THE ELECTRIC POWER
INDUSTRY IN JAPAN2021

JEPICJapan Electric Power Information Center, Inc. (JEPIC) was established in 1958 as a non-profit association of theelectric utility industry in Japan. Our primary purpose is to meet the increasing need for a systematic andsustained 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 to contributeto the industry worldwide. JEPIC also works to enhance cooperation with foreign electric utilities and otherrelated organizations.

International Exchange Activities
JEPIC is promoting information exchanges with the foreign electric utilities and organizations in the electricutility industry by holding regular meetings, and taking part in international conferences and symposia.

International Cooperation
With the support of the member companies, JEPIC promotes integrated international cooperation programs fordeveloping countries, mainly in Asia, for the purpose of improving power infrastructure and nuclear 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 the participants of theseseminars to Japan and dispatches experts to their countries. Including these seminar programs, 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

5II. ENERGY AND ENVIRONMENTAL POLICY

10

III. SUPPLY AND DEMAND

25

IV. ELECTRIC POWER FACILITIES

31

V. RETAIL BUSINESS AND TRADING MARKETS

44

TOPICS: Electric Vehicle Initiatives

53

STATISTICAL DATA59OVERSEAS ACTIVITIES OF MEMBER COMPANIES63

MEMBER COMPANIES DATA

76

The Electric Power Industry in Japan 2021

EXECUTIVE SUMMARY
The information in this document, including the Executive Summary, was current as of the end of August 2020, unless otherwise specified.

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 the retailsupply of electricity to all except low-voltage customers was then implemented in stages between 2000 and2005.
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 toabolish regulated electricity rates in April 2020 have been deferred.
Today, Japan’s electrical power industry comprises three major sectors: electricity generation, transmission anddistribution, and retailing. The number of operators in these sectors was 914, 13, and 670, respectively.

II. ENERGY AND ENVIRONMENTAL POLICY
Under the philosophy of 3E+S (energy security, economic efficiency, and environment plus safety), theelectricity sector aims to achieve a more balanced power generation mix by improving the efficiency ofthermal power plants, reducing dependence on nuclear power, and expanding use of renewables.
Sixteen nuclear reactors have been granted the “permission for change to reactor installation” under the
new regulatory standards, which verifies their compliance with those standards. Nine of these have alreadyreentered commercial service. A number of other idled reactors are expected to restart, but 24 other units havebeen earmarked for decommissioning, including the reactors involved in the accident at Fukushima Daiichi
Power Plant.
Installed capacity of renewables (especially solar) increased as the result of a feed-in tariff (FIT) scheme. The
Act on Special Measures Concerning Promotion of Utilization of Electricity from Renewable Energy Sources,
enacted in June 2020, provides for a complete overhaul of the FIT scheme. Among other provisions, thelaw calls for the launch of a feed-in premium scheme in April 2022 to add premiums to the market prices ofrenewables.
In March 2020, the Japanese government submitted to the United Nations its Nationally Determined
Contribution (NDC) for reducing emissions. The target contribution remains the same as the one submitted in2015, a 26% reduction compared to fiscal 2013.

2

EXECUTIVE SUMMARY

In a policy speech given in October 2020, Prime Minister Yoshihide Suga announced that Japan would seek tobecome carbon neutral by 2050.

III. SUPPLY AND DEMAND
In fiscal 2019, electricity demand1 in Japan was 877.1 TWh (down 2.1% YoY) and peak national demand cameto 158.7 GW (down 0.6% YoY).
In fiscal 2019, electric power generated2 in Japan came to 863.2 TWh (down 3.2% YoY), of which 13.2 TWh was
generated by solar power and 6.3 TWh by wind power.

IV. ELECTRIC POWER FACILITIES
Total generating capacity in Japan came to 307 GW at the end of fiscal 2019. This consisted of 160 GW ofthermal power, 49 GW of hydro power, 65 GW of renewables (excluding hydro), and 33 GW of nuclear power.
Development of 32 GW of generating capacity is planned from fiscal 2020 to fiscal 2029. This consists of 14.5
GW of thermal power, 7.4 GW of renewables (excluding hydro), and 10.2 GW of nuclear power.
As of the end of March 2020, smart meters had been installed at all extra-high voltage and high voltage
customers and at 75.2% of low voltage customers (including households). All customers are expected to havesmart meters by the end of March 2025.
In response to the increased intensity of natural disasters in recent years, the Japanese government enacted
the Energy Supply Resilience Act in June 2020 and amended the Electricity Business Act in the following
month, and is leading efforts to improve the resilience of Japan’s energy supply.
Plans have been laid out for the enhancement of interregional interconnections in order to improve theresilience of electricity infrastructure and realize interregional utilization of distributed energy sources. Recently
developed plans include increasing the capacity of frequency converters supporting the interconnections
between Tokyo and the Chubu region, and the capacity of the interconnections between Tokyo and the
Tohoku region.

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

3

The Electric Power Industry in Japan 2021

V. RETAIL BUSINESS AND TRADING MARKETSAs of the end of March 2020, 13.14 million low voltage customers (including households) have switchedsuppliers, accounting for 21% of the total number of low voltage customers.
The volume of trades on the JEPX spot market has been on the rise, reaching 292.5 TWh in fiscal 2019. This is amore than 40% increase year-on-year and means that about 30% of all electricity sold in Japan is sold through
JEPX. The average system price has hovered around 7-9 yen/kWh since fiscal 2015 and stood at 7.93 yen/kWhin fiscal 2019.
A baseload trading market was created in fiscal 2019. A total volume of 534 MW was sold for delivery in fiscal
2020, with clearing prices ranging from 8.47 to 12.47 yen/kWh.
Trading in the capacity market began in 2020. Capacity contracts for 2024 totaled 167.69 GW in volume, andhad a clearing price of 14,137 yen/kW.
Details are being worked out for the planned launch of balancing market trading in fiscal 2021.

4

I. S T R U C T U R E O F T H E E L E C T R I C P O W E R I N D U S T R Y

I. STRUCTURE OF THE ELECTRIC POWER INDUSTRY

1. H
 istory of Electric Power Industry
in Japan(1) Establishment of a System Comprising 10
Electric Utilities
Japan’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.
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
1970s, they lowered rates several times between the 1980s
and 2000s, successfully providing the power that supported
the development of Japan’s economy.

(2) Beginning of Liberalization of the Electricity
MarketFollowing 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.
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.

5

The Electric Power Industry in Japan 2021

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

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(liberalization of entry into
retail electricity market)

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)

Based on this policy, a new entity called the Organization forphase of liberalization of the retail market, another entity,

Cross-regional Coordination of Transmission Operators (OCCTO)

the Electricity Market Surveillance Commission (now called

was established in April 2015 with the aim of enhancing thethe Electricity and Gas Market Surveillance Commission) was

capacity to adjust supply and demand nationwide in bothestablished in September 2015 to strengthen oversight of thenormal and emergency situations. In preparation for the second

liberalized electric power market. A licensing system was then6

I. S T R U C T U R E O F T H E E L E C T R I C P O W E R I N D U S T R Y

launched in April 2016, liberalization of the electric power

2. Current Electricity Supply System

retailing and generation sectors was completed. In the third
phase, legal unbundling of the transmission and distribution(1) Classification of Electricity Utilities

sector was implemented in April 2020, and new spin-off

Japan’s electricity utilities had been divided into thefollowing five categories: general electricity utilities,
wholesale electricity utilities, wholesale suppliers, specified
electricity utilities, and specified-scale electricity suppliers(new entrants). Subsequently, with the implementation offull liberalization of the retail market, these classifications
were reviewed and a new system of issuing licenses tobusiness operators was introduced in April 2016. At present,
the licenses define three main categories of electricity
generation, transmission and distribution, and retailing.
The Agency for Natural Resources and Energy imposes
necessary regulations for each sector. The 10 generalelectricity utilities that have historically been engaged in
power supply since 1951 are now called “former generalelectricity utilities” (See Figures 1.2 and 1.3).

transmission and distribution companies were established byeight former general electricity utilities other than Tokyo ElectricPower Company Holdings, which was ahead on setting up newcompanies, and Okinawa Electric Co., which was not subject
to legal unbundling. Meanwhile, plans to abolish regulated
electricity rates scheduled for the end of March 2020 have beendeferred due to insufficient competition (see Figure 1.1 and“Electricity Rates” in Section 1, Chapter V).

The necessary legal groundwork for the third phaseof electricity system reform was completed with theenactment of revisions to the Electricity Business Act inNovember 2013, June 2014, and June 2015.

(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 environmental
acceptability including the promotion of renewableenergies. METI also indicated that in order to solve theseissues, steps should be taken to make existing markets
more liquid and to actualize new forms of value by creatingcompletely 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
have been 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 commenced
in markets (1), (2), and (4). (3) is scheduled to begin in phasesfrom April 2021 onward (See “Trading Markets” in Section 3,
Chapter V).

Data show that 914 entities had obtained power generation
licenses in the electricity generation sector as of August 15,
2020, and generating capacity was 266 GW1 as of March
2020. The group of former general electricity utilities, J-Power,
and the Japan Atomic Power Co. accounted for 80% ofgenerating capacity. In addition, power generation licenses
have been obtained by firms from industries such as paper
manufacturing, steel manufacturing, and gas and petroleum,as well as by some local governments.
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.
In addition, three other companies, including J-POWER
Transmission Network Co., Ltd., are conducting business aselectricity transmission utilities.
In the electricity retail sector, data released by METI’s Agency
for Natural Resources and Energy show that a total of
670 entities had obtained retail licenses (as of August 12,2020). 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 2019 came

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

7

The Electric Power Industry in Japan 2021

Electricity Supply System after Introduction of Licensing

Figure 1 . 2

A. Electricity generation business[notification only]
JFE Steel, JERA,
local governments, etc. (914 entities)

B. Electricity transmission anddistribution business ( (1)-(3) )(1) General electricity transmission anddistribution business [license required]
TEPCO Power Grid, Kansai Transmission
and Distribution, etc. (10 companies)(3) Specified electricity transmission
and distribution business[notification only]

System of general electricity transmission
and distribution utilities

SUMITOMO JOINT ELECTRIC
POWER, JR East, etc. (33 entities)(2) Electricity transmission business[license required]
J-POWER Transmission Network Co., Ltd.,North Hokkaido Wind Energy Transmission,etc. (3 companies)

C. Retail electricity business[registration required]
TEPCO Energy Partner,
The Kansai Electric Power Company, ENNET,
Tokyo Gas, KDDI, etc. (670 entities)
Homes, businesses, stores, etc.

Specified service points
distinguished from general demand.

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

Electricity transmission utilities

Specified electricity transmission
and distribution utilities

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

to 836 TWh, of which former general electricity utilities
accounted for about 85%.

(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,

8

efficient supply of energy from oil, electricity, gas, andother sources. With regard to the electric power industry,
the agency is responsible for developing the electricity
market and electricity sources, adjusting electricity market
supply and demand, and planning, devising, and promoting
policies relating to nuclear power, renewables and smart
communities to ensure a stable and efficient supply ofelectricity. The agency is given the role of supervising
electric utilities.

I. S T R U C T U R E O F T H E E L E C T R I C P O W E R I N D U S T R Y

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

General electricity transmission and distribution utilities• Hokkaido Electric Co.

• Hokkaido Electric Power Network, Inc.

• Tohoku Electric Co.

• Tohoku Electric Power Network, Co.

Figure 1 . 3

Electricity generation utilities and retailers• Hokkaido Electric Power Co. (generation & retail)• 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)• 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.

• 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.
*3 JERA took over the thermal power generation business of TEPCO and Chubu Electric Power in April 2019.

b. Electricity and Gas Market Surveillance Commission

The Electricity and Gas Market Surveillance Commission wasestablished in September 2015—as a separate entity fromthe Agency for Natural Resources and Energy in METI—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 theability to conduct on-site inspections of utilities, recommend
business improvements, act as an arbitrator/mediator,
approve wheeling service charges, and carry out reviews ofretailer registrations. It also has the power to monitor thefairness of transactions and regulate business conduct tosafeguard the neutrality of the electricity and gas network
sectors.

(3) Organization for Cross-regional Coordinationof Transmission 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:• To coordinate supply-demand plans and grid plans, boost
the transmission infrastructure (including the capacity of
frequency converters and interregional interconnections), andfacilitate nationwide grid operation spanning different areas.
• To coordinate cross-regional supply-demand balancing
and frequency adjustment by the transmission operators ineach area under normal conditions.
• To adjust supply and demand by instructing that output
be increased and power shared in the case of power
shortages due to a disaster or other emergency.
• To perform, in an unbiased manner, functions relating to
the acceptance of connections from new power sourcesand disclosure of grid data.
• To provide guidance and recommendations to electric
power suppliers, handle complaints from electric power
suppliers, and resolve disputes.
• To study the introduction of a supply and demandbalancing market, and study and operate a capacity
market as part of moves to secure supply and balancing
capacity.
• To study the efficient use of electricity transmission anddistribution facilities (“connect and manage”).

9The Electric Power Industry in Japan 2021

II. ENERGY AND ENVIRONMENTAL POLICY

1. Strategic Energy Plan
The government formulated its first Strategic Energy Plan in
October 2003, in accordance with the Basic Act on Energy
Policy’s requirement for a Basic Energy Plan to map out thebasic direction of energy policy. The plan subsequently
underwent several revisions, and the Fifth Strategic Energy
Plan was adopted by the cabinet in July 2018 to reflect theentry into effect of the Paris Agreement.
The basic concept of the fifth plan is to achieve what
are referred to as the “3E+S”—energy security, economic
efficiency, and environment plus safety—given Japan’s lackof domestic energy resources.
Guided by this 3E+S philosophy, the government
formulated the fifth plan based on the following two key
premises: firstly, that in the wake of the accident at the
Fukushima Daiichi Nuclear Power Plant (Fukushima Daiichi
accident), Japan should pursue the adoption of renewableenergy resources and minimize its dependence on nuclear
power, giving top priority to its safety; and secondly, that inview of its lack of fossil fuel resources, Japan should leverage
its energy technologies and play a leading role in thedevelopment of decarbonized energy.
The plan lays down basic policies and measures towards
2030 and offers a scenario for energy transition anddecarbonization in the years leading up to 2050.

(1) Basic Policies and Measures towards 2030
The Fifth Strategic Energy Plan adopts broad goals for eachelement of the 3E+S philosophy that underpins it. These are:(1) regarding energy security, an improvement in energy
self-sufficiency to in excess of the level prior to the Great
East Japan Earthquake (approximately 25%); (2) regarding
economic efficiency, a lowering of electricity rates in theface of an anticipated increase in costs arising from reducing
dependence on nuclear power and widening adoption ofrenewables; (3) regarding the environment, the adoption of

10

greenhouse gas reduction targets on a par with those in the
United States and Europe; and (4) regarding safety, action toincrease the safety of nuclear power.
The Fifth Strategic Energy Plan is grounded in part in theLong-term Energy Supply and Demand Outlook draftedby the government in July 2015. The plan calls for electric
power demand in fiscal 2030 to be kept to its fiscal 2013
level (around 980.8 TWh) by pursuing thoroughgoing energy(electric power) conservation efforts to counter the effect on
demand of economic growth, which is expected to continue.
Regarding the power generation mix, the aim is to makemore balanced use of resources to simultaneously achieve
the 3E+S while expanding use of renewables, improving
the efficiency of thermal power plants, and reducing
dependence on nuclear power. Nuclear power’s share of themix in fiscal 2030 is to be reduced from approximately 30%

Power Generation Mix in Fiscal 2030

Figure 2 . 1

Total power generation(approx.)

1,065 TWh

Biomass
3.7%–4.6%

Geothermal
1.0%–1.1%
Wind 1.7%

Renewableenergy22%–24%

Solar
7.0%

Nuclear20%–22%Hydro
8.8%–9.2%

LNG
27%

Coal
26%
Oil 3%

Source: METI, “Long-term Energy Supply and Demand Outlook 2015”

Source: METI, “Long-term Energy Supply and Demand Outlook 2015”

II. E N E R G Y A N D E N V I R O N M E N TA L P O L I C Y

prior to the Great East Japan Earthquake to around 20%–22%,
while renewables’ share will be increased from approximately
10% before the earthquake to about 22%–24% (Figure 2.1).

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

In July 2020 the Minister of Economy, Trade and Industry
repeated earlier expressions of the government’s intention
to phase out inefficient coal-fired power plants, and specificmeasures for achieving this goal are now being explored.

(2) The Challenge of Energy Transition and
Decarbonization by 2050
The Fifth Strategic Energy Plan offers a scenario for
Sophisticated 3E+S. This involves, among other things,
turning renewables into core elements of the power
generation mix, developing storage batteries, hydrogensystems, and digital technologies, improving safety,
economic efficiency, and flexibility to reduce nuclear
dependence and retain nuclear as an option for
decarbonization, and reducing the carbon footprint ofthermal power plants, which will remain core elements ofthe mix during the transitional period.

