thegovernment. In line with a plan developed by OCCTO, theSakuma and Higashi-Shimizu frequency converters’ capacity
will be expanded by a total of 900 MW by the end of fiscal
2027 (from 2.1 GW to 3.0 GW in total). OCCTO also establishedplans for increasing the capacity of the Tokyo-Tohoku
interconnection by 4.8 GW by fiscal 2027 and for expanding
the Hokkaido-Honshu interconnection’s capacity by 300 MW,
and construction for both projects is currently underway.
FIT surcharge revenues will be used to cover the portions of

23 T he frequency difference is said to date back to 1896, when 50 Hz German-made power generation equipment was introduced in eastern Japanand 60 Hz U.S.-made equipment in western Japan.

47

The Electric Power Industry in Japan 2024

National Grid Connections

Figure 4 .8

Hokkaido area

• The figures for each area are the forecasted transmission-end peak load 3-day averages for fiscal 2023.
• The figures for each interconnection are the average daily operating capacities (annual plan) of August 2023.

4,160 MW

Frequency converter→

Connection between
Hokkaido and Honshu
900 MW [300MW]
900 MW [300MW]→

AC/DC converter

Hokuriku-Kansai
interconnection

Kansai-Chugoku
interconnection→1,500 MW→ 4,650 MW→

210 MW→→ 2,410 MW

2,780 MW

1,900 MW

Connection between
Chubu and Hokuriku→

Chugoku area
Kansai area

Chugoku-Shikoku
interconnection

Hida Shinano F.C.

Chubu area
24,550 MW

Connection between
Kansai and Shikoku→ 1,400 MW→ 2,500 MW

1,160 MW

Shin Shinano F.C.

Tokyo area

5,500 MW → 10,280 MW(to be completed in FY2027)

54,990 MW

Sakuma F.C.
Higashi Shimizu F.C.

Connection between Tokyo and Chubu→ 2,100 MW→→
Figures in brackets indicate minimum operating
capacity during work involving a deactivation ofelectric power system facilities.

0 MW

Chubu-Kansai
interconnection→

4,970 MW

1,610 MW

Hida Shinano F.C.

27,410 MW

Shikoku area
Okinawa area

2,360 MW[5,760 MW]→

10,430 MW→

15,370 MW

Tohoku-Tokyo interconnection

300 MW
300 MW→

Kyushu area

13,380 MW

4,950 MW

900 MW → 1,200 MW(to be completed in FY2027)→

Chugoku-Kyushu
interconnection

Tohoku area

Hokuriku area

2,100 MW2,100 MW → 3,000 MW(to be completed in FY2027)

Source: Compiled by the authors from Agency for Natural Resources and Energy, “Developing Next-generation ElectricPower Networks” (2023), and OCCTO, “Grid Operating Capacity in FY2023–FY2032 (Annual & Long-term)” (2023)

the interconnection capacity expansion construction costs
that are expected to contribute to the public benefit bylowering electricity prices and CO2 emissions through the
adoption of renewable energy. The remainder will be coveredby all general electricity transmission and distribution utilities
and through OCCTO subsidies.

(3) Long-term Policy for Cross-regional
Interconnections
OCCTO formulates and periodically reviews24 a long-term
policy that sets a course for developing and upgrading
Japan’s cross-regional interconnection systems on anationwide scale. In March 2023, it issued a new long-term
policy as a master plan based on re-examination of theconcrete long-term vision for cross-regional interconnections
that support the achievement of carbon neutrality in 2050,
and of the measures for realizing that vision.
(1) Long-term Vision for Cross-regional Network
Development

The master plan seeks to shift from the established “pull”

approach, where planning is done in response to requests
from the power sources as they are made, to a “push”
approach in which systematic development is carried out ina manner that takes into account the potential of eachpower source. In formulating the long-term vision fordevelopment of cross-regional interconnections, OCCTO
studied measures for strengthening the nationwide grid,
carrying out cost-benefit analysis25 that considered factors
such as the amount of time needed to implement grid
improvements and the prospects for future adoption of
power sources (see Figure 4.9). The analysis showed that acommitment to making grid improvements that could
realize the transition to renewables as the main energy
source for power generation while increasing the electric
power network’s resilience would entail an investment ofaround seven trillion yen, but benefits exceeding this outlay
could be expected.26(2) Measures for Realizing the Long-term Vision

In order to carry out the grid development projects in linewith the long-term vision, a mechanism for grid use

24 The reviews are conducted in roughly five-year intervals. The preceding review was carried out in March 2017.

48

25 The analysis compared the cost of strengthening grid points prone to congestion versus the expected benefits of those improvements.
26 The analysis also found that the outlay could outweigh the benefits depending on the scale of the improvements and fuel prices.

Connection• OCCTO plan
J-POWER Tr

IV. ELEC TRIC POWER FACILITIES

Grid Improvements under the Long-term Vision for Cross-regional Network Development
Construction of Hokkaido-Tohoku-Tokyo routes

Figure 4 .9

Hokkaido area improvement
approx. 1.1 trillion yen

Total of (1), (2), (3):approx. 2.5–3.4 trillion yen(1) Construction of
Hokkaido-Tohoku-Tokyo route(Sea of Japan route: 4 GW)(2) Construction of
Hokkaido-Tohoku route

Chugoku area improvement
approx. 100 billion yen(Kansai-Chugoku operational capacity expansion
4.21 5.56 GW)

Kyushu-Chugoku route improvement
approx. 420 billion yen(Pacific route: 2 GW)

Central region improvement
approx. 52 billion yen

Tohoku area improvementt
approx. 650 billion yen(construction of No. 2
Chubu-Kansai interconnection line)(formation of central region converter loop)(3) Construction of
Tohoku-Tokyo route(2.8 GW expansion,
including DC grid as option)(Pacific route: 4 GW)

Kyushu area improvement
approx. 10 billion yen

Tohoku-Tokyo
interconnection improvement
approx. 200 billion yen* Approx. 20 billion yen
if Shikoku route used

Tokyo area improvement
approx. 670 billion yen
Chubu area improvement
approx. 3 billion yen

F.C. improvement
approx. 400–430 billion yen(+2.7 GW)

Construction of Kyushu-Shikoku route
approx. 480–540 billion yen(including expansion of Kansai-Shikoku
interconnection facilities)

Shikoku area improvement
approx. 160 billion yen

premised on congestion needs to be firmly established. To
that end, the following three actions that make effective useof existing infrastructure are being implemented as a “Japanstyle connect and manage” approach.27(i) Rationalization of estimated power flow
This is an approach for calculating the available capacity oftransmission lines based on estimates that closely resemble
actual use, rather than on full-capacity operation of all powersources. This method has been in full use since April 2018.
(ii) N-1 inter-trip scheme
This scheme, which is applicable to new power sources
connecting to grids, is a method of instantly limiting theirpower output to secure stable transmission capacity in theevent of N-1 failure.28 Rollout began in October 2018 withapplication to power sources connecting to extra-high or
higher voltage grids. In July 2022, the scheme started to be
applied to all power sources, including existing ones, toprovide a mechanism for expanding operational capacity.

Source: Excerpted from OCCTO, “Long-term Vision of Cross-regional Network
Development” (2023)(iii) Non-firm accessThis is a method of allowing fresh access on condition that
output is limited while other power sources are in
operation.29 It has started to be phased in, beginning inJanuary 2021 with power sources connected to the bulk
power system, transmission systems other than this systemand distribution systems without available capacity, andfollowed in April 2022 by power sources with bulk powersystem-class receiving voltage. Since April 2023, non-firmaccess has been applied to new grid-connected powersources regardless of voltage class or capacity availability but
excluding low voltages below 10 kW.
OCCTO’s selection of power source mixes and locations forthe long-term vision was based on certain assumptions
informed by the government’s policy discussions. For thisreason, further investigation is needed to determine theoptimal scale and timing for implementation of eachparticular improvement project, taking into account factors
such as trends in power source development.

27 T his is an approach for answering the interconnection needs of new power sources, while improving the efficiency of transmission anddistribution facilities through maximum utilization of existing facilities. It tailors the “connect and manage” model used in the UK and elsewhere to
Japan’s circumstances.
28 A single fault affecting one transmission or distribution line, one transformer, one generator, or one other item of electrical equipment.
29 Since this approach does not require expansion of the bulk power system, it enables power sources to access transmission and distribution lines
without having to construct additional facilities.

49

The Electric Power Industry in Japan 2024

V. RETAIL BUSINESS AND TRADING MARKETS

1. Electricity Rates(1) Regulated Electricity Rates
Up until full liberalization of the retail electricity market in
April 2016, general electricity utilities supplied electricity tocustomers covered by rate regulations with the approval of
the Minister of Economy, Trade and Industry at rates basedon standard electricity use and at rates assuming use ofelectricity in a manner that contributed to load leveling, etc.
The standard rates for households have remained regulated
since full liberalization in order to protect customers. As of
April 2023, 46.60 million low voltage customers (68% of thetotal) paid regulated rates.
Regulated rates were originally to be discontinued at

the end of March 2020. However, as competition had
not developed sufficiently, METI decided in July 2019to maintain regulated rates from April 2020 onwards.
Discontinuation of regulated rates will continue to beconsidered, while paying close attention to developments at
Tokyo Electric Power Company Holdings and Kansai ElectricPower Co., which have comparatively more residential
switchers.
a. Two-Component Rates

The electricity rates charged when former generalelectricity utilities supply electricity to customers that
selected regulated rates consist of two components: a basic
rate that is determined according to the type of service
agreement, and a consumption-based rate that is calculated
based on the amount of electricity used (Table 5.1). The

Arrangements to Bridge the Transition to Competitive Rates

Customers with demand under 50 kW

Customers with demand of
50 kW or greater

From April 2005
Customers supplied at
deregulated rates set by
PPSs and utilities otherthan general electricity
utilities
Customers supplied at
deregulated rates set bygeneral electricity
utilities

Customers
supplied underprovisions forlast-resort
service bygeneralelectricity
utilities

Customers supplied atcompetitive rates set by
PPSs and former generalelectricity utilities

Customers supplied atcompetitive rates set byformer generalelectricity utilities

Measures aspart of generalelectricity
utilities’ supply
obligations

Customers supplied atcompetitive rates set byformer generalelectricity utilities
Customers supplied under
the provisions oftransitional measures(regulated rates) by former
general electricity utilities

Last-resort service

Post completion of transitional measures(full deregulation of retail rates)

Customers
supplied underprovisions forlast-resort
service under
the new system

Customers supplied atcompetitive rates set by
PPSs and former generalelectricity utilities

Customers supplied underoptional supply provisions bygeneral electricity utilities

Customers supplied
under supply provisions
by general electricity
utilities

From April 2016

Figure 5 .1

Customers supplied at
deregulated rates
Measures as partof the supply
obligations
imposed onformer generalelectricity utilities
as a transitional
measureLast-resort service

Customers
supplied underprovisions forlast-resort
service under
new system

Last-resort service
Source: Agency for Natural Resources and Energy website

50

V. RE TA IL BUSINESS A ND TR A DING M A RK E T S

Two-Component Rates Structure

Table 5 .1

Electricity rate = basic rate + unit electricity rate × electricity consumption ± fuel cost adjustment
× electricity consumption + surcharges to encourage renewable energy generation
× electricity consumption
Source: FEPC website

months in order to level rate fluctuations, and fuel pricethree-month averages are reflected in the electricity rates
charged each month (see Figure 5.2). Also, as a measure
for reducing the impact of large fuel price increases oncustomers, a cap is set on upward adjustments of theautomatically adjusted rate (standard fuel price + 50%).

