THE
ELECTRIC
POWER
INDUSTRY
IN JAPAN
2019

EPCo Distribution Areas and Frequency (As of January 2019)

Hokkaido
EPCo

TohokuEPCo

Hokuriku
EPCo

Chugoku
EPCo

Kansai
EPCo

Chubu
EPCo

TEPCO
Power Grid

Shikoku
EPCo
Kyushu
EPCo

60 Hz

50 Hz
JEPIC’s member companies include
the 10 EPCos indicated on the map
and two wholesale electric utilities,
J-POWER and the Japan Atomic
Power Company.

Okinawa
EPCo

THE ELECTRIC POWER INDUSTRY IN JAPAN2019

CO NTENTS
Message from the Chairman

2

Executive Summary

4

I.

Energy Policy

8II.

Electricity Supply System

24

III. Electricity Supply and Demand

29

IV. Power Generating Facilities

33

V.

Power Network Facilities

37

VI. Electricity Retail Business

42

VII. International Cooperation and Exchange

50

Operating and Financial Data

53

M E S SAG E F ROM T H E C H A I R M A N

As the Chairman of the Japan Electric Power
Information Center (JEPIC), I am delighted topresent this year’s edition of The Electric Power
Industry in Japan(EPIJ). JEPIC’s activities range fromconducting research on the world’s electric power industries to collaborating and cooperating with agencies
and organizations involved with the industry aroundthe world. This report was produced to provide ouroverseas readers with a better understanding of theelectric power industry in Japan.
“This pamphlet has been prepared for the purpose of
introducing abroad the present status of the electric powerindustry in Japan. Years have passed since the terminationof the war; during which period Japan has seen the arrivalof the threshold of industrial rehabilitation that has led thenation to a new era of its economic expansion.”
Thus began the introduction to the very first edition of EPIJ, published in 1959. This year marks the60th anniversary of this publication. Japan’s electric
power industry has changed immensely during thosesix decades. EPIJ, too, has evolved considerably sincethat first edition, and the contents of this report havebeen gradually updated and improved to better reflectchanges in society and the industry. However,throughout all this time, our goal has always been to
keep our overseas readers informed about Japan’s electric power industry.
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TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 2019

I observed that the nation’s electric power industry
has changed considerably. Sixty years ago, electricity
demand soared as Japan’s economy grew, and powersources and transmission facilities were rapidly developed and expanded to keep pace.
Change in the industry began with the shift fromhydropower to thermal power as the main means ofgenerating electricity in Japan from the latter half ofthe 1960s. This was followed by the oil crises of 1973
and 1979, which caused the nominal import price of
crude oil to soar approximately tenfold between 1972
and 1979. In 1973, over 60% of the plants generating
power for the electric power industry were oil-fired.
Given that Japan produces virtually no oil of its own,
it should not be hard to imagine how much turmoil
these crises caused. This was also a time when air pollution resulting from an overdependence on oil was
gradually emerging as a major social issue. Since then,the diversification of power sources (centered particularly on the expansion of liquified natural gas (LNG)
and nuclear power plants) and the attainment of the“optimal energy mix” for the nation have been key
principles guiding the development of Japan’s electricity facilities.
In time, the previous steep rise in electricity demandslowed, and with the modernization of facilities largely
complete, deregulation of the industry commencedhomes and property destroyed as a result of these catastrophes. The electric power industry, too, was severely affected, as the earthquakes and typhoons
caused widespread power outages around the country.
While I believe that Japan is a marvelous country
with much that we can and should be proud of, theevents of last year are a reminder that severe natural
disasters are an inevitable part of our life here. In
Japan as elsewhere, it is impossible for the electric
power industry, given the huge scale of its facilities, toescape the impact of natural disasters. Despite the major damage caused by last year’s power outages in various parts of the country, services have now been
restored thanks to the unstinting efforts made by theutilities and the prompt support provided by othercompanies. Here I must pay tribute to all of those involved in providing the stable supply of electricity, notonly here in Japan but all around the world.
As I noted above, full deregulation of the electricity
retail market (including the residential sector and other small-scale customers) was completed in 2016. The
environment surrounding the industry will be furthertransformed by the legal separation of transmission
and distribution from the vertically integrated businessin 2020. However, the importance of electricity to society, and the expectations for its stable supply, have notdeclined in the least.
Japan’s electric power industry faces a wide range ofchallenges, including the restart of nuclear power
plants, further improvement of environmental friendliness, and growing market competition. History, however, shows us that the industry has faced and overcome
a variety of challenges over the past 60 years. I am confident that in another 60 years electric power will stillserve as the bedrock of social affluence, and will still
contribute to people’s happiness all around the world.

Yuji Masuda

Chairman and CEO
Japan Electric Power Information Center

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M E S SAG E F R O M T H E C H A I R M A N

with the approval of the entry of independent power
producers (IPPs) in 1995. This was followed by thephased deregulation of rates for larger electric powerusers in 2000 and 2005, and the approval of new entries
to the retail market. Full deregulation of the retailelectricity sector was completed in 2016, and now thenext major change to the industry will come in 2020
with the legal separation of transmission and distribution from the vertically integrated business. This step
will transform the vertically integrated structure thathas characterized Japan’s electric power industry since
1951.
That, in outline, is how Japan’s electric power industry has evolved over the past 60 years. What mustnot be forgotten, however, is the 2011 accident at
Tokyo Electric Power Company’s Fukushima Daiichi
Nuclear Power Plant (Fukushima Daiichi Accident).
Public access to some of the land around the plant remains restricted, and residents in the area have had tobe evacuated. At one point all of Japan’s nuclear power
plants were shut down, and some nuclear power generating units have since been decommissioned.
Meanwhile, the Basic Energy Plan unveiled by thegovernment in July 2018 reaffirms that nuclear power
is to remain a key baseload power source for the nation
while calling for renewables to be developed to function as a core power source. Regarding nuclear power,
Japan’s electric power utilities are working hard to further improve safety by complying with the tough new
regulatory standards, and as a result, plants have been
gradually coming back online.
The Fukushima Daiichi Accident was triggered bya natural disaster of historic proportions. However, lastyear, too, saw a number of major natural disasters inJapan, including landslides caused by torrential rain,
typhoons, and earthquakes. Many lives were lost andEXECUTIVE SUMMARY
ENERGY POL I CY
• Under the Basic Act on Energy Policy, the Japanese government is responsible for formulating the Basic Energy
Plan which sets the fundamental policy regarding the nation’s energy supply and demand.
• The first Basic Energy Plan was formulated in October 2003, with updated plans prepared in subsequent years.
Reflecting the lessons learned from the Great East Japan Earthquake and the accident at the Tokyo ElectricPower Company (Tokyo EPCo) Fukushima Daiichi Nuclear Power Plant (Fukushima Daiichi Accident) in 2011,
the fourth Basic Energy Plan incorporating major revisions was drawn up in April 2014.
• The fifth and most recent Basic Energy Plan was adopted in July 2018. In addition to the previously establishedbasic goals of the “3Es”—Energy security, Economic efficiency, and Environmental acceptability—the new plansets an overarching goal of achieving the “3E+S”—the 3Es plus safety (S). It further calls for the achievement of
the Long-term Energy Supply and Demand Outlook (“2030 energy mix”) laid out in the fourth Basic Energy
Plan, and presents an additional “2050 energy scenario” to serve as a new national goal.
• The “2030 energy mix” serves as a forecast for Japan’s supply and demand structure in fiscal 2030, laid out as agoal of the fifth Basic Energy Plan. Regarding the nation’s power generation mix, the 2030 energy mix sets fortha policy to reduce Japan’s fossil fuel dependence through energy conservation. It also aims to increase the shareof renewables in Japan’s power generation mix to around 22%-24% by the year 2030.

ELECTRICITY SYSTEM REFORM• Following on the power shortages caused by the Great East Japan Earthquake and the Fukushima Daiichi
Accident, the government established the Expert Committee on Electricity System Reform in January 2012. The
Committee initiated a study of the electricity system reforms required in order to achieve the goals of securing aresilient power supply, suppressing electricity rate increases as much as possible, and expanding both consumer
choice and business opportunities for existing electric utilities and newcomers.
• Based on the Committee’s report, the Policy on Electricity System Reform was approved by the Cabinet in April
2013. This policy established a three-phase reform process to be implemented in the following order: (1) expansion of cross-regional grid operation; (2) full liberalization of retail market entry; and (3) legal separation oftransmission and distribution from the vertically integrated business.
• In line with the new policy, the government subsequently implemented a phased revision of the Electricity
Business Act and, in accordance with the revised Act, in 2015 established the Organization for Cross-regional
Coordination of Transmission Operators (OCCTO) and the Electricity Market Surveillance Commission. Fullliberalization of Japan’s electricity retail market was implemented in 2016, and preparations are now underway
for the legal separation of transmission and distribution from the vertically integrated business.

NUCLEAR EN ERGY
Position of Nuclear Power Generation in Government Policy• Japan’s energy self-sufficiency ratio in 2016 was only around 8%, and fundamental structural weaknesses remain.
Moreover, efforts have been required in recent years to reduce the nation’s emissions of greenhouse gases. In lightof these circumstances, the fifth Basic Energy Plan approved by the Cabinet in July 2018 identifies nuclear power
as an important baseload power source and sets a target for its share of the 2030 energy mix of 20%-22%. Nuclear
power generation is also identified as “an option for decarbonization that is at the practical stage” in the long-term
future energy scenario for 2050.
Action on Regulation of Nuclear Safety• One of the lessons learned from the Fukushima Daiichi Accident was the negative impact of the compartmentalization of public administration. In September 2012 the Japanese government established the Nuclear Regulation
Authority (NRA), and further created the Nuclear Regulatory Agency to serve as the authority’s secretariat.
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State of Nuclear Power Generation• From May 2012 on, none of Japan’s nuclear power plants were in operation. However, it was decided that plants
determined to be in compliance with the new regulatory standards could be restarted. As of September 2018, 15
nuclear reactors had been confirmed compliant following the implementation of measures to strengthen theirdefenses against natural disasters such as earthquakes and tsunami, preparedness for severe accidents, and countermeasures against terrorism. Nine pressurized water reactors (PWR) have been restarted and have reenteredcommercial service. In addition to PWRs, some boiling water reactors (BWR) have also been confirmed compliant, with six additional reactors in all being prepared to come back online pending local approval and the completion of safety improvement work. On the other hand, at Fukushima Daiichi Nuclear Power Plant it was decided
to decommission all of the plant’s reactors, including those that had not been damaged in the accident. The decision was also made to decommission several other reactors elsewhere in Japan in view of the excessive cost of
ensuring their compliance with the new regulatory standards.
• The period of allowed operation of nuclear reactors in Japan had previously been set at 40 years from their time ofentry into operation. However, procedures have now been introduced allowing a one-time extension of this period
for up to 20 additional years. As of October 2018, extensions had been obtained for three PWR reactors, and work
is now underway to enhance their safety. In addition, an extension for the BWR at Japan Atomic Power Company’s
Tokai No. 2 Nuclear Power Plant was approved in November 2018, the first BWR to receive approval.
The Nuclear Fuel Cycle• 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 spent fuel and reuse the recovered plutonium and uranium
as fuel. Spent fuel reprocessing is central to this plan. In October 2016 the Nuclear Reprocessing Organization ofJapan was established to manage the necessary funds and to reliably perform reprocessing work and related activities. Japan Nuclear Fuel Limited (JNFL) was assigned to perform this work on an outsourcing basis. At thesame time, Japan is also committed to working at the state level to reduce the size of its plutonium stockpile fromthe standpoint of nuclear non-proliferation.
• In July 2017, the Ministry of Economy, Trade and Industry (METI) published the Nationwide Map of ScientificFeatures for Geological Disposal as a preparatory step toward the final disposal of high-level radioactive waste.
The government plans to narrow down the number of candidate sites based on this map.
Decommissioning Work at Fukushima Daiichi Nuclear Power Plant• Recovery from the damage caused by the Fukushima Daiichi Accident, smoothly decommissioning the
Fukushima Daiichi Nuclear Power Plant itself, and dealing with the problem of contaminated water are allperceived as top priorities for the government and Tokyo EPCo.
• When the accident occurred, it was decided in the interests of 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 appropriately in a shared pool at thesite. The removal of spent fuel from the pool in Unit 4, where the most spent fuel was stored at the time of theaccident, was completed in December 2014. In Units 1, 2, and 3, rubble that has been impeding the removal offuel is still being cleared. A domed roof has been completed over Unit 3, and work is underway to extract fuel.
• Extensive “fuel debris,” consisting of fuel and internal reactor structures that melted during the accident and thencooled and solidified, is believed to be present in Units 1, 2, and 3. Because of the extremely high levels of radiation in the reactor buildings, surveys of the interiors are presently being conducted using remote-controlled
equipment.
• Water is being injected continuously into the reactors to cool the fuel debris. Consequently, more contaminated
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Through this reorganization, affairs concerning nuclear safety regulation that used to fall under the jurisdictionof multiple agencies were centralized under the independent NRA.
• Following the Fukushima Daiichi Accident, additional steps were taken to strengthen nuclear safety regulation.
These included, 1) reinforcement of strategies for responding to severe accidents, 2) introduction of a “backfitting” program, and 3) introduction of procedures for extending the period of operation of nuclear reactors. This
revision led to the entry into effect in July 2013 of new regulatory standards.