The Fukushima Daiichi accident led to an overhaul of thesystem of administration of nuclear power in order toseparate safety regulation from use and to unify nuclear
safety regulation work. The Nuclear Regulation Authority(NRA) was established in September 2012 as an affiliatedagency of the Ministry of the Environment. As a result of thischange, any future resumption of a nuclear power plant’s
operation will be predicated on a safety inspection by the
NRA and on the local government’s consent.
b. New Regulatory Requirements

Following the Fukushima Daiichi accident, the Act on theRegulation of Nuclear Source Material, Nuclear Fuel Material
and Reactors was revised to incorporate a number of newprovisions. These included:• Reinforcement of strategies for severe accidents, etc. (Figure
2.2).

Safety Measures Required by New Safety Regulatory Requirements
Establishment of emergency
response center

Securing of electricity
supply capabilities

Figure 2 . 2

Strengthening of offsite
power supply
Securing of water supply capabilities

Measures against
deliberate plane crashes

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)

11

The Electric Power Industry in Japan 2021

• Introduction of a “backfitting” program for existing nuclear
power facilities.
• Setting the period of operation of nuclear reactors (setting
the period of operation at 40 years, and allowing a onetime extension to this term not to exceed 20 years).
• Unification of regulation of nuclear power plants under the
Nuclear Reactor Regulation Act.
The Nuclear Regulation Authority (NRA) checks theconformance of nuclear reactors to the New Regulatory
Requirements through a 3-tier regulatory review process.
Tier 1 grants permission for changes in reactor installation,
Tier 2 approves the construction plan and requires preservice inspections, and Tier 3 approves the operationalsafety program.
c. Initiatives by the Private Sector

Alongside the measures being taken by the regulatory
agencies described above, the Japan Nuclear Safety Institute(JANSI) was launched in November 2012 to allow privatesector entities to voluntarily perform their own peer reviewsin order to improve safety, and this has strengthened
action to improve safety at individual power plants. It has
been joined by the Atomic Energy Association (ATENA),
established in July 2018 as an organization that interacts
with regulatory authorities on behalf of industry. The aim of
this association is to strengthen arrangements to addresscommon safety issues by utilities and manufacturers
affecting the nuclear power industry as a whole. JANSI
and ATENA are working closely together to achieve highstandards of safety.

(2) State of Nuclear Power Generation
Prior to the March 2011 Fukushima Daiichi accident, Japan
had 57 nuclear reactors in operation and three underconstruction, and the nationwide capacity factor averaged
68.3%. Following the accident, all reactors were provisionallyshut down due to changes in regulations. As a result ofefforts to bring plants into conformance with the new safety
regulatory requirements, nine reactors had restarted (threereactors in operation as of the end of 2020) achieving acapacity factor of more than 15% (Table 2.1).
The lifetime value of nuclear power plants became limitedby the government’s capping of reactor service life and the
expected additional costs of safety measures mandated
by the New Regulatory Requirements. After weighing thewishes of local governments and other considerations, plant
operators applied for permission for changes in reactor
installation for 27 units (including two under construction)and selected 24 aging small and medium-sized reactors fordecommissioning:
Of those 27 reactors, 16 were granted permission forchanges in reactor installation under the first tier ofregulatory review, and eventually nine of them werebrought back into operation after passing the second- andthird-tier reviews and receiving the local government’s
consent. Subsequently, however, six reactors were takenout of service—three because of delays in the completionof their specialized safety facilities,1 one due to a temporary
court injunction (under litigation), and two due toequipment trouble—thus effectively reducing the numberof operable reactors to three.
The situation regarding restarts and decommissioning issummarized in Table 2.2 below.

Nuclear Power Plant Capacity Factor

Capacity factor [ %]Table 2.1

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

68.3

38.0

4.4

3.6

0.0

1.2

5.0

8.4

15.0

21.4

15.5

Source: Compiled from Japan Atomic Industrial Forum, Inc., “Current Status of Nuclear Power Plants” (2020)

1 Specialized safety facilities: As part of major accident countermeasures mandated by the New Regulatory Requirements, nuclear plant operators are
required to construct bunkered back-up control centers designed to withstand deliberate aircraft crashes and similar threats.

12II. E N E R G Y A N D E N V I R O N M E N TA L P O L I C YCompliance with New Regulatory Standards

Table 2.2

Company

Restarted

Restart date

Operation
resuspended

Takahama Unit 3

Feb. 26, 2016 Aug. 2, 2020

Takahama Unit 4

Jun. 16, 2017 Oct. 7, 2020

Ohi Unit 3

Apr. 10, 2018 (Aug. 24, 2022)

Ohi Unit 4

Jun. 5, 2018

(Aug. 24, 2022)

Ikata Unit 3

Sep.7, 2016

(Mar. 22, 2021)

Genkai Unit 3

May 16, 2018 (Aug. 24, 2022)

Kyushu Electric Genkai Unit 4Power Co.
Sendai Unit 1

Sep. 10, 2015 Mar. 16, 2020

Sendai Unit 2

Nov. 17, 2015 May 20, 2020

Kansai ElectricPower Co.

Tier 1
review
completed(installation
licensegranted)(16 units)

Plant

Shikoku Electric

9 units Power Co.

Jul. 19, 2018

(Sep. 13, 2022)

Pending completion of Tier 2 and 3 reviews(construction approval, safety regulations, pre-service 7 units
inspections), and consent of local government
Under Tier 1 review (including 2 units under construction)

11 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: Not including the three JPDR, Fugen, and Monju reactors.

Source: Compiled from Japan Atomic Industrial Forum, Inc., “Current Status of Nuclear Power Plants in Japan” (2020).

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

13

The Electric Power Industry in Japan 2021

(3) Nuclear Fuel Cycle
a. Government Policy

As Japan is dependent on imports for the bulk of its energy
resources, a basic policy of the government has been to
establish a nuclear fuel cycle in order to reprocess the spent
fuel generated by nuclear power generation and reuse
the recovered plutonium and uranium as fuel. Steps are
therefore being taken to promote recycling and use of MOX
fuel in thermal reactors. Based on this policy, the Agreement
for Cooperation between the Government of Japan and theGovernment of the United States of America concerning
Peaceful Uses of Nuclear Energy that expired in July 2018, 30
years after it entered effect, was automatically renewed. Inorder to contribute to nuclear non-proliferation and to gain
the understanding of the international community, Japanis pursuing greater use of MOX fuel in thermal reactors andmanaging and using plutonium appropriately under the
principle of not possessing any plutonium that does nothave a use.
b. Uranium Enrichment

As the uranium-235 used by nuclear power plants
constitutes only about 0.7% of natural uranium, uranium
must be enriched to a uranium-235 concentration of 3%–5%before use. Japan Nuclear Fuel Ltd. (JNFL), a private-sector
company established to implement the nuclear fuel cycle on
a commercial basis, built a commercial uranium enrichment
plant in Rokkasho, Aomori Prefecture, that entered operationin March 1992. JNFL subsequently filed an application with
the Nuclear Regulation Authority for permission to switch
to using a new, cost-efficient type of centrifuge offering
improved performance and to introduce other changes
in compliance with the new regulations, and was granted
permission in May 2017.

system. The Nuclear Reprocessing Organization of Japan
was also established in October of that year to serve as thecorporation authorized to manage the funds necessary forreprocessing and to reliably perform reprocessing work andrelated activities.
With regard to interim storage of spent fuel, Tokyo ElectricPower Company Holdings and The Japan Atomic Power
Company are currently building a facility in Mutsu City,
Aomori Prefecture, for dry-cask storage of spent fuel until
it is transported to a reprocessing plant (the application
for approval of modifications complying with the new
regulations was filed in January 2014, and the NRA compiled
a report in September 2020 that deemed the application to
be approvable). The facility is scheduled to enter operation
with an initial storage capacity of 3,000 tons, which will later
be increased to 5,000 tons.
d. Disposal of Radioactive Waste

Low-level radioactive waste generated by nuclear power
plants is buried by JNFL’s Low-level Radioactive Waste
Disposal Center in Rokkasho, Aomori Prefecture.
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,
and METI published in July 2017 the Nationwide Map ofScientific Features for Geological Disposal showing potential
candidate sites as a preparatory step toward final disposal.
The government plans to narrow down the number ofcandidate sites based on this map, and a number of local
governments in Hokkaido are considering allowing surveys
for selection of the final disposal site.

c. Spent Fuel Reprocessinge. Development of Fast Reactors, etc.

JNFL has been building a commercial reprocessing plant at
Rokkasho that is expected to be completed in the first halfof 2022, and was granted official approval in July 2020 for
modifications needed to conform with the new regulations.
In light also of the changing business environment faced by
the nuclear power industry, including the deregulation of
the electricity market, the Spent Nuclear Fuel Reprocessing
Implementation Act was enacted in May 2016 to ensure thesteady implementation of reprocessing work and improve
the reprocessing environment in terms of the financing

In line with the Japanese government’s basic policy for
dealing with the country’s limited energy resources, theJapan Atomic Energy Agency (JAEA) constructed the
Joyo experimental fast breeder reactor, and later the
Monju prototype fast breeder reactor, which reached its
first criticality in April 1994. However, in December 2016,
the government decided to decommission Monju forseveral reasons, including a series of accidents that beganwith a sodium leak in 1995, concerns over the JAEA’s
competence to operate the reactor, and poor economic

14

II. E N E R G Y A N D E N V I R O N M E N TA L P O L I C Y

viability. Fast reactor research and development using the
Joyo experimental reactor will continue to be pursued inpartnership with other countries following the roadmap
developed in accordance with the new policy on fast reactor
development adopted by the Inter-Ministerial Council for
Nuclear Power in December 2016.

(4) Decommissioning Work at Fukushima Daiichi
Nuclear Power Plant
Efforts to decommission the Fukushima Daiichi Nuclear

Power Plant’s reactors are being carried out under thesupervision of the government’s Nuclear Emergency
Response Headquarters, which is led by the Prime Minister.
a. Decommissioning Roadmap

In December 2011, Fukushima Daiichi’s reactors were
declared to be in cold shutdown and TEPCO released aroadmap for decommissioning Units 1–4 and dealing
with radioactive contaminated water resulting from thedecommissioning process. A fifth revision of the roadmap
was issued in December 2019, by which time radiation levels

Changes in Air Dose Rate

Figure 2.3

7 years later

November 5, 2011

October 16, 2018

Source: Reconstruction Agency, “Acceleration of Reconstruction Efforts”

Milestones on the Mid- to Long-Term Roadmap

Initiatives toward stabilization

Achievement of cold
shutdown
Major reduction in radiation
releaseDecember 2011

Figure 2.4

Phase 3-1

Phase 1

Phase 2

Period from start of spent
fuel assembly removal(2 years or less)

Period unit start of fuel debris
retrieval(10 years or less)November 2013
(start of spent fuel assembly
removal from Unit 4)

December 2021

Phase 3

Period until completion of
decommissioning measures(30 to 40 years later)
End of 2031

30 to 40 years later

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

15

The Electric Power Industry in Japan 2021

in the surrounding area had decreased by 77% (Figure 2.3)
and gradual progress was being made in reconstruction andthe return of displaced residents. The fifth revised edition
gives top priority to safety and early reduction of risk andis premised on a commitment to simultaneously advancereconstruction and decommissioning work. The roadmap
lays out several key tasks, including removal of spent fuelfrom the reactor buildings’ spent fuel pools, retrieval ofmelted fuel debris, and implementation of contaminatedwater measures. The entire decommissioning project isdivided into three phases expected to span 30 to 40 years(Figure 2.4). Phase 1, which began with the completionof the reactors’ cold shutdown in December 2011 andended in November 2013, laid the groundwork for thecommencement of operations to remove the spent fuel.
Phase 2, scheduled to last until December 2021, initiatedthe process of spent fuel removal and is advancing
preparations for the start of debris retrieval. Phase 3 will
launch debris retrieval work and end with the completion of
all decommissioning operations.
b. Moving Fuel from Spent Fuel Pools

When the accident occurred, it was decided in the interestsof risk mitigation to remove the spent fuel then being stored
in spent fuel storage pools from the pools at Units 1–4 and to
store it in a shared pool at the site. The removal of spent fuelfrom the pool in Unit 4, where the most spent fuel was stored,
was completed in December 2014, and work to remove spent
fuel from Unit 3 started in April 2019. For Units 1 and 2, rubble
impeding the removal of fuel is being removed.
c. Removal 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 of the extremely high levels of radiation in thereactor buildings, surveys of the interiors are presently being
conducted using remote-controlled equipment in advanceof the removal work to be started in 2021.
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, a multilayered approachfor controlling the radioactive contaminated water is being

16

implemented under three strategies: treatment of thecontaminated water, prevention of groundwater intrusion,and prevention of leakage of the contaminated water.
The radioactive contaminated water is being treated to alevel below the discharge standards using a Multi-nuclide
Removal Facility (Advanced Liquid Processing System: ALPS)
and other equipment, and the treated water is stored onsite. The government is now considering how to handle
this treated water, taking a comprehensive approach thatexamines social impact as well as scientific assessments ofsafety. In line with a report issued by the advisory committee
in February 2020, the discussions are focusing on either
evaporating the water or discharging it into the ocean.

3. Renewable Energy(1) Current Status and Targets
The Fifth Strategic Energy Plan sets a target for renewableenergy adoption to be achieved by fiscal 2030 of 22%–24%of total power generation, based on a policy of adopting
renewable energies to the greatest extent possible to
make them core energy sources while balancing this withcontaining the burden imposed on customers. To assist the
adoption of renewables, a system for purchasing 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 (see below for details) was
introduced in July 2012. This scheme accelerated capital
investment in renewables, with installed capacity growing
by 52 GW between the launch of the FIT scheme and theend of December 2019. Including pre-FIT capacity, total
installed renewables capacity reached approximately 73 GW.

(2) FIT Scheme and Issues
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 electricity utilities to purchase all the electricity
generated from renewable energy sources (includinghydropower plants with a capacity of under 30 MW). Thisact led to implementation of the FIT scheme for renewableenergy on July 1, 2012.

II. E N E R G Y A N D E N V I R O N M E N TA L P O L I C YInstalled Capacity of Renewable Energy (as of end December 2019)

Table 2.3

[Unit: MW]

Combined total
by end June 2012

Combined capacity
installed under FIT

Total

4,700

6,730

11,430900

41,55742,457Wind power

2,600

1,367

3,967

Small/medium hydropower

9,600

497

10,097

Biomass

2,300

2,114

4,414

500

78

578

20,60052,34372,943

Type

Solar power (residential)
Solar power (non-residential)

Geothermal power
Total

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

Outline of the FIT Scheme

Figure 2.5

Those 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

Electric powercompanies

Collection of surcharge together
with electricity charge
Submission ofcollected surcharge

Payment forpurchase cost

Small- andmedium-scalehydro power

Electricity customers
Electricity supply

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

17

The Electric Power Industry in Japan 2021

Purchase Prices and Durations under the FIT Scheme

Table 2.4

Purchase price[yen/kWh]

Purchase category

Solar

FY2017FY2018FY2019Output controller not required

28

26

24

21

–

Output controller required

30

28

26

21

–

25

24

21

–

27

26

21

–

13

–

12

–

*1

Less than 10 kW Output controller not required,dual generation
Output controller required, dual
generation*1

FY2020 FY2021

10 kW–50 kW
50 kW–250 kW

21

250 kW–500 kW

18

14

Bidding system

21

20

19

18

–

55

20

19

18

–

18

17

16

16

–

Bottom-fixed offshore wind power

36

36

36

Biddingsystem–Floating offshore wind power

36

36

36

36

–

Less than 15,000 kW

40

40

40

40

40

15,000 kW or above

26

26

26

26

26

Geothermal (replacement Less than 15,000 kW
of all equipment)
15,000 kW or above

30

30

30

30

30

20

20

20

20

20

Geothermal (replacement Less than 15,000 kW
of equipment excepting
underground equipment) 15,000 kW or above

19

19

19

19

19

12

12

12

12

12

Less than 200 kW

34

34

34

34

34

200 kW–1,000 kW

29

29

29

29

29

Less than 20 kW
All capacities

Offshore wind power
Geothermal

Hydro

Hydro using existing
conduits*2

Biomass20

Bidding system

2,000 kW or above

Onshore wind power

10

Bidding system

500 kW–2,000 kW
20 kW or above

Duration[years]

Newly installed
Replacement capacity

1,000 kW–5,000 kW

27

27

27

27

27

5,000 kW–30,000 kW

20

20

20

20

20

Less than 200 kW

25

25

25

25

25

200 kW–1,000 kW

21

21

21

21

21

1,000 kW–5,000 kW

15

15

15

15

15

5,000 kW–30,000 kW

12

12

12

12

12

Methane fermentation gasification(biomass-derived)

39

39

39

39

39

Woody biomass(thinnings, etc.)