consumption-based component of the regulated rates paidby households is further divided into three tiers in order
to, among other things, encourage energy conservation,
which has been promoted since the first OPEC oil embargo.
A relatively lower unit rate is charged for the first tier, which
covers consumption up to the 120 kWh that is considerednecessary for daily life. The unit rate for the second tierreflects the average supply cost, and a slightly higher unit
rate is charged for the third tier. There is also a regulated ratethat applies mainly to small factories.

c. Feed-in Tariff Scheme for Renewable Energy

A system of purchasing surplus electric power generated
by solar power systems was introduced in 2009. In 2012,
the scope of sources covered was expanded and former
general electricity utilities were required to purchaseelectricity generated using renewable resources (solar,
wind, hydroelectric, geothermal, and biomass) at a fixedprice for a certain period (under the current system,
general electricity transmission and distribution utilities
do the purchasing). In April 2022, a “feed-in premium”
system that pays a premium (the difference of the market
power price and a standard price) was launched for largescale commercial solar or wind power sources, which are
expected to evolve into competitive power sources in the
future. The cost of purchase is recovered via a surcharge

b. Fuel-Cost Adjustment Scheme

A fuel-cost adjustment scheme was introduced in January
1996 in order to externalize the effects of fuel prices andexchange rates, which are beyond the control of generalelectricity utilities in their efforts to enhance efficiency, andthus reflect the changes in rates as expediently as possible
and to stabilize the general electricity utilities’ management
environment.
At present, the period (time gap) before fuel pricefluctuations are reflected in electricity prices is set to two

Fuel-Cost Adjustment Timing (Example: June, July, August)
Jan.

Feb.

Mar.

Apr.

May

2 months later

Period for calculation of
average fuel cost

Period for calculation of
average fuel cost

Period for calculation of
average fuel cost

Figure 5 .2

June

July

Aug.

Sep.

Application of fuel costadjustment unit price

2 months later

Application of fuel costadjustment unit price

2 months later

Application of fuel costadjustment unit priceSource: Compiled from FEPC materials

51

The Electric Power Industry in Japan 2024

again risen due to the increased cost of generating powerat thermal power plants resulting from the shutdown ofnuclear power plants and escalating fuel prices. Electricity
rates fell from 2015 due to lower fuel costs, but began risingagain in 2017, and then started declining again in fiscal
2019 (see Figure 5.3). The rates climbed in fiscal 2021 due toskyrocketing fuel prices.

calculated in proportion to the volume of use by customers
that constitutes one component of electricity rates (see“Renewable Energy” in Section 3, Chapter II).

(2) Unregulated Rates
Liberalization of retail supply to extra-high voltage customers
commenced in April 2000. Coverage was progressively
expanded, and full liberalization of the retail market
commenced in April 2016. Large customers’ contracts are
determined through negotiation with electricity retailers
based mainly on their planned and actual electricity usage.
In addition to being able to simply carry on paying regulated
rates for service provided by former general electricity utilities,
households, and other low voltage customers can also choose
from among the unregulated rate plans offered by former
general electricity utilities and PPSs (newly entered electricity
retailers). Former general electricity utilities and PPSs provide a
range of new rate options tailored to customer lifestyles basedon their own sales strategies (see “Efforts to Acquire Customers”
in Section 2, Chapter V).

(4) Wheeling Charges
Even in a deregulated environment, it is general electricity
transmission and distribution utilities that build, operate,
and maintain transmission and distribution networks toensure stable supply. When former general electricity utilities
and PPSs retail electricity, they must use the network of thegeneral electricity transmission and distribution utilities
that own the supply facilities in the service area concerned.
Wheeling charges are the fees imposed by transmission
and distribution utilities on the users of their network. Up
through fiscal 2022, the wheeling charges were deliberated
by a review meeting of specialists on electricity pricing
under the auspices of the Electricity and Gas Market
Surveillance Commission, taking into account both theappropriate recovery of requisite costs and fairness for
network users, and were then opened to public comment
prior to final adoption. However, a revision that went into
effect from fiscal 2023 instituted a new system that places
caps on the revenues of the transmission and distribution(3) Trends in Unit Electricity Rates
Electricity rates in Japan climbed sharply in the 1970s andearly 1980s due to the oil crises, but subsequently entered along-term decline, owing in part to operational streamlining
efforts by the former general electricity utilities. Since theGreat East Japan Earthquake in 2011, however, rates have[yen/kWh]

Trends in Electricity Rates

Figure 5 .3

30

Residential

25

Average for residential
and commercial/industrial

20

Commercial/industrial

15

10

5

0

1970

1975

1980

1985

1990

Note: Figures are totals for general electricity utilities through fiscal 2015,
and for electricity utilities from fiscal 2016.

52

1995

2000

2005

2010

2016

2021 [FY]

Source: Agency for Natural Resources and Energy, “FY2021 Annual Report on Energy” (2022)

V. RE TA IL BUSINESS A ND TR A DING M A RK E T S

utilities for each period, based on considerations suchas each utility’s investment plans. The cap is designed toencourage the utilities to make efforts to improve theircost efficiencies within the framework. By enabling generalelectricity transmission and distribution utilities to achieve
greater cost efficiency while also securing the investments
they need, the new system seeks to advance the adoptionof renewables as the main power source and to strengthen
resilience.
Since April 2016, general electricity transmission anddistribution utilities have been required to provide electricity
via a universal service for customers on isolated islands,
applying the same rate levels as on the mainland in orderto protect customers. The electric power supplied on thoseislands is mainly generated by thermal power plants, andthe cost of provision of universal service for the islands(including the portion of the price that varies according
to thermal fuel costs) is passed on to all customers in theindividual service areas of general electricity transmission
and distribution utilities in question via wheeling charges
under what is known as the “universal island service priceadjustment system.”(5) Fee on the Power Generation Side
Under the current system, the expenses associated withpower transmission and distribution equipment are, as a rule,borne by electricity retailers as part of the wheeling charges.
However, the government has been considering introducing
a new scheme that would seek to realize fair and appropriate
cost sharing, promote efficient use of transmission anddistribution networks, and encourage electricity generation
utilities to pursue business development in a manner mindfulof network costs. To do this, the scheme would also havepower generation-side operators, as grid users, bear some of
the costs, with their share based on their level of revenue. The
Strategic Energy Plan indicated that further discussion would
be pursued on levying such a fee, including with regard towhether it was necessary. However, the details of this scheme
are already being worked out, with an eye on launching it in
fiscal 2024.

(6) Impact of Increases in Fuel Prices andWholesale Electricity Market Prices

by March 2023. Moreover, many PPSs and former generalelectricity utilities have stopped taking new contracts for theunregulated high-voltage rate plans. As a result, customers
looking for a new provider have increasingly turned toward
final guaranteed supply contracts. The number of thesecontracts began surging upward in March 2022, rising to
46,000 as of October of that year. As originally conceived,
final guaranteed supply contracts function as a safety net for
high-voltage contracts, offering service at rates around 20%
above the standard plans set by the former general electricity
utilities, and were not intended to be long-term contracts.
However, in some cases, these contracts became cheaper
than unregulated rate plans as utilities sought to counter the
sharp rise in fuel prices by reflecting power procurement costsin the unregulated rates. As a result, customers began shifting
to the lower final guaranteed supply rates. In response, METI
decided to implement a scheme whereby a correction linked
to wholesale electricity market prices will be added to final
guaranteed supply rates. The correction is calculated as thesum of the area price (including loss rate and consumptiontax) and the wheeling metered charge unit price, less thecurrent final guaranteed supply metered charge unit price(including fuel-cost adjustment). This was put into effect by
the general electricity transmission and distribution utilities
in September 2022, leading to a drop in the number of final
guaranteed supply contracts to 14,000 as of July 2023.
In October 2022, all former general electricity utilities
reached the ceiling set by the fuel-cost adjustment scheme.
In May 2023, the government approved requests by seven of
those utilities to raise their electricity rates, on the grounds
that the stable supply of energy would be threatened if
the utilities became unable to stay afloat. Those sevensubsequently implemented rate hikes ranging from 14% to42%, with the new rates going into effect on June 1.
Meanwhile, discounts have been applied to electricity
consumption from January 2023 onward as a result of thegovernment’s measures for tempering sharp fluctuations inelectricity and gas prices. Initially, the discounts were 7 yen/
kWh for low voltage and 3.5 yen/kWh for high voltage, andchanged to 3.5 yen/kWh and 1.8 yen/kWh, respectively, forelectricity consumed in September and later. This relief will
be provided through December 2023.

Fuel prices and wholesale electricity market prices havebeen rising steeply since early fall of 2021, placing electricity
retailers in a tight squeeze. Of the roughly 700 PPSs that
had registered to operate as of April 2021, 195 (approx.
28%) became insolvent, closed down, or left the market

53

The Electric Power Industry in Japan 2024

usage and actual circumstances. Former general electricity
utilities are working to strengthen their business capacity
by establishing specialized marketing operations, increasing
personnel to take charge of business for corporate
customers, and implementing business training. For
example, they have assigned a dedicated business manager
for each customer and increased the frequency of customer
contact so that the customer’s needs can be suitably met. In
addition, they are diagnosing and analyzing the customer’s
energy usage, and making proactive proposals to theircustomers regarding the efficient use of energy.

2. Efforts to Acquire Customers(1) N umber of Registered Electricity Retailers,and PPS ShareThe number of registered electricity retailers has continued
to rise since the full liberalization of the retail electricity
market in April 2016, reaching 721 retailers as of March 2023.
As of March 2023, PPSs accounted for a roughly 17.7%
share of the total volume of electricity sold. Of that share,approximately 23.8% was made up by sales to households
and other low voltage customers (see Figure 5.4). Here, PPSs
include electricity retailers that newly entered the market(other than the former general electricity utilities), andsubsidiaries of the former general electricity utilities. The
former general electricity utilities’ retail sales outside theirestablished service areas contributed approx. 3.3% to thetotal.

On the other hand, electricity retailers provide low voltage
customers with customer services and so on through rateplans tailored to customers’ needs and lifestyles, 100%
renewable energy plans that add environmental value toelectricity, point-based loyalty programs, and membershipwebsites. Services that utilize information on electricity
usage obtained from smart meters are also emerging.

(2) Activities of Electricity Retailers

Electricity retailers have also been working to promote
onsite and offsite PPAs, through which power is supplied
from solar panels or other generation facilities installedon the customer’s roof or adjoining land (onsite), or from

Electricity retailers supply extra-high voltage and highvoltage customers in accordance with contracts and unit
prices negotiated on the basis of projected electricity

PPS Share of All Electricity Sold
All voltages

[%]
35.0
FY2016FY2017

Figure 5 .4

Extra-high voltage
FY2018High voltage
FY2019Low voltage
FY2020

FY2021

FY202230.0

Low voltage
23.8%

25.0

20.0

High voltage
18.7%

15.0

All voltages
17.7%

10.0

Extra-highvoltage
6.8%

5.0

Ju

Ap
r

.2

01
6
l. 2
01
6
Oc
t. 2
01
6
Ja
n.
20
17
Ap
r. 2
01
7
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l. 2
01
7
Oc
t. 2
01
7
Ja
n.
20
18
Ap
r. 2
01
8
Ju
l. 2
01
8
Oc
t. 2
01
8
Ja
n.
20
19
Ap
r. 2
01
9
Ju
l. 2
01
9
Oc
t. 2
01
9
Ja
n.
20
20
Ap
r. 2
02
0
Ju
l. 2
02
0
Oc
t. 2
02
0
Ja
n.
2
Ap 021
r. 2
02
1
Ju
l. 2
02
1
Oc
t. 2
02
1
Ja
n.
20
2
Ap
2
r. 2
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02
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t. 2
02
2
Ja
n.
20
M
2
ar 3
.2
02
3

0.0

Note: Shares are based on volume of electricity sold.