water is being generated by the day as a result of the cooling water mixing with groundwater that has penetrated
the reactor buildings. Various countermeasures are now being pursued to address this problem in line with thethree principles of (1) the removal of sources of contamination; (2) the isolation of water from contamination
sources; and (3) the containment of contaminated water. An impermeable wall of frozen soil has also been createdaround the plant to isolate groundwater from the contamination source, with freezing of the entire circumference
commencing in August 2017. New emissions of contaminated water must still be stored in tanks following treatment by an advanced liquid processing system (ALPS). Land for tanks is growing scarce, and the government isleading a wide-ranging study examining social impacts as well as scientific safety in order to determine how best
to dispose of water that has undergone ALPS treatment but still contains tritium that cannot be removed.
• Decommissioning work will continue over a prolonged period. This makes it important to create safe and secure
working conditions, and steps have been taken to reduce the radiation doses to which personnel are exposed. As
of September 2018, the areas where full-face masks no longer have to be worn had been expanded to cover approximately 96% of the site, improving the work environment in these areas and allowing work to be performed
in ordinary work clothes and disposable face masks.
• Evacuation orders for areas near the plant are being progressively lifted. However, there still remain some areas
where residents cannot return.
• In November 2017, a special zone for reconstruction and revitalization was designated in the town of Okuma andconcrete plans put into effect to decontaminate the area and rebuild infrastructure in an integrated fashion so that
evacuation orders could be lifted. The government is committed to ultimately lifting all evacuation orders, recovering from the damage, and restoring the region, no matter how long it may take.

RENEWABLE ENERGY• The government launched the FIT (feed-in tariff) scheme for renewable energy in July 2012. Under this scheme,
electric utilities are required to purchase all energy produced from renewable energy sources (including small- andmedium-scale hydropower plants with a capacity under 30 MW). This scheme accelerated capital investment inrenewables, with installed capacity compared to before the launch of the scheme growing by 41,480 MW by theend of March 2018.
• However, there is a growing issue with projects, particularly solar power projects, that are still not in operation
despite having received FIT certification following the 2012 program launch. The government is consideringrevisions to the scheme to address this problem.
• In addition, while the FIT purchase price, especially for solar, has continued to fall, it still remains high by global
standards, leading to calls for correction. The surcharge for fiscal 2018 is 2.90 yen per kWh (2.3734 trillion yen
for Japan as a whole), or 9,048 yen per year for the standard model household.
• In order to prompt a price correction, since fiscal 2017 two tenders have been held for electricity purchases fromsolar power plants with a capacity of 2 MW or more. However, the results have been less successful than anticipated, with none of the proposals received for the second tender coming in below the price set by thegovernment.
• Due to the rapid increase in connected solar capacity in Kyushu EPCo’s service area, output controls, which had
heretofore been used only on remote islands, were imposed on mainland FIT operators for the first time ever in
October 2018.

GLOBAL WARMI NG COUNTERMEASU R ES
• In fiscal 2016, Japan’s greenhouse gas (GHG) emissions measured 1,307 million tons (CO2 equivalent), a decreaseof 1.2% from fiscal 2015 and a 7.3% decrease from fiscal 2013. Of these, CO2 emissions totaled 1,206 million tons
(1.6% lower than in fiscal 2015, and 8.3% lower than in fiscal 2013). Factors behind the decrease in CO2 emissions
from the previous fiscal year included both lower energy consumption due in particular to energy conservation
and a proportional increase in the use of non-fossil fuels.
• Ahead of COP21, held in Paris in December 2015, the government drafted an Intended Nationally Determined
Contribution (INDC) target of reducing GHG emissions by 26.0% in fiscal 2030 compared with fiscal 20136

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 2019

ELECTRICITY SUPPLY STRUCTURE• After World War II, 10 vertically integrated investor-owned electric power companies supplied electric power inJapan through regional monopolies.
• Entry into electricity wholesale services was liberalized in 1995, followed by the liberalization of retail electricity
supply for customers receiving extra high-voltage (20 kV or above) in 2000. Retail supply liberalization was extended to large high-voltage customers (500 kW or above) in 2004, followed by all high-voltage customers (50 kW
or above) in 2005. The market was fully deregulated in April 2016.
• Electric power generated in fiscal 2016 came to 998.1 TWh, and power consumption totaled 963.1 TWh.
• Peak power demand in fiscal 2016 was 155,890 MW.
• Total domestic generating capacity (including non-utility power) at the end of March 2017 totaled 298,350 MW.
Domestic generating capacity (excepting non-utility power) totaled nuclear power at 41,480 MW (38,570 MW asof the end of September 2018), hydro power at 49,520 MW, and thermal power at 174,390 MW. Nationwide solar
power generating capacity (including systems operated by non-utility generators) as of the end of December 2017
was 42,800 MW. Wind power was 3,370 MW.
• The Supply Plan published by OCCTO at the end of March 2018 calls for the development of 23,500 MW of new
power sources from fiscal 2018 to the end of fiscal 2027. The breakdown of power generation by volume calls for
17,420 MW to be provided by thermal power generation, 279 MW to be provided by hydro power generation,and 5,806 MW to be provided by renewable energies excluding hydro.
• The power grid in eastern Japan runs on 50 Hz and the power grid in western Japan runs on 60 Hz. These eastern and western Japan grids are interconnected at three frequency converter stations capable of converting a totalof 1,200 MW: Sakuma in Shizuoka Prefecture (300 MW), Shin-Shinano in Nagano Prefecture (600 MW) andHigashi Shimizu in Shizuoka Prefecture (300 MW). A decision has already been made to increase the interconnection capacity of these frequency converters to 2,100 MW by fiscal 2020, and to further increase the interconnection capacity to 3,000 MW, with operations targeted to begin in fiscal 2027.

ELECTRICITY RATES AND MARKET I N G A CT I V I T I ES
• Beginning in April 2016, in addition to high-voltage consumers to whom deregulation was already applicable, allother consumers including households became able to select between incumbent electric power companies’ regulated rates and other rates plans, as well as unregulated rates plans provided by new electric power providers.
• As of the end of June 2018, the cumulative number of customers switching to new electricity plans since March
2016 totaled approximately 7.06 million, meaning 11.3% of ordinary general household customers had switchedto new contracts.
• Following full deregulation of the market, the incumbent electric power companies and new electric power providers have been introducing a variety of electricity rate schedules designed to meet the needs and lifestyles ofconsumers with the aim of persuading them to select their services.
• To ensure that consumers make such selections appropriately, in January 2016 the Electricity and Gas Market
Surveillance Commission formulated the Guidelines Concerning the Management of the Electricity Retail Business.
The guidelines provide guidance to retail supply businesses and other related businesses on compliance with theapplicable laws and regulations, and encourage them to engage in voluntary initiatives to ensure compliance.

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(25.4% compared with fiscal 2005) and submitted this target to the United Nations Framework Convention on
Climate Change (UNFCCC) Secretariat.
• In order to attain the mid-term targets set forth in the Intended Nationally Determined Contribution, theJapanese government approved a Global Warming Countermeasures Plan at a meeting of the Cabinet in May
2016, resolving to effectively employ a wide range of policy instruments and steadily implement policies in orderto facilitate global warming countermeasures.

I. E N E R G Y P O L I C Y
1. E nergy Policy Overview(1) Basic Act on Energy Policy
Basic policy on energy supply and demand in Japan isdetermined under the Basic Act on Energy Policy, which
entered into effect in June 2002. This act lays down theoverarching principles framing energy policy—namely,
the securing of stable supply, environmental suitability,
and utilization of market mechanisms. It further specifies the responsibilities of central and local governmentand suppliers and the public’s “duty of effort” necessary
to implement these principles (Table 1.1).

Basic Act on Energy Policy (Excerpts)

Table 1.1

ArticleKey Points

Article 1:
PurposeThe purpose of this Act is […] to promote measures on energy supply and demand on a long-term, comprehensive
and systematic basis by laying down the basic policy and clarifying the responsibilities of the State and local public
entities with respect to measures on energy supply and demand and by prescribing matters that form the basis ofmeasures on energy supply and demand, thereby contributing to the preservation of the local and global environment
and to the sustainable development of the Japanese and global economy and society.

Article 2:
Securing of stablesupplyMeasures shall be taken with the basic aim of diversifying energy supply sources, increasing energy self-sufficiency
and achieving stability in the energy sector by undertaking such measures as reducing excessive dependence on
specific geographic regions for the import of primary energy sources such as oil, promoting the development ofenergy resources […], providing for energy transportation systems, promoting the stockpiling of energy and energy
use efficiency, etc. and implementing appropriate crisis management concerning energy.

Article 3:
Environmental
suitability

Measures shall be promoted to realize […] the prevention of global warming and the preservation of the local environment, as well as to contribute to the formation of a recycling society by improving energy consumption efficiency,
by such measures as promoting the conversion to non-fossil-fuel energy use […] and the efficient use of fossil fuels.

Article 4:
Utilization of market
mechanisms

Economic structural reforms concerning energy supply and demand […] shall be promoted in a manner such thatbusiness operators can fully demonstrate their initiative and such that creativity and the interests of energy consumers are sufficiently secured, while giving due consideration to the policy objectives prescribed in the preceding two
Articles.

Article 5:
Responsibilities of the
State

The State shall be responsible for comprehensively formulating and implementing measures on energy supply anddemand in conformance with the basic policy on measures on energy supply and demand prescribed in Article 2 tothe preceding Article inclusive (hereinafter referred to as the “Basic Policy”).

Article 7:
Responsibilities ofbusiness operators

When conducting their business activities, business operators shall be responsible for endeavoring to use energy
efficiently and to use energy in a manner that gives consideration to stable supply of energy and preservation of thelocal and global environment, by demonstrating their initiative and creativity, and for cooperating with the measures[…] implemented by the State and local public entities.

Article 12:
Basic Energy Plan

The government shall formulate a basic plan on energy supply and demand (hereinafter referred to as the “Basic
Energy Plan”) […].
The Basic Energy Plan shall prescribe the following matters:• Basic policy on measures on energy supply and demand• Measures that should be taken in relation to energy supply and demand on a long-term, comprehensive andsystematic basis• Technologies related to energy where intensive measures should be taken for their research and development inorder to promote measures on energy supply and demand on a long-term, comprehensive and systematic basis,and measures that should be taken in connection with such technologies• In addition to what are listed in the preceding three items, any matters necessary for promoting measures onenergy supply and demand on a long-term, comprehensive and systematic basis
The government shall review the Basic Energy Plan at least once every three years by taking into consideration
the changes in the situation concerning energy and based on an evaluation of the effects of measures concerningenergy, and if it finds it necessary, make changes to the plan.