Less than 2,000 kW

40

40

40

40

40

2,000 kW or above

32

32

32

32

32

Construction material waste

All capacities

13

13

13

13

13

General waste and otherbiomass

All capacities

17

17

17

17

17

20

15

20

20

*1 Power generation facilities whose connection applications were received on or after April 1, 2015, and that are located in areas subject to supply and demand
control by Hokkaido, Tohoku, Hokuriku, Chugoku, Shikoku, Kyushu, or Okinawa Electric Power Companies are required to install output controllers.
*2 Upgrades to electrical facilities and penstocks utilizing existing conduits.
Source: Compiled from Agency for Natural Resources and Energy website

18

II. E N E R G Y A N D E N V I R O N M E N TA L P O L I C YResults of Tenders for Solar Power Generation

Table 2.5

Outline of tenders

Successful bids

First tender(November 2017)

Eligible facilities: 2 MW or above
Target volume: 500 MW

Second tender(September 2018)

Eligible facilities: 2 MW or above
Target volume: 250 MW

Third tender(December 2018)

Eligible facilities: 2 MW or above
Target volume: 196.96 MW

Fourth tender(September 2019)

Eligible facilities: 500 kW or above
Target volume: 300 MW

Fifth tender(January 2020)

Eligible facilities: 500 kW or above
Target volume: 416 MW

Successful bids: 9
Total output: 141.366 MW
Successful bid price: 17.20–21.00 yen/kWh
Successful bids: 0 (no bids came in below the ceiling price)
Total output:
Successful bid price:
Successful bids: 7
Total output: 196.96 MW
Successful bid price: 14.25–15.45 yen/kWh
Successful bids: 63
Total output: 195.883 MW
Successful bid prices: 10.50–13.99 yen/kWh
Successful bids: 27
Total output: 39.818 MW
Successful bid prices: 10.99–13.00 yen/kWh

Source: Compiled from Green Investment Promotion Organization website

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 forfiscal 2020 are as shown in Table 2.4. Under the FIT scheme,
electricity utilities are permitted to pass on their costs forthe purchase of electricity generated by renewable energy
sources to their customers in the form of a surcharge by
including them in the electricity bill. The surcharge forfiscal 2020 is 2.98 yen per kWh (2.3707 trillion yen for Japanas a whole), or 9,288 yen per year for the standard model
household. Under this system, electricity utilities collectthe surcharge from customers based on electricity sales
volume and transfer the funds to a cost-bearing adjustment
organization called the Green Investment Promotion
Organization, which refunds their purchase costs to them indue course (Figure 2.5).

2014 just after the launch of the FIT scheme when purchaseprices were high, and so the government revised the startup
deadlines and purchase prices for these projects. Regarding
wind power, geothermal, small/medium hydropower, andbiomass power generation, the pricing system was changed
to allow purchase prices to be set for multiple years. A
tender scheme for solar power generation above a certain
level has also been introduced to bring down purchaseprices. Results of tenders are shown in Table 2.5.

The scheme also contains a provision that reduces thesurcharge 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. Many solar power generation projects remain
unfinished despite having already been approved under the
FIT scheme. Most of these were approved between 2012 andYokkaichi Biomass Power Plant (Chubu Electric Power Co.)The Yokkaichi Biomass Power Plant is a woody biomass-fired power plant with an
output of 49MW. Commercial operation started in May, 2020

19

The Electric Power Industry in Japan 2021

(3) Complete Overhaul of the FIT Scheme
As adoption of renewables has spread, a number ofproblems with FIT have emerged, including rising renewable
surcharges on electricity rates and difficulties with receiving
power generated by renewables on the grid side. The
government has decided to overhaul the FIT system inorder to make renewables an economically self-sustaining
core element of the power generation mix. In June 2020,
the government revised the Act on Special Measures
Concerning Procurement of Electricity from Renewable
Energy Sources by Electricity Utilities through the enactmentof the Act on Special Measures Concerning Promotion of
Utilization of Electricity from Renewable Energy Sources. The
amended act prescribes, among other things, the rollout ofa feed-in premium scheme in April 2022 to add premiums
to the market price of renewables expected to evolve into
competitive power sources, such as large commercial solar
power generation and wind power generation. The detailsof this scheme are now under study. It also provides for thecreation of a nationwide surcharge scheme to partially offset
the costs of interregional interconnection development andother grid expansions needed to support the introduction
and spread of renewable energy. Moreover, it requires
electricity generation utilities to pay monies into an externalfund for covering the future cost of dismantling photovoltaic
power generation facilities when decommissioned.

Sakai Solar Power Station (Kansai Electric Power Co.)20(4) Development of Legal Framework for
Advancing Offshore Wind Farm Projects
Expectations for the potential of offshore wind power
continued to rise as efforts to expand onshore wind power,
mired by locational constraints and other issues, progressedmore slowly than the installation of solar power systems
after the launch of the FIT scheme in 2012. Accordingly, thegovernment enacted the Act on Promoting Utilization of
Sea Areas for Development of Power Generation Facilities
Using Maritime Renewable Energy Resources to lay out,
among other things, rules for ownership of maritime
areas and the process for coordinating the interests ofstakeholders such as members of the fishing industry.
Under this act, which went into effect in April 2019, thegovernment designates certain offshore areas suited forwind power generation as targeted promotional areas andselects operators by tender to carry out projects in thoseareas. As of July 2020, four areas had been designated (oneeach off Nagasaki and Chiba Prefectures, and two off Akita
Prefecture), and preparations were advancing toward thedesignation of 20 other areas. Many of the Japanese utilities
seeking to advance these projects are doing so throughcollaboration with various partners, particularly European
utilities experienced in operating offshore wind farms.

II. E N E R G Y A N D E N V I R O N M E N TA L P O L I C Y

4. Global Warming Countermeasures(1) International 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
the Paris Agreement, which addresses greenhouse gas(GHG) emission reductions from 2020 onward. The Paris
Agreement sets forth long-term shared global targets,
including keeping the average global temperature increase
well below 2°C above pre-industrial revolution levels andbalancing anthropogenic GHG emission and absorption in
the second half of this century. Unlike the Kyoto Protocol,
which required only developed nations to reduce theiremissions, the Paris Agreement requires all signatories to
set out emissions reduction targets as well as the domestic
policies to be employed to achieve those targets. The extent
to which those targets have been attained is to be evaluatedevery five years.

The Plan for Global Warming Countermeasures was approved
at a cabinet meeting in May 2016, setting out how the
GHG emission reduction target for 2030 (26.0% reduction
compared to fiscal 2013) outlined in the Intended Nationally
Determined Contribution (INDC) submitted by Japan in2015 will be achieved. This plan notes that it is important
to steadily implement the countermeasures outlined in
the INDC on the way to achieving the mid-term targets,and the government is looking to utilize a diverse range ofpolicy tools, including voluntary, regulatory, and economic
measures, exploiting their respective characteristics in an
effective manner. The policy for the electricity sector is tomaximize the deployment of renewable energies, improve
thermal power plant efficiency, and utilize nuclear power
plants that have been confirmed to be safe.
Furthermore, the government formulated the Fifth Strategic
Energy Plan in July 2018, and the cabinet adopted in June2019 a long-term strategy for reducing emissions up to 2050
as required by the Paris Agreement, and this was presented
to the UN Secretariat. This strategy sets a long-term targetof achieving an 80% reduction in GHG by 2050. Noting theGovernment 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.

November 2013

At COP19, Japan announces a target of achieving a 3.8% reduction relative to fiscal 2005 by 2020.

July 2015

Following the decision of COP19, the Japanese government submits to the UNFCCC Secretariat atarget of reducing emissions by 26% below fiscal 2013 levels (a 25.4% reduction relative to fiscal
2005 levels) by fiscal 2030.

May 2016

The Plan for Global Warming Countermeasures approved at a cabinet meeting in response to theconclusion of the Paris Agreement.

June 2019

The Long-term Strategy under the Paris Agreement approved by the cabinet.

March 2020

The Japanese government submits its NDC to the United Nations as required by the Paris Agreement.

October 2020

Prime Minister Suga announced that Japan would become carbon neutral by 2050.

Source: Compiled from Agency for Natural Resources and Energy website, etc.

21

The Electric Power Industry in Japan 2021

difficulty of achieving this target simply by continuing topursue conventional means of reducing emissions, it calls forinnovation coupled with a virtuous circle of environmental
and economic growth to solve environmental issues.

b. Joint Crediting Mechanism

The Japanese government employs the Joint Crediting
Mechanism (JCM) to effectively address climate change,
based on the belief that achieving “low-carbon growth”
globally depends on both developed and developing
countries alike making adequate use of technologies,
markets, and funds.

In March 2020, the Japanese government submitted to
the United Nations its Nationally Determined Contribution(NDC) for reducing emissions, as required by the Paris
Agreement. The target contribution remains the sameas that stated in the INDC. In a policy speech given in
the following October, Prime Minister Yoshihide Sugaannounced that Japan would do its utmost to transform
into a green society, and become carbon neutral by 2050 byachieving net-zero greenhouse gas emissions.

The JCM allows contributions to GHG emission reductions
and carbon capture achieved in partner countries throughtransferals of Japanese low-carbon technologies andoutcomes to be counted as part of Japan’s contribution.
The Japanese government has consulted with developing
countries concerning the JCM since 2011. It has signed
bilateral documents with 17 countries, the latest being with
the Philippines in January 2017.

Table 2.6 shows the government’s initiatives relating to GHG
reduction targets since adoption of the Kyoto Protocol in
1997.

Changes in CO2 Emissions by Sector

Figure 2.6

500 [Million tons-CO2 ]

503

463

467

<relative to fiscal 2013 >(relative to fiscal 2005)

Industrial (plants, etc.)<-14.0%>(-14.9%)

400

398

300

Transportation (vehicles, etc.)
244
Operations and others(commercial operations,services and offices, etc.)

207

200

238
<-6.2%>

220

210 (-13.8%)

224<-17.6%>

208
170
Energy conversion (excluding statistical errors
in the distribution of electricity and heat)

131
96

0

’90

’91

’92

’93

95 <-10.5%>(-7.2%)

32

Industrial processes and use of products
49
29

46 (-17.9%)
29 <-1.5%>

Other emissions (agriculture, indirect CO 2 emissions, etc.) 4.6

3.5

3.1 <-11.5%>

Waste (incineration, etc.)

6.7

106

102
56

66
24

<-20.3%>166 (-2.8%)

Residential

130
100

196 (-11.1%)

’94

’95

’96

’97

’98

’99

’00

’01

’02

’03

’04

’05

’06

’07

’08

’09

’10

’11

’12

’13

<-4.9%>(-8.6%)

’14

’15

’16

’17

(-31.7%)’18[ FY ]

NoteNote
1: Emissions
by sector
are calculatedby distributing
the emissions
that accompany
power generation
thermal generation
among
the respective
finaltheconsumption
1: Emissions
by sector
are calculatedby distributing
the emissions
that accompany
powerandgenerationand thermal
generation
amongrespectivesectors.
final consumption sectors.
NoteNote
2: Percentages
in angle
indicatechangechange
in emissions
in each sector
relative2013,
andrelative
percentages
in parentheses
indicate change relative to fiscal 2005.
2: Percentages
in brackets
parentheses
indicatein emissions
in eachsectortoinfiscal
fiscal2013
to fiscal
2005.
Source: Ministry of the Environment, “Japan’s National Greenhouse Gas Emissions in Fiscal Year 2018 (Final Figures)” (2020)22

II. E N E R G Y A N D E N V I R O N M E N TA L P O L I C YInternational discussions are underway concerning thevalidity of the JCM under the Paris Agreement.

of net-zero emission technologies, active deployment anddiffusion of those technologies, and financing for the projects.
c. CO2 Emission and Global Warming Countermeasures(2) GHG Emissions and Voluntary Efforts by thePrivate Sector
a. GHG Emissions in Japan

In fiscal 2018, Japan’s GHG emissions measured 1,240 million
tons (CO2 equivalent), and emissions of CO2 accounted for
91.7% (1,138 million tons) of this total. CO2 emissions showed
13.6% decrease from fiscal 2013 and a 12.0% decrease fromfiscal 2005 (Figure 2.6).
CO2 emissions in individual sectors have been decreasing
since 2013, and declining by 14.0%, 17.6%, and 20.3%
respectively in the industrial sector, the commercial sector,
and the residential sector between fiscal 2013 and fiscal
2018. 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.
b. Voluntary Efforts by the Private Sector

In order to better contribute to global GHG emission
reductions over the long-term, the Japan Business Federation(Keidanren) issued the Commitment to a Low Carbon Society(Phase I) in 2013, followed in 2015 by the Commitment to a
Low Carbon Society (Phase II) laying down commitments up
to 2030 in order to further contribute to action on climatechange. Commitment to a Low Carbon Society calls forparticipants to set targets and review progress themselves toensure the effectiveness of their actions, and further commits
the Japanese business community with its technologicalstrengths to play a key role in the drive to halve global GHG
emissions by 2050.
As of March 2019, 62 industries had adopted targets foremissions resulting from business activities in Japan in 2030,
and action is underway to reduce emissions throughout
entire value chains and to accelerate the development ofinnovative technologies and contribute more internationally.
In June 2020, more than 130 corporate members of the Japan
Business Federation endorsed the “Declaration on Challenge
Zero” initiative for boldly pursuing innovation toward therealization of a decarbonized society, and announced over
300 innovation challenges in areas such as development

Implemented by the Electric Power Industry

The Federation of Electric Power Companies of Japan(FEPC) (consisting of former general electricity utilities)
is participating in the Japan Business Federation’s
Commitment to a Low Carbon Society and are promoting
measures on both the supply and demand sides of theelectricity. In July 2015, 10 members of FEPC, J-POWER, The
Japan Atomic Power Co. and 23 PPSs announced their own
Commitment to a Low-Carbon Society in the Electricity
Industry, which commits them to achieving a CO2 emission
factor in the electricity in fiscal 2030 of approximately
0.37 kg-CO2 /kWh (equivalent to a reduction of 35% fromthe fiscal 2013 level). The Electric Power Council for a Low
Carbon Society (ELCS) was established in February 2016 withthe aim of moving forward with the attainment of thesetargets for all electricity utilities as a whole.
According to data released by ELCS, CO2 emissions in fiscal
2019 (preliminary figures) came to 345 million tons-CO2 andthe CO2 emission factor was 0.444 kg-CO2/kWh.
On the supply side, electricity utilities are working on a
range of initiatives, including restarting nuclear power plants
which are confirmed to be safe, feeding electricity derived
from renewable energy sources into the grid based on
the FIT scheme for renewable energy, and improving theefficiency of thermal power plants.
On the demand side, they are actively promoting energy
conservation, providing information to realize more efficientelectricity use, and pursuing the widespread installation ofsmart meters.
The utilities are also actively pursuing research anddevelopment, working to develop a range of promisingtechnologies, including clean coal technologies, CO2
capture and storage technologies, next-generation powertransmission and distribution technologies, and ultra-highefficiency heat pumps.
Figure 2.7 shows CO2 emission trends in the electric powerindustry.

23

The Electric Power Industry in Japan 2021

CO2 Emissions in the Electric Power Industry

Figure 2.7(CO2 emission factor [kg-CO2 /kWh])

600 (CO2 emissions [million tons CO2 equivalent])

0.75

0.70
500

484

400

409

CO 2 emissions

415

441

0.65

430

411
0.60

0.570

373

300

469

372

0.552
0.531

317

332

345
0.496

301

0.55

0.516
0.50

275
0.476

200

0.463

0.423

0.417
100

0.487

0.45

0.444
0.40

CO 2 emission factor
0.373

0.35

0.351

0.350
0.30

0

’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
Note: Reflected adjustments made for Kyoto Mechanism credits
Source: Compiled from FEPC, “Energy and Environment” (2018)24’16 ’17’18’19

III. S U P P LY A N D D E M A N D

III. SUPPLY AND DEMAND

1. Electricity Demand and Peak Loadlargely unchanged since fiscal 2011 and the average of thethree highest daily loads in fiscal 2019 came to 158.7 GW(0.6% decrease from previous fiscal year).