54

Source: Agency for Natural Resources and Energy, “Progress on Full Liberalization of the Electricity and Gas Retail Markets”

V. RE TA IL BUSINESS A ND TR A DING M A RK E T S

remote generation facilities via a public transmission/
distribution network (offsite). Japan’s first offsite PPA
was announced on March 31, 2021, and the number ofthese contracts is expected to grow going forward. The
retailers are also collaborating with local governments
and businesses in urban development projects aimed atachieving carbon neutrality.
a. Rate Plans Tailored to Lifestyles

Electricity retailers are offering time-of-use rate plans forcustomers who tend to be out during the day and consume
most of their electricity at night, as well as for customers
who use storage heaters and/or water heaters overnightand during off-peak hours. Such plans offer lower unit
rates for nighttime electricity use. Other options are alsoavailable. These include plans that provide discounts off thecontracted unit price as usage increases for customers who
use large amounts of electricity due to family size or pets,
and plans that offer lower rates for devising ways of using
electricity more wisely.

the Electricity Retail Business in January 2016. The purposeof these guidelines is to enhance protection for electricity
customers, allowing them to receive electricity withconfidence while also contributing to the healthy growthof the electricity business itself. These guidelines provide
instructions to the utilities in question, such as electricity
retailers, on how to observe relevant laws and regulations, aswell as instructions encouraging their autonomous efforts.
Specifically, the guidelines indicate desirable conduct byoperators in order to protect customers and bring about thehealthy growth of Japan’s electricity business. These include:(1) provision of appropriate information to customers, (2)suitable forms of business and contracts, (3) optimized
contract contents, (4) appropriate handling of customer
complaints and inquiries, and (5) optimized contract
cancellation procedures. The guidelines also identify
behavior which would constitute a problem under theElectricity Business Act.
These guidelines are revised as needed to reflect changes inthe electricity retail environment.

b. Additional Services and Discounts for Bundled Goods

There are also rate plans that offer non-electricity-related
goods and services to households. These include inspectionand emergency repair of faulty electrical equipment,such as wiring faults that keep the power from turning
on. Other everyday support services include services to
identify and report water leaks, find lost keys, and check onelderly customers at home. Other plans provide discounts
for supply contracts that are bundled with cellular phone,internet, gas, automobile gasoline, and other services.
Bundling lifestyle-related commodities and services with
rate discounts in this way is expected to improve customer
satisfaction and help electricity retailers to attract and retain
customers.

(3) Rate Comparison Sites
Amid the aforementioned diversification of rate plansoffered by electricity retailers, rate comparison websites
have been launched by service providers to help customers
choose the plans that best meet their needs. Also, withthe recent stream of exits from the retail electricity market,
such websites have also been offering in-depth informationon contract procedures to customers in search of a newelectricity provider.

(4) Regulations and Guidelines
The Electricity and Gas Market Surveillance Commission
established the Guidelines Concerning the Management of

3. Trading Markets(1) Wholesale Electricity Market
The Japan Electric Power Exchange (JEPX) was establishedin November 2003 and commenced trading in April 2005.
The purpose of JEPX is to stimulate electricity transactions
on the exchange. Specifically, transactions will be stimulated
by offering enhanced instruments for selling and sourcing
electricity and encouraging the formation of index prices toassist assessments of investment risk, etc. Initially, JEPX wastreated as a privately operated, voluntary wholesale exchange.
Later, it was designated a wholesale electricity market under
the provisions of the Electricity Business Act in April 2016.
The principal market participants are the electricity
generation utilities and electricity retailers involved inwholesale power transactions. However, other players, suchas general electricity transmission and distribution utilities
that accept electricity under the feed-in tariff scheme,
are also involved as “special trading members” in orderto facilitate the sale and purchase of “non-fossil value,” asdescribed in a later section. Business operators such as
demand response aggregators that enter into negawatt
trading contracts with transmission and distribution utilities
have also been permitted to participate in the market since55

The Electric Power Industry in Japan 2024

March 2017. As of August 1, 2023, there were 285 trading
members.

curves as the system price and trade volume. As a rule, highbuy bids and low sell bids are executed at the system price.

JEPX currently provides a marketplace for the following
electricity transactions:• Spot market: Trading in 30-minute increments of electricity
for next-day delivery.
• Forward market: Trading in electricity for delivery over thecourse of a specified future period. Products are createdby packaging together specific periods and times, such asmonthly 24-hour products or weekly daytime products.
• Intra-day market: A market for correcting unexpected
misalignments between supply and demand occurring
between a spot market transaction and delivery (aminimum of one hour later).
• Bulletin board trading market: JEPX mediates the trading ofelectricity for prospective buyers and sellers.

Market fragmentation can occur due to the existence ofconstraints concerning, for example, the available capacityof connections between services areas. When market
fragmentation occurs, system prices and trade volumes arecalculated at the level of each of the fragmented markets.
The volume of trades on the spot market continued torise from fiscal 2016 to 2021, but fell in fiscal 2022 due to a
reduction in supply capacity caused by an earthquake that
occurred off the coast of Fukushima Prefecture in March2022 (see Figure 5.5). Approximately 40% of all electricity soldin Japan is sold through the spot market, and PPSs procureroughly 80% of their electricity from the spot market. The
annual average system price hovered between 7 and 10 yen/
kWh from fiscal 2015 to 2019, but climbed to 11.21 yen/kWhin fiscal 2020 due to an extremely sharp price surge that was
driven by a supply crunch stemming from fuel procurement
risks in winter. In fiscal 2021 it further rose to 13.46 yen/kWh
due to the effects of reduced supply capacity from limitedaccess to fuel, soaring fuel prices, and the aforementioned
earthquake, and reached 20.41 yen/kWh in fiscal 2022 amid

The spot market is the largest of the above four markets
in trading volume and is a particularly important market.
Trading is done through a blind single-price auction system.
It is blind because participants cannot see other participants’
bids when they make their bids. A single-price system is one
that defines the intersections between the sell and buy bid

Average System Prices and Trade Volumes on the Spot Market
Total trade volume [TWh][TWh]Figure 5 .5[yen/kWh]

Avg. system price [yen/kWh]

350

312.8

327.2

292.5

300

25

318.6
20.41
20

250

16.51
13.72

200

14.43

208.6

14.67

15

13.46
11.21
9.78

150
100

8.46

8.38

9.72

9.76

6.52

10
7.93
5

58.6
50
0

3.5

5.5

4.7

7.4

10.3

12.6

15.4

2009

2010

2011

2012

2013

2014

2015

23.0

2016

2017

2018

2019

2020

2021

2022

0

Source: Compiled from Agency for Natural Resources and Energy, “Handbook of Electric Power Industry” (2022), and JEPX data

56

V. RE TA IL BUSINESS A ND TR A DING M A RK E T S

the continued skyrocketing of the wholesale electricity
market price. In August 2023, the wholesale price stood at
11.49 yen, having dropped with the falling price of fuel, but
METI indicated that it could rapidly rise again, noting theuncertainty of global fuel prices going forward.
Amid the steep rise in prices, some electric powercompanies and other operators have started to cut backon add-on purchases from the spot market by leveraging
demand response to make efficient use of electricity. Due
to fuel procurement risks, supply shortages are expected
to occur throughout fiscal 2023. In response, the Agency
for Natural Resources and Energy has indicated that it will
promote demand response in collaboration with otherauthorities and the private sector.

(2) Other Markets
Apart from electricity volume trading, Japan also has othermarkets that engage in trading for purposes such as securing
stable power supply, achieving the sustainable, efficient, andequitable supply of electricity, and actualizing environmental
value. These mainly include the following: (a) a baseload
power market, (b) a capacity market, (c) a balancing market,
and (d) a non-fossil value trading market. In addition, trading
has begun in the electricity futures market.
a. Baseload Power Market

New market entrants find it difficult to own or enter
contracts to buy electricity from baseload power sources(coal-fired, run-of-river hydro, nuclear, and geothermal) due
to the tendency for the scale of development to grow, andthe large number of bilateral contracts between largescale
electricity generation utilities and former general electricity
utilities. In order to energize competition in the retail power
market, a system was created to help new entrants accesselectricity produced by baseload power plants. This wasdone by establishing in July 2019 a market dedicated to the
trading of electricity produced by baseload power plants,
and by institutionalizing a requirement for large-scale
electricity generation utilities (electricity generation utilities,
etc. that have a nationwide generation capacity of 5 million
kW or greater) to contribute electricity to JEPX under a set
ceiling price. This market is divided into three geographicalareas (initially, Hokkaido, Eastern Japan, and Western Japan),and trading is done at an annually fixed price for each area.
Compared with the spot market, which tends to be highly
volatile due to the risk of fuel price fluctuations, the baseload
power market is seen as having a hedging function sinceannual trading is done at a fixed price. However, rising fuelprices in the wake of Russia’s invasion of Ukraine prompted
discussion of the creation of a system whereby the balanceof fuel costs, instead of the fixed prices, would be settled
later. In the fiscal 2023 auction, a new system was adopted
in which products were divided into two classes, theestablished one-year products, whose fixed price would
be settled as done previously, and a new category, twoyear products, whose fuel cost balance would be settled
later. In addition, the three market areas were redefined for2023 onward: Hokkaido was folded into Eastern Japan, andKyushu was spun out of Western Japan as a separate area.
b. Capacity Market

The predictability of the payback on investment in power
generation businesses is likely to decline, depending on
the increasing competition and changes in environmental
trends. Likewise, if the adoption of renewables expands thepower generation operating rate of thermal power would
fall since Japan’s current system starts curtailing thermal
power output before the curtailment of solar and wind
power, which means that thermal power plant investments
would become unable to reap satisfying returns.
Consequently, the pace of new investments in power plants
would likely stall. Given this situation, a capacity market
was established in 2020 for the purpose of (1) ensuring agreater degree of predictability of investment returns, (2)the replacement of old power plants with new ones and (3)the securing of supply capacity (installed capacity) throughmarket mechanisms..
The capacity market is operated by OCCTO and comprises
several auctions: a main auction for securing capacity four
years in advance; a follow-on auction held afterwards if
OCCTO deems it necessary; and a long-term decarbonized
power supply auction intended to help power generation
utilities secure long-term revenue on their massive
investments in new facilities and replacements foradvancing decarbonization..
The power sources targeted by the main auction are largely
divided into three categories: stable power sources thatcan be expected to consistently supply capacity of 1 MW or
greater; variable power sources comprising wind, solar, andcertain run-of-river hydro power sources; and on-demand
power sources, including demand response (this category is
subject to a procurement cap). Changes incorporated in the2023 auction (for delivery in 2027) include raising the ondemand procurement cap, and an option to bid on capacityof storage batteries (discharge duration of at least 3 hours)

57

The Electric Power Industry in Japan 2024

Power Sources Targeted by Long-term Decarbonized Power Supply Auction
Category

Applicable Power Sources

New Installation & Replacement

Solar
Onshore wind
Offshore wind
Hydro
Hydro
Storage batteries
Geothermal
Biomass
NuclearHydrogen (10% or more)
LNG

Table 5 .2

Improvements for enabling hydrogen co-firing of 10% or more
Improvements for enabling ammonia co-firing of 20% or more

Improvement of Existing Facilities

Improvements for existing thermal power plants that replace all fossil fuelcapacity with biomass capacity
Source: Compiled by the authors from METI System Review Working Group , “Interim Report No. 11”

Balancing Capacity Market Products

Table 5 .3

Product

Response Time / Continuous
Operation Duration

Major Issues Rectified

Primary balancing capacity

within 10 sec. / within 5 min.