Source: Basic Act on Energy Policy (June 14, 2002)

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2. Basic Energy Plan
(1) Evolution of the Basic Energy Plan
The first Basic Energy Plan was formulated pursuant to
the Basic Act on Energy Policy in October 2003. Thiswas followed by a second plan in March 2007, and athird in June 2010.
The basic goal of the Basic Energy Plans is to achieve
what are referred to as the “3Es”—Energy security, Economic efficiency, and Environmental acceptability—
given Japan’s lack of domestic energy resources.
Based on the goal of achieving the 3Es, the third
Basic Energy Plan set out to raise Japan’s energy selfsufficiency ratio and bolster access to energy resources.
The plan further called for approximately 70% of thepower generation mix to be accounted for by zero emission sources (53% nuclear power and 21% renewableenergy) by the year 2030.
Following formulation of the third plan, however,
the energy environment was transformed, both domestically and internationally, by the Great East Japan Earthquake and the accident at Tokyo EPCo’s Fukushima
Daiichi Nuclear Power Plant (Fukushima Daiichi Accident), which forced Japan to drastically rethink its energy policy.
The government responded by adopting a fourth
Basic Energy Plan in April 2014. The overarching goalof this plan was to achieve the “3E+S”—the 3Es plus
safety (S)—in order to reduce fossil fuel dependence andexpand use of renewables in the years leading up to 2030.
The plan adopted a safety-first policy of minimizing dependence on nuclear power as much as possible, while
continuing to assign it an important role as a baseload
power source.

(2) Fifth Basic Energy Plan
Under the Basic Act on Energy Policy the Basic Energy Plan is required to be reviewed at least once every
three years. Accordingly, in August 2017 the Ministry of
Economy, Trade and Industry (METI) began discussing
revisions to the plan in earnest, and the fifth and mostrecent Basic Energy Plan was adopted in July 2018.
This fifth Basic Energy Plan presents two energy
scenarios on the premise that Japan must begin immediately to conceptualize its longer-term energy options inreadiness for the future depletion of fossil fuel resources. Like its predecessors, it maps the way forward forachieving the goals set in the Long-term Energy Supply
and Demand Outlook for the years leading up to 2030(“energy mix”; see (3) Long-term Energy Supply and
Demand Outlook below). In addition, it also provides a
2050 energy scenario for achieving decarbonization by
2050, the target date for meeting the goals of the Paris
Agreement.
Accordingly, the Basic Energy Plan adopts two key
premises: firstly, that in the wake of the Fukushima
Daiichi Accident Japan should pursue the adoption ofrenewable energy resources and minimize its dependence on nuclear power; and secondly, that in view of
its lack of fossil fuel resources of its own, Japan should
work constantly to develop and secure new energy
technologies.
In line with these two premises, the fifth Basic
Energy Plan calls for the maintenance and continued
development of all kinds of energy technologies. To ensure that the 2030 energy mix is achieved, it calls foraction to be further accelerated with a view to making
maximum use of existing technologies. Supplementing
this, the energy scenario for 2050 identifies a number of
longer-term challenges that will need to be addressed toachieve energy transitions and decarbonization, and to
make Japan a global leader in the field of energy technologies (Table 1.2).

( 3 ) Long-term Energy Supply and
Demand Outlook
The government considered what future form a realistic
and balanced energy supply-demand structure shouldtake given the principles laid down in the fourth Basic Energy Plan, and announced its Long-term Energy
Supply and Demand Outlook in July 2015.
The energy mix targets set for 2030 in the Outlook
were later inherited by the fifth Basic Energy Plan,
which makes attainment of these targets a core goal.
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I. E N E R G Y P O L I C Y

The act also requires the establishment of a Basic
Energy Plan by the government that provides for “basic policy on measures on energy supply and demand,”“measures that should be taken in relation to energy
supply and demand on a long-term, comprehensive,and systematic basis,” and identifies “technologies related to energy where intensive measures should betaken for their research and development” required to
implement these measures. The government is charged
with reviewing this plan at least every three years andamending it as necessary in light of changes in the energy environment.

Table 1.2

The Fifth Basic Energy Plan (Outline)

FIFTH BASIC ENERGY PLAN
We aim to contribute to further growth of the Japanese economy, improvement of the standard of living, and global
development through energy supply that is stable, sustainable long term, and independent.
Following the 3E+S principles, realise an energy supply and demand structure that is stable, low-burden, and compatible with the environment.

Sophisticated 3E+S

3E+S
SafetyEnergy security
Environment
Economic efficiency

+
+
+
+

Safety innovation by technology/governance reform
Raise technical self-sufficiency rate and ensure diversity of choice
Work towards decarbonization
Enhance domestic industrial competitivenessChanging circumstances
1) Start of inter-technology competition for decarbonization
2) Geopolitical risk increased by technology changes
3) Intensified competition among nations and among firms

Towards 2030
—To reduce emission of greenhouse gases by 26%—To achieve energy mix target∙ Currently halfway to the target∙ Deliberate promotion∙ Realistic initiatives∙ Intensify and enhance measures<Primary measures>• Renewable energy∙ Lay foundations to use as major power source∙ C ost reduction, overcome system constraints, secure flexibility ofthermal power• Nuclear power∙ L ower dependency on nuclear power generation to the extent possible∙ Restart of nuclear power plants and continuous improvement ofsafety• Fossil fuels∙ Promote independent development of fossil fuels upstream, etc.
∙ Effective use of high-efficiency thermal power generation∙ Enhance response to disaster risks, etc.

• Energy efficiency∙ Continued thorough energy efficiency∙ Integrated implementation of regulation of Act on Rationalizing Energy Use and support measures• Promotion of hydrogen/power storage/distributed energy

Draw up strategic plan

Towards 2050
—Toward reducing GHGs by 80%—Challenges towards energy transitions and decarbonisation∙ Possibility and uncertainty∙ Ambitious multiple track scenario∙ Pursue every option∙ Choose priorities by scientific review<Primary directions>• Renewable energy∙ Aim to use as major power source, economically independent and decarbonized∙ Start on hydrogen/power storage/digital technology development• Nuclear power∙ One of the options for decarbonization∙ Pursuit of safe reactors, development of back end technologies• Fossil fuels∙ Major power source during the transitional period. Enhance resource
diplomacy∙ Shift
to gas, phase out inefficient coal
∙ Starthydrogen development for decarbonization• Heat & transportation, distributed energy∙ Challenges
for decarbonisation with hydrogen, power storage, etc.
∙ Distributed energy systems and regional development
(Combination of next generation renewables/power storage, EV, microgrid, etc.)

All Japan’s efforts (projects, international collaboration, financial dialogue, policy)

Source: Agency for Natural Resources and Energy, The Fifth Basic Energy Plan (Outline)

Taking as its overarching goal the development ofa more diverse, multilayered supply-demand structure
in order to ensure supply stability, the outlook seeks to
improve Japan’s energy self-sufficiency rate beyond thelevel prior to the Great East Japan Earthquake (approximately 25%).
10

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 2019

More specifically, it expects thoroughgoing energy(electric power) conservation efforts to bring electricity
demand in fiscal 2030 down to close to what it was infiscal 2013.
Secondly, regarding renewable energy sources, theoutlook forecasts nuclear power being replaced by

Total generation (approx.)
1,065 TWh

Biomass
3.7%–4.6%

Geothermal
1.0%–1.1%
Wind 1.7%

Renewableenergy22%–24%

Solar
7.0%

Nuclear22%–20%Hydro
8.8%–9.2%

LNG
27%

Coal
26%
Oil 3%

Source:METI,“Long-term
EnergySupplyand Demand
Source:METI,“Long-term
EnergySupplyand Demand
OutlookOutlook
2015.” 2015”

geothermal, hydro, and biomass power sources which
are capable of stable output regardless of natural conditions, as well as by solar and wind power.
And thirdly, regarding thermal power generation,
the outlook calls for a two-pronged strategy of reducing thermal power’s environmental impact while raising
the efficiency of coal and LNG (liquified natural gas)
power generation. Nuclear power generation is projected to continue to occupy a key role as a baseload powersource. At the same time, however, the outlook calls for
reducing dependence on nuclear power as much as possible through a combination of thorough energy conservation, expanded use of renewables, and efficiency
enhancements to thermal power plants. This will allow Japan to raise its energy self-sufficiency, ratio, keep
down electricity costs, and reduce greenhouse gas emissions while maintaining safety as its overriding priority.
Power supply and demand in fiscal 2030 are therefore projected to be structured as shown in Figure 1.1.
While nuclear power’s share in the mix will fall from
25% before the Great East Japan Earthquake to around
20%-22%, renewables’ share will increase from 10% toaround 22%-24%.

3. Overview of Electricity System Reform
The Great East Japan Earthquake and the resultant
Fukushima Daiichi Accident necessitated urgent action on many issues, including raising electricity rates,
adjusting supply and demand and using a diversityof power sources in the face of a supply crunch. In
January 2012 the Expert Committee on the Electricity

Systems Reform was established under the Coordination
Subcommittee of the Advisory Committee for Natural
Resources and Energy to conduct an expert review ofthe future of Japan’s electric power systems.
In its findings, published in February 2013 under
the title “Report of the Expert Committee on Electricity Systems Reform,” the Committee laid down threegoals— (1) securing a stable supply of electricity, (2)suppressing electricity rate increases to the maximum
extent possible and (3) expanding consumer choice andbusiness opportunities for new market participants. It
further identified three main ways of achieving thesegoals, namely, by (1) enhancing nationwide system operation, (2) fully deregulating the retail market andpower generation, and (3) further ensuring neutrality inthe transmission and distribution sectors through legal
separation.
Following these recommendations, the Policy on
Electricity System Reform describing the overall shapeof reform was approved by the Cabinet in April 2013.
This policy divided the reform process into three phases:in the first phase, establishment by 2015 of an Organization for Cross-regional Coordination of Transmission Operators (OCCTO) to act as a command center
responsible for managing supply and demand spanning
different service areas; in the second phase, full liberalization of entry into the retail electricity market by 2016;
and in the third phase, legal separation of the transmission and distribution from the vertically integrated business, and elimination of retail rate regulation by 2018
through 2020.
The first phase was realized with the establishmentof the OCCTO in April 2015, following the passage inNovember 2013 of the revised Electricity Business Act
that provided for its establishment. In the second phase,a further revision to the act was passed in June 2014, theElectricity Market Surveillance Commission (now theElectricity and Gas Market Surveillance Commission)
was established in September 2015 to strengthen monitoring of the deregulated electricity market, and electricity retailing and generation were fully deregulated in
April 2016. An additional revision to the act passed onJune 17, 2015, provided for the third phase of reforms,
the legal separation of the transmission and distribution
from the vertically integrated business. In this way, all
the legislative changes necessary for the three-phase reform of the electric power system have been completed.
The following preparations are now underway to pave
the way for the legal separation of transmission and distribution from the vertically integrated business scheduled to be implemented in April 2020 (Figure 1.2).
TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 201911

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Figure 1.1 Power Generation Mix in Fiscal 2030

Figure 1.2 Roadmap to Electricity System Reform

Implementation: February 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

Approval of establishment

Determination of policy on electricity system reform

Preparation for establishmentof the OCCTO

Establishment of
the OCCTO

Implementation: April 2016

Scheduled: April 2020

1) Formulation of plans for cross-regional supply and demand2) 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(liberalization of entry into
retail electricity market)

Preparation of environment for full deregulation of 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

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

Review of competition conditions

Detailed system design

Transition to
new regulatory
systemVitalization of wholesale electric power 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 and implementationof appropriate rolling blackouts in emergencies
Elimination of regulations
on wholesale market

Market monitoring

Creation of new system forsecuring supply capacity

Full-scale
1) Obligation to secure
implementation
supply capacity
2) Establishment of capacity market for future supply capacity transactions
3) System for power source procurement bidding in anticipation of
future shortages

Creation of hour-ahead market

Market-based cross-regional supply and demand adjustment

Preparation for creation of new system for securing supply capacity

Creation ofbalancing market

Preparation for hour-ahead market

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

Legal separationof transmission
and distribution
from the verticallyintegrated business

Regulation of transmission
and distribution and monitoringof neutrality assurances

Realization ofcompetitive market
environment

Source: Modified from the Report of the Expert Committee on Electricity Systems Reform (February 2013)(1) System Design in Preparation for Separationof Transmission and Distribution from the
Vertically Integrated Business in 2020
Preparations for the legal separation of transmission anddistribution from the vertically integrated business in2020 were considered by METI’s Policy Subcommittee
for Acceleration of Electricity System Reform, which published an interim report in February 2017.
The report noted the need to increase economic efficiency by fostering further competition in the electric
power sector, while addressing a number of public interest-related issues that could not be resolved solely by
relying on the market alone. These issues included ensuring safety, supply stability, environmental acceptability(including through the promotion of renewable energies),and fairness between consumers in the context of deregulation. It concluded that in order to solve these issues steps
should be taken to make existing markets more liquid
and to actualize and promote flows of new forms of value
12

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 2019by creating completely new markets, such as a capacity
market and a non-fossil value trading market.
Based on these conclusions, a number of new typesof market are being considered, including (1) a baseload
power market, (2) a capacity market, (3) a balancing
market, and (4) a non-fossil value trading market. These
new markets are considered in greater detail in 5. New
Markets in Chapter II.