Japan’s electricity demand increased for the most part until
the early 2000s. The real GDP growth rate in fiscal 2019 was
0.0% compared to fiscal 2018, when it rose 0.3% from ayear earlier. The unemployment rate in fiscal 2019 stood at
2.4%, which was the same as fiscal 2018. Annual electricity
demand has either declined or remained unchanged sincereaching 959.7 TWh in fiscal 2007, and in fiscal 2019 came to877.1 TWh1 (2.1% decrease from previous fiscal year) (Figure3.1). This trend is attributable to several factors, including(1) the slowing of economic growth, (2) improved energy
conservation, and (3) demographic decline. More recently,
however, growing solar power generation in the residential
sector, which these statistics do not capture, also appears tohave played a part. Peak national demand has also remained

Demand in April and May 2020 decreased by 3.2% and 8.7%,
respectively, versus the same period in the previous year due
to the impact of the COVID-19 pandemic.
Power consumption breaks down by use as follows: 28%
residential demand, 34% commercial demand, and 37%
industrial demand (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 non-industrial

Changes in Electricity Demand, 1975–2019

Figure 3.1

1,000 [ TWh ]

918
858

927

960

926

897

931
884

875

876

900
855

842

914

896

877

777
750

678

541
500

464
374

250

0

1975 1980 1985 1990 1995 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
[ FY ]

Source: Compiled from Agency for Natural Resources and Energy, “Handbook of Electric Power Industry” (2019) and “Surveys and Statistics of Electricity” (2020)

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

25

The Electric Power Industry in Japan 2021

Breakdown of Power Consumption by Sector, 1975–2018

Figure 3.2

Transportation

Industrial

Residential

Commercial

100%

75%

50%

25%

0%

1975

1985

1995

2000

2005

2010

2011

2012

2013

2014

2015

2016

2017

2018 [ FY ]Note: The method of calculation was changed from fiscal 1990.
Source: Agency for Natural Resources and Energy, “Energy Balance in Japan” (2020)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, applianceownership reached a saturation point, and energy-saving
devices began to capture a growing share of the market.
In fiscal 2011, increased awareness of the importance ofsaving electricity in the aftermath of the Fukushima Daiichi
accident caused consumption to go into decline. In fiscal
2018, non-industrial consumption accounted for 62% of final
power consumption.
In the years preceding the March 2011 Great East Japan
Earthquake, the rise in the non-industrial share of demand

26

widened the gap between summer/winter demand andspring/fall demand (Figure 3.3), and between daytime andnighttime hours (Figure 3.4) due to the use of electricity forheating and cooling. Since the disaster, however, power
conservation, wider adoption of solar power generation, andother measures have curbed daytime grid power demandduring the summer, thus shrinking the disparities between
the summer and other seasons, and between daytime andnighttime hours during the summer.
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.,
the ratio of annual average load to annual peak load, an
indicator of the efficiency of use of generation facilities)
followed a downward trend in the late 1990s, it actually
improved to 60%–70% from the mid-2000s. This is thanks inlarge part to the introduction of electricity rates designed tolevel loads and nighttime electricity use (Figure 3.5).

III. S U P P LY A N D D E M A N DElectric Power Consumption over the Course of a Year

Figure 3.3

90 [ TWh ]80

FY2019FY2005FY2015
FY1995

70
60
50
40

FY198530

FY197520

FY1965

10
0

Apr.

May

June

July

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

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.
Source: Compiled from FEPC, “Electricity Demand” up to fiscal 2015, and OCCTO, “Information on Electricity Supply and Demand” from fiscal 2016

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

165

154

Power consumption

140

July 24, 2001

144

Aug. 23, 2010
Aug. 5, 2005

120

Aug. 25, 1995

94

100

92
88

80

Aug. 7, 1990

92

76

Aug. 29, 1985

73

65

60

Aug. 2, 2019
Aug. 7, 2015

110

July 31, 1975

50

40

32
20
0
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

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

20

21

22 23 24
[Time of day]

Source: Japan Atomic Energy Relations Organization, “Graphical Flip-chart of Nuclear & Energy Related Topics” (2020)

27

The Electric Power Industry in Japan 2021

Annual Load Factor, 1975–2019

Figure 3.5

70%

65%

60%

55%

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

50%
1975

1980

1985

1990

1995

2000

2005

2010

2015

2019
[FY]

Source: Compiled from Agency for Natural Resources and Energy, “Handbook of Electric Power Industry” (2018) 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)

2. E
 lectric Power Generated
Electric power generated2 came to 863.2 TWh in fiscal 2019(3.2% decrease from previous fiscal year). The progressive
shutdown of nuclear power plants following the March 2011
earthquake increased dependence on thermal power plants
and caused thermal’s share of power generated to rise from
79.1% in fiscal 2010 to 80.7% in fiscal 2019 (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 while thermal’sshare rose to 90.8%. Since the restart of Kyushu Electric Power
Co.’s Sendai Nuclear Power Plant in August 2015, several otherplants have gradually come back online. However, nuclear’s
share of power generated in fiscal 2019 was still only 7.1%.
On the other hand, the construction of renewable energy
installations such as wind and solar power plants has
increased. In fiscal 2019, 6.3 TWh of electric power was
generated by wind power, and 13.2 TWh by solar power(Figure 3.7). As an effect of the FIT scheme launched in July
2012, the use of solar power has saliently increased since

2 Electric power generated by electricity utilities.

28

then, and solar power installations have been growing witheach passing year, not only for business use, but also for
self-consumption.

3. E
 lectricity Supply and Demand
Balance(1) Present and Projected State of Supply and
Demand Balancea. Recent Developments

Nine years since the Great East Japan Earthquake, Japan’s
electricity supply and demand situation is improving. Due tothe prolonged shutdown of nuclear power plants, however,the country still remains dependent on thermal power toensure a stable supply of electricity.
b. Supply and Demand Projections

As for the electricity supply and demand situation, it hasremained possible in recent years to maintain the minimum

III. S U P P LY A N D D E M A N D

Power Generation Mix, 1975–2019

Figure 3.6

ThermalNuclear

Hydro

1.5%

1.8%

2.1%

2.5%

10%

9%

10%

10%

10%

1%

2%

3%

7%

7%

81%

81%

2018

2019 [FY]

100
90

19%

13%

10%

8%

9%

8%

9%

9%
8%

8%

2%

1%

9%

Renewables (excluding hydro)

12%
80

6%
26%

70

31%
33%

31%

34%

60
90%

50
75%
40

90%

91%

89%

88%

85%

2015

2016

2017

79%
60%

30

57%

56%

1995

2000

60%

60%

2005

2010

20
10
0

1975

1985

2011

2012

2013

2014

Note: Figures on electric power generated for electric utilities are generation-end figures through fiscal 2015, and transmission-end figures from fiscal 2016.
Source: Compiled from Agency for Natural Resources and Energy, “Handbook of Electric Power Industry” (2019) and “Surveys and Statistics of Electricity” (2020)

Wind and Solar Power Generation

Figure 3.7[TWh] 15Wind (for business use)

13.2

Solar (for business use)
Wind (self-consumption)
Solar (self-consumption)
10
7.7

6.3

5

0.6
0

2000

2005

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019 [FY]

Note: Figures on electric power generated for electric utilities are generation-end figures through fiscal 2015, and transmission-end figures from fiscal 2016.
Source: Compiled from Agency for Natural Resources and Energy, “Handbook of Electric Power Industry” (2019) and “Surveys and Statistics of Electricity” (2020)

29

The Electric Power Industry in Japan 2021

3% reserve margin needed to ensure supply continuity in allareas of Japan. The average rate of change in both electricity
demand and supply capacity over the 10-year period fromfiscal 2020 to fiscal 2029 will be almost 0%, and electricity
demand and supply capacity are expected to remain atcurrent levels (Figure 3.8).

(2) Securing Balancing Capacity
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
and distribution utilities in order to ensure that balancing
capacity is procured in a fair and transparent manner.

The balancing capacity procured is of two main types: powersource I and power source II. Power source I consists of power
provided by dedicated sources of balancing capacity thatare always available to transmission and distribution utilities;
and power source II consists of surplus power from sourcesthat can be used following gate closure for retail powersources. Power source I’ provides balancing capacity when
weather conditions are severe, and is procured utilizing
generated output and demand response programs.
In fiscal 2020, 11,410 MW of power source I and 135,520
MW of power source II were procured. In addition, 4,270
MW of power source I’ was procured, of which 1,290 MW ofdemand was met by demand response.

Projected Electricity Demand and Supply Capacity[GW]

Electricity demand [GW]200

Figure 3.8

Supply capacity [GW][%]20

Reserve margin [%]

180

18

160

16

140

14

120

12

100

10

80

8

60

6

40

4

20

2

0

0

2020

2021

2022

2023

Source: OCCTO, “Aggregation of Electricity Supply Plans for FY2020”

30

2024

2025

2026

2027

2028

2029 [FY]IV. E L E C T R I C P O W E R FA C I L I T I E S

IV. ELECTRIC POWER FACILITIES

1. Power Generation Facilities1
Total generating capacity in Japan was 306.7 GW at the endof fiscal 2019. This consisted of 52.0% thermal power (15.0%
coal, 27.3% LNG, and 9.7% oil), 10.8% nuclear power, 16.0%hydro, and 21.1% renewables (excluding hydro). Figure 4.1
shows the breakdown of total generating capacity by powersource at the end of fiscal 2019.

(1) Power Generation Facilities for Electric Utilities
a. Thermal PowerThe total installed capacity of thermal power plants was
159.5 GW as of the end of fiscal 2019. This accounts for
52.0% 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 (grossefficiency) of all thermal plants in Japan was maintained at aworld-class level (Figure 4.2).
Coal-fired generating capacity came to 46.0 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.
LNG-fired generating capacity totaled 83.7 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 combined-

Breakdown of Commercial Power Generation Facilities by Power Source (FY2019)

Figure 4.1

Wind 1.4% Others 0.3%
Biomass and waste 1.4%

Coal 15.0%
Solar 18.0%

LNG 27.3%

Hydro 16.0%

Nuclear10.8%

Oil 9.7%

Total generating capacity 306.7 GW
Source: OCCTO, “Aggregation of Electricity Supply Plans for FY2020”

1 The data on power generation facilities are for facilities owned by electricity generation utilities and those procured by electricity retailers andgeneral electricity transmission and distribution utilities from entities other than electricity generation utilities (such as facilities generating
electricity under the FIT scheme).

31

The Electric Power Industry in Japan 2021

Average Power Generation Efficiency of Thermal Power Plants in Japan Comparedwith Other Countries

Figure 4.2[%]
50

UK & Ireland

48

France46

Japan

Power generation efficiency

44

South Korea
US
Germany
Northern Europe

42
40
38

China
India

36

Australia

34
32
30
28

'90

'92

'94

'96

'98

'00

'02

'04

'06

'08

'10

'12

'14

'16 '17 [Year]

Note: 1. Power generation efficiency is weighted average of gross efficiencies of coal, oil, and gas (based on Lower Heating Value).
2. Excludes self-consumption power generation facilities.
3. Figures for Japan are for the Japanese fiscal year (April–March).
Source: FEPC, “INFOBASE 2019” (2019)cycle technologies is underway to further reduce emissionsof these substances. A new plant2 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 29.9 GW. Oil plays ameasurable role in peak power supply and balancing but
accounted for just 1.6% of all power generated in fiscal 2019,representing a considerably smaller contribution versus otherthermal power generation methods (coal, 32.7%; LNG, 41.0%).

[ g/ kWh]

Comparison of SOx and NOx Emissions per Unit of Power Generated at
Thermal Power Plants of Major Countries (2017)
3

SOx emissions
NOx emissions

2.1

2

1.3
1

0

0.5

0.8

0.4

US

0.2

Canada

UK

0.7
0.2

France1.0
0.5

Germany

Source: FEPC, “INFOBASE 2019” (2019)

2 Chubu Electric Power Co.’s Nishi-Nagoya Thermal Plant Unit 7-2 (operation started in March 2018)32

Figure 4.3

0.1

0.4

Italy

0.2

0.3

Japan

IV. E L E C T R I C P O W E R FA C I L I T I E S

Unit 2 of Sakaide Power Station (Shikoku Electric Power Co.)
Reentered service after conversion from oil to LNG-CC in August 2016.

Takehara Power Plant (J-POWER)

b. Hydro Powerc. Renewable Energy

Hydro power generating capacity stood at 49.2 GW at theend of fiscal 2019. Hydro power plants have been promoted
in Japan to take advantage of the country’s high levels of
rainfall. Conventional hydro accounted for 21.7 GW andpumped storage for 27.5 GW. Variable speed pumped
storage systems have also been adopted for a portion of
pumped storage power generation. These systems provide ameans of addressing fluctuations in output from variable
renewable energy as they allow power output to be flexibly
adjusted.

• SolarInstalled solar power generating capacity at the end of fiscal
2019 was 55.4 GW. The deployment of renewable energies,
mainly solar power, has been progressing in Japan. Solar
power makes up approximately 87% of total FIT-certified
renewable power generating capacity. As a result, themorning decrease in net demand3 and the evening increasein net demand have become more extreme than before. Thishas become a grid operation issue for some regions. Since it
started becoming difficult to adjust supply and demand

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

33

The Electric Power Industry in Japan 2021

Fukuyama Solar Power Station (Chugoku Electric Power Co.)versus the fluctuating output of solar power using only thebalancing capacity of thermal power and pumped storagehydro power, the output of solar power has been curtailed in
Kyushu and its remote islands since 2018. Resolution of thisfluctuating output challenge is a critical task for advancing
the further deployment of solar power.
• WindWind power generating capacity was 4.3 GW as of the endof fiscal 2019. 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 20 MW of capacity is offshore. However, theFIT-certified capacity of offshore installations has trended
upward, reaching 668 MW at the end of fiscal 2019.
• Biomass and waste
Biomass and waste generating capacity at the end of fiscal
2019 came to 4.4 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
and waste power, low environmental load type thermal
power is a 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

34

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.
d. Nuclear Power Generation

Total nuclear power generating capacity at the end of fiscal
2019 was 33.1 GW (33 units that have operated in the past,and excluding three under construction). Nine nuclear
reactors (all PWRs) are in commercial operation (see “Nuclear
Power Generation” in Section 2, Chapter II).

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

In March 2020, OCCTO published the “Aggregation ofElectricity Supply Plans for FY2020.”4 Figure 4.4 shows
generating capacity by power source, and Table 4.1 shows thebreakdown of power development plans up to fiscal 2029 5(new installation, uprating/derating, and retirement plans).
Looking forward, coal-fired generating capacity will trend
upward overall as construction of new capacity willoutweigh ongoing decommissioning. As the global trend to
reduce GHG emissions continues, however, the withdrawalof plans for new coal-fired power plants and the shift togas-fired power plants are observed in Japan.

4 All electricity utilities are annually required to submit to the national government (via OCCTO) a supply plan that maps out their supply of electricity
and development of power sources and transmission lines over the ensuing 10 years.
5 Aggregated including facilities for which the date of commercial operation is “uncertain.”IV. E L E C T R I C P O W E R FA C I L I T I E S

Trends in Generating Capacity by Power Source, 2019–2029 (*1)

Generating capacity [GW]

Conventional hydroPumped storage hydro

Coal

LNG

Figure 4.4

Oil and others (*2)

Nuclear

Wind

2.0%
300

1.7%

1.7%

3.7%

2.6%

1.6%

1.4%

Others

22.4%

21.3%

19.1%

18.0%

200

Solar

1.9%

10.8%

10.6%

10.0%

9.7%

9.7%

9.3%

8.5%

8.2%

27.3%

26.9%

24.8%

24.2%

15.0%

15.2%

16.0%

15.4%

9.0%

8.8%

8.3%

8.0%

100

0

7.1%

6.9%

6.6%

6.4%

2019

2020

2024

2029

*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 and bituminous mixture fired capacities.
Source: OCCTO, “Aggregation of Electricity Supply Plans for FY2020”

Power Development Plans up to FY 2029 by Stages

Table 4.1

		Power source

Hydro

ThermalConventional
Pumped storage
Coal
LNG
Oil

NuclearWind
Solar
Renewables
Geothermal
Biomass
Waste
Total

[Output: MW]

New installation plan

Updating/derating plan

Retirement plan

Total

OutputSites

OutputSites

OutputSites

Output

379

51

68

46

-222

32

225

379

51

68

46

-222

32

225

–

–

–

–

–

–

–

14,4763452

1-9,586

42

4,942

6,851

10

–

–

-518

3

6,333

7,574

15

52

1

-7,635

16

-9

51

9

–

–

-1,43323-1,382

10,180

7

152

1

–

–

10,332

7,353

345

8

3

-311

49

7,050

1,792

54

–

–

-147

36

1,645

4,040

253

–

–

-2

1

4,038

44

3

1,405

30

6
–

2

-24

1

26

–

-84

6

1,321

72

5

2

1

-56

5

18

32,387

437

280

51

-10,120123

22,549Note: 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, FY2020”

35

The Electric Power Industry in Japan 2021

Decommissioning of oil-fired power plants will continue andgenerating capacity will shrink. Note that net generating
capacity will decrease because the number of new gas-fired
power plant construction projects is less than the number ofdecommissionings. While renewable generating capacity
will increase driven by construction of new solar power
plants and wind farms, hydro will increase only marginally.

electricity in three steps (by means of a fuel cell, gas turbine,and steam turbine). Regarding coal-fired plants, the aim is todevelop integrated coal gasification combined cycle (IGCC) 8
and integrated coal gasification fuel combined cycle (IGFC) 9
systems.
In the area of next-generation coal power, New Energy andIndustrial Technology Development Organization (NEDO)
and Osaki CoolGen Corporation10 conducted ademonstration test of a 170 MW-class IGCC plant in fiscal
2017–2018, attaining results indicating the potential for net
efficiency11 of around 46%. In December 2019, theylaunched an IGFC demonstration test project, slated forcompletion in fiscal 2022.

b. Moves to Expand Capacity by Power Source• Thermal PowerIn June 2016, the government published its “Technology
Roadmap for Next-Generation Thermal Power Generation.”
Among other things, this aims to reduce CO2 emissions fromthermal power plants by improving the efficiency of gasand coal-fired power generation.