Short-term demand fluctuation; power drop

Secondary balancing capacity (1)within 5 min. / at least 30 min.

Short-term demand fluctuation; power drop

Secondary balancing capacity (2)within 5 min. / at least 30 min.

Errors in demand forecasts; errors in renewableenergy forecasts

Tertiary balancing capacity (1)within 15 min. / 3 hr.

Errors in demand forecasts; errors in renewableenergy forecasts; power drop

Tertiary balancing capacity (2)within 45 min. / 3 hr.

Errors in renewable energy forecasts

Source: Compiled from OCCTO; “Methods of Ensuring Balancing Capacity in the Simultaneous Procurement Market, and Their Timing ”

as either an on-demand power source (as previously done)
or a stable power source.
The long-term decarbonized power supply auction isintended to serve as a safeguard against a decline incapacity due to market exits or stalling of new investment.
It will do this by providing power generation utilities withrevenue for 20 years in principle, thereby enabling them tobetter visualize their investment returns. The first auctionis scheduled to be held in January 2024 and will target thepower sources listed in Table 5.2.

58

Discussion is currently underway on whether to include thecost of safety measures for restarting existing nuclear power
plants in the scope of the long-term decarbonized power
supply auction.
c. Balancing Market

The tasks of controlling frequency and balancing supply anddemand are performed by general electricity transmission anddistribution utilities in each area. With regard to balancing, it isimportant that system operators secure the capacity requiredfor practical purposes while avoiding giving preferential
treatment to particular sources of electricity or creating too

V. RE TA IL BUSINESS A ND TR A DING M A RK E T S

great a cost burden. The first auction for balancing capacity washeld by general electricity transmission and distribution utilities
at the end of fiscal 2016 for fiscal 2017 (see “Securing Balancing
Capacity” in Section 3 (2), Chapter III).
Subsequently, a balancing market was established in
April 2021 to enable greater efficiency in supply-demandbalancing operation by augmenting auction-based
procurement of balancing capacity with cross-regional
procurement. The market is operated by the generalelectricity transmission and distribution utilities of each area.
Its major products are listed in Table 5.3.
Trading began for tertiary balancing capacity (2) in April
2021 and for tertiary balancing capacity (1) in April 2022. The
other products will start trading in 2024 or later.
d. Non-Fossil Value Trading Market

The wholesale electricity market makes no distinction
between fossil fuel and non-fossil fuel power generation,and there were concerns that this omission could obscure
the actual value of non-fossil power generation capacity.
It was also pointed out that it would be difficult for new
entrants to buy electricity from non-fossil fuel sources, as
they do not have enough trading experience comparedwith former general electricity utilities. Furthermore, it
was proposed that the cost of the environmental value ofelectricity derived from renewables purchased through the
FIT scheme should not have to be borne by all customers,
but instead should be borne primarily by those customers
who desire that value. As one step to help address theseconcerns, a non-fossil value trading market was establishedin the wholesale electricity market in May 2018 to isolate
non-fossil value of the electricity only and to certify it fortrading. The market initially limited buying to only electricity
retailers, and some customers voiced the desire to beable to directly purchase non-fossil fuel value, and called
attention to the high price of non-fossil value (the minimumis 1.3 yen/kWh). To answer this need, the market was
divided into two markets that began trading in November
2021: a renewable energy value trading market in which
consumers can directly participate in trading (market
dealing in FIT renewable energy certificates; minimum/
maximum prices: 0.3 yen/kWh, 4.0 yen/kWh), and a market
for achieving the target30 mandated by the SophisticatedMethods Act regarding the non-fossil share of the power
generation mix (market dealing in non-FIT renewableenergy certificates31; minimum/maximum prices: 0.6 yen/kWh, 1.3 yen/kWh32). Both hold multi-price auctions, inwhich all successful bidders pay the price at which they bid,and thus bidders can maximize their profits by predicting
the highest successful bid. In the renewable energy value
trading market, the clearing volume-weighted average
price was the minimum price of 0.3 yen/kWh in all fourauctions held in fiscal 2022. This reflects the market’s design,
which, as indicated above, incorporates variability in theminimum price to enable procurement of non-fossil value
at low prices. METI changed the minimum price to 0.4 kWhfrom fiscal 2023 onward out of concern that maintaining
the previous price amid the rising fuel costs of recent years
could slow down investment in renewables. In the market
for achieving the target mandated by the SophisticatedMethods Act, two of the four auctions in fiscal 2022 closed
at maximum clearing price of 1.3 yen/kWh, which indicatesa lack of the balance in non-FIT renewable energy certificate
supply/demand that is needed to achieve the Act-mandated
target. METI is continuing to explore avenues for improving
the system.
In addition, there is an electricity futures market whose
purpose is to reduce electricity price fluctuation risks.
The European Energy Exchange (EEX) began trading inJapanese electricity futures on May 18, 2020, and the Tokyo
Commodities Exchange (TOCOM) commenced permanent
trading in April 2022, following a trial period that started
in 2019. As of 2023, the market’s trading volume is small incomparison with JEPX, and improvements are being studied,including with regard to future challenges.

(3) New Market under Consideration
Under the current trading system, the spot market andthe balancing market are operated separately, and METI
has looked at the issue of how this arrangement leads toinefficient operation since it does not take into account thestartup characteristics of each power plant. As a solution, theministry is now studying how to create a new market thatwould enable simultaneous procurement of energy (kWh)and balancing capacity (ΔkW). As this would likely involve asweeping overhaul of the current system, the new market is
not expected to launch until 2028 at the earliest.

30 T he Act on Sophisticated Methods of Energy Supply Structures was established in 2009 as a regulatory framework for encouraging energy
suppliers to increase their adoption of non-fossil energy sources and to make sophisticated and effective use of non-fossil fuels. It requires
electricity retailers that annually sell 500 GWh or more to raise the non-fossil share of the electricity they sell to at least 44% in 2030.
31 The environmental value derived from FIP power sources will be traded in the market for achieving the target mandated by the SophisticatedMethods Act. As noted in Chapter II, the non-fossil value trading price is subtracted when calculating the FIP reference price.
32 As a result of a revision made in November 2021, electricity retailers are to achieve the Act-mandated target through non-FIT non-fossil certificates only,
and for this reason the ceiling price was set lower than that for FIT power sources. The minimum price was set based on past trading performance, among
other considerations, and discussion of how to fix the price gap with the renewable energy value trading market is currently underway.

59

The Electric Power Industry in Japan 2024

TOPICS: Electric Power Company Initiatives for Strengthening
Disaster Prevention and Resilience

prevention and resilience, supporting mutual cooperation
during disasters, preventing nuclear disasters, and making
other improvements. This feature looks at their initiatives
pertaining to transmission and distribution facilities, focusing
on cross-regional coordination and inter-area cooperation,utilization of IoT technology, operation of community
microgrids, utilization of self-owned equipment, andstreamlining of restoration operations and maintenanceinspections.

Japan is a country prone to natural disasters, and over
the years electric power companies have responded by
implementing various disaster prevention measures. In
recent years, the frequency and severity of natural disasters
have increased, as seen in climate change effects such as
torrential rainfall and extreme heat, necessitating additional
action for strengthening disaster prevention and resilience(see Figure 1, Table 1). Accordingly, electric power companies
are pursuing diverse initiatives for enhancing disaster

Total number of events for 1,300 observation stations

Annual Frequency of Hourly Precipitation of 100 mm or Greater (nationwide AMeDAS data)
10

Figure 1

Trend: 0.6 (events/10 years)

9
8
7
6
5
4
3
2
1
0

1975

Japan Meteorological Agency

1980

1985

1990

1995

2000

2005

2010

2015

2020

Year

Note: The frequency of heavy rainfalls has been trending upward. The annual frequency of hourly precipitation of 100 mm or greaterfor the most recent 10-year period (2013–2022) is roughly double that for the first 10-year period after the Japan Meteorological
Agency (JMA) began tracking this statistic (1976–1985).

Source: Japan Meteorological Agency

Estimated Damage from Major Earthquakes Predicted to Occur in the Future

Table 1

Nankai Trough earthquake

Tokyo inland earthquake

Trench-type earthquakes inthe vicinity of the Japan andChishima Trenches

For comparison:
Great East Japan Earthquake(March 11, 2011)

Magnitude

9.0–9.1

7.3

89JMA seismic intensity
scale

7

7

6 Upper

7

Fatalities & missing
persons (approx.)

323,000

23,0002,700

22,000

Buildings destroyed/burned (approx.)2,386,000

610,000

35,000122,000

Direct economic
damage (approx.)¥ 169.5 trillion¥ 47 trillion¥ 1 trillion¥16.9 trillion

Note: As of 2020, the Nankai Trough earthquake, considered to be potentially the most devastating of thepredicted earthquakes, was forecast to occur in the next 30 years with a probability of 70–80%.

60

Source: Ministry of Land, Infrastructure, Transport and Tourism

Annual Totals of Power Interchange Instructions Issued
by OCCTO to General Electricity Transmission and Distribution Utilities (nationwide)

Table 2(No. of occasions)

FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

2

2

10

25

6

226

21

Source: FY2022 OCCTO Annual Report

1. C ross-regional Coordination andInter-area Cooperation(1) Establishment of OCCTOThe March 2011 Great East Japan Earthquake resulted in anelectrical supply shortage of roughly 10 million kW in theTokyo metropolitan area, prompting planned outages in the
TEPCO service area over a 10-day period. Although thenationwide supply capacity was large enough to cover the
shortfall, interchange of power from other areas was notpossible due to insufficiencies in transmission infrastructure
and coordinating systems, making the outages unavoidable.
The Organization for Cross-regional Coordination ofTransmission Operators (OCCTO) was established in
April 2015 as part of a number of institutional reforms foraddressing challenges brought to the forefront by the
March 2011 earthquake. OCCTO coordinates the supply/
demand plans and grid plans submitted by electric powercompanies, advances the development of transmission/
distribution networks spanning multiple supply areas, andbalances supply and demand nationwide in both normal
times and emergencies. This includes issuing powerinterchange instructions on different occasions each year, as
shown in Table 2.