4. N uclear Energy(1)	  Position of Nuclear Power Generation in
Government Policy
The accident at the Fukushima Daiichi Nuclear Power
Plant caused huge damage and increased public concerns about nuclear power. Regional recovery and restoring public confidence are matters of the very highest
priority to the government and the utilities.
At the same time, Japan’s energy self-sufficiency ratio

(2)	 Action on Nuclear Safety Regulationa. Reorganization of Nuclear Power Administration andEstablishment of the Nuclear Regulation Authority
One of the lessons learned from the Fukushima Daiichi
Accident was the negative impact of the compartmentalization of administration. Improvements to address thisissue, including the separation of nuclear regulation andutilization policy, the unification of nuclear safety regulation work, and the revision of nuclear regulations, were
therefore also investigated. The Act for Establishment of
the Nuclear Regulation Authority was enacted in June
2012, and the Authority was established in September
2012 as an affiliated agency of the Ministry of the Environment. The Nuclear Regulatory Agency was further created to act as the authority’s secretariat. Affairs
concerning nuclear safety regulation that had previously
fallen under the jurisdiction of multiple agencies were simultaneously centralized under the highly independent
Nuclear Regulation Authority.
b. Adoption of New Regulatory Standards and Continuous Improvement of Nuclear Safety Regulation
Following the Fukushima Daiichi Accident, the Act
on the Regulation of Nuclear Source Material, Nuclear
Fuel Material and Reactors (“Nuclear Reactor Regulation Act”) was revised to incorporate a number of newprovisions designed to strengthen nuclear safety regulation. These included:

1) Reinforcement of strategies for responding to severe
accidents.
2) Introduction of a “backfitting” program requiring
nuclear power facilities that have already received
operating permits to comply with any new regulatory standards that are introduced incorporating thelatest technological expertise.
3) Introduction of procedures for extending the period
of operation of nuclear reactors (setting the period of
operation at 40 years from the date of first commercial operation, but allowing a one-time extension tothis term not to exceed 20 years where permitted by
the Nuclear Regulation Authority).
4) Unification of regulation of nuclear reactor facilities
used to generate electric power under the Nuclear
Reactor Regulation Act.
The Japan Nuclear Safety Institute (JANSI) was
launched in November 2012 to provide a private-sector
framework for ensuring 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 to strengthen arrangements to address common safety issues by utilities
and manufacturers affecting the nuclear power industry
as a whole. JANSI and ATENA will be working closely
together to restore public confidence in nuclear powerby continuing to promote independent action by the private sector to achieve high standards of safety.

(3)	 S tate of Nuclear Power Generation
a. Restarts and Decommissioning
The shutdown of Unit 3 of Hokkaido EPCo’s Tomari
Nuclear Power Plant for regular inspection in May 2012
took the last of Japan’s fleet of nuclear reactors offline.
However, the fourth Basic Energy Plan approved by the
Cabinet in 2014 identified nuclear power as an important baseload power source, and permitted plants that
had been found to comply with the new regulatory standards to be restarted.
A number of plants have been identified that operators hope to be able to bring back online by strengthening their defenses against natural disasters (suchas earthquakes and tsunami), their preparedness forhandling severe accidents, and their countermeasuresagainst possible terrorism in order to bring them into
compliance with new regulatory standards. As of October 2018, 15 nuclear reactors had been declared compliant and granted permission for their installation licenses
to be amended in accordance with the new regulatory
standards. The nine pressurized water reactors (PWR)
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I. E N E R G Y P O L I C Y

in 2016 according to IEA statistics was only around 8%,
and fundamental structural weaknesses remain. The
increase in imports of fossil fuel to power the thermal
power plants used to replace nuclear power since the
Fukushima Daiichi Accident has also imposed a greater
financial burden on the public. Moreover, efforts have
had to be made in recent years to reduce emissions ofgreenhouse gases to combat global warming.
Reflecting these circumstances, the fifth Basic
Energy Plan approved by the Cabinet in July 2018 identifies nuclear power as an important baseload powersource and sets a target for its share of the 2030 energy
mix of 20%-22%. Nuclear power generation is also
identified as “an option for decarbonization that is at thepractical stage” in the long-term future energy scenario
for 2050. If the above target is to be achieved, however,existing reactors will need to be restarted and operated
for more than the 40 years set as the original operation
period, and new and replacement capacity will need to
be built. It is vital that there be substantive discussion of
the future role of nuclear power.

Table 1.3

Compliance with New Regulatory Standards by Category
EPCos

Permitted to amend installation
licenses in accordance withnew regulatory standards(15 units)

Restarted

Preparations in progress(Implementation of safety work, etc.)
Review of compliance with new regulatory standards in progress(including 2 units under construction)
Reactors for which applications under the new regulatory standards
have not yet been filed (including 1 unit under construction)
Under consideration with a view to decommissioning (Fukushima
Daini)

9 units

Kyushu EPCo

Sendai Unit 2

Oct. 15, 2015

Kansai EPCo

Takahama Unit 3

Jan. 29, 2016

Kansai EPCo

Takahama Unit 4

Feb. 26, 2016

Shikoku EPCo

Ikata Unit 3

Aug. 12, 2016

Kansai EPCo

Ohi Unit 3

Mar. 23, 2018

Kyushu EPCo

Genkai Unit 3

Mar. 23, 2018

Kansai EPCo

Ohi Unit 4

May 19, 2018

Kyushu EPCo

Genkai Unit 4

June 16, 2018

10 units
4 units

19 units *2

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 2019*1

12 units

To be decommissioned, decommissioning in progress, or operation
terminated14

Aug. 11, 2015

6 units

41 units

b. Extension of Period of Operation
The revision of the Nuclear Reactor Regulation Act in2012 set the period of operation of nuclear reactors at 40
years from the time of entry into operation. However,this revision also introduced procedures for allowing
a one-time extension of this period for up to 20 years
from the time of expiration of the original period if approved by the Nuclear Regulation Authority. As of theend of November 2018, extensions had been approved
for three PWR reactors operated by Kansai EPCo—
Units 1 and 2 at the Takahama Nuclear Power Plant

Restart date

Sendai Unit 1

Total (including 3 units under construction)

shown in Table 1.3 are in or have reentered commercial
service. Some boiling water reactors (BWR) have also
now been confirmed compliant. In all, six reactors arebeing prepared to come back online pending local approval and the completion of safety improvement work.
On the other hand, at Fukushima Daiichi Nuclear
Power Plant it was decided after the accident to decommission all of the plant’s reactors, including the reactors that had not been damaged. The decision was also
made to decommission several other reactors elsewherein Japan in view of the cost of ensuring their compliancewith the new regulatory standards. Additionally, in June2018 Tokyo EPCo notified the local prefectural governor that it will consider decommissioning Units 1 to 4 at
Fukushima Daini Nuclear Power Plant. The situation
regarding restarts and decommissioning is summarized
in the table below.

Plant name

Kyushu EPCo

*1 Operation suspended by a temporary injunction granted by

Hiroshima High Court in December 2017. The injunction was
lifted by the court in September 2018, and commercial
operation resumed in November 2018.
*2 Not including the three JPDR, Monju, and Fugen reactors.

and Unit 3 at the Mihama Nuclear Power Plant, andwork is now underway to implement safety measures
to meet the conditions mandated for the extension ofoperation. In addition, an extension for Japan Atomic
Power Company’s Tokai No.2 Nuclear Power Plant wasapproved in November 2018, making it the first BWR tosecure approval, and implementation of safety measures
is under way with a target completion date of 2021.
c. Local Government and Resident Responses to
Restarting Reactors
In some areas, local governments and residents have responded to the restart of nearby reactors by applying to
the courts for temporary injunctions to halt their operation or by directly requesting utilities to shut them
down. In the case of Units 3 and 4 at Kansai EPCo’s
Takahama Nuclear Power Plant, Osaka High Court
lifted the temporary injunction prohibiting their restart in March 2017 and they are now back in operation.
Operation of Unit 3 at Shikoku EPCo’s Ikata Nuclear
Power Plant had been suspended under a temporary
injunction ordered by Hiroshima High Court in December 2017, but the injunction was lifted by the courtin September 2018 and commercial operation resumedin November.
There have also been cases of local governments directly requesting utilities to shut down their reactors.
The situation regarding restarts (including court rulings) has thus varied from region to region. Utilities

(4) The Nuclear Fuel Cyclea. Basic 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. The Agreement for Cooperation between the Government of Japan and the Government of the UnitedStates of America concerning Peaceful Uses of Nuclear
Energy that underpins this policy expired in July 2018,30 years after it entered effect. It was automatically renewed without objection from either party.
In order to contribute to nuclear non-proliferationand to ensure that it pursues action with the understanding of the international community, Japan continues toadhere to the principle of not possessing any plutoniumthat does not have a use. It is therefore working to reduce its plutonium stockpile. Government policy is topursue greater use of MOX fuel in thermal reactors, andto manage and use plutonium appropriately in accordance with the framework established by the 2016 Spent
Nuclear Fuel Reprocessing Implementation Act.
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 thenuclear fuel cycle on a commercial basis, built a commercial uranium enrichment plant in Rokkasho-mura,
Aomori Prefecture, that entered operation in March
1992. JNFL subsequently applied for permission toswitch to using a new, more cost-efficient type of centrifuge offering improved performance and to introduce
other changes in compliance with the new regulatory
standards. The Nuclear Regulation Authority granted
permission for these operational changes in May 2017.
c. Spent Fuel Reprocessing
JNFL has been building a commercial reprocessing
plant at Rokkasho-mura which is expected to be completed in the first half of 2021. In light also of the changing business environment faced by the nuclear powerindustry, 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. The
Nuclear Reprocessing Organization of Japan was alsoestablished in October of that year to serve as the corporation authorized to manage the funds necessary forreprocessing and to reliably perform reprocessing workand related activities.
Meanwhile, the Recyclable-Fuel Storage Company,
jointly financed by Tokyo EPCo and Japan Atomic
Power Company, is currently building a recyclable fuelstorage center (the “Mutsu Interim Storage Facility”) in
Mutsu, Aomori Prefecture, to provide a site for interim
storage of spent fuel until it is transported to a reprocessing plant. This interim storage facility will enter operation with an initial storage capacity of 3,000 tons, whichis scheduled to be increased ultimately to 5,000 tons.
d. Selection of Candidate Sites for Final Disposal of
High-Level Radioactive Waste
In July 2017, METI published the Nationwide Map ofScientific Features for Geological Disposal as a preparatory step toward the final disposal of high-level radioactive waste generated from spent fuel. The government
plans to narrow down the number of candidate sites
based on this map.
e. Development of Fast Neutron Reactors
From the early days of nuclear power development on,
work was pursued around the world to develop fast
breeder reactors in order to establish a closed nuclear
fuel cycle in readiness for the day when uranium resources grew scarce. As fears of uranium shortages
waned, however, the world’s focus shifted increasingly
toward the commercialization of light water reactors. In
resource-poor Japan, however, construction of the Joyo
experimental fast breeder reactor was followed by the
Monju prototype fast breeder reactor in line with basic
government policy.
Although Monju first successfully transmitted electricity in August 1995, a series of problems subsequently
beset the facility. The government therefore convened
a meeting of ministers concerned with nuclear powerin December 2016 and officially decided to decommission Monju, and preparations for decommissioning havenow begun. Over the longer term, questions concerning,for example, the revision of fast breeder reactor development targets and international cooperation are being
considered primarily by a strategic working group set up
under the Council on Fast Reactor Development.
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I. E N E R G Y P O L I C Y

have responded not only by working to meet the new
regulatory standards, but also by actively disclosing information and explaining their positions more carefully
to local governments and residents.