Looking at carbon capture and storage (CCS) technologies,
a government-led project has been carrying out large-scaledemonstration testing toward commercialization of CCS.

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

Figure 4.5

900

3,000

Shipped Second half of fiscal year
Shipped First half of fiscal year

800

Cumulative total capacity

2,568

2,500

700
600

2,000
1,754

500

438

1,500
400

1,256
312

300

176

199

694

200

0

11 11
FY201182 45
24FY2012

199

60

500

379
138

56

77

FY2013

FY2014

375

133

102

100

1,000

932

184
104

125

0
FY2015FY2016FY2017FY2018FY2019Source: The Japan Electrical Manufacturers’ Association, “Shipments of Stationary Lithium-Ion Battery Storage Systems” (2020).

36

6 Development will be completed by around 2020 (approx. 57% power-generation efficiency and CO2 emission intensity of 310 kg/MWh).
7 Development will be completed by around 2025 (approx. 63% power-generation efficiency and CO2 emission intensity of 280 kg/MWh).
8 Development will be completed by around 2020 (approx. 46%-50% power-generation efficiency and CO2 emission intensity of 650 kg/MWh).
9 Development will be completed by around 2025 (approx. 55% power-generation efficiency and CO2 emission intensity of 590 kg/MWh).

CumulativeTotal
totalcapacity
capacity(MWh)[MWh]More specifically, the aim regarding gas-fired plants is todevelop ultra-high temperature (1,700°C class) gas turbines 6
and fuel cell combined cycle (GTFC) 7 systems that generateIV. E L E C T R I C P O W E R FA C I L I T I E S

Testing began in 2016 with a CO2 injection rate of 100,000 t/
year, reaching a total of 300,000 t in 2019.
• Renewable Energy
METI aims to expand adoption of renewables by solving the
problem of fluctuations in output by making use of battery
storage system, hydrogen, and other technologies.
Use of battery storage system is rising. Over 360,000
stationary lithium-ion battery storage systems with acapacity in excess of 2.5 GWh were in use in fiscal 2019
(Figure 4.5). METI is conducting experimental projects using
battery storage system. Themes selected for these projects
include the adoption of large grid stabilization systems forstoring power generated from variable renewable energy
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 ofprojects 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 MWhin fiscal 2016, and it has demonstrated the possibility of
avoiding solar power curtailment up to 300 MWh per day.
Regarding hydrogen, METI formulated a “Strategic Roadmap
for Hydrogen and Fuel Cells” in March 2019. Among othergoals, this plan aims to commercialize hydrogen power
generation by around 2030, and calls for efforts to establish

the technologies needed and to reduce the production costof hydrogen. It also seeks to make hydrogen power
generation as cost competitive as existing LNG-fired power
generation, including with regard to environmental value.12
Regarding carbon recycling, METI formulated a “Roadmap
for Carbon Recycling Technologies” in June 2019. This statesthat CO2 emissions can be reduced by recycling CO2.
Capturing CO2 from the exhaust gas generated by power
plants and other emission sources and combining it with“clean” hydrogen produced by surplus variable renewableenergy to synthesize fuel (such as methane). Using fuelproduced from clean hydrogen at thermal power plants is
also expected to reduce CO2 emissions from thermal power
plants.

(3) Digitalization in the Power Generation Sector
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 toequipment maintenance. For example, a former generalelectricity utility teamed up with an IT firm and a power
plant builder to create an AI-enhanced combustion
adjustment model at a thermal power plant. The model
achieved reductions in NOx emissions and fuel costs
compared with human operation.

Buzen Battery Electrical Substation (Kyushu Electric Power Co.)
Output: 50MW, Capacity: 300MW (operation started in March 2016)

10 Established through joint investment by Chugoku Electric Power Co. and J-POWER.
11 Based on Higher Heating Value.
12 The plan aims to reduce the cost of hydrogen delivered for plants to 30 yen/Nm3 in around 2030 and to 20 yen/Nm3 thereafter.

37

The Electric Power Industry in Japan 2021

2. T ransmission and Distribution
Facilities

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 reliability ofthe power supply to the central districts of large cities.

(1) Transmission Facilities
Japan’s bulk transmission systems comprise 500 kV, 275 kV,
220 kV, 187 kV, 154 kV, and 132 kV transmission lines. The
maximum transmission voltage is 500 kV for the 10 generalelectricity transmission and distribution utilities except
Okinawa Electric Power Co. (132 kV). As of the end of March
2020, these transmission lines had a circuit length ofapproximately 179,000 km (Table 4.2).

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

(2) Substation Facilities

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

As of the end of March 2020, Japanese 10 general electricity
transmission and distribution utilities have 6,788 substations
with a total installed capacity of approximately 850,000 MVA(Table 4.2). Almost all substations are now unmanned, withremote monitoring and control.
Due to the difficulty of finding sites for substations in urban
areas, general electricity transmission and distribution
utilities have reduced their footprints by adopting
technologies such as gas insulated switchgear (GIS).

Transmission and Distribution Facilities

1975

1985

Table 4.2

1995

2005

2010

2015

2016

2017

2018

2019

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

14,16723,48629,10735,20935,791

36,94936,84536,86536,98637,021

110kV Under 220kV

28,91335,10636,95235,96235,69635,58835,70935,45935,39035,441

Under 110kV

69,361

78,66088,64895,176 104,618 106,167 106,238 106,341 106,494 106,784

Total

112,441 137,252 154,707 166,347 176,105 178,704 178,792 178,665 178,870 179,246

Transformation facility capacities
Substation output capacity (MVA) 234,748 447,866 657,536 778,740 810,924
Total Number of substations

3,466

5,152

5,814

6,570

6,686

833,112 842,084 843,886 846,638 850,313
6,718

6,766

6,774

6,783

6,788

Circuit length of distribution lines [km]Overhead
UndergroundTotal

2,623,787 3,179,970 3,661,963 3,918,743 3,966,677 4,005,974 4,015,703 4,023,882 4,031,278 4,038,426
14,35850,371

65,287

66,89670,73371,36072,096

72,73573,4202,638,145 3,205,318 3,712,334 3,984,030 4,033,573 4,076,707 4,087,063 4,095,978 4,104,013 4,111,846

Source: FEPC, “Electricity Statistics Information”

38

25,348

IV. E L E C T R I C P O W E R FA C I L I T I E S

Assist Arms (Hokuriku Electric Power T&D)
Hokuriku Electric Power T&D has been working with universities and manufacturers todevelop “Assist Arm” robots for use by power distribution workers. In the near future,these will reduce labor requirements and improve efficiency by automating some work.

Removing snow from power lines (Hokkaido Electric Power Network)(3) Distribution Facilities

electricity transmission and distribution utilities, (2) track
individual customers’ electricity usage so as to facilitate powersaving measures, and (3) provide a means of limiting power
consumption when the supply and demand balance is tight. All
extra-high voltage and high voltage customers and 75.2% of
low voltage customers (including households) had been
provided with smart meters as of March 2020. All customers
should have smart meters by the end of March 2025.

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 open-deltaconnection distribution systems used to supply both singlephase and three-phase power. As of the end of March 2020,
the total length of distribution lines in Japan wasapproximately 4,112,000 km. Of this, approximately 73,000 km(approximately 1.8%) consisted of underground lines (Table 4.2).
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 low voltage customers have also been
installed in order to (1) facilitate meter reading by general

Power distribution equipment (Okinawa Electric Power Co.)
Maintenance work in preparation for a typhoon

39

The Electric Power Industry in Japan 2021

(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. In fiscal 2018, the System Average Interruption
Frequency Index (SAIFI) was 0.31 interruptions and the
System Average Interruption Duration Index (SAIDI) was 225
minutes (Figure 4.6). These figures were higher than those forfiscal 2017 (SAIFI, 0.14 interruptions; SAIDI, 16 minutes) due
to large-scale power outages resulting from Typhoon Jebi
(No. 21), Typhoon Trami (No. 24), and the Hokkaido Eastern
Iburi Earthquake, all of which occurred in September 2018.

Boat patrol (Tohoku Electric Power Network)
Utility employees in boats inspected the extent of damage in areas flooded by
Typhoon Hagibis (No.19). (October 2019, Osaki, Miyagi Prefecture)

SAIFI and SAIDI[events]
7●

Figure 4.6

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)400

4[Affected by earthquake
and typhoons]300

3[Affected by Typhoon Mireille (No.19)][Affected by typhoons, etc.]

187 min.
2

1.36 events

79 min.

169 min.

128 min.
0.90 events
0.51 events

1

33 min.
0.35 events

0

1966

1975

Note: 9 electric power companies up to FY1988
Source: FEPC, “INFOBASE 2019” (2019)

40

1985

225 min.

1990

88 min.

0.94 events

14 min.
14 min.
10 min.
0.33 events
0.20 events 0.18 events
0.13 events
1995

2000

2005

2010

200

0.22 events
100

20 min.
0.16
events2015

0.31
events0
2018 (FY)IV. E L E C T R I C P O W E R FA C I L I T I E S(5) Efforts to Improve Resilience and Increase Useof Renewables in Power Transmission andDistribution 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, thegovernment drafted a bill for establishing an energy supply
resilience legislation for securing a resilient and sustainable
power supply system through measures supporting rapid
disaster recovery, facilitated investment in transmission/
distribution grids, increased introduction of renewables, andother enhancements.
Specifically, the bill contains measures such as the following.
(1) Enhancing inter-business collaboration in disaster
responses: Require general electricity transmission anddistribution utilities to formulate action plans forcollaborating with one another during disasters, and to
update local governments and other authorities on thestatus of power supply service during disaster recovery. (2)Enhancement of transmission/distribution grid resilience:
Add to OCCTO’s functions the duty to formulate forwardlooking plans for development of cross-regional networks;
and establish a wheeling rate system that would encourage
electricity transmission and distribution utilities to pursue

cost efficiencies that would keep them below the revenue
caps based on their investment plans and approved by the
Minister of the Economy, Trade and Industry. (3)Establishment of disaster-resilient distributed power supply
systems: Redefine the legal standing of distribution utilities
so that they can operate their services as independent
networks during emergencies while continuing theoperation of distribution grids, including small distributed
energy resources, in specific service areas.
This bill was passed by the Diet in June 2020. Certain
provisions came into effect in October 2020, and theremainder will go into effect in April 2022.

(6) D igitalization in the Transmission andDistribution Sector
To address challenges such as aging equipment andreduced maintenance staffing, the power transmission anddistribution sector is using digital technologies to streamline
maintenance and inspections. For example, generaltransmission/distribution utilities are seeking to shrink
manpower needs and improve maintenance techniquesthrough demonstration projects that use drones to inspecttransmission facilities, or use imaging analysis and AI tools toautomatically detect failures from photographs of facilities.

154kV Inawashiro Kyu-kansen transmission line (TEPCO Power Grid)
Constructed in 1914 with the third longest (225 km) transmission line in the world at that time. Still in commercial use more than a century
later. The transmission towers were manufactured by American Bridge.

41

The Electric Power Industry in Japan 2021

3. C ross-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 Japan13. 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 individual electric power companies 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 administers the use of the interconnections thatspan the service areas of different general electricity
transmission and distribution utilities.
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 wasintroduced under which, in principle, use of theinterconnections will be assigned 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 new market participants and put inplace a fair and competitive environment. At the same time,by implementing power generation based on cross-regional
merit orders, it is hoped that increases in electricity rates canbe 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 has 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.

OCCTO plans to create a balancing market in 2021, andgeneral electricity transmission and distribution utilities will
be able to use this market to procure balancing capacityfrom outside their areas. Several companies are alreadypreparing for this change by carrying out pilot programs incross-regional transmission of balancing capacity.

(2) Interregional Interconnections
As of 2020, the interregional interconnections in operation
are mainly AC transmission lines. In the 50 Hz eastern region,
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 60 Hz western region, Chubu area, Hokuriku area,
Kansai area, Chugoku area, Shikoku area and Kyushu area arelinked by 500 kV AC transmission lines. Okinawa is notconnected with other regions of Japan. DC lines are used by
Chubu area and Hokuriku area, which are connected byback-to-back DC linkage facilities (300 MW), 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
the interconnections between the Tokyo area and Chubu
area networks (Sakuma Frequency Converter (300 MW),Shin-Shinano Frequency Converter (600 MW), and HigashiShimizu Frequency Converter (300 MW): total 1,200 MW)(Figure 4.7).
Along with the increasing large-scale adoption of
distributed energy sources in recent years, OCCTO has been
considering plans to enhance these interconnections, taking
into account the individual utilities’ views. As part of thoseplans, the Shin-Shinano Frequency Converter at the TokyoChubu interconnection will be upgraded by 900 MW by theend of fiscal 2020, and the Sakuma and Higashi-Shimizu
frequency converters’ capacity will be expanded by a total of
900 MW by the end of fiscal 2027 (from 1.2 GW to 2.1 GW
and then 3.0 GW in total). Responding to calls from IPPs andothers, OCCTO plans to increase the capacity of the TokyoTohoku interconnection by 4.6 GW by fiscal 2027.

13 The 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.

42

IV. E L E C T R I C P O W E R FA C I L I T I E S

National Grid Connections (As of August 2019)

Figure 4.7*1
indicates DC facilities.
*2 [] indicates daytime operating capacity of interregional interconnections
on weekdays during August 2019. Varies according to time.

Hokkaido area
Connection between
Hokkaido and Honshu[900 MW]

Chugoku-Kyushu
interconnection[2,470 MW]

Kansai-Chugoku
interconnection[4,140 MW]

Hokuriku-Kansai
interconnection[1,900 MW]

Connection between
Chubu and Hokuriku[300 MW]

Chugoku area
Kyushu area

Tohoku-Tokyo interconnection[5,150 MW]

Kansai area

Chugoku-Shikoku
interconnection[1,200 MW]

Shin Shinano F.C.

Tokyo area

Chubu area

Shikoku area
Okinawaarea

Tohoku area

Hokuriku area

Connection between
Kansai and Shikoku[1,400 MW]

Sakuma F.C.

Chubu-Kansai
interconnection[2,500 MW]

Tohoku-Tokyo interconnection• OCCTO plans to increase
operating capacity
by 4,550 MW(to be completed in FY2027).

Higashi
Shimizu F.C.

Connection between Tokyo and Chubu[1,200 MW]

Connection between Tokyo and Chubu (1) (1,200 MW → 2,100 MW)• TEPCO Power Grid is working to add 900 MW (to be completed in FY2020).
Connection between Tokyo and Chubu (2) (2,100 MW → 3,000 MW)• OCCTO plans to add another 900 MW and TEPCO Power Grid,
Chubu Electric Power Grid and J-POWER Transmission Network are preparing
to commence construction (to be completed in FY2027).

Source: Compiled from Agency for Natural Resources and Energy, “Formation and Sharing of Cost of Electric Power Networks” (2019)

OCCTO is required to develop a long-term policy that sets a
course for developing and updating Japan’s cross-regional
interconnection systems on a nationwide scale. In thisprocess it has identified the following three key issues forfacility formation over the mid- and long-term.
• Growth in electricity demand is slowing.
• If new interconnection needs are to be addressed throughthe conventional approach to facility formation and griduse, it will require a huge increase in transmission anddistribution facilities.
• This will result in a decreased capacity factor fortransmission and distribution facilities, with inevitable
upward pressure on wheeling charges.
Pivoting sharply from conventional thinking, which has
revolved around boosting the grid to meet power source
grid capacity, OCCTO has decided on a policy of making thebest possible use of existing facilities. Premised on this, it hasdeveloped an approach to transmission and distribution
facility development that tailors the “connect and manage”
model already used in the United Kingdom and elsewhere
to Japanese conditions. It employs three mechanisms. Firstly,
available capacity is calculated based on estimates thatclosely resemble actual use, rather than on full-capacity
operation of all power sources. This method has been in fulluse since fiscal 2018. Secondly, there is the “N-1 inter-trip
scheme,” which is a method of instantly limiting power output
to secure stable transmission capacity in the event of N-1
failure.14 This has been partially deployed since October 2018.
Thirdly, there is “non-firm access,” which is a method ofallowing fresh access on condition that output is limited whileother power sources are in operation. This has already been
put into practice in certain areas since September 2019.