(2) Expansion of frequency converters andinterconnections
Electricity is supplied at different frequencies in eastern Japan(50 Hz) and western Japan (60 Hz). Work is being done toenhance the infrastructure for power interchange between
these two areas. Deliberations by a government researchcommission in April 2012 resulted in the setting of a goal toincrease the capacity of frequency converters to 2.1 million
kW by the end of fiscal 2020, and thereafter to 3 million kW as
early as possible.
As part of a project responding to the goal of raisingfrequency converter capacity to 2.1 million kW, Chubu

Electric Power Grid has built Hida Converter Station (AC/DC,
900,000 kW, on 60 Hz side) in Gifu Prefecture, and TEPCOPower Grid has added to the AC/DC conversion facilities ofthe existing Shin-Shinano Substation (900,000 kW, on 50 Hzside) in Nagano Prefecture. Hida-Shinano HVDC Link, whichconnects those two facilities, began operating in March 2021.
There are three frequency converters for power interchange
between eastern and western Japan: Shin-Shinano, Sakuma(300,000 kW), and Higashi-Shimizu (300,000 kW). Their total
installed capacity stood at 1.2 million kW prior to March 2021,
and rose to 2.1 million kW as a result of the aforementioned
project. Also, work is underway to expand the combined
capacity of Sakuma and Higashi-Shimizu, which will raise thetotal installed capacity of the east-west interconnections to 3
million kW by the end of fiscal 2027.
The cross-regional network development plan formulated
by OCCTO includes ongoing construction for boosting thecapacity of the Kitahon HVDC Link connecting Hokkaido andHonshu from 900,000 kW to 1.2 million kW, and a plan foradvancing the development of the interconnection between
Tohoku and Tokyo.

(3) Establishing systems for cooperation during
disasters
Over the years, electric power companies whose operations
were impaired by a major disaster requested otherpower companies to assist them by dispatching power
supply vehicles and personnel. In July 2019, ten electricity
transmission utilities took a step toward strengthening
their framework of cooperation with one another byintroducing a push-style system of assistance dispatching.
This is a proactive system of support in which the utilities
voluntarily provide assistance to other power companies inneighboring disaster areas before being requested to do so,with the aim of accelerating the recovery process.
In the system’s first line of response to the power outages

61

The Electric Power Industry in Japan 2024

caused in TEPCO Power Grid’s supply area by Typhoon
Faxai (No. 15)33 in September 2019, Tohoku Electric Powerand Chubu Electric Power Grid were able to dispatch some
1,200 recovery workers and 20 high-voltage power supply
vehicles. Ultimately, a total of 10,009 recovery workers and
174 high-voltage power supply vehicles were sent to theaffected area by power companies across Japan, realizing
support on a very large scale.
Also, in July 2020 the ten transmission utilities jointly
formulated an interconnection coordination plan fordisasters, and standardized the specifications for recovery
resources and the operational procedures for power supply
vehicles in order to facilitate recovery operations in supportof one another.

2. U
 tilization of IoT Technology(2) Preventing electrical fires at home using IoT
devices
Adachi City in Tokyo has a large concentration of wooden
homes, putting the area at risk for fires triggered by major
earthquakes. Tokyo Electric Power Company Holdings, Inc.,TEPCO Power Grid, Inc., and the Adachi City government are
conducting a demonstration test from January 2022 throughMarch 2024 of a service for preventing electrical home fires
and communicating disaster information. An IoT device thatsenses warning signs of arc tracking, a cause of electricalfires, is installed in each participating home’s distribution
board. When warning signs are detected, a technician issent to the home to address the issue and thus prevent anelectrical fire from occurring. The test is also examining theeffectiveness and convenience of the IoT device’s function
as an information hub that can be used to communicate
disaster-related information from the city government andto notify the fire department, city government, and otherauthorities regarding the occupants’ safety status in theevent of a disaster or other emergency.

(1) Providing information to customers via an app
during disasters
TEPCO Power Grid, Inc. operates PREP, a comprehensive
disaster information app whose services include providing
integrated access to power outage information from theseven general electricity transmission and distribution
utilities (Hokkaido Electric Power Network, Inc.; Tohoku
Electric Power Network Co., Ltd.; TEPCO Power Grid, Inc.;
Chubu Electric Power Grid Co., Inc.; Hokuriku ElectricPower Transmission & Distribution Co.; Chugoku ElectricPower Transmission & Distribution Co., Inc.; and Okinawa
Electric Power Co, Inc.). Users are able to receive disaster
information for their area through push notifications on theirsmartphones.
Electric power companies also provide disaster-related
information to people in their service area via their own
disaster information apps, LINE (a messaging app widelyused in Japan), and email services.

3. Operation of community microgrids
Drawing lessons from the extensive power outages causedby the Hokkaido Eastern Iburi earthquake,34 Hokkaido
Electric Power Network, Inc. began operating a community
microgrid in the Akancho district of Kushiro City in May 2023
under a consortium formed with the municipal government
and local businesses. In the event of a large-scale blackout
caused by a disaster or other problem, the microgrid isdesigned to isolate a portion of the district from othergrids and supply that area with electricity sourced fromrenewable energy.
Community microgrids are systems that can isolate a specificarea from other power grids and supply it with electricity
during a large-scale blackout caused by a disaster or othertrouble. The electricity is supplied by local renewable energy
power sources and transmitted via the existing transmission
network.

33 Typhoon Faxai (No. 15) made landfall near Chiba City on September 9, 2019. The city measured record-breaking winds with peak gusts of 57.5
meters per second. Nationwide, casualties numbered 3 fatalities and 150 severe/slight injuries, while property damage included 391 homes
completely destroyed, 76,483 partially destroyed or damaged, and 230 flooded above or below floor (according to the Cabinet Office’s Disaster
Management in Japan website). Also, the TEPCO supply area experienced the collapse of two power transmission towers and breakage of around2,000 utility poles, resulting in massive power outages that affected approximately 930,000 households at peak and required roughly two weeks
for a full recovery. A research commission set up by TEPCO attributed this lengthy recovery span to an insufficient number of personnel for
inspecting equipment across such an extensive disaster area, and the resulting delay in ascertaining the extent of damage.

62

34 A magnitude 6.7 earthquake that occurred on September 6, 2018 in the central-eastern part of Hokkaido’s Iburi region and measured 7 on the JMA
seismic intensity scale. The earthquake and resulting landslides caused 42 deaths and 762 injuries. Property damage included 462 homes completely
destroyed, 1,570 partially destroyed, and 12,600 damaged. The earthquake also triggered a massive blackout that affected all of Hokkaido forapproximately eleven hours. Power was restored to half of the affected area after roughly 30 hours elapsed, and Hokkaido Electric Power announced
recovery of service at around 64 hours after the blackout started. However, local power outages were not completely resolved until October 5.
Hokkaido’s large dairy industry incurred significant losses because milking machines and milk refrigerators were inoperable during the outages.

T OPICS: Electric Power Company Initiatives for Strengthening Disaster Prevention and Resilience

Details of the community microgrid system

Figure 2

Monitoring/control
serverControl data

Akan MicrogridPower grid
(upper grid)

DER terminals
DSM terminal

SwitchHEPCO Network

SwitchControl
instructions

Volume of power
generated/consumed

Phone
communication

Disaster evacuation
shelter

Online during
emergencies

Online during Switch
normal times

Teshibetsu Multipurpose Center

DSM terminal
2 low-voltage
dairy facilities

Tensho DSM terminal
Akan
farm Protective relay

18 homes

DSM terminal

Akan Microgrid equipment

DSM terminal

Solar power generation
Output: 160 kW
Supply/demand balancing
storage batteries
Output: 272 kW
Capacity: 1,087 kWh
Biogas power generation
For microgrid: 166 kW For microgrid
For FIT: 49 kW

High-voltage
dairy facility

4 low-voltage
dairy facilities

DSM terminal
Low-voltage
dairy facility

Power is used for facility
during normal times.
Power is supplied tomicrogrid during emergencies.

Emergency
generator(existing equipment)

Protective relay

4 homes

DSM terminal
Protective relay

High-voltage
dairy facility

Switchoperation

Online during
emergencies

High-voltage
dairy facility

DSM terminal

Automatedtransmission system

Switch status

DSM terminal
Protective relay

DSM terminal

Monitoringdata

Operator terminal

High-voltage
dairy facility

Low-voltage
dairy facility

Protective relay

For FIT electricity sales

3 homes

Low-voltage
dairy facility

6.6 kV distribution grid
Flow during normal times
Flow during emergencies

DSM terminal

Online during
normal times
SwitchThis project covers an area of around 20 square kilometers,
and uses a solar power generation facility (160 kW), biogas
power generators that utilize methane sourced fromfermented cattle excreta (166 kW + 49 kW), a power storage
facility (272 kW), a monitoring and control server, and an
energy management system terminal. In emergencies,
power can be supplied to the community’s evacuation
shelter, 14 dairy facilities, and 25 homes.

4. U tilization of Self-owned
Equipment(1) Emergency broadcasts via utility poles(Kyushu Electric Power)
Following the deregulation of utility pole sharing and use

DSM terminal
Source: Attachment to Hokkaido Electric Power Network press releaseof facilities such as transmission towers, this equipment has
been increasingly utilized for disaster prevention purposes.
One example is Toho Village in Fukuoka Prefecture, which
was devastated by torrential rainfall in July 2017. This disasterrevealed several issues stemming from the village’s limited
number of community wireless system installations, suchas the difficulty of hearing emergency broadcasts. While
outdoor PA broadcasts via such systems represent an
important means of communicating emergency information
to elderly persons and children, etc., who generally do not
own smartphones or other mobile devices, the high costposes a heavy burden to communities.
In January 2020, Kyushu Electric Power Transmission andDistribution Co., Inc. launched a demonstration project inToho in which speakers were installed on the company’s

63

The Electric Power Industry in Japan 2024

utility poles there in order to broadcast emergency
information from the village government. The new system
makes it possible to broadcast disaster information for
specific areas via the nearest utility poles, with improved
sound quality. The use of existing utility poles lowers costs,
thus reducing the burden on the village government. In
addition, since computer tablets can be used anywhereto transmit information over the system, the personnel
responsible for issuing emergency information do not needto go to the village office to use the control console.
The paid service for similar systems began in March 2022,
and proposals are being formulated in other municipalities
to further expand the installation of the systems.

(2) Utilization of transmission towers
Electric power companies are leasing space on theirtransmission towers to national/local government agencies,
telecommunication businesses, and other users for purposesthat significantly serve the public good. For example,
the towers are used to host equipment such as cellularbase stations, emergency broadcast speakers, monitoring
cameras, and weather sensors. The towers are well suitedfor purposes such as damage assessment and information
broadcast because of their broad distribution across diverse
locations, including residential areas and mountainous
terrain, and their heights of tens of meters.

5. S treamlining of Restoration
Operations and MaintenanceInspections(1) Utilization of vehicle-to-grid (V2G) in disaster
areas
Following Typhoon Faxai (No. 15), TEPCO, with the support
of automakers, dispatched 67 electric vehicles (EVs,
PHVs, FCVs) and 45 power supply units to disaster areas
with persistent blackouts. TEPCO employees drove thevehicles around those areas to supply electricity to homes,
community centers, nurseries, and other facilities.

(2) Adoption of automatic switches
Tokyo Electric Power Company Holdings, Ltd. is planning toinstall automatic switches at 300 sites in Chiba Prefecture inorder to speed up the restoration of power supply following
outages. The conventional approach to power restoration
involves dispatching work crews to manually reset switches64

on utility poles. The project will automate this process by
installing remotely operated receivers on utility poles.