(5) Decommissioning Work at Fukushima
Daiichi Nuclear Power Plant
Recovery from the damage caused by the Fukushima
Daiichi Accident and smoothly decommissioning the
Fukushima Daiichi Nuclear Power Plant and dealing
with the problem of contaminated water are all top priorities for the government and Tokyo EPCo. News on
progress toward these goals can be viewed on Tokyo
EPCo’s website (http://www.tepco.co.jp/en/decommision/index-e.html).
a. Basic Policy on Decommissioning
In December 2011, nine months after the accident,
Fukushima Daiichi Nuclear Power Plant reached astate in which the authorities could state that “releaseof radioactive materials is under control and radiation
doses are being significantly held down.” Coinciding
with this, the government and Tokyo EPCo published a Mid-and-Long-Term Roadmap towards theDecommissioning of TEPCO’s Fukushima Daiichi
Nuclear Power Station Units 1-4 to guide decommissioning work and related measures at the plant.
This roadmap sets out details of the specific processes and work that will be performed, along withdescribing policy in areas such as the strengtheningof arrangements extending from R&D to the actual
decommissioning, the training of human resources,
and international cooperation. A basic principle of theroadmap is that it is subject to continuous review inlight of the actual situation at the plant, research findings, and other relevant factors, and revisions are being
made to the roadmap as necessary.
b. Removal of Fuel from Spent Fuel Pools
When the accident occurred, it was decided in the interests of risk mitigation to remove the spent fuel thenbeing stored in spent fuel storage pools from the poolsat Units 1–4 and to store it appropriately in a sharedpool at the site. The removal of spent fuel from thepool in Unit 4, where the most spent fuel was stored,
was completed in December 2014. In Units 1, 2, and3, rubble impeding the removal of fuel is still being
removed, while steps are being taken to prevent therelease of dust containing radioactive material and tomonitor the concentration of radioactive material in
the atmosphere. A domed roof has been completed
over Unit 3, and work is underway to extract fuel.
c. Removal of Fuel Debris
Extensive “fuel debris,” consisting of fuel and internal
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TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 2019

reactor structures that melted during the accident andthen cooled and solidified, is believed to be present inUnits 1, 2, and 3. Because of the extremely high levels of radiation in the reactor buildings, surveys of theinteriors are presently being conducted using remotecontrolled equipment.
d. Containment of Contaminated Water
Water is being injected continuously into the reactors
to cool the fuel debris. More contaminated water isbeing generated by the day as a result of the coolingwater mixing with groundwater that has penetrated
the reactor buildings. In September 2013, the Nuclear
Emergency Response Headquarters adopted the Basic
Policy for the Contaminated Water Issue at TEPCO’s
Fukushima Daiichi Nuclear Power Station, and various countermeasures are now being pursued to address
this problem in line with the three principles of (1) theremoval of sources of contamination; (2) the isolation ofwater from contamination sources; and (3) the containment of contaminated water. An impermeable wall offrozen soil has also been created around the plant toisolate groundwater from the contamination source,with freezing of the entire circumference commencing in August 2017. Although these measures have
reduced the problem, new emissions of contaminatedwater must still be stored in welded tanks following
treatment by an advanced liquid processing system(ALPS). Land for tanks is growing scarce, and thegovernment is leading a wide-ranging study examining social impacts as well as scientific safety in orderto determine how best to dispose of water that has undergone ALPS treatment but still contains tritium thatcannot be removed.
e. Improvement of the Working Environment
Decommissioning work over a prolonged period requires the employment of highly skilled and experienced human resources over the medium- tolong-term. This makes it especially important to create safe and secure working conditions, and steps havebeen taken to minimize the radiation doses to which
personnel are exposed. As a result of these efforts toimprove the working environment, as of September
2018 the areas where full-face masks no longer haveto be worn had been expanded to cover approximately
96% of the site, improving workability in these areas
and allowing work to be performed in ordinary work
clothes and disposable face masks.

to decontaminate the area and rebuild infrastructure in
an integrated fashion so that evacuation orders could be
lifted. The government is committed to ultimately lifting
all evacuation orders, recovering from the damage, andrestoring the region, no matter how long it may take.

5. Renewable Energy(1)	 Targets and Prospects
Under the fourth Basic Energy Plan formulated in 2014,
it was decided that the deployment of renewable energy
sources would be accelerated as rapidly as possible fora three-year period beginning from 2013, and would
continue to be promoted actively thereafter. The Longterm Energy Supply and Demand Outlook formulated
in July 2015 set a target for renewable energy adoption
Table 1.4

Installed Capacity of Renewable Energy(As of End March 2018)
Type

Combined total
Capacity inby end June
stalled under FIT
2012

Solar power (residential)

4,700 MW5,410 MW

Solar power (non-residential)

900 MW

33,510 MW

Wind power

2,600 MW970 MW

Small- and medium-scalehydropower

9,600 MW

310 MW

Biomass

2,300 MW

1,260 MW

Geothermal power

500 MW

20 MW

Total

20,600 MW

41,480 MW

Utility-scale solar power generation testing plant (Okinawa EPCo)

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I. E N E R G Y P O L I C Y

f. Lifting of Evacuation Orders to Help Fukushima
Recovery
The designation of areas where evacuation orders willsoon be lifted and areas in which the residents are still
not permitted to return to live has been reviewed as theeffects of the accident have been contained and the riskof radiation exposure has declined. Remaining evacuation orders in areas where residents will not be able toreturn to their homes for a long time are also to be liftedsubject to the following three conditions being met: (1)the annual effective dose is reliably found to not exceed
20 mSv; (2) infrastructure and living-related services
have been largely restored and sufficient progress has
been made on decontamination work (particularly inchildren’s living environments); and (3) the prefecture,municipalities, and residents have been consulted. Evacuation orders are being lifted progressively, beginningwith Tamura City in April 2014. Evacuation orders in allareas designated as areas where evacuation orders willsoon be lifted and areas designated as areas in which theresidents are not permitted to live (excepting those in thetowns of Okuma and Futaba) were lifted in April 2017.
However, the evacuation orders for areas designatedas areas where residents will not be able to return totheir homes for a long time have yet to be lifted. Regarding these areas, the revised Act on Special Measures for
the Reconstruction and Revitalization of Fukushima
was enacted in May 2017 with the aim of enabling theevacuation orders for these areas to be lifted and humanhabitation to be permitted again within a period of approximately five years. In November 2017, a special zone
for reconstruction and revitalization was designated in
the town of Okuma and concrete plans put into effectto be achieved by fiscal 2030 of 22%-24% of total power
generation, based on a policy of adopting renewableenergies to the greatest extent possible in accordancewith their respective individual characteristics whilebalancing this with containing the burden imposed on
customers.
The fifth Basic Energy Plan adopted in July 2018,
while still proposing that renewables be developed into
a core energy source, calls for a review of the present
feed-in tariff (FIT) scheme (see details below) to reducethe cost of renewables to the public.

(2)	 Legislation to Expand Renewable Energy Use
The government passed the Act on Special Measures
Concerning Procurement of Electricity from Renewable
Table 1.5

Energy Sources by Electricity Utilities in August 2011.
The Act was aimed at promoting the extensive deployment of renewable energy sources (including hydropower plants with a capacity of under 30 MW) by requiring
the electric utilities to purchase all the electricity generated by renewable energy producers.1 This Act led to
implementation of the FIT scheme for renewable energy
on July 1, 2012. This scheme accelerated capital investment in renewables, with installed capacity growing by
41,480 MW between the launch of the FIT system andthe end of March 2018. Including pre-FIT capacity total installed renewables capacity, reached approximately
62,080 MW.
The electricity supply sources, purchase prices and1. Electric utilities cannot purchase renewable electricity that they have produced
themselves.

Purchase Price and Duration of the FIT Scheme
Purchase price

Purchase categoryLess than 10 kW
Solar

Onshore wind power
Offshore wind power
Geothermal
Geothermal (replacement of all
equipment)

Output controller not required
Output controller required*1
Output controller not required,dual generation
Output controller required*2,dual generation

28
30

26
28
25

FY2020

24
26

－
－

24

－

(years)

10

26

－

－

－

20

2,000 kW or above

Changed to procurement bidding system in
FY2017

20

20 kW or above
Newly installed
Less than 20 kW
All capacities
Replacement capacity
Bottom-mounted offshore wind power
Floating offshore wind powerLess than 15,000 kW
15,000 kW or above

21
55
18
36
36

20

27

10 kW–2,000 kW

21

18
20
20
17
36
36

19
19

15,000 kW or above

20

All capacities*1 Output controllers are required in districts of Hokkaido, Tohoku, Hokuriku, Chugoku, Kyushu, and Okinawa EPCos.
*2 Upgrades to electrical facilities and penstocks utilizing existing conduits.
Source: Agency for Natural Resources and Energy, “2018 Guidebook on the Feed-in Tariff Scheme for Renewable Energy”

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 2019

－

40
26
30

General waste andother biomass

18
18
16

36
36

Less than 15,000 kW

Geothermal (replacement ofLess than 15,000 kW
equipment excepting underground
15,000 kW or above
equipment)Less than 200 kW
200 kW–1,000 kW
Hydro
1,000 kW–5,000 kW
5,000 kW–30,000 kW
Less than 200 kW
200 kW–1,000 kW
Hydro using existing conduits*2
1,000 kW–5,000 kW
5,000 kW–30,000 kW
Methane fermentation gasification (biomass-derived)
Woody biomass (thinnings, Less than 2,000 kWetc.) and agricultural crop
2,000 kW or above
residue
Biomass
Construction material
All capacities
waste

18

Duration( Yen/kWh)
FY2018FY2019FY2017

19
12
34
29
27
20
25
21
15
12
39
40
32
13
17

15

20

20

EPCosElectricity customers

Those engaged in
the power generation
business using renewableenergy sources

Sale of electricity produced fromrenewable energy sources

Electricity supply

Solar power

Purchase of electricity at a fixedprice for a governmentguaranteed period

Collection of surcharge together
with electricity charge

Wind power

Submission ofcollected surcharge

Payment forpurchase cost

Small- andmedium-scalehydro power

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: Website of the Agency for Natural Resources and Energy

purchase periods covered by the FIT scheme for eachfiscal year are to be determined by the minister of
METI. The purchase prices and periods for fiscal 2018
are as shown in Table 1.5. The system for determining
the purchase price of electricity from wind, geothermal,
biomass, and small and medium-sized hydro power
generation, the introduction of which can take an extended time, was changed by amendments to the Act inFebruary 2016 to a system in which prices for multipleyear periods are determined en bloc. In addition, thesystem for determining the purchase price for purchasesof electricity generated by large-scale solar facilities (2MW and above) was changed effective April 1, 2017, to
one based on bidding in order to hold down purchasing
costs.
Under the FIT scheme, the electric utilities are permitted to pass on their costs for the purchase of electricity generated by renewable energy sources to theircustomers in the form of a surcharge calculated in proportion to the customers’ usage volume. The surcharge
for fiscal 2018 is 2.90 yen per kWh (2.3734 trillion yen forJapan as a whole), or 9,048 yen per year for the standard
model household. Under this system, electric utilities
collect the surcharge from customers and transfer thefunds to a cost-bearing adjustment organization called

the Green Investment Promotion Organization, which
refunds their purchase costs to them in due course.
The scheme also contains a provision that reduces
the surcharge for customers who use extremely high volumes of electricity and who satisfy certain conditions.
Regarding purchases of electricity from solar power
plants with a capacity of 2 MW or more that were transferred to the procurement bidding system from fiscal
2017, two tenders have been held. The first tender, announced in November 2017 resulted in nine successful
bids (with a combined output of 141 MW) for a tenderedcapacity of 500 MW. The successful tender prices ranged
between 17.20 and 21.00 yen per kWh. The second tender announced in September 2018 received 19 proposals(with a combined output of 196 MW) for screening toparticipate in the tender for a tendered capacity of 250
MW. Ultimately, however, none of the proposals camein below the supply price ceiling (15.50 yen per kWh),and there were no successful bidders.