14 A single fault affecting one transmission or distribution line, one transformer, one generator, A or one other item of electrical equipment.

43

The Electric Power Industry in Japan 2021

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 2020, 55.03 million low voltage customers (74% of thetotal) paid regulated rates.

Regulated rates were originally to be discontinued at theend of March 2020. However, as competition had not
developed sufficiently, METI decided in July 2019 to maintainregulated rates from April 2020 onwards. Discontinuation ofregulated rates will continue to be considered, while paying
close attention to developments at Tokyo Electric Power
Company Holdings and Kansai Electric Power Co., whichhave 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

Arrangements to Bridge the Transition to Competitive Rates

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 with demand under 50 kW

Measures aspart of generalelectricity
utilities’ supply
obligations

Customers supplied atcompetitive rates set byformer general electricity
utilities

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

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

44

Customers supplied atcompetitive rates set by
PPSs and former generalelectricity utilities

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 bygeneral 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

V. R E TA I L B U S I N E S S A N D T R A D I N G M A R K 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

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
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.

electricity 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 twomonths in order to level rate fluctuations, and fuel pricethree-month averages are reflected in the electricity rates
charged each month (Figure 5.2).
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 fixed price for ab. 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 general

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

45

The Electric Power Industry in Japan 2021

certain period (under the current system, general electricity
transmission and distribution utilities do the purchasing).
The cost of purchase was to be recovered via a surcharge
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 generalelectricity 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 generalelectricity utilities and PPSs provide a range of new rate
options tailored to customer lifestyles based on their own

sales strategies (see “Efforts to Acquire Customers” in Section 2,
Chapter V).

(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 haveagain 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 (Figure 5.3).

(4) Wheeling Charges
Even in a deregulated environment, it is general electricity
transmission and distribution utilities that build, operate, andmaintain transmission and distribution networks to ensurestable supply. When PPSs retail electricity and former generalelectricity utilities supply electricity on a retail basis outside[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

1995

2000

Note: Figures are totals for general electricity utilities through fiscal 2015, and for electricity utilities from fiscal 2016.
Source: Agency for Natural Resources and Energy, “FY2019 Annual Report on Energy” (2020)

46

2005

2010

2016 2018[FY]

V. R E TA I L B U S I N E S S A N D T R A D I N G M A R K E T S

Average Unit Wheeling Charges of General Electricity Transmission and Distribution Utilities(As of October 2020)

Table 5.2

Average unit wheeling charges of general electricity transmission and distribution utilities [yen/kWh] (excluding tax)
Low voltage

High voltage

Extra-high voltage

Hokkaido

8.75

4.16

1.83

Tohoku

9.71

4.50

1.98

Tokyo

8.57

3.77

1.98

Chubu

8.98

3.51

1.83

Hokuriku

7.80

3.76

1.81

Kansai

7.81

4.01

2.02

Chugoku

8.28

3.98

1.61

Shikoku

8.61

4.04

1.79

Kyushu

8.30

3.84

2.09

Okinawa

9.93

5.20

3.01

Source: Agency for Natural Resources and Energy, “Process of Rates Reform Allowing for Changes in the Business Environment” (2017);
general electricity transmission and distribution utilities’ websitesof their own service areas, they must use the network of
the general electricity transmission and distribution utilities
that own the supply facilities in the service area concerned.
Wheeling charges are the fees imposed by transmission anddistribution utilities on the users of their network (Table 5.2).
The wheeling charges are deliberated by a review meetingof specialists on electricity pricing under the auspices of theElectricity and Gas Market Surveillance Commission, taking
into account both the appropriate recovery of requisite
costs and fairness for network users. They are then opened
to public comment prior to final adoption.
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 to islands
is mainly generated by thermal power plants, and the costof provision of universal service to islands (including the
portion of the price that varies according to thermal fuelcosts) is passed on to all customers in the individual service
areas of general electricity transmission and distribution
utilities in question via wheeling charges under what is
known as the “universal island service price adjustment
system.”Currently, plans are being studied for revising the wheelingcharge system by around 2023. The discussions include
detailed design of a new scheme that would set revenue
caps at certain intervals on general electricity transmission
and distribution utilities based on their investment plansand other considerations, with the aim of encouraging themto make the operational efficiency improvements needed tokeep their business sustainable under the revenue caps.

(5) Basic Charge on the Power Generation Side
Under the current system, the expenses associated withpower transmission and distribution equipment are, as arule, borne by electricity retailers as part of the wheelingcharges. However, the government has been considering
introducing a new scheme that would seek to realize fair
and appropriate cost sharing and to encourage efficientuse of transmission and distribution networks by also
having power generation-side operators, as grid users, bearsome of the costs, with their share based on their level ofrevenue. Based on this review, the Fifth Strategic Energy
Plan (approved by the Cabinet on July 3, 2018) included aplan to introduce a basic charge to be levied on the power
generation side. The details of this scheme are being worked
out, with an eye on launching it in fiscal 2023.

47

The Electric Power Industry in Japan 2021

2. Efforts to Acquire Customers(2) Activities of Electricity Retailers
Electricity retailers supply extra-high voltage and highvoltage customers in accordance with contracts and unit
prices negotiated on the basis of projected electricity
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(1) State of Customer Switching of Retail Service
Agreements
As of the end of March 2020, there had been a cumulative
total of approximately 13.14 million cases of retail service
agreement switching since March 2016, when applications
for switching were first accepted. Among generalhouseholds, some 21% of the regular contracts in effectimmediately prior to liberalization (approximately 62.53
million) had been switched (Figure 5.4).

[10,000 switchers]

Trends in Number of Low Voltage Switchers by Service Area (As of end of March 2020)

Figure 5.4

1,400
End of March 2020
Approx. 1,314.1

Hokkaido
Tohoku

1,200

1,000

Tokyo
800
End of April 2018
Approx. 652.3
600

End of April 2017
Approx. 326.7

Chubu
Hokuriku

400
End of April 2016
Approx. 53.7

Kansai

200

0

April
2016

April
2017

April
2018

Note: S witching refers only to changing from a former general electricity utility to a PPS contract.
It does not include changing to an unregulated-rate contract that is offered by a former general electricity utility.
Source: Agency for Natural Resources and Energy, “Progress on Full Liberalization of the Electricity and Gas Retail Markets” (2020)

48

Chugoku
Shikoku
KyushuOkinawa

March
2020

V. R E TA I L B U S I N E S S A N D T R A D I N G M A R K E T S

addition, they are diagnosing and analyzing the customer’s
energy usage, and making proactive proposals to theircustomers regarding the efficient use of energy.
On the other hand, electricity retailers provide low voltage
customers with customer services and so on through rateplans tailored to customers’ needs and lifestyles, point-based
loyalty programs, and membership websites. Services thatutilize information on electricity usage obtained from smart
meters are also emerging.

c. Renewable Energy Rate Plans

Among the green options being offered are rate plans thatdeliver electricity generated using renewable resources.
Although there are limits to how much electricity canbe generated and procured from renewables, a growing
number of electricity retailers are offering plans of this kind,and they are also increasing their disclosure of information on
their power generation mix and CO2 emissions.

(3) Rate Comparison Sites
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.
There are also plans that offer summer-only discounts forhouseholds with elderly members in order to encourage theuse of air conditioning to prevent heat stroke.
Meanwhile, PPSs are seeking to acquire new customers
through diverse approaches, including offering lower rates
to families with heavy electricity usage.
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, suchas wiring faults that keep the power from turning on. Other
everyday support services include services to identify andreport water leaks, find lost keys, and check on elderly
customers at home. Other plans provide discounts for supply
contracts that are bundled with cellular phone, internet, gas,
automobile gasoline, and other services. Bundling lifestylerelated commodities and services with rate discounts in thisway is expected to improve customer satisfaction and help
electricity retailers to attract and retain customers.

As seen above, electricity retailers are offering a variety ofrate plans, and more than 1,000 types of plans were available
as of the end of July 2020. Rate comparison websites havetherefore been launched by service providers to help
customers choose the plans that best meet their needs.
These websites are playing an increasingly important role asplans become more diversified with the rise in the numberof electricity retailers.

(4) Regulations and Guidelines
The Electricity and Gas Market Surveillance Commission
established the Guidelines Concerning the Management of
the Electricity Retail Business in January 2016. The purposeof these guidelines is to enhance protection for electricity
customers, allowing them to receive electricity with confidence
while also contributing to the healthy growth of the electricity
business itself. These guidelines provide instructions to theutilities in question, such as electricity retailers, on how to
observe relevant laws and regulations, as well as instructions
encouraging their autonomous efforts. Specifically, theguidelines indicate desirable conduct by operators in orderto protect customers and bring about the healthy growthof Japan’s electricity business. These include: (1) provision of
appropriate information to customers, (2) suitable forms ofbusiness 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 the Electricity Business Act.
These guidelines are to be revised as and when necessitatedby future changes in the electricity retail environment. Fourrevisions have been made so far, with the latest revision
being made in December 2018.

49

The Electric Power Industry in Japan 2021

3. Trading Markets

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 since
March 2017. As of May 25, 2020, there were 191 trading
members and 10 special trading members.

(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
to assist assessments of investment risk, etc. Initially, JEPX
was treated 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.

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

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

Average System Prices and Trade Volumes on the Spot Market

[TWh]
300

Total trade volume [ TWh]Figure 5.5[yen/kWh]

Avg. system price [yen/kWh]

16

14.67

14.43

250

18

292.5

16.51

14

13.72
208.6

200

11.32

12
9.76

9.72

9.78

9.76

10

8.46

150

7.93

8.38

8

6.52

100

6
58.6

4

50

0

2.3

3.5

3.5

5.5

4.7

7.4

10.3

2007

2008

2009

2010

2011

2012

2013

12.6

15.4

2014

2015

2

23.0

2016

2017

Source: Compiled from Agency for Natural Resources and Energy, “Handbook of Electric Power Industry” (2019), and JEPX data

50

2018

2019

0

V. R E TA I L B U S I N E S S A N D T R A D I N G M A R K E T S

misalignments between supply and demand occurring
between a spot market transaction and delivery (a minimumof one hour later).
• Bulletin board trading market: JEPX mediates the trading ofelectricity for prospective buyers and sellers.
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
curves as the system price and trade volume. As a rule, highbuy bids and low sell bids are executed at the system price.
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 has been on therise since 2016, and reached approximately 292.5 TWh in
fiscal 2019. This is more than a 40% increase in year-on-year
terms and means that about 30% of all electricity sold inJapan is sold through JEPX. PPSs procure more than 80% of
their electricity from the spot market. The average systemprice has hovered around the 7–9 yen/kWh mark since fiscal
2015, and stood at 7.93 yen/kWh in fiscal 2019 (Figure 5.5).
However, prices fell in April 2020 as demand dropped fromthe impact of Covid-19. In that month, trading occurred at
the lowest possible system price of 0.01 yen/kWh, with theaverage system price falling to 5.24 yen/kWh.

(2) New Markets
New markets have been developed to encourage further
competition in the electricity sector, secure stable power
supply, and actualize environmental value. The intention isthat the creation of these unconventional new markets willserve to actualize and render tradable new forms of value
to accompany the lowered entry/exit barriers in existing
markets. The new markets are mainly the following: (a) abaseload 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 affordable baseload powersources such as coal, large hydropower, and nuclear power
plants. To surmount this difficulty, a market dedicated to the
trading of electricity produced by baseload power plants
was created, in which former general electricity utilities
and new entrants are given equal access to electricity frombaseload power plants. It is expected that the resulting
increase in transactions in the wholesale market will leadto increased competition in the retail market. The baseload
power market was established in 2019, and three auctions
for delivery in fiscal 2020 have been conducted, for a total
volume of 534 MW, with clearing prices ranging from 8.47 to
12.47 yen/kWh.
b. Capacity Market

The predictability of the payback on investment in power
generation business is likely to decline, depending on theincreasing competition and changes in environmental
trends. If the adoption of renewables expands
simultaneously, it is expected that the power generation
operating rate will decline, the selling price of electricity will
fall, and revenues from selling electricity from all sources
will come down. Conversely, regulatory organizations
consider that if investments in power generation capacity
are not made at the appropriate time, there could be
more situations in which the supply and demand balance
becomes too tight, and electricity balancing capacity cannot
be secured. Therefore, the creation of a capacity market wasstudied for the purpose of (1) ensuring a greater degree ofinvestment predictability, (2) the replacement of old power
plants with new ones and (3) the securing of supply capacity(installed capacity) through market mechanisms.
Trading in the capacity market began in 2020. Capacity
contracts for 2024 totaled 167.69 GW in volume, and had aclearing price of 14,137 yen/kW.
c. Balancing Market

The tasks of controlling frequency and balancing supply
and demand are performed by general electricity
transmission and distribution utilities in each area. With
regard to balancing, it is important that system operators
secure the capacity required for practical purposes while
avoiding giving preferential treatment to particular sources

51

The Electric Power Industry in Japan 2021

of electricity or creating too great a cost burden.
The first auction for balancing capacity was held by generalelectricity transmission and distribution utilities at the endof fiscal 2016 for fiscal 2017 (see “Securing Balancing Capacity” in
Section 3 (2), Chapter III).
A balancing market for procuring and operating balancing
supply and demand more efficiently on a cross-regional
basis is now under consideration, with a view to launching
the market in or after April 2021.
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

52

who desire that value. As one step to help address theseconcerns, a non-fossil value trading market was establishedin the wholesale electricity market to isolate non-fossil valueof the electricity only and to certify it for trading. It is hopedthat the establishment of this market will help Japan achieve
the targeted level of reductions in greenhouse gas emissions
by fostering use of a power generation mix consistent withits most suitable energy mix.
Ten auctions of non-fossil certificates for electricity under
the FIT scheme had been held as of September 15, 2020.
The first for fiscal 2020 was held in August 2020, with a tradevolume of 151 GWh and a weighted average trade volume
price of 1.30 yen/kWh. Trading of electricity generated
by non-fossil fuel sources not covered by FIT scheme isscheduled to commence in fiscal 2020.
In addition, an electricity futures market run by Tokyo
Commodity Exchange, Inc. was established on September
17, 2020 to reduce electricity price fluctuation risks. The
market is operating on a three-year trial basis, and thedecision on approval for full listing will be made based on its
trial performance.

T O P I C S : E l e c t r i c Ve h i c l e I n i t i a t i v e s

TOPICS: Electric Vehicle Initiatives

Since the Great East Japan Earthquake in March 2011,
Japan has been working on the issue of how to achieve
distributed energy systems that are efficient and reliable,
moving away from energy supply systems reliant onlarge-scale power plants. This is one of the reasons why
METI provided grants from fiscal 2016 to 2020 to support
demonstration projects for a virtual power plant (VPP) thatuses demand-side energy resources. The use of electricvehicles (EV) and plug-in hybrid electric vehicles (PHEV)
has been steadily growing (Figures 1.1, 1.2), and EV batteries
now have higher capacities and lower cost per unit ofenergy stored than home batteries. Consequently, they areseen as key energy resources for VPPs. V2G (vehicle to grid)demonstration projects were conducted from fiscal2018
to 2019, and projects to trial shifting the EV charging peakby using dynamic pricing linked to the wholesale priceof electric power began in fiscal 2020 (Figure 2). Japan’s
electricity utilities have individual initiatives, including VPP
demonstration projects, predicated on growing EV usage.

(1) VPP Demonstration Project (V2G, Battery Reuse)
Tokyo Electric Power Company, Tohoku Electric Power
Company, Chubu Electric Power Company, and Kyushu
Electric Power Company individually conducted V2Gdemonstration projects from fiscal 2018 to 2019.

Total EV and PHEV Usage in Japan

Figure 1.1

250,000
200,000
250,000
150,000
200,000

EV

PHEV

EV

PHEV

100,000
150,000
50,000100,000
50,0000
0FY2013

FY2014FY2015FY2016FY2017FY2018FY2013

FY2014FY2015FY2016FY2017FY2018Source: Compiled from Next Generation Vehicle Promotion Center data

Number of EV Charging Stations Installed in Japan

Figure 1.2

30,00025,00030,00020,00025,00015,00020,000

Fast charging stations

Normal charging stations

Fast charging stations

Normal charging stations

10,00015,0005,000
10,00005,000
0FY2013

FY2014FY2015FY2016FY2017FY2018FY2013

FY2014FY2015FY2016FY2017FY2018Source: Ministry of Land, Infrastructure, Transport and Tourism (MLIT)/METI report on EV/PHEV usage

53

The Electric Power Industry in Japan 2021

Virtual Power Plant Demonstration Project (FY2020)

Figure 2(1) Using VPPs to Facilitate Advanced Energy Business
V2G technology

Cybersecurity for connecting to electric power systems

Wind

Hydro
Battery reuse

Micro-CHP

Aggregator

EV (V2G)

NuclearProvides energy services

ergy resources

ols enAggregator contr

Solar

Factories

EV (V2H)

Battery
storage systems

Heat pump
ThermalEnergy resource expansion: Bidirectional
EV chargers, etc.