(3) Use of drones
The use of aerial drones to inspect power transmission anddistribution equipment promises to not only streamline
routine operations, but also help resolve various challenges
in the future, such as damage assessment in disaster areasand personnel shortages. Here are some examples of how
electric power companies are experimenting with the
adoption of drones.
Kansai Electric Power Company announced in February
2019 that it would work with Toshiba Digital Solutions
Corporation and Alps Alpine Co., Ltd. to establish technology
for inspection of overhead ground wires using a drone
with automatic tracking, and to experimentally deploy
the technology toward full-scale operation in the future.
Conventional inspection of overhead ground wires involves
video imaging via a camera device that autonomously
travels on the wires. However, this takes time to perform inmountainous terrain and other areas difficult to access, andthe process of mounting the camera devices on the wires ishazardous to workers. The drone used in the project has an
automatic tracking feature that enables it to maintain a set
distance from ground wires, even when the lines sag or are
swung by wind.
Meanwhile, Tohoku Electric Power Company announced in
October 2019 that it would launch a pilot project for drone
inspection of transmission lines using auto-tracking camera
software developed for drones by NEC Corporation. Also,
TEPCO Power Grid, Inc. jointly established Grid Sky Way LLP
in March 2020 with NTT DATA Corporation and Hitachi Ltd.
toward the development, demonstration, and deploymentof a system for patrol/inspection using drones operating
beyond visual line of sight.

S TAT I ST I C A L DATAThe Electric Power Industry in Japan 2024

Electric Power Generation*
HydroelectricElectric Utilities
Industry-owned
Thermal**Electric Utilities
Industry-owned
NuclearElectric Utilities
Industry-owned
Wind PowerElectric Utilities
Industry-owned
SolarElectric Utilities
Industry-owned
Geothermal
Electric Utilities
Industry-owned
OthersElectric Utilities
Industry-owned
Total
Electric Utilities
Industry-owned

[TWh]

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

84.9
68.6
16.3
987.3
743.1
244.2
9.3
9.3
–
5.2
0.2
5.0
1.2
0.1
1.1
2.6
2.4
0.2
–
–
–
1,090.5
823.7
266.8

86.9
70.3
16.7
955.4
717.8
237.6
–
–
–
5.0
0.0
5.0
3.8
0.1
3.7
2.6
2.4
0.2
–
–
–
1,053.7
790.6
263.2

91.4
74.9
16.5
908.8
675.7
233.1
9.4
9.4
–
5.2
0.1
5.1
6.8
0.1
6.7
2.6
2.4
0.2
–
–
–
1,024.2
762.6
261.6

84.6
81.9
2.7
877.0
794.4
82.6
17.3
17.3
–
5.5
5.0
0.5
11.1
6.5
4.6
2.2
2.2
0.1
0.3
0.3
–
997.9
907.6
90.4

90.1
87.9
2.3
861.4
777.5
83.9
31.3
31.3
–
6.1
5.5
0.7
15.9
8.7
7.2
2.1
2.1
0.1
0.3
0.3
–
1,007.3
913.2
94.1

87.4
85.0
2.4
823.6
726.2
97.4
62.1
62.1
–
6.5
5.9
0.6
18.5
10.8
7.7
2.1
2.1
0.1
0.2
0.2
–
1,000.4
892.2
108.2

86.3
84.3
2.0
792.9
696.2
96.7
61.0
61.0
–
6.9
6.3
0.6
21.4
13.2
8.2
2.1
2.0
0.1
0.2
0.2
–
970.8
863.2
107.6

86.3
84.5
1.8
790.0
697.9
92.1
37.0
37.0
–
8.3
7.6
0.7
25.0
16.2
8.8
2.1
2.0
0.1
0.2
0.2
–
949.0
845.4
103.6

87.6
85.8
1.8
776.0
681.4
94.6
67.8
67.8
–
8.2
7.4
0.8
27.9
19.0
8.9
2.0
2.0
0.1
0.2
0.2
–
970.0
863.5
106.5

85.0
83.2
1.8
757.4
664.7
92.7
53.5
53.5
–
8.2
7.4
0.8
31.3
21.8
9.5
2.0
1.9
0.1
0.2
0.2
–
937.6
832.7
104.9

FY

*Figures for industry-owned generation represent the total amount generated by power plants with a generating capacity of 1,000kW or above.
*In conjunction with the launch of the licensing system in fiscal 2016, certain utilities’ electricity generated that had been counted under “Industry-owned”
up through fiscal 2015 has been counted under “Electric Utilities” since fiscal 2016.
**Including biomass and waste-to-energy.
Source: METI, "Electric Power Generated" (2023) and "Electric Power Generated for Self-consumption" (2023)

Electric Power Consumption

Low Voltage
Specified-Scale Demand*

[TWh]

FY

2011

2012

2013

2014

2015

2016

Residential
Commercial and Industrial
High Voltage
Extra-High Voltage

289.0
44.9

286.2
43.7

284.3
42.8

273.1
40.5

266.9
39.2

545.6

541.0

544.4

537.8

531.5

0.0
4.3
883.8
118.7
1,002.4
–

0.0
4.4
875.3
116.3
991.6
–

0.0
4.5
876.0
116.6
992.6
–

0.0
3.9
855.4
114.1
969.4
–

0.0
4.0
841.5
113.8
955.3
–

272.9
37.9
308.3
231.4
6.0
43.2
899.8
70.8
970.6
2.3

FY

2017

2018

2019

2020

2021

2022

Residential
Commercial and Industrial
High Voltage
Extra-High Voltage

280.4
38.4
310.6
233.8
6.1
45.1
914.4
70.0
984.3
2.3

271.4
37.1
307.8
236.3
6.3
37.4
896.2
77.2
973.4
2.3

267.7
35.7
302.8
229.9
6.2
34.9
877.1
75.6
952.7
2.2

278.0
35.4
290.3
214.9
5.5
36.8
863.2
66.3
929.5
2.4

278.1
34.8
296.5
225.5
6.1
38.1
881.6
68.4
950.0
2.4

270.3
34.2
283.5
218.7
6.2
38.1
851.0
68.9
919.9
15.6

Specified Supply**
Self-Consumption
Supplied by Electric Utilities
Power Generated and Consumed by Privately-owend Power Facilities
Total Consumption
Others (Last Resort Supply and Isolated Area Supply)

Low Voltage
Specified-Scale Demand*Specified Supply**
Self-Consumption
Supplied by Electric Utilities
Power Generated and Consumed by Privately-owend Power Facilities
Total Consumption
Others (Last Resort Supply and Isolated Area Supply)*Contracted demand of 50 kW or above (in principle) received from general electricity utilities or specified-scale electricity suppliers.
**System that permits an electricity supplier to directly supply electricity to a consumer with which it shares a close relationship in manufacturing processes,
capital, etc., without having to register as an electricity retailer.
Source: METI, "Electric Power Generated" (2023) and "Electric Power Generated for Self-consumption" (2023)

66

S TAT I S T I C A L D ATA

Installed Generating Capacity*
FY

HydroelectricElectric Utilities
Industry-owned
Thermal**Electric Utilities
Industry-owned
NuclearElectric Utilities
Industry-owned
Wind PowerElectric Utilities
Industry-owned
SolarElectric Utilities
Industry-owned
Geothermal
Electric Utilities
Industry-owned
OthersElectric Utilities
Industry-owned
Total
Electric Utilities
Industry-owned

[MW]

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

48,932
44,676
4,256
191,258
141,901
49,35744,26444,264
–
2,646
82
2,563
1,559
67
1,492
512
477
35
–
–
–
289,171
231,468
57,70349,59745,403
4,194
193,356
143,777
49,57944,26444,264
–
2,750
30
2,720
4,085
81
4,005
508
473
35
–
–
–
294,560
234,028
60,53250,03545,786
4,248
190,805
143,040
47,76542,04842,048
–
2,808
50
2,758
5,624
87
5,536
517
473
43
–
–
–
291,836
231,484
60,35250,05849,521
536
193,910
174,392
19,51741,482
41,482
–
3,203
2,893
310
9,110
5,655
3,455
526
511
15
64
64
0
298,352
274,519
23,83450,01449,562452
193,462
173,261
20,201
39,132
39,132
–
3,483
3,091
391
12,592
7,318
5,274
471
466
5
54
54
0
299,209272,885
26,32450,03749,582455
193,026
171,469
21,55738,042
38,042
–
3,498
3,165
332
14,974
8,922
6,052
473
463
11
43
43
0
300,093271,685
28,40750,03349,635398
189,784
168,760
21,02433,08333,083
–
3,951
3,580
371
16,522
10,549
5,973
481
463
18
43
43
0
293,897
266,11227,78550,03349,635
398
191,758
170,260
21,49833,08333,083
–
4,119
3,750
369
19,02812,408
6,620
487
469
18
43
43
0
298,550
269,648
28,90349,92449,528396
188,247
167,474
20,77333,08333,083
–
4,254
3,862
392
21,034
14,124
6,910
487
469
18
60
60
0
297,088268,599
28,48950,00749,612395
187,937
166,379
21,55833,08333,083
–
4,411
4,025
386
23,146
16,152
6,994
437
419
18
60
60
0
299,081269,730
29,351* Figures represent the total amount generated by power plants with a generating capacity of 1,000 kW or above.
*In conjunction with the launch of the licensing system in fiscal 2016, certain utilities’ power generation facilities that had been counted under “Industry-owned”
up through fiscal 2015 have been counted under “Electric Utilities” since fiscal 2016.
**Including biomass and waste-to-energy.
Source: FEPC (2011–2015); METI, "Number and Output of Electricity Utility Power Plants" (2023)

Transmission, Substations and Distribution Facilities of General Electricity Transmission and Distribution Utilities(As of March 31, 2022)

Transmission Lines [km]Route length

Voltage [kV ]Overhead

Substations
Circuit length

Underground

Overhead

UndergroundNumberOutput Capacity
[MVA]

500

8,168

113

15,850201

85

231,150

275

7,440

612

14,7091,533

162

177,115

220

2,570

61

4,934

125

70

44,500

187

2,756

15

5,366

35

49

19,335

110–154

15,487

1,066

28,072

1,979

758

162,542

66–77

38,374

7,531

68,605

13,572

4,658

229,482≦55

13,801

6,151

15,036

10,146

1,343

10,380Total

88,596

15,549152,572

27,591

7,125

874,504

Transformers

Distribution Lines [km]Route length

Circuit length

Output Capacity [MVA]

Overhead

Underground

Overhead

Underground

Overhead

Underground

1,292,652

45,955

4,058,023

75,091

356,177

38,469Source: FEPC, "Electricity Statistics Information: Transmission facility, Substation facility, Distribution facility" (2023)

67

The Electric Power Industry in Japan 2024

Peak Load, Supply Capability, Annual Electricity Demand, Reserve Margin and Load Factor
2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Peak Load [GW]

157.2

161.6

154.3

164.5

155.9

155.5

164.8

164.6

166.5

164.6

Supply Capability [GW]

176.9

179.5

179.8

183.5

177.6

177.2

187.5

185.8

186.1

188.0

Annual Electricity Demand [TWh]

914.7

917.5

898.9

888.2

890.5

900.9

896.5

878.4

867.8

885.2

Reserve [GW]*

19.7

17.9

25.6

18.9

21.8

21.7

22.7

21.2

19.6

23.4

Reserve Margin [%]*

12.6

11.1

16.6

11.5

14.0

13.9

13.8

12.9

11.8

14.2

Load Factor [%]**

66.4

64.8

66.5

61.6

65.8

66.0

62.1

60.7

59.5

61.4

FY

* Reserve= Supply Capability-Peak Load Reserve Margin= Reserve/Peak Load×100		
**Load Factor= Annual Electricity Demand / (Peak Load ×365(366)×24hours) ×100
* Figures for 2015 onward are for summer only.