(3) FIT Issues and Output Control
Notwithstanding the increase in investment in renewable energies and growth in FIT-approved capacity since2012, many projects, particularly solar power projects,
TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 201919

I. E N E R G Y P O L I C Y

Figure 1.3 Outline of the FIT Schemeremain unfinished despite having already been approved under the FIT scheme. Most of these were approved between 2012 and 2014 just following the launchof the FIT scheme when purchase prices were high, andthe government is considering revising the purchaseprices applied to these projects. Meanwhile, the rapid
growth in the installation of renewables has made it necessary to impose output controls. While the solar power
connection limit in Kyushu EPCo’s electricity service
area is 8,170 MW, connected solar capacity had alreadyreached 8,070 MW by the end of August 2018. Despite
restricting output from thermal power plants, using interconnections, and employing excess power to pumpup water for pumped storage, output controls requiring
the suspension of operations by solar and wind power
operators had to be imposed on mainland FIT operators for the first time in October 2018. Looking ahead,
it is likely that output will have to be controlled during
periods of low electricity demand in the future, such as
during public holidays in the spring and autumn.
Under the surplus solar power purchasing system
launched in November 2009 prior to the FIT scheme,
power was purchased for a period of 10 years from solar
power plants with a capacity of less than 500 kW. This
period will end in November 2019, creating a problem
that has been dubbed the “Year 2019 Problem.” Theplants affected are estimated to reach a capacity of about
6,700 MW in total by 2023, and many former generalelectric utilities and new market participants have indicated their intention to make purchases in the context
of the government’s adoption of a stance that favors (1)self-consumption of solar power and (2) reciprocal saleof surplus electricity.
Table 1.6

6. Global Warming Countermeasures(1) International Frameworks and Japanese
Government Initiatives
a. Greenhouse Gas Emission Reduction Targets from2020
In July 2015 the Japanese government set an Intended
Nationally Determined Contribution (INDC) target of
reducing greenhouse gas (GHG) emissions by 26.0%
in fiscal 2030 compared with fiscal 2013 levels (25.4%
compared with fiscal 2005 levels), which was submitted to the United Nations Framework Convention on
Climate Change (UNFCCC) Secretariat. The reduction target was set taking into consideration technicalconstraints, cost factors, and other issues imposed by
the need for consistency with Japan’s energy mix.
At the 21st Conference of the Parties to the United
Nations Framework Convention on Climate Change(COP21) held in December 2015, 195 countries and regions adopted the Paris Agreement, which is focusedon 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 and balancing anthropogenic GHG emission andabsorption by the second half of this century. Unlike the
Kyoto Protocol, which required only advanced nations
to reduce their emissions, the Paris Agreement requires
all signatory countries to submit emissions reduction
targets as well as the domestic policies to be employedto achieve those targets, and the extent to which thosetargets have been attained is to be evaluated every five
years.

Government Action on GHG Reduction Targets

Date

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.

January 2010

The Japanese government responds to the Copenhagen Accord (COP15) by submitting a GHG reduction target for 2020 of
25% below Japan’s 1990 levels to the Secretariat of the United Nations Framework Convention on Climate Change, premisedon establishment of a fair and effective international framework and agreement to ambitious targets by all major countries.

November 2011

At COP17, Japan declares that it will not participate in the second commitment period under the Kyoto Protocol.

November 2013

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

July 2015

As Japan’s INDC toward post-2020 GHG emission reductions under COP19, the government submits to the UNFCCC Secretariat a target of reducing emissions by 26% below fiscal 2013 levels (a 25.4% reduction relative to fiscal 2005 levels).

May 2016

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

20

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 2019

502

467

466
Industrial (plants, etc.)<relative to fiscal 2013>(relative to fiscal 2005)<-10.5%>418 (-10.4% )

400

300

Transportation (vehicles, etc.)
244

200

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

207

239

217

224
205

100

129
130
96

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

0

105

103
56

Industrial processes and use of products
48
29

Other emissions (agriculture, indirect CO 2 emissions, etc.) 4.5

3.5

Waste (incineration, etc.)<-10.4%>214 ( -1.2%)< -8.3%>188 (+8.2%)<-6.9%>

98 (-4.9%)

32

65
24
6.6

174

<-3.8%>

215 (-11.9%)<-4.8%>

46 (-17.8%)<

30 (+0.5%>-6.7%)<-5.4%>
3.3 (-26.5%)’90 ’91 ’92 ’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16
Note 1: Emissions by sector are calculated by distributing the emissions that accompany power generation and thermal generation among the respective final consumption sectors.
Note 2:
1: Percentages
Emissions by insectorare calculated
by change
distributing
the emissions
thatsector
accompany
and thermal
Noteparentheses
indicatein emissions
in eachin fiscalpower2013 generation
relative to fiscal
2005. generation among the respective final consumption sectors.

Note 2: “Regarding
PercentagesGreenhousein parentheseschangein emissions
in eachsector in fiscal 2013 relative to fiscal 2005.
Source:Gasindicate
Emissionsin Fiscal
2016 (Final
Values)”

Source:“Regarding Greenhouse Gas Emissions in Fiscal 2016 (Final Values)”

The Plan for Global Warming Countermeasures
was approved at a Cabinet meeting in May 2016 thatsets out how the mid-term targets outlined in the INDC
submitted by Japan in 2015 will be achieved. What is
important here is 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 of policy tools including voluntary measures, regulatory measures and economic
measures, exploiting their respective characteristics inan effective manner. The intention is to encourage theadoption of highly energy-efficient equipment in theindustrial, commercial, and residential sectors while
maximizing the introduction of renewable energies,
improving thermal power plant efficiency, and utilizing nuclear power plants that have been confirmed tobe safe in the energy conversion sector.
Table 1.6 shows the government’s initiatives relating to GHG reduction targets since adoption of the
Kyoto Protocol in 1997.
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.
The JCM allows contributions to GHG emission
reductions and carbon capture achieved in partnercountries through transferals of Japanese low-carbon
technologies and products to be counted as part ofJapan’s contribution.
The Japanese government has consulted with developing countries concerning the JCM since 2011. It
has signed bilateral documents with 17 countries, thelatest being with the Philippines in January 2017.
JCM projects underway in the electricity sector include a 40 MW hydro power plant in Lào Cai Province,
Vietnam, and project development studies in Vietnam,
Thailand, and elsewhere regarding installation of microhydro power plants at water treatment plants.

(2) GHG Emissions and Voluntary Efforts by
the Private Sector
a. GHG Emissions in Japan
In fiscal 2016, Japan’s GHG emissions measured 1,307
million tons (CO2 equivalent), a 7.3% decrease fromfiscal 2013 and a 5.2% decrease from fiscal 2005.
CO2 emissions in fiscal 2016 totaled 1,206 million
tons, accounting for 92.3% of all GHG emissions. These
TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 201921

I. E N E R G Y P O L I C Y

Figure 1.4 Changes in CO2 Emissions by Sector
500 (Million tons-CO2）

Table 1.7 Actual CO2 Emissions by the Electric Power Industry

20082012

2013

2014

(Reference
values)

2015

2016

(Preliminary
figures)

852

–

849

823

–

–

–

–

409

415

–

484

456

469

441

430

411

0.476
[0.510]0.487[0.571]0.406[0.469]0.570[0.570]0.554[0.556]

0.552

0.531

0.516

0.496

Fiscal Year

2008

2009

2010

2011

2012

Electricity consumed

889

859

906

860

CO2 emission volume

332

301

317

End-use CO2 emission intensity *2

0.373[0.444]0.351[0.412]0.350[0.413](TWh)*1(Million tons-CO2)(kg-CO2 /kWh)(Average)

2014

2017

*1 Electricity consumed includes electricity purchased from joint thermal power generators, IPPs, self-generators, etc., connected to the grid.
*2 Values in brackets do not reflect adjustments made for Kyoto Mechanism credits, the surplus solar power purchasing system, and the FIT scheme for renewable energy.

Source: FEPC, “Environmental Action Plan by the Japanese Electric Utility Industry” (September 2015)
Source for fiscal 2014 (reference values), fiscal 2015, 2016 and 2017 (preliminary figures): The website of the Electric Power Council for a Low Carbon Society (ELCS)

CO2 emissions were 8.3% lower than in fiscal 2013 and6.5% lower than in fiscal 2005. Factors behind the decrease in CO2 emissions from the previous fiscal year
included both lower energy consumption due in particular to energy conservation and a proportional increase in
the use of non-fossil fuels.
Emissions fell in all sectors between fiscal 2013 andfiscal 2016, declining by 10.5%, 10.4%, and 8.3% respectively in industry, the commercial sector, and theresidential sector. 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 CO2 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 climate change. As of April

Figure 1.5 CO2 Emissions of the Electric Power Industry(CO2 emission factor (kg-CO2 /kWh)) 0.75

600 (CO2 emissions (million tons CO2 equivalent))
Unadjusted values

First commitment period
under the Kyoto Protocol

Adjusted values

0.70

484

500

441*

Reflected adjustments made for Kyoto Mechanism credits

469*
409

400

CO 2 emissions

415

373

300

0.570

301

0.50

275
0.476

200

0.487

0.45

0.40

CO 2 emission factor

0.35

0.373
0.351

0.350

0

0.30
’90 ’91 ’92 ’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15

Data from 1990 to 2013 is cited from Source 1, and data after 2014 from Source 2.

Data from 1990 to 2013 is cited form Source 1, and data after 2014 from Source 2.