Electric power systems

Establish advanced integrated control
technologies: Frequency control, etc.

(2) Trials Using Dynamic Pricing to Shift EV Charging demand
Dynamic pricing linked to the wholesale electricity price encourages a shift in the EV charging demand
from times of higher electricity prices to times when the price is lower.
This approach is beneficial for increasing the adoption of renewable energy, securing balancing capacity,and mitigating grid reinforcement needs.
Charging based on dynamic pricing

Electricity price (price per kWh)High electricity
price period(grid congestion)

Avoid charging

Avoid grid congestion

Charging

Low electricity
price period
Morning

MiddayEvening

Night

Time of day

Source: METI report on initiatives for constructing energy systems using distributed energy resources (2020)

54

User pays lessfor electricity

T O P I C S : E l e c t r i c Ve h i c l e I n i t i a t i v e s• Tokyo Electric Power Co. constructed an online system thatcan control simultaneously EV charging and discharging atfive charging stations (354 kW total), and that can optimize
balancing capacity so that when unscheduled EV usage
occurs, the system can dispatch power from other EVs basedon their usage schedules and states of charge (Figure 3).
• Tohoku Electric Power Co. installed charging stations
at four locations (33.6 kW total) and assessed thegrid response when using EVs to provide balancing
capacity, and also investigated the potential for voltage
improvement by using V2G in areas identified as having
large fluctuations in distribution grid voltage due to wind
power or other variable output power sources that also
had potential for growth in EV usage due to having a large
number of houses (Figure 4).
• Chubu Electric Power Co. used a single charging station(20 kW total) and four PHEVs, introducing a system wherescheduled vehicle activity is input using a smartphone app,and assessed the grid response when using a combinationof private and commercial vehicles to provide balancing
capacity (Figure 5).

• In fiscal 2019, Kyushu Electric Power Co. completed its
multi-year verification of a control system for distributing
commands to obtain balancing capacity from EVs using
charging stations at six locations (95.4 kW total). In fiscal
2020, it is constructing a VPP linked with other resources
such as electric water heaters (Figure 6).
Other projects include verification tests being conducted by
Chugoku Electric Power Co. to evaluate second-life battery
response and degradation characteristics when reusing EV
batteries as a VPP resource, controlled in combination with
distributed energy resources (Figure 7).

(2) EV Charging Infrastructure
At the end of fiscal 2018, Japan had a cumulative totalof about 240,000 EVs and PHEVs, and about 30,000 EV
charging facilities. Urban areas are covered by the charging
infrastructure, but the presence of areas with congestion
due to insufficient charging facilities and areas withoutcharging facilities is becoming a problem (Figure 8). Tokyo

Optimum Allocation Control When Using EVs to Provide Balancing Capacity

Control based on scheduled usage
AC/RA

Figure 3

Control when unscheduled usage occurs
AC/RA(1) EV aggregation needs(1) EV aggregation needs

Control (instructions)
Local gateway

Control (instructions)
Local gateway(2) Mobility needs(2) Mobility needs

Input EV/PHEV usage schedule(charging requirements)

System allocates control instructions
taking into account both needs((1), (2))*

Demonstration site

EVPS

Example: Needs charging to
90% SoC by 5:00 PM.

EV/PHEV

EVs/PHEVs other than disconnected
ones take over to provide the amountof power required.

Offices, etc.

Offices, etc.

* Allocations are optimized for EVPSs, taking into account factors including the scheduled
EVPS usage and SoC of each EV/PHEV.

Demonstration site

EV/PHEV disconnects
when the vehicle isneeded unexpectedly.

AC: Aggregate Coordinator / RA: Resource Aggregator
Source: Tokyo Electric Power Company Holdings

55

The Electric Power Industry in Japan 2021

Electric Power Co. and Chubu Electric Power Co. jointly
established e-Mobility Power Co., Inc. in 2019 to address
this issue. This company is now active throughout Japan. In
addition to boosting the infrastructure through charging
stations at public sector facilities and for commercial
vehicles, it is also, providing convenient charging services
that meet user needs, such as V2H (vehicle to home)equipment enabling EVs to act as emergency power sources
for homes (Figure 9).

To boost the charging infrastructure in Hokkaido, which issparse compared to other regions of Japan, Hokkaido ElectricPower Co. is researching the construction of an EV charging
business platform using blockchain technology to makecharging facilities more convenient for both owners and users.
The platform connects multiple EV charging stations together
in a blockchain network, enabling owners to use the network
to check charger occupancy and set prices, and enablingusers to find charging stations and check charger availability,
reserve a charger, and make payment online (Figure 10).

Concept for Actively Boosting EV Usage

Figure 4(i) Distribution grid with potential for growth in EV usage and likely benefits
for voltage improvement (Example: Grid including many houses)
High voltage distribution line

Distribution
substation
Power Transformer

Actively encourage
EV usage is this sortof area.

Low voltage
distribution
line
Wind power(iii) Distribution grid with little benefit tousing bidirectional EV charging for voltage
improvement (Example: Grid with shortfeeder and little voltage fluctuation)(ii) Distribution grid with little potential for growth in EV usage(Example: Grid in rural/depopulated area with very few houses)
High voltage distribution line

Distribution
substation

Distribution
substation

High voltage distribution line
Power
Transformer

Power Transformer
Low voltage distribution line

Low voltage
distribution
line

Wind power

Source: Tohoku Electric Power Co.

Bidirectional Charging Control for Combination of Private and Commercial Vehicles

Non-business hours

90% - 50 Miles

PrivatevehiclesParked at home

ActiveFigure 5

Business hours

Non-business hours

Parked at work

Active Parked at home

Available for V2G
Commercial
vehiclesNuvve Corp. control interface app

Parked at work

Available for V2G

Available for V2GTime (24-hour)0Source: Toyota Tsusho Corporation, Chubu Electric Power Co.

56

ActiveParked at work

80% - 45 Miles

6

12

18

24

T O P I C S : E l e c t r i c Ve h i c l e I n i t i a t i v e sConstruction of VPP Incorporating V2G System

Figure6

External control
system
FY2019 (System linkage tests)
FY2020 (Joint verification tests)*ing

V2G system

ona

l ch

arg

FY2020 Linking with multiple resource

aggregation systems to control
a variety of energy resources

Bid
ir

ecti

FY2019Gateway
Direct connection
to power grid

Resource
Aggregation
systems

Gateway

FY2018

Research InstituteBranch office

EV busesSolar* In FY2020, joint verification tests assess links, from external systems to resource aggregation (RA) systems

Heat pump Battery storage
systems

Source: Kyushu Electric Power Co.

EV Battery Reuse Verification Tests

Figure 7

Server(integrated control of multiple power resources)
Power flow
Added in latest projectPowerconverter

EV battery packs

Solar

EVs

Electric water heaters

Source: Chugoku Electric Power Co.

57

The Electric Power Industry in Japan 2021

EV Charging Station Deployment in Japan

Figure 8

Inhabitable area:
No fast charging stationsin 10-km square

Inhabitable area:
1–10 fast charging stationsin 10-km square

Inhabitable area:
Over 10 fast charging stationsin 10-km squareWhite areas:
Non-inhabitable land constitutes
at least 80% of area

Source: e-Mobility Power Co., Inc. website

EV Charging Service Locations

Figure 9Charger specs

Location

Charging in garage, in neighborhood, at storesHomes(garages)

Publicparking
lot

Charging on the road

Carsharing Commercial Public Convenience Autodealers
parking
vehiclestoressectorspacesoperations facilities Gas stations

200 V outlet

Transitterminals

Expressways

Charging at destination

Roadside Employee Commercial Resorts
parkingrestfacilities
Golf
areas
courses

Disaster shelters

Key facilities in natural disasters

HotelsDisaster shelters

Normal 3 kW–7.4 kW chargers

Normal 3 kW–7.4 kW chargers

CHAdeMO fast 20 kW–150 kW chargers

Source: e-Mobility Power., Inc. website

EV Charging Business Platform
OwnersCompanies, local governments, individuals

Figure 10

Provide charging
service

Charge EVs(etc.)

Receive
payment

Benefits for owners:
Operational convenience• Automatic payment processing• Charger occupancy monitoring• Flexible pricing settings
Etc.

Adapters for different charging
stations enable conversion to IoT

Pay charging
fees

EV business platform
Connecting EV charging station
with blockchain technology

EV charging + adapter
stationCharging station
Source: Hokkaido Electric Power Co.

58

Users

Benefits for users:
Convenient charging• Make reservations online• Find charger location online• Check charger availability online
Etc.

STAT IS T IC AL DATAThe Electric Power Industry in Japan 2021

Electric Power Generation*
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

[TWh]

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

90.7
74.2
16.5
771.3
553.3
218.0
288.2
288.2
–
4.0
0.1
3.9
0.0
0.0
0.0
2.6
2.5
0.2
–
–
–
1,156.9
918.2
238.6

91.7
74.4
17.3
906.9
678.5
228.4
101.8
101.8
–
4.7
0.2
4.5
0.1
0.0
0.0
2.7
2.5
0.2
–
–
–
1,107.8
857.4
250.4

83.6
67.4
16.3
986.8
735.9
250.8
15.9
15.9
–
4.8
0.2
4.7
0.2
0.1
0.1
2.6
2.5
0.1
–
–
–
1,094.0
822.0
272.0

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

*Figures for industry-owned generation represent the total amount generated by power plants with a generating capacity of 1,000kW or above.
*Due to the launch of the licensing system in FY2016, certain operators’ electric power generation that had theretofore been counted as for
self-consumption has instead been counted as for electricity utilities since FY2016. **Including biomass and waste-to-energy.
Source : METI (2010-2019)

Electric Power Consumption

[TWh]

FY

2009

2010

2011

2012

2013

2014

2015

Specified-Scale Demand*Specified Supply**
Self-Consumption
Supplied by Electric Utilities
Power Generated and Consumed by Privately-owend Power Facilities
Total Consumption

285.0
45.2
544.0
9.9
12.6
896.7
106.2
1,002.8

304.2
47.5
574.9
0.0
4.4
931.1
125.4
1,056.4

289.0
44.9
545.6
0.0
4.3
883.8
118.7
1,002.4

286.2
43.7
541.0
0.0
4.4
875.3
116.3
991.6

284.3
42.8
544.4
0.0
4.5
876.0
116.6
992.6

273.1
40.5
537.8
0.0
3.9
855.4
114.1
969.4

266.9
39.2
531.5
0.0
4.0
841.5
113.8
955.3

FY

2016

2017

2018

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)

272.9
37.9
308.3
231.4
6.0
43.2
899.8
70.8
970.6
2.3

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

Low Voltage

Low Voltage
Specified-Scale Demand*

Residential
Commercial and Industrial

Residential
Commercial and Industrial
High Voltage
Extra-High Voltage*This refers to contracted demand supplied by general electricity utilities or specified-scale electricity suppliers at, in principle, 50 kW or more.
**This is a system whereby an electricity supplier directly supplies a recipient with whom it shares a close association in production, capital, etc.,
without obtaining an electricity retailing license.

60

Source: METI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]

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

48,111
43,8494,262
182,381
135,070
47,312
48,96048,960
–
2,294
85
2,209
32
13
19
537
502
35
–
–
–
282,315
228,479
53,836

48,41944,1684,250
185,309
136,132
49,177
48,96048,960
–
2,419
85
2,334
85
61
24
537
502
35
–
–
–
285,729
229,908
55,821

48,93444,651
4,282
188,903
139,794
49,10946,14846,148
–
2,562
83
2,479
267
65
202
512
477
35
–
–
–
287,327
231,219
56,10748,932
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
266,11227,785*Figures represent the total amount generated by power plants with a generating capacity of 1,000kW or above. *Due to the launch of the licensing system in FY2016,
certain operators’ power generation facilities that had theretofore been counted as for self-consumption have instead been counted as for electric utilities since FY2016.
**Including biomass and waste-to-energy.
Source : FEPC (2010-2015), METI (2016-2019)

Transmission, Substations and Distribution Facilities of General Electricity Transmission and Distribution Utilities(As of March 31, 2020)
Transmission Lines [ km ]Route length

Substations
Circuit length

NumberOutput Capacity[ MVA ]

Voltage [ kV ]Overhead

Underground

Overhead

Underground

500

7,954

113

15,423201

84

225,650

275

7,444

605

14,724

1,512

160

175,705

220

2,617

61

5,027

134

63

39,910

187

2,686

15

5,227

35

39

17,019110–154

15,516

1,037

28,194

1,985

680

156,756

66–77

38,296

7,418

68,483

13,3554,470

225,435≦55

13,545

6,164

14,785

10,161

1,290

9,839

Total

88,05915,415

151,862

27,385

6,786

850,313
Transformers

Distribution Lines [km]Route length

Circuit length

Output Capacity [MVA]

Overhead

Underground

Overhead

Underground

Overhead

Underground952,760

43,734

4,038,426

73,420343,669

35,207
Source : FEPC

61

The Electric Power Industry in Japan 2021

Peak Load, Supply Capability, Annual Electricity Demand, Reserve Margin and Load Factor
2011

2012

2013

2014

2015

2016

2017

2018

2019

Peak Load [GW ]

156.4

157.2

161.6

154.3

161.2

156.2

157.1

159.7

158.7

Supply Capability [GW ]

175.9

176.9

179.5

179.8

184.2

180.4

185.2

178.9

178.4

Annual Electricity Demand [ TWh]

926.8

914.7

917.5

898.9

888.2

887.1

892.6

886.9

879.9

Reserve [GW ]*

19.5

19.7

17.9

25.6

23.0

24.2

28.1

19.2

19.7

Reserve Margin [ %]*

12.5

12.6

11.1

16.6

14.3

15.5

17.9

12.0

12.4

Load Factor [ %]**

67.4

66.4

64.8

66.5

62.9

64.8

64.9

63.4

63.3

* Reserve= Supply Capability-Peak Load

Reserve Margin= Reserve/Peak Load×100		

FY**Load Factor= Annual Electricity Demand / (Peak Load ×365(366)×24hours) ×100

Source: Japan Electric Power Survey Committee (2011-2014), OCCTO (2015-2019)

Summarized Comparative Table Classified by Country for the Year 2018
USA

UK

FranceGermany

RussiaChina

India*

Japan

1,202,093

82,909132,889

215,046

271,600

1,900,120

400,701

300,093

Hydroelectric

100,315

4,363

25,51010,34251,300352,590

45,35850,037

Thermal834,581

50,274

18,58883,170190,200

1,144,080

276,294

193,026

Nuclear107,816

9,261

63,1309,516

29,10044,6606,780

38,042

Renewables and others

159,380

19,01025,661

112,019–

358,790

72,26918,988

Total Energy Production [GWh]4,176,489

332,776

548,600

643,450

1,115,000 6,994,700

1,490,293

1,000,409

Hydroelectric

286,596

7,942

68,30017,975

193,000

1,232,100

126,271

87,398

Thermal2,636,575

155,164

39,400315,839

716,000

4,924,900

1,217,575

823,589

Nuclear806,752

65,064393,200

76,005205,000

295,000

38,346

62,109Renewables and others

446,565

104,605

47,700233,6311,400

542,820

108,101

27,311

–

36.7

47.0

34.2

–

44.3

61.1

–

12,766

5,022

8,470

7,772

7,591

5,013

1,161

7,906

Domestic Energy Supplies [GWh]4,207,154

333,078

478,450–

1,108,100

5,950,800––

Energy Sales [GWh]3,859,186

278,835–

445,188

–5,577,700

1,123,427

852,560

Number of Customers [At year-end; thousand]

153,339

31,012–––589,449

277,922

87,620Maximum Demand [MW]779,578

50,411

96,60079,074

151,900–

177,022

164,820

Annual Load Factor [%]

60.0

68.8

56.4

–

79.3

–

–

62.1

Thermal Efficiency [%]

–

34.1

–

44.3

40.1

39.9

–

–

5.2

8.0

7.6

–

–

6.3

21.0

–

–

4,533

6,827

6,305

6,842

4,945

875

7,693

Total Installed Capacity [MW]Capacity Factor [%]Total Energy Production per Capita [kWh]Loss Factor (Transmission and Distribution) [%]Total Consumption per capita [kWh]*Figures other than Capacity Factor and Maximum Demand are the actual values for 2017.