Source: Japan Electric Power Survey Committee (2011-2014), OCCTO (2016-2021)

Summarized Comparative Table Classified by Country for the Year 2020
USA

UK

FranceGermany

RussiaChina

India*

Japan

1,229,860

75,854

136,211

233,662

270,200 2,202,040

442,297

298,550

Hydroelectric

101,037

4,366

25,732

14,17252,300370,280

45,80750,033

Thermal823,055

42,54018,93580,800185,600

1,246,240

305,307

191,758

Nuclear103,075

8,141

61,3708,114

29,40049,8906,780

33,083

Renewables and others

202,693

20,80730,175130,575

2,900

535,630

84,403

23,677

Total Energy Production [GWh]4,009,617

312,261

500,100

573,641 1,090,000

7,626,400

1,576,740

948,979

285,100

8,404

65,10018,322

214,000

1,355,300

156,049

86,310

Thermal2,416,393

125,701

37,600234,295

656,000

5,177,000

1,253,707

789,725

Nuclear789,355

50,278335,400

64,382

216,000

366,200

46,47237,011

Renewables and others

518,770

127,876

61,900256,6423,700

727,900

120,51235,637

–

41.7

41.9

27.9

–

42.8

53.4

45.0*

12,399

4,654

7,680

6,897

7,442

5,405

1,178

7,541

Domestic Energy Supplies [GWh]4,056,931

313,761

460,000–

1,085,000

6,523,200––

Energy Sales [GWh]3,717,674

258,508–

418,626–

6,158,100

1,248,086

820,897

Number of Customers [At year-end; thousand]

156,523

31,505–––645,737

314,423

88,747

Maximum Demand [MW]789,219

48,94583,200–150,400–

190,198

166,450

Annual Load Factor [%]

59.9

65.7

62.9

–

78.2

–

–

59.5

Thermal Efficiency [%]

–

32.0

–

44.8

39.5

40.3

–

–

Loss Factor (Transmission and Distribution) [%]

4.9

8.4

7.7*

–

–

5.6

20.5

4.6

Total Consumption per capita [kWh]

–

4,179

6739*

5,868

6,755

5,331

932

7,434

Total Installed Capacity [MW]Hydroelectric

Capacity Factor [%]Total Energy Production per Capita [kWh]*Figure for 2019**Figures other than Capacity Factor and Maximum Demand represent the actual figures for 2019.

68

Source: JEPIC, "Overseas Electric Power Industry Statistics:
Comparative Table Classified by Country" (2022)figures for 2019.

OV E R S E AS AC T I V I T I E S O F M E M B E R C O M PA N I E SThis section presents information on member companies’ overseas activities, provided by a number of member
companies. Although JEPIC has compiled this information with care, no guarantee can be made as to its accuracy.

The Electric Power Industry in Japan 2024

Recent Overseas Activities of Member Companies *North and South America
Company

Project

Location

Type

Capacity

Equity

[MW]

[%]

COD

JERA

Brady Thermal IPP Project​

USA​

Oil/Gas​1,633​

100

–

Chubu

Eavor Technologies Inc.​

Canada​Geothermal​

–

–

2022

KansaiAviator​USA

Onshore Wind​

525​

48.5

2020

KyushuSouth Field Energy Gas-Fired Power Plant​

USAPower Plant​

1,182

18.1

2021

KyushuThermochem, Inc.​

USA​

Geothermal Services​–(Private)–

KyushuEnernet Global Inc.​

USA​

Microgrid​–(Private)–

KyushuPersistent Energy Capital LLC​

USA​

Enterprise​
Support​​–(Private)–

J-POWER

Jackson​

IL, USA​

CCGT

1,200

51

2022

J-POWER

Refugio​

TX, USA​

Solar​

400

25

2024

Hokkaido

PV project in Mexico​

Mexico​

PV​

290​

12

2018

ChugokuSouth Field Energy​

USA

CCGT

1,182​

10

2021

ShikokuSouth Field Energy​

USA

CCGT

1,182​

8.9

2021

Shikoku

Huatacondo​

Chile​

PV​

98​

30

2019

Location

Type

UK
NorwayEuropeCompany

Project

Tokyo

ZenobeTokyo

TetraSpar floating offshore winddemonstration projectPower transmission project for Triton Knoll
Offshore Windfarm

Tokyo
Tokyo

Flotation Energy

Tokyo

UK

Capacity

Equity[MW][%]

Battery Storage

435

0.6

2019

Floating offshorewind
Offshore
Transmission

4

30

2021

–

20

2022

COD

UK

Offshore wind

–

100

2022

NeuConnect Interconnector Project

UK,
Germany

Offshoretransmission

–

6.5

2028

JERA

ParkwindBelgium

Renewable

600**

100

–

Chubu

Eneco Group

Netherlands

Integrated Energy
Business

–

20

2020

Chubu

Eavor Erdwarme Geretsried GmbHGermany

Geothermal

–

40

2022

Kansai

Piiparinmaki

Finland

Onshore Wind

211

15

2022

Kansai

NeuConnect

UKGermanyInterconnector

–

17.5

2028

Kansai

Triton Knoll Offshore Wind Farm

UK

Offshore Wind

857

16

2022

J-POWER

Triton Knoll Offshore Wind Farm

UK

Offshore Wind

857

25

2022

*Not an exhaustive list** Includes a project under construction​

70

OVERSEAS ACTIVITIES OF MEMBER COMPANIES

Asia
Company

Project

Location

Type

Capacity

Equity

[MW]

[%]

COD

Tokyo

DEEP C Green Energy

VietnamPower distribution,
Retail and RE supply

–

50

2018

Tokyo

Greenway Grid Global

Singapore,
Philippines,
Cambodia

Investment andIncubation

–

44

2018

Tokyo

Corporate Solar PPA Project in Thailand

Thailand

Rooftop solar

3.8

49

2022

Chubu

New Clark City

Philippines

Distribution andRetail

–

9

2019

Chubu

Bitexco Power Corporation

VietnamHydro / Solar

–

20

2021

Chubu

OMC Power Private

India

Mini-grid business

–

22

2022

JERA

Gia Lai Electricity

VietnamRenewable

503***

35.1

–

JERA

Cirebon Coal Thermal IPP ProjectIndonesia

Coal

1,000

10.0

2023

TohokuRantau Dedap Geothermal Power Plant ProjectIndonesia

Geothermal

98.4

20

2021

TohokuNghi Son 2 BOT Thermal Power Plant Project

VietnamCoal (SC)

1,200

10

2022

Hokuriku

Sun-eeeCambodia

Distribution andRetail

–

25.01

2022

KansaiNam Ngiep 1

Laos

Hydro

290

45

2019

Kansai

New Clark City

Philippines

Distribution andRetail–9

2019

Chugoku

PakkatIndonesia

Hydro

18

25

2016

ChugokuFeng Ping Xi

Taiwan

Hydro

37.1

25

2027

Shikoku

Phu YenVietnam

PV

214

15

2019

KyushuSenoko Energy Pte. Ltd.

Singapore

2,382

15

––

Kyushu

EGCO

Thailand

6,202

6.1

–

KyushuPhilippine Microgrid Project of PowerSource Group

Philippines

Microgrid

0.1 – 2.1

(Private)–

KyushuSyrdarya Gas-Fired Power Generation

Uzbekistan

Power Plant

1,600

14.3

(Private)

KyushuShizen International

Japan

Capital Cooperation

–

–

–

KyushuPetro Green Energy Corporation

Philippines

Electric
Business

80

25

–

J-POWER

BatangIndonesia

Coal-fired (USC)

2,000

34

2022

J-POWER

Rooftop Solar (GJP1) (9 projects)

Thailand

Solar

11.2

60

2021-2024

J-POWER

EGCO Cogen (Replacement)

Thailand

CCGT

74

20

2024

J-POWER

Lake Mainit

Philippines

Hydro

24.9

40

2023

J-POWER

Bulanog Batang

Philippines

Hydro

33.5

40

2030

J-POWER

Turga Pumped Storage(Detailed Design and Supervision)

India

Consulting

–

–

–

Electric
Business
Electric
Business*** Includes a project under construction

71

The Electric Power Industry in Japan 2024

OthersCapacity

Equity[MW][%]

Technical
Cooperation

–

–

2020

UgandaTechnical
Cooperation

–

–

2020

JordanTechnical
Cooperation

–

–

2023

United Arab Emirates

CCGT

2,400

19.6

–

Fiji

Electric
Company

327

44.0

–

Cabo Verde

Consultation

–

–

2021
-2024

United Arab Emirates

CCGT

1,800

15

2023

Project for Introduction of Hybrid
Power Generation System

Cabo Verde

Consultation

–

–

2021

KyushuExecution of Agreement on "The
Project for Capacity Developmentof Power Transmission Systems in
Kenya" with JICA

Kenya

Consultation

–

–

2021

KyushuParticipation in Al Dur 1 IWPP

BahrainWater & Power
Plant

1,234

19.8

2021

KyushuAbu Dhabi HVDC Subsea
Transmission Project

United Arab Emirates

SubseaTransmission
Project

–

–

2025

J-POWER

Kidston Stage-3 Wind

Australia

Wind

258

53.9

2026

J-POWER

K2-Hydro

Australia

Hydro(Pumpedstorage)

250

7.7

2024

J-POWER

Bulli Creek

Australia

Solar/Storage

2,000

53.9

–

Fiji, Tuvalu, Kiribati,
Federated States ofMicronesia (FSM),
Republic of the MarshallIslands (RMI),
Samoa, Tonga,
Cook Islands, Nauru,
Papua New Guinea,
Solomon Islands and Palau

Consulting––

2017-2023

Company

Project

Location

Type

Chubu

Project for Improvement of Energy
Loss Reduction on Distribution
Network

Mozambique

Chubu

Capacity Development Project for
Improvement of Protection ofTransmission Systems

Chubu

Power Energy Sector Advisor for
Regional Collaboration

Hokuriku

Fujairah F3 IPP

Chugoku

Energy Fiji Limited

Chugoku

Project for Introduction of Hybrid
Power Generation System

Shikoku

Hamriyah

KyushuOkinawa72

Project for Introduction of Hybrid
Power
Generation System in Pacific Island
Countries

COD

OVERSE AS AC TIV ITIES OF MEMBER COMPA NIES

Hokkaido Electric Power Co.
               $"'"  # "$ $$ "$#"'" $ ($"%!%$)#$$   & $#"'&#$##" '""$%#### $"&'$+")$!$&+%"$
#")$#!&! '%!&%!
)%&$!!&$*"%%" !+&")"+")!%'%$+" " %,!
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 .%""!&$'&&"#$"&+($!
%&$!&%%'%*#$!!
"($%%&!"!%'&&"!!%&%
!$" $!)!$+#")$#!& !&!!"#$&"!! ""!&!*#$&%'&(&$" %("#$ "& "!&"$!
%+%&      )&,)1 ,,)$ .)'*(# /#) &. ( !/-&# (. -(),)$ . 
/#) &. ( !/-&# (. -)-,)$ .  *#.2 ,)$ .  ,)$ . 




 3- +/#.2.",)/!"#.- +/#.2-.% #(&. (  0 &)*' (.-' ,#)1(- -.% #(." -)&,*)1 ,! ( ,.#)(*,)$ .)'*(21"#"#-*,.#&&2)1( 2&. (  0 &)*' (.-' ,#
!%+!#"!#%!  " !! !

&! %  ( #*'!" %$%# $%  '!" %$#%# $





!#!(##!%!" * )!

73

The Electric Power Industry in Japan 2024

Tohoku Electric Power Co.
         # !&"!""  $#'
!"" "'" !
' ! "!
!&!

% "$ $%!'&'&$ ! %("

!&$"&(

 

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$!"#  "" #""!" "!#! "' ! & # 
!"" % "!       