Source: 1. FEPC, “Environmental Action Plan by the Japanese Electric Utility Industry” (September 2014)
Source:1. FEPC,
ActionPlanby the Japanese Electric Utility Industry” (September 2014)
Source:2. TheElectric “Environmental
Power Council for Low
CarbonSociety

2. The Electric Power Council for Low Carbon Society

22

0.496*

0.423

0.417
100

411*
0.60

0.552*
0.55
0.531*
0.516*

317

332

0.65

430*

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 2019’16 ’17c. CO2 Emission and Global Warming Countermeasures Implemented by the Electric Power Industry
Japan’s electric utilities are participating in the Japan
Business Federation’s aforementioned Commitment toa Low Carbon Society and are promoting measures onboth the supply and demand sides of the electric power
sector. In July 2015 the utilities announced their own
Commitment to a Low-Carbon Society in the Electricity Industry, which commits them to achieving a CO2
emission factor in fiscal 2030 of approximately 0.37
kg-CO2 /kWh (equivalent to a reduction of 35% fromthe fiscal 2013 level). The Electric Power Council fora Low Carbon Society (ELCS), which includes members of the Federation of Electric Power Companies ofJapan (FEPC) as well as new entrants to the market,

was established in February 2016 with the aim of moving
forward with the attainment of these targets for all
electric utilities as a whole.
According to data released by ELCS, CO2 emissions
in fiscal 2017 (preliminary figures) came to 411 million tons-CO2 and the CO2 emission factor was 0.496
kg-CO2/kWh.
On the supply side, the utilities are working on a
range of initiatives, including implementing thoroughgoing safety measures based on the lessons learned
and knowledge gained from the Fukushima Daiichi
Nuclear Power Plant accident, and feeding electricity
derived from renewable energy sources into the gridbased on the FIT scheme for renewable energy.
On the demand side, they are actively promoting energy conservation and carbon emission reduction, andpursuing the widespread installation of smart meters tocreate an environment conducive to more efficient electricity use.
The utilities are also actively pursuing research anddevelopment, working to develop a range of promising technologies, including clean coal technologies,
CO2 capture and storage technologies, next-generation
power transmission and distribution technologies, andultra-high-efficiency heat pumps.
Table 1.7 shows actual CO2 emissions by the electric
power industry, while Figure 1.5 tracks CO2 emission
trends in the industry.
		

Sarulla Geothermal Power Plant (Sarulla Operations Ltd., a joint venture of Kyushu EPCo, ITOCHU
Corporation, INPEX CORPORATION, PT Medco Power Indonesia and Ormat Technologies, Inc.)The Sarulla Project is one of the largest geothermal IPP power projects in the world (330 MW). The
plant’s first unit entered operation in March 2017, followed by the second in October 2017 and the thirdin May 2018. All units are in commercial operation.

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 201923

I. E N E R G Y P O L I C Y

2017, 62 industries have set targets and taken actions for2030 relating to emissions resulting from their businessactivities in Japan. Japanese industries are also working to strengthen their efforts relating to coordination
between business entities, international contributions,and innovative technological development.
Commitment to a Low Carbon Society calls for participants to set targets and review progress themselves
to ensure the effectiveness of their actions, and further
commits the Japanese business community with its
technological strengths to play a key role in the drive
to halve global GHG emissions by 2050.

II. E L E C T R IC I T Y SU PPLY SYST E M
1. History of Japan’s Electric Power Industry(1) Transition from the Early Period to theCurrent System
Japan’s electric power industry came into being withthe commencement of operations by the Tokyo ElectricLight Company in 1886. Numerous electric power companies were subsequently established around Japan toserve growing demand for electricity driven by increasing industrialization and the economic boom during
World War I. By the early 1930s their number exceeded
800. However, the fierce competition engendered mainly
in urban areas by the prolonged depression led to a seriesof mergers and acquisitions. As a result, Japan’s electric
power industry ultimately coalesced around five main
utilities (Tokyo Electric Light Company, Toho EPCo,
Daido EPCo, Ujigawa EPCo and Nippon EPCo).
As Japan headed into World War II, the electric
power companies came under the control of the government. After the Japan Electric Generation and Transmission Company was established in 1939, electricity

generation and transmission came under centralized
control, and the electricity distribution business was
consolidated into nine separate blocks. Following WorldWar II, the Japan Electric Generation and Transmission
Company was dissolved in accordance with the Ordinance for the Reorganization of the Electricity Utilities
Industry (enacted in 1950) and the company’s facilities
were transferred to electricity distribution companies
in nine different regions around the country. The nineelectricity distribution companies to which the facilities
were transferred subsequently became privately owned
electricity utilities with regional monopolies based on
an integrated system of electricity generation and transmission (i.e., one in which each company handled everything from power generation to transmission anddistribution itself). This regime was confirmed by theElectricity Business Act (enacted in 1964). The numberof these electric power utilities increased to 10 with theestablishment of Okinawa EPCo following the reversion
of Okinawa to Japanese control in 1972.
Thus organized into a system of regional monopolies,

Table 2.1 Outline of Electric Supply System Reform

1st Set of Reforms(1995)

1) Introduction of a power procurement bidding system for general electric utilities. Permission for independent
power producers (IPPs) to enter the wholesale business (liberalization of wholesale supply)2) Implementation of a system of “special electric utilities” authorized for retailing in designated service areas
3) Introduction of an incentive system to encourage general electric utilities to improve efficiency (introducing
a yardstick system to assess their performance when they apply to raise electricity rates)

2nd Set of Reforms(2000)

1) Liberalization of retailing for extra high-voltage customers
2) Change from an approval system to a notification system for rate adjustments (e.g., reductions)

3rd Set of Reforms(2004)

1) Liberalization of retailing extended to high-voltage customers
2) Establishment of a neutral body (Organization to Support Electricity Transmission and Distribution) for providing rules and monitoring the transmission and distribution of general electric utilities.
3) Introduction of a code of conduct for general electric utilities in transmission and distribution (information
ringfencing, prohibition of discriminatory treatment, etc.)
4) Development of nationwide wholesale markets

4th Set of Reforms(2008)

1) Activation of wholesale electricity exchange, and improvements in grid use competition conditions
2) Stable supply and environmental suitability (e.g., green energy trading)Electricity System
Reform(2012 to present)

1) Expansion of cross-regional grid operation (establishment of OCCTO)
2) Full liberalization of retail market entry
3) Legal separation of transmission and distribution from the vertically integrated business, and abolition of retailrate regulation

Note: Reforms were discussed or decided in the years indicated above, but not all were implemented that same year.

24

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 2019

(2) Increasing Liberalization of the Electricity
Market
The trend toward deregulation in Japan’s electric powerindustry continued with the liberalization of wholesale
supply in 1995, 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, and to all customers in thehigh-voltage category (those with contracted demand of
50 kW or above) in April 2005.
METI began examining the pros and cons of ex-panding the scope of retail liberalization to include
the household sector in April 2007. It concluded that
it would reexamine the advisability of expanding thescope of retail electricity market liberalization after five
years. Power shortages and other issues caused by the2011 Great East Japan Earthquake, however, prompted
renewed discussion of the ideal configuration of the nation’s electric power system and its reform. Based on
this discussion, a new entity called the Organization for
Cross-regional Coordination of Transmission Operators(OCCTO) was established in April 2015 with the aimof enhancing the capacity to adjust supply and demandnationwide in both normal and emergency situations.
In addition, full liberalization of the retail market including consumers utilizing less than 50 kW was implemented beginning from April 2016. A new system
was further introduced that separated the market into
generation, transmission and distribution, and retail sectors, and issued licenses to business operators in eachsector. Legal separation of the electricity network sector
is scheduled to be implemented in April 2020.

2. Current Electric Power Industry System(1) Regulatory Organizations
a. Agency for Natural Resources and Energy
The Agency for Natural Resources and Energy is an

Figure 2.1 History of the Electricity Supply Structure

Liberalization of wholesale supply(from 1995)
Wholesale
electric
utilities

Generation

Selfgeneration

Full liberalization of retail market(from 2016)

Partial liberalization of retail market(from 2000)
Wholesale
electric
utilities

Generation

Independent Power producers
and new electricity
power
market entrants
producers
other than IPPs
(IPPs)

Specifiedelectricity
utilities

Selfgeneration

Transmission (information ring-fencing,prohibition of crossand distribution subsidization,
monitoring

Generalelectric utilities

of markets, etc.)

Retailing

Customers(end users of electricity)

Selfconsumption

Regulated customers

Use of networks(wheeling service)prohibition of discriminatory
handling of particular market
participants (certain), etc)

RetailingSpecified-scale
electricity
suppliers (PPS)

Customers inliberalized sectors

Selfgeneration

network operators Use of networks(Prohibition of use of
Transmission(wheeling service)information for purposesand distribution otherthan the original intent,(10 EPCos)

Retailing

Electricity producers

Regional electricity

General electric utilities
Transmission
and distribution

Generation

Owners ofelectricity
generation
facilities that
produceless electricity

Customers in
Selfdesignatedservice areas

Selfconsumption

Electricity retail suppliers

All consumers

Selfconsumption

Source: Agency for Natural Resources and Energy

Source: The Agency for Natural Resources and Energy
TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 201925

II. E L E C T R I C I T Y S U PPLY S Y S T E M

these utilities invested systematically in power supply facilities to meet growing demand for electricity to power
Japan’s rapid economic growth. As private enterprises,
they simultaneously sought to deliver affordable, stablesupplies of electricity while continuing to make management efforts to maximize shareholder equity. As aresult, they contributed significantly to Japan’s two decades of rapid growth from the 1950s on by providing
high-quality, affordable electricity with a minimum ofoutages. Although electricity rate hikes were introducedin the wake of the global oil crises of the 1970s, rates
were lowered several times between the 1980s and 2000s
and the supply of electricity continued to underpin thedevelopment of the national economy.

external organ of METI, which is responsible for policies regarding energy conservation, new energies, andsecuring a stable, efficient supply of energy from oil,electricity, gas, and other sources. With regard to theelectric power industry, the agency is responsible for developing the electricity market and electricity sources,
adjusting electricity market supply and demand, andplanning, devising, and promoting policies relating to
nuclear power, renewables and “smart communities.”b. Electricity and Gas Market Surveillance Commission
The Electricity and Gas Market Surveillance Commission was established on September 1, 2015, as an entity
under the direct control of the Minister of Economy,
Trade and Industry in advance of the liberalization ofelectricity, gas, and heating supply, with the aim of further strengthening monitoring of the energy markets
and related functions and encouraging sound competition. The Commission’s powers include the ability
to conduct on-site inspections of utilities, recommend
business improvements, act as an arbitrator/mediator,
approve wheeling service charges, and carry out reviewsof retailer registrations. It also has the power to monitor
the fairness of transactions and regulate business conduct to safeguard the neutrality of the electricity and gas
network sectors. The commission’s chairman and fourcommissioners are appointed by the Minister of Economy, Trade and Industry from among individuals who
possess specialist knowledge and experience regarding
law, economics, finance, or engineering and are able to
make fair and neutral judgments in the performance of
their duties.

(2) O rganization for Cross-regional Coordinationof Transmission Operators (OCCTO)
OCCTO was established in April 2015 as the first stage
in the three-stage reform of the electricity industry. Its
objectives are to promote development of the transmission and distribution networks required to make crossregional use of generating sources, and to strengthen theindustry’s capacity to adjust supply and demand nationwide in both normal and emergency situations.
Its main functions include:1) To coordinate supply-demand plans and grid plans,
boost the transmission infrastructure (including thecapacity of frequency converters and interregional interconnections), and facilitate nationwide grid operation spanning different areas.
2) To coordinate cross-regional supply-demand balancing and frequency adjustment by the transmission
26

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 2019

operators in each area during normal situations.
3) To adjust supply and demand by instructing that output be increased and power shared in case of power
shortages due to a disaster or other emergency.
4) To neutrally perform functions relating to the acceptance of connections from new power sources anddisclosure of grid data.

(3) Main Classifications of Electric Utility
Market Operators
With the shift to a license-based system in April 2016, a
comprehensive review was carried out of the classification of Japan’s electric utilities. Hitherto, utilities had
been divided into the following five categories: generalelectric utilities, wholesale electric utilities, wholesale
suppliers, specified electricity utilities, and specifiedscale electricity suppliers (PPSs). Under the new licensebased system, the former general electric utilities are
now classified into three separate categories: electricity
producers, regional electricity network operators, andelectricity retail suppliers. With the further addition of
independent electricity network operators and sitespecific electricity network operators, participants havenow been classified into five categories in all. Electricutilities are primarily formed with private capital.

3. Wholesale Electricity Market
The Japan Electric Power Exchange (JEPX) was established in November 2003 to provide a privately
operated, voluntary wholesale exchange designed tostimulate transactions on the exchange contributing to
the strengthening of utilities’ risk management capabilities by, for example, offering enhanced instruments
for selling and sourcing electricity and encouraging theformation of index prices to assist assessments of investment risk. JEPX commenced trading in April 2005 andwas designated a wholesale electricity market under theprovisions of the Electricity Business Act in April 2016.
The principal market participants are the electricity producers involved in wholesale power transactions
and electricity retail suppliers. However, other players,
such as regional electricity network operators that accept
electricity generated by feed-in tariff plants, are also involved as “special trading members” in order to facilitate
the sale and purchase of “non-fossil value,” as describedin a later section. Businesses such as demand response
aggregators that enter into negawatt trading contracts
with regional electricity network operators have also

4. Retail Electricity Market
The full liberalization of the retail market through the
deregulation of Japan’s low-voltage sector in April 2016means that the approximately 8 trillion yen electricity
market to which the former general electric utilities
supplied electricity under a monopolistic arrangement
has now been opened up to other participants. Following this change, sales turnover of operators in the retailelectric power market (including the already liberalized
high-voltage sector) reached to a total of 14 trillion yen
as of June 2018.
Full liberalization has attracted a large number ofoperators to the retail electricity market. Entry to theretail market requires government approval, and 507 operators had been registered as electricity retail suppliers
as of September 20, 2018. This wave of new entries has

resulted in the emergence of a range of new options forcustomers, including electricity packaged with gas andother services, loyalty schemes, and the supply of CO2free electricity. To better protect consumers following
liberalization, consumers will be able to continue to purchase electricity at the pre-liberalization rates (regulated
rates) charged by their supplier prior to liberalization up
until April 2020.

5. New Markets
In order to encourage further competition in the wholesale and retail markets as described above and achieve
the goals underlying its sweeping reform of the electric
power system, the Japanese government is considering
the establishment of several new markets.
The intention is that the creation of these unconventional new markets will serve to actualize and render
tradable new forms of value to accompany the enhanced
fluidity of existing markets.
The main mechanisms under consideration are (1)a baseload power market, (2) a capacity market, (3) abalancing market, and (4) a non-fossil value trading
market.

1) Baseload Power Market
New market entrants find it difficult to own or enter
contracts to buy electricity from affordable baseload
power sources such as coal, large-scale hydropower, andnuclear power plants. To surmount this difficulty, creation of a market dedicated to the trading of electricity
produced by baseload power plants is now under consideration. Such a market will give existing electric powercompanies and new entrants equal access to electricity
from baseload power plants. The expectation is that theresulting stimulation of the wholesale market will leadto increased competition in the retail market.
Transactions on the baseload power market are expected to commence in fiscal 2019, with deliveries ofelectricity to start in fiscal 2020.

2) Capacity Market
Although ideally power generation investments should
be recoverable through market transactions, the predictability of the payback on investment in most power
plants is likely to decline. If the adoption of renewables
expands simultaneously, it is expected that the utilization of power generation capacity will decline, theTH E ELECTR IC POW ER I N DUSTRY I N JA PA N 201927

II. E L E C T R I C I T Y S U PPLY S Y S T E M

been permitted to participate in the market since March2017. As of September 2018, 145 companies were trading
members.
JEPX currently provides a marketplace for the following electricity transactions:
1) Spot market: Trading in 30-minute increments ofelectricity for next-day delivery.
2) Forward market: Trading in electricity for delivery
over the course of a specified future period. Products are created by packaging together specific periods and times, such as monthly 24-hour products or
weekly daytime products.
3) Intra-day market: A market for correcting unexpected misalignments between supply and demandoccurring between a spot market transaction and delivery (a minimum of one hour later).
4) Bulletin board trading market: JEPX mediates the
trading of electricity and instruments such as Kyoto
Mechanism credits under COP3 for prospective
buyers and sellers. One example of a bulletin board
trading market is the distributed and green electricity selling market launched as part of the electricity
supply and demand measures implemented by thegovernment in the summer of 2012. Non-membersof JEPX can also sell electricity through this mechanism, which is designed for trading small volumes of
surplus nonutility power and green power.
Power traded through the spot market on the exchange accounted for approximately 3% of the volumeof electricity sold in fiscal 2016, and approximately 7% in
fiscal 2017. As of April 2018, the volume of transactions
had surged to account for 15%-20% of total demand.

selling price of electricity will fall, and revenues fromselling electricity from all sources will come down.
Conversely, however, if investments in power generation capacity are not made at the appropriate time,
there could be more situations in which the supply anddemand balance becomes too tight, and electricity balancing capacity cannot be secured.
It has therefore been decided to introduce a capacity
mechanism to ensure a greater degree of investment predictability. The creation of a capacity market to ensure
the replacement of old power plants with new ones andthe securing of actual (installed) supply capacity throughmarket mechanisms is now under consideration.
The intent is to open the capacity market to transactions in fiscal 2020, and to have capacity contracts become effective from fiscal 2021.

3) Balancing Market
The tasks of controlling frequency and balancing supply
and demand are performed by the regional electricity
network operators in each area. With regard to balancing, it is important that operators secure the capacity
required for practical purposes while avoiding giving
preferential treatment to particular sources of electricity
or creating too great a cost burden.
Japan’s first auction for balancing supply and demand was held by regional electricity network operators
at the end of 2016 for balancing supply and demand forfiscal 2017.
A balancing market for procuring and operating balancing supply and demand more efficiently on a crossregional basis is now under consideration, with a view
to launching the market during or after fiscal 2020.

28

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 20194) Non-Fossil Value Trading Market
The wholesale electricity market described above makes
no distinction between fossil fuel and non-fossil fuelpower generation, and there are concerns that this omission could obscure the actual value of non-fossil power
generation capacity. As it has also been observed that itis difficult for new entrants to buy electricity from nonfossil fuel sources, the creation of a market that brings
non-fossil to the fore and enables the trading of nonfossil fuel value is also under consideration.
It has further been proposed that the cost of theenvironmental value of electricity derived from renewables purchased through the FIT scheme should nothave to be borne by all customers, but instead should
be borne primarily by those customers who desire thatvalue. Ways of actualizing this value and enabling it to
be bought and sold in the marketplace are being considered in order to achieve this goal.
As one step to help address these concerns, a nonfossil value trading market was established in thewholesale electricity market described above to isolate
non-fossil fuel from the actual electricity produced andto certify it for trading.
The first auction of non-fossil certificates for FITelectricity was held on May 18, 2018. Certificates for approximately 5,160 MWh of electricity were bought by 26
companies at a contracted price of 1.3 yen per kWh.
Trading of non-fossil power sources other than those
covered by the FIT scheme is scheduled to commence infiscal 2019.
It is hoped that the establishment of this market will
help Japan reach its global warming targets by fostering
use of a power generation mix consistent with its mostsuitable energy mix.

III. E L E C T R IC I T Y SU PPLY A N D D E M A N D
1. Demand

Figure 3.1 Changes in Power Consumption, 1975-2016
1200 (TWh)Japan’s gradual economic recovery continued in fiscal
2016 as real GDP grew by 1.2% from fiscal 2015 (whenreal GDP rose 1.4% from a year earlier). The unemployment rate also improved, falling 0.3 percentage points to
3.1% from 3.4% a year earlier.
Power consumption1 in Japan has either declined
or remained largely unchanged since reaching 1,007.7
TWh in 2007, and in fiscal 2016 came to 963.1 TWh.
This trend is attributable to several factors, including theslowing of economic growth, improved energy conservation, and 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.

982

1000

1,044 1,048

1,077
1,036

1,056
1,003

1,002 992 993 969 955 963

882
766

800
599

600
520

400

428

200

0
(FY) ’75 ’80 ’85 ’90 ’95 ’00 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16
Data: Electric Power Industry Handbook
Data: Electric Power Industry Handbook

Figure 3.2 Power Generation Mix, 1975-2016
100%

1. This includes self-generated power consumption (business sites with self-generating
capacity of at least 500 kW up to fiscal 2002, and at least 1,000 kW from fiscal 2005
on).

2. Supply
Electric power generated came to 998.1 TWh in fiscal
2016. The progressive shutdown of nuclear power plants
following the March 2011 earthquake increased dependence on thermal power plants and caused thermal’sshare of power generated to rise from 66.7% in fiscal 2010
to 85.4% in fiscal 2016. While nuclear power’s share stoodat 24.9% in fiscal 2010, the shutdown of all nuclear power
plants in September 2013 caused this figure to drop to
0% in fiscal 2014 while thermal’s share rose to 90.7%.
Since the restart of Kyushu EPCo’s Sendai Nuclear
Power Plant in August 2015, several other plants have
gradually come back online. However, nuclear’s share of
power generated in fiscal 2016 was still only 1.7%.
On the other hand, the construction of renewable energy installations such as wind and solar power plants
has increased. In fiscal 2016, 5,457 GWh of electric power
was generated by wind power, and 11,074 GWh by solar power. Although wind power was first introducedin the 1990s, growth has been sluggish in recent years,
increasing by only around 13% over the past five years.
Solar power, on the other hand, has grown rapidly despite not entering the mix until around 2005. Following
the launch of the FIT scheme in July 2012, solar power

90

80

70

60

50

40

30

20

10

0
(FY) ’75’85

NuclearBiomass

’95

’00

’05

’10

ThermalGeothermal

’11

Hydro
Solar

’12

’13

’14

Fuel cells
Wind

’15

’16*

Waste

Data: Electric Power Industry Handbook*Figures on electric power generated for electric utilities are generation-end figures throughfiscal 2015, and transmission-end figures for fiscal 2016. Where the main fuel used is biomass or waste, power generated is respectively counted under biomass or waste.

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 201929

Figure 3.3 Wind and Solar Power Generation

Figure 3.4 Breakdown of Power Consumption by Sector,

12,000 (GWh)100%

1975-2016

11,074

Transportation

Wind

10,00080

Solar

Industrial

8,000

60

5,457

6,000

Residential

40
4,000

20

2,000

Commercial
00[FY] ’00’05 ’06

’07

’08

’09

’10

’11

’12

’13

’14

’15 ’16

Data: Electric Power Industry Handbook
Note: Figures on electric power generated for electric utilities are generation-end
figures through fiscal 2015, and transmission-end figures for fiscal 2016.

installations have surged, with solar output surpassing
output from wind power installations in fiscal 2015. In
fiscal 2016, twice as much power was generated by solar
power than by wind power.
Looking ahead, the Basic Energy Plan adopted by the
METI in July 2018 set power generation targets for 2030
calling for 22%-24% of electric power to be generated byrenewables (including hydropower), 20%-22% by nuclear
power, and about 56% by thermal power (27% LNG,
26% coal, and 3% oil).

3. Characteristics of Electric Power
Supply and Demand in Japan
Electric power demand in Japan rose almost continuously as the economy grew following World War II. Since
2011, however, growth has leveled off, due mainly to theslowing of economic growth, demographic decline, andimproved energy conservation. Peak national demandcame to 155,890 MW in fiscal 2016.
Power consumption breaks down by use as follows:
34% commercial demand, 28% residential demand, and
37% industrial demand. Industry remains the largest
consumer of electricity. Since the 1990s, however, industrial demand has entered a downward trend due to sluggish output in the materials sector and growing energy
conservation. Over the longer term, the growth in consumption has thus been powered by consumption in nonindustrial sectors, namely the commercial and residential
sectors. Growth in consumption in the commercial sector has been propelled by growth in office buildings
30

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 2019

’75

’85

’95

’00

’05

’10

’11

’12

’13

’14

’15

’16

Note: The method of calculation was changed in fiscal 1990.
Note: The method of calculation was changed in fiscal 1990.
Source: Compiled based on Agency for Natural Resources and Energy