62

Source: JEPIC, METIOV E RSEAS AC TIVIT IES O F MEMBER CO MPAN IES

This 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 2021

Recent Overseas Activities of Member Companies
North and South America
Company

Project

Location

Type

Capacity

Equity

[MW]

[%]

COD

Hokkaido

PV project in Mexico

Mexico

PV

290

12

2018

KansaiAviatorUSA

Onshore Wind

525

48.5

2020

ChugokuSouth Field Energy

USA

CCGT

1,182

10

2021

Shikoku

Huatacondo

Chile

PV

98

30

2019

ShikokuSouth Field Energy

USA

CCGT

1,182

9

2021

KyushuWestmoreland Gas-fired Power Plant

USA

CCGT

940

12.5

2018

J-POWER

Wharton

USA

PV

350

25

2022

J-POWER

Refugio

USA

PV

400

25

2023

Location

Type

Capacity

Equity

[MW]

[%]

UK

Battery Storage

73

5

2019

EuropeCompany

Project

COD

Tokyo

ZenobeTokyo

Dariali Hydro Power Plant

Georgia

Hydro

108

31

2020

Chubu

Offshore Transmission Business

Germany

Transmission

2,810

12

2017

Chubu

Offshore Transmission Business(Walney Extension)

UK

Transmission

–

20

2020

Chubu

Acquisition of 20% shares of Eneco Group

Netherlands

Integrated Energy
Business

–

20

2020

KansaiMoray East

UK

Offshore Wind

952

10

2022

KansaiElectricity North West

UK

Distribution

–

22

–

Kansai

Piiparinmaki

Finland

Onshore Wind

211

15

2021

KyushuData Collection Survey of Energy Sector for
Decarbonization

SerbiaConsultation

–

–

2019

64

O V E R S E A S A C T I V I T I E S O F M E M B E R C O M PA N I E S

Asia
Capacity

Equity[MW][%]

Geothermal

98

10

2021

VietnamCoal (SC)

1,200

10

2022

Coc San Hydro Power Plant

Vietnam

Hydro

30

33

2018

Tokyo

Deep C Industrial Park

VietnamDistribution and Retail

–

50

2018

Tokyo

TEPCO Energy Partner International (Thailand)

Thailand

Proposal of savingenergy and CO2

–

49

2019

Chubu

Power Distribution and Retail Sales businessfor New Clark City

Philippines

Distribution and Retail

–

9

2019

Kansai

New Clark City

Philippines

Distribution and Retail

–

9

2019

Chugoku

AhloneMyanmar

CCGT

121

28.5

2013

Chugoku

Revision of Power Development Master Plan

Cambodia

Consultation––

2019–2020

Chugoku

YunlinTaiwanOffshore wind

640

3.375

2021

Shikoku

Batang Toru 3

Indonesia

Hydro

10

15

2020

Shikoku

YunlinTaiwanOffshore Wind

640

4.4

2021

Shikoku

Hamriyah

UAE

CCGT

1,800

15

2023

KyushuSarulla/Geothermal IPP

Indonesia

Geothermal

330

25

2017

KyushuTaweelah B IWPP

United AlabEmirates

IWPP

2,000

6

2020

J-POWERCBK (3 projects)

Philippines

Hydro

728

50

2001−2004

J-POWER

Nong Seang

Thailand

CCGT

1,600

60

2014

J-POWERU-ThaiThailand

CCGT

1,600

60

2015

Company

Project

Location

Type

TohokuRantau Dedap Geothermal Power Plant ProjectIndonesia

TohokuNghi Son 2 BOT Thermal Power Plant Project

Tokyo

COD

OthersCompany

Project

Chubu

Project for Improvement of Energy Loss
Reduction on Distribution Network

Okinawa

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

LocationType

MozambiqueFiji, Tuvalu, Kiribati, Federated Statesof Micronesia (FSM) and Republic of
the Marshall Islands (RMI)

Capacity Equity

COD

[MW]

[%]

Technical
Cooperation

–

–

2020

ODA

–

–

20172022

65

The Electric Power Industry in Japan 2021

Hokkaido Electric Power Co.

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O V E R S E A S A C T I V I T I E S O F M E M B E R C O M PA N I E S

Tohoku Electric Power Co.

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+10&1) 0$. *#+*$/'
$+0&$.) ( 1*'0/

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

2()#-$/ 1$ +#/ +0%$/ 2/-,0$
5-$"1(+&01 !)$),+&1$/* /$3$+2$!6#(0- 1"'(+&$)$"1/("(161,! 0$#,+ 6$ /07  "()(1($0," 1(,+
6-$
,1$) +1,",3$/1'$", )6 /#4(1'0' #$0$+1(/$)6

,+"$-1(,+ ) / 4(+&

 - "(16+$1
.2(16

' +' , -/,3(+"$($1+ *, ) 2-$/"/(1(" )




 2+(10 -$"( ),1$0
$",+1/(!21$1,01 !)$,-$/ 1(,+0 +#/$#2"1(,+,%
$+3(/,+*$+1 )), #20(+&*,/$1' + 6$ /0
$5-$/($+"$,+,2/#,*$01("", )%(/$#-,4$/-) +10 

67

The Electric Power Industry in Japan 2021

Tokyo Electric Power Company Holdings  *%$%&!(%& !&! & %&$'&"! & '%!%% !&!   '$#"%
6 (/-1./1(+&&),! )!1/(+$//$4- +/(,+!5)$2$. &(+&0$"'+,),&($/ +#+,3,3%,.% "()(05-) ++(+&,-$. 0(,+ +#* (+0$+ +"$ (',+&1 +&(+' !'%&$"! (',+&(05($0+ *

'%!%%'$)
6 ,3$.(/0.(!10(,+ +#$0 ()(++#1/0.( )
,+$
6 3())!$* (+)5(+"' .&$,%$+&(+$$.(+&+#% "()(051!/0 0(,+(/0.(!10(,+",+/0.1"0(,+ !(%& !&&"
6  
6 +%. /( +2$/0*$+0  &$&'$%
6 +#1/0.( ),+$(/%(./0$/0 !)(/'$#(+  )," 0$#(+ (',+& (05($0+ *3(0' 0,0 ) .$ ,%  '   "!

+%&% 2!+))0"+&(-")+$%

 
4 '*+)/")*"+-%)((!'%(-"(( ".-%&%3%($5,"1*"+-%,")#*&(-)*"+-%)(
  4  
4 " "'"+
4  2"+,   4   
4 *+%&
4 2"+,

).+ "+%&%("+$2) (2!+))0"+&(-%"-('68O V E R S E A S A C T I V I T I E S O F M E M B E R C O M PA N I E S

Chubu Electric Power Co.

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

  )!&#!$ #-'#)( 










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





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

#( ''('





 )&$#'#"*'(!"( ))&&'"# '$ (#&!#& (&$#+&)'"''")&#$ ))+ ,$"(')'"''#!""
&"+ '&( ' '""+'&*'-#!""(')!) (,$&('""&-'(#&+("#')"%)'(&"('







  

  30+&$5'03.1307&.&/50'/&3(9044&%6$5*0/0/*453*#65*0/&5803,
"3$)
50"3$)

 7&3"--0"- 30+&$563104&
-&$53*$*%"%& %&0;".#*26& 8*--*.1-&.&/5
1-"//*/(%&4*(/"/%'035&$)/*$"-"/%/0/5&$)/*$"-
108&3%*453*#65*0/-044&43&%6$5*0/*/$-6%*/()6."/
3&4063$&%&7&-01.&/5#"4&%0/5)&*.1307&%$"1"#*-*5*&4
0'45"''*5&4637&90/108&3%*453*#65*0/'"$*-*5*&48*5)&/(*/&&34
$0/%6$5&%*/5)&30+&$5'03/5&(3"5&%
"45&3-"/0/0:".#*26&08&3
945&.&7&-01.&/5*/5)&&16#-*$
0'0:".#*26&
50


 $5*7*5*&40/5)*430+&$5!0"$)*&7&5)&"#07&)6#6-&$53*$08&30 /$ $0/%6$54'0--08*/("$5*7*5*&48*5)&/(*/&&34  !3"*/*/(45045"''40"450"$26*3&/&$&44"39,/08-&%(&'031-"//*/(%&4*(/"/%'03
%*453*#65*0/-0443&%6$5*0/  *-05130+&$5450*.1307&13"$5*$"-$"1"$*5*&4503&%6$&
108&3%*453*#65*0/-044&4"/% 3&"5*0/0'(6*%&-*/&445"/%"3%4"/%."/6"-40/
13"$5*$"-803,43&-"5&%50%*453*#65*0/-0443&%6$5*0/ 03.6-"5*0/0'"/"$5*0/1-"/50130$&&%108&3
%*453*#65*0/-0443&%6$5*0/"1130"$)&4 

69

The Electric Power Industry in Japan 2021

Kansai Electric Power Co.

     

 +!/&+*
5 +'#+0*/4#3. !&(&/&#.
5 *.%+-#&*"+2#-#*#-/&+*5 )#1&/+-&*"-)
5 0) #-+$0- &*#. 
5 +/(+2#-0/,0/ -/*#-.
5 %#*.&(#!/-&!+2#-*!  
5 -#.*$-./-0!/0-#*"+2#-
0*". 
5 CMS Energy Corporation 70

O V E R S E A S A C T I V I T I E S O F M E M B E R C O M PA N I E S

Chugoku Electric Power Co.

     
   
 74215'= 1064+$76'61#%*+'8+0)#.19%#4$1051%+'6;
= %*+'8'56#$.'241(+6#$+.+6;6*417)*#.10)6'4/'.'%64+%
5#.'5%1064#%6= !6+.+<'174-019.'&)'#0&':2'4+'0%'1(*;&41'.'%64+%
219'4)'0'4#6+10
 '#674'5= 41,'%6 #--#6 *;&41219'42.#06=

1%#6+107/$#0) #570&76#0 ')'0%;
146*7/#64#418+0%'=

#2#%+6; " 701(>4+8'46;2'

=



=

((6#-'4 '4+1& 
0&10'5+#056#6'190'&'.'%64+%219'4%1/2#0;
 ;'#45=

*7)1-7537+6;*#4' 

24+.

    
   
 1.,+/!
6 !1.!/0(!,.+"%0/50$!+)%*0%+*+"
"%4! .!2!*1!1* !.,%05+*0.03%0$(+(!(!0.%%05+),*5* )!.$*0!*!.#5
.!2!*1!".+)0$!/(!+"!*!.#5%*0$!
3$+(!/(!,+3!.).'!0 !01.!/
6 .+&!0 (!!* *!.#55/0!)/
6
6
6
6
6

+0%+* %(!0+3* +**!0%10

,%05    +)%*!  5(!/1.%*! 1(5 

.'!0 !3*#(*$1#+'1 /-1%05$.! 

 

71

The Electric Power Industry in Japan 2021

Kyushu Electric Power Co.

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

*((!-%'+!-/%*)%)!

4!)!-/%*)+%/34!)!-/%*) 3+!
/0-'#.*(%)! 3'!

4

!3,0%+(!)/
#./0-%)! 4

0!'0++'3
$'!#."-*(#."%!' .%)       

(+' ( ).$)", ) 1'  ) ,"3-*/, -)+,*0$$)". #)$'-/++*,.-$)    /,+*5 /++'3*! )0$,*)( ).'!,$ )'3 ) ,"3
5 2+)-$*)*!*1 ,*/, - ($,*",$/-$) -  ./, 5 ,*% .$.
$*/$($))"*)"$4'*,. ,.*)
)(**'$*) '+-/72

5*(( ,$'+ ,.$*)
$)  5 ) ,.$*) +$.3&  &5 ) ,.$*) 3+
$ - '" ) ,.$*) .. ,31$'' $(+' ( ). $).# !/./, O V E R S E A S A C T I V I T I E S O F M E M B E R C O M PA N I E S

Okinawa Electric Power Co.

  

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

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

%!+).() -"*+)$2 "*+)$-#,)''#,,#)(1 -)
)(,)+-#.')'*+#,) %#(0(-" (
 

73

The Electric Power Industry in Japan 2021

J-POWER              

     

      !01.!/
6 !+* #.!!*"%!(  !2!(+,)!*0,.+&!0%*5
6 7/  ,.+&!0%*  %*6

+0! (+/!0+$%#$,+3!. !)* .!
$%#+

6$! 1(! 0+/!((,+3!.0$.+1#$).'!0

 2!.2%!3
6 ,%05   4 1*%0/66

1!( 01.(/!$*+(+#5 

66

-1%053*!. 
001/ * !.+*/0.10%+*

6
6

+*/0.10%+*0.0  +))!.%(,!.0%+*            

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

 &"563&4; *34507&34&"40''4)03&8*/%130+&$5".0/("1"/&4&08&3 5*-*5*&4; "35*$*1"5&%*/&15&.#&3
;

0$"5&%*/5)&035)&"3&(*0/&"450'/(-"/%,/08/
"4"3&"8*5)015*.6.8*/%$0/%*5*0/4'038*/%108&3
(&/&3"5*0/;6"-*'*&%'03' 0/53"$54'03*''&3&/$&3&(*.&0'8)*$)(6"3"/5&&4 :&"340'45"#-&3&7&/6&"'5&3
$0..&/$&.&/50'01&3"5*0/ 7&37*&8; "1"$*5: !"11309 !9 6/*54
8/&%"1"$*5:
!

74

;
;

26*5:8/&34)*1!
5"564 /%&30/4536$5*0/;;

0/4536$5*0/5"35
0..&3$*"-1&3"5*0/O V E R S E A S A C T I V I T I E S O F M E M B E R C O M PA N I E S

The Japan Atomic Power Co.

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

 " $"

%"! '"!$#%$ ""!"$  #$"! "$" %$  
%"! '"

%!###)#!$ $ #%"$

75

The Electric Power Industry in Japan 2021

Member Companies Data (As of March 31,2020) *FY 2019

Capital (¥m) Sales (¥m)
Nonconsolidated Consolidated

Approved maximum output of power facilities [MW]**Electricity
sold retail

Hydro

ThermalNuclear[GWh]

Renewable(excl. hydro)

Total

Hokkaido EPCo

114,291

748,468

23,701

1,651

4,469

2,070

–

8,191

Tohoku EPCo

251,4412,246,369

67,167

2,556

11,9492,750

243

17,498TEPCO HD

1,400,975

6,241,422

222,277

9,874

–

8,212

51

18,137

Chubu EPCo

430,777

3,065,954

122,542

5,459

–

3,617

39

9,115

Hokuriku EPCo

117,641

628,039

25,054

1,961

4,565

1,746

–

8,272

Kansai EPCo

489,320

3,184,259

112,992

8,234

15,7666,578

1130,590Chugoku EPCo

197,024

1,347,352

50,208

2,905

7,801

820

6

11,532

Shikoku EPCo

145,551

733,187

22,396

1,152

3,395

890

2

5,439

Kyushu EPCo

237,304

2,013,050

70,398

3,580

9,985

4,140

208

17,913

Okinawa EPCo

7,586

204,296

7,316

–

2,145

–

2

2,147

J-POWER

180,502913,775

–

8,560

8,173

–

535

17,269JAPC

120,000

99,617

–

–

–

2,260

–

2,260

*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

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

5,000

3,280,000––

65,476––65,476

Source: Compiled from JERA’s website and financial results briefing handouts, and the Agency for Natural Resources and Energy’s electrical power survey statistics

76CONTRIBUTORS:

Dai Ukita
Osamu Kato
Yasushi Takizawa
Manabu Hirano
Shota Sakamoto
Masashi Okada
Kaori Kodama
Kojiro Henmi
Tomoaki Okamura
Takanori Yamamoto
Kenta Takahashi
Sho Hironaka

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.
©2021 Japan Electric Power Information Center, Inc.

Distribution Areas and Frequency ofGeneral Electricity T&D Utilities(As of February 2021)

Hokkaido
Electric Power
Network

TohokuElectric Power
Network

Hokuriku
Electric Power
T&D
ChugokuElectric Power
T&D

KyushuElectric Power
T&D

Kansai
T&D

Chubu
Electric
Power Grid

TEPCOPower Grid

ShikokuElectric Power
T&D

60 Hz

50 Hz

Okinawa
Electric Power Co.

Member Companies (As of February 2021)
Hokkaido Electric Power Co., Inc.
2, Higashi 1-chome, Odori, Chuo-ku, Sapporo, Hokkaido 060-8677, Japan
http://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 2-chome, 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.
2-1, Makiminato 5-chome, 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/

THE ELECTRIC POWER
I NDUST RY I N JA PA N

Head Office15-33, Shibaura 4-chome Minato-ku,
Tokyo 108-0023, Japan

http://www.jepic.or.jp/en/
Washington Office1120 Connecticut Avenue, N.W., Suite 1070
Washington, D.C. 20036, U.S.A
Tel: +1 (202) 955-5610
European Office
10, rue de la Paix, 75002
Paris, France
Tel: +33 (1) 42.86.90.11
Beijing Office
Chang Fu Gong Office Building 401, Jia-26
Jianguomenwai Dajie, Chaoyang-qu, Beijing 100022
The People’s Republic of China
Tel: +86 (10) 6513-9885, 9886

Printed in Japan with vegetable-based ink on recycled paper2021