       $! "' #"##!!%$(" ##!#(#  "
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

 

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       



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   #"#!$##"# !#"
!$#%!#$"
!#(!" ' !
$!"#! &! #"74

OVERSE AS AC TIV ITIES OF MEMBER COMPA NIES

Tokyo Electric Power Company Holdings

     $%,#(  '+ (%** )%)%(- $&%-(%#&$. "%** %$ $(. # *  *)%+$(),"%& $( $*-%("/)"()*"%* $- $(# )(%- $(& ".- * &(%!*)+$(,"%&#$* $*$),("& &" $) $* +(%& )   ( %$   
/-0".9

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%* %$

            

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7

7
 

   

#2-,,#!14'**01/1',  ,"4'**#, *#1&#,"#/+,61-$*#5' *6#5!&,%#.-4#/$/-+"'3#/0#0-2/!#04'1&$*2!121',%
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

-,3#/1#/11'-,0'"#-*1%#)'.-*# -*1%#-2/!#-,3#/1#/-*1%# )
 #/+,0'"#-*1%#)'.-*# -*1%#-2/!#-,3#/1#/-*1%# )7 -1*! *#"'01,!#../-5 )+02 0#
../-5 )+-,*,"

75

The Electric Power Industry in Japan 2024

JERA
     
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%"+,.0%"/0".++&0"!00"/&/!"+/")5
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,.0%&/."/,+%&$%)5#)"4&)"0%".*)-,3".
$"+".0&,+&/,#$."0&*-,.0+ "+!0%"+)%".*),3".00&,+/ ,+0.&10"0,/0)"/1--)5//&$+&#& +0/,1. "/,#")" 0.& &05&+0%"."$&,+!1.&+$
"*".$"+ &"/+!-"(0&*"/ "01."/7 - &05 
7 5-" ,+2"+0&,+)+&06 &*-)" 5 )"$/01.&+"+&0 
7 1")01.)$/-"0.,)"1*
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7   +&0+&0 +&0 

Chubu Electric Power Co.

           !      
""# $      
!%$$%$!%#' &$
%#$&% 
&#!"!($$!% !#
 ! !  !       
             

76

 

                                                                        

OVERSE AS AC TIV ITIES OF MEMBER COMPA NIES

Hokuriku Electric Power Co.
  

# # " $  %#   " !"" " ! !"%""$# " "" 
 30/.1$
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   +   ,(2/'(2 )#!1/'! ,4#/ /+0*'00',+  '01/' 21',+ ,*-+6 01/1#"!,))#!1'3# *+%#*#+1 ,$ 2+### 1# 1" 2+### 4'1& /##+46 /'" ), )
1# 1" 6 -/1'))6 !.2'/'+% 1&# 0&/#0 ,$ 2+### 2/-,0#7 ,+1/' 21#1,1&#01 )#-,4#/02--)6'+
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*-,+%&*-/,3'+!#'+* ,"'77

The Electric Power Industry in Japan 2024

Kansai Electric Power Co.
        )-$)(2  (-+&$(&(  -.+ ,2 (,#)+ $()/ + ( +-$)(
2 '  $$*+$('1%$2 .' +)!.+$( ,  2 )-&)/ +.-*.-  +-( +,2 # (,$& -+$)/ +( -# +&(,   
2 & ((')(-& (( +"0.(
$(      3(&7.32< 27-*&1,.*4!.9*5#5.'87&5;
3+7-**/32,!.9*5.2&36 
 

 

  78  *&785*6< ;)5343:*5 0&27
< &1*&1,.*4 < &5,*"(&0*&1 1-.,-&2)
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 !*5*,80&7.32 3:*5"7&7.32 %&572*56< #-*&26&.0*(75.( 3:*52( *7-*50&2)6$ < #27*52&7.32&0 < &330).2,6"7&7*27*545.6* 

OV ERSE A S AC TIV ITIES OF MEMBER COMPA NIES

Chugoku Electric Power Co.

     
 "    #$!!  ! $$
   #$" !$## ! $#  $     *+()- (%!*$(, !  # *- %* %$ !
- & *,

 )" ,(%- '+ *,(









      $  

79

The Electric Power Industry in Japan 2024

Shikoku Electric Power Co.
   

 *'&%(.
%$()'*)%$%$,&%,'&"$). "$)%&')%$$&%,',%"(" )*'(.   .
 -
. -'('%# *$' (#. '%"'(. *#)%#% %'&%')%$. $'-$$"'+(. '  (()$#$). !%!*")'%,' %         

80  OV ERSE A S AC TIV ITIES OF MEMBER COMPA NIES

Kyushu Electric Power Co.
        
        74215'= '2.#%'176&#6'&219'4)'0'4#6+10(#%+.+6+'59+6*
*+)*'((+%+'0%;)#5(+4'&2.#065#0&*'.2!<$'-+56#061#%*+'8'+656#4)'6614'&7%'
)4''0*175')#5'/+55+105   '#674'5= 1%#6+10
;4&#4;#4')+10'27$.+%1(!<$'-+56#0

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81The Electric Power Industry in Japan 2024

Okinawa Electric Power Co.
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83

The Electric Power Industry in Japan 2024

The Japan Atomic Power Co.
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84

Member Companies Data (As of March 31, 2023)*

FY 2022

Approved maximum output of power facilities [MW]**

Capital (¥m)
Nonconsolidated

Sales (¥m)
Consolidated

Electricity
sold retail

Hydro

ThermalNuclearHokkaido EPCo

114,291

888,874

23,932

1,656

4,649

2,070

–

8,375

Tohoku EPCo

251,441

3,007,204

65,9402,571

11,8712,750

193

17,386TEPCO HD

1,400,975

7,798,696

184,825

9,991

–

8,212

51

18,254

Chubu EPCo

430,777

3,986,681

101,658

5,467

–

3,617

89

9,173

Hokuriku EPCo

117,641

817,601

26,273

1,964

4,565

1,746

–

8,274

Kansai EPCo

489,320

3,951,884

111,565

8,248

13,7116,578

11

28,548

Chugoku EPCo

197,024

1,694,602

45,328

2,907

7,354

820

6

11,087

Shikoku EPCo

145,551

833,203

23,413

1,153

3,235

890

2

5,280

Kyushu EPCo

237,304

2,221,300

76,546

3,589

8,035

4,140

214

15,978

Okinawa EPCo

7,586

223,517

7,073

–

1,629

–

2

1,631

J-POWER

180,502

1,841,922

0

8,577

8,412

–

555

17,544

JAPC

120,000

92,185

–

–

–

2,260

–

2,260

[GWh]

Renewable(excl. hydro)

Total*Some consolidated data contains non-consolidated data.
**Calculated based on figures contained in the “key facilities” sections of financial statements.
Source: Compiled based on companies’ financial statements (Japan Atomic Power Company data are from summary statement of business)

Note: The existing thermal power generation businesses of Tepco Fuel & Power, Inc. (a subsidiary of TEPCO HD) and Chubu Electric Power
Co., Ltd. were integrated into JERA Co., Inc. on April 1, 2019.

JERA

100,000

7,945

–

–

54,843––54,843

Source: Financial statement

85

CONTRIBUTORS:Takashi Otsuki
Naoto Kishimoto
Masato Nabeshima
Manabu Hirano
Eisuke Sakagami
Hiroaki Sasa
Hirokazu Yamanaka
Toshio Aki
Ryoji Fujii
Ryusuke Kawamoto
Midori Ohashi

COVER PHOTO:

Koushi Tsubota

DISCLAIMER

This publication was prepared by the Japan Electric Power
Information Center (JEPIC), based on publically available
information. While we presume this information to beaccurate and reliable, we provide no guarantee as to theaccuracy of the data or information contained herein. JEPIC
shall therefore assume no legal responsibility for any trouble,
loss, or damages resulting from any actions taken based on
the content of this publication.
All rights reserved.
©2024 Japan Electric Power Information Center, Inc.

Distribution Areas and Frequency of General
Electricity T&D Utilities(As of February 2023)

Hokkaido
Electric Power
Network

TohokuElectric Power
Network

Hokuriku
Electric Power
T&D
ChugokuElectric Power
T&D

Kansai
T&D

Chubu
Electric
Power Grid

TEPCOPower Grid

KEY FACTS

KyushuElectric Power
T&D

ShikokuElectric Power
T&D

Capital

Tokyo

Area

377,973 km2 (as of Oct. 1, 2022)

Population

126,150,000 (as of Oct. 1, 2020)
Shinto, Buddhism, Christianity,
etc.
Bicameral legislative system
Yen (USD1 = JPY130.96, as ofReligions

60 Hz

50 Hz

Government
Currency
GDP

Jan. 4, 2023)

JJPY550,530.4 billion (nominal,
FY2021, first annual estimate)

GNI per capita USD42,000 (nominal, 2021)

Okinawa
Electric Power Co.

Fiscal year

April 1 – March 31

Major
industrial
products

Automobiles, chemicals, food,steel, electronic parts/devices

Trade

Exports: JPY83,091.4 billion /Imports: JPY84,875.0 billion(final, 2021)

Source: Kyodo News, World Yearbook 2023

Member Companies (As of February 2023)
Hokkaido Electric Power Co., Inc.
2, Higashi 1-chome, Odori, Chuo-ku, Sapporo, Hokkaido 060-8677, Japan
https://www.hepco.co.jp/english/

The Chugoku Electric Power Co., Inc.
4-33, Komachi, Naka-ku, Hiroshima-shi, Hiroshima 730-8701, Japan
http://www.energia.co.jp/e/Tohoku Electric Power Co., Inc.
1-7-1 Honcho, Aoba-ku, Sendai, Miyagi 980-8550, Japan
http://www.tohoku-epco.co.jp/english/

Shikoku Electric Power Co., Inc.
2-5, Marunouchi, Takamatsu, Kagawa 760-8573, Japan
https://www.yonden.co.jp/english/

Tokyo Electric Power Company Holdings, Inc.
1-1-3, Uchisaiwai-cho, Chiyoda-ku, Tokyo 100-8560, Japan
http://www.tepco.co.jp/en/

Kyushu Electric Power Co., Inc.
2-1-82, Watanabe-dori, Chuo-ku, Fukuoka, 810-8720, Japan
https://www.kyuden.co.jp/english_index.html

Chubu Electric Power Co., Inc.
1, Higashi-shincho, Higashi-ku, Nagoya, Aichi 461-8680, Japan
http://www.chuden.co.jp/english/

The Okinawa Electric Power Co., Inc.
5-2-1, Makiminato, Urasoe, Okinawa 901-2602, Japan
http://www.okiden.co.jp/en/

Hokuriku Electric Power Co.
15-1, Ushijima-cho, Toyama-shi, Toyama 930-8686, Japan
http://www.rikuden.co.jp/english/

Electric Power Development Co., Ltd. (J-POWER)
6-15-1, Ginza, Chuo-ku, Tokyo 104-8165, Japan
http://www.jpower.co.jp/english/

The Kansai Electric Power Co., Inc.
3-6-16, Nakanoshima, Kita-ku, Osaka 530-8270, Japan
http://www.kepco.co.jp/english/

The Japan Atomic Power Co.
5-2-1, Ueno, Taito-ku, Tokyo 110-0005, Japan
http://www.japc.co.jp/english/

2024

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T he El ec t r ic Power Indus t r y in Jap an 2 02 4

The Electric Power
Industry in JapanThe Electric Power
Industry in Japan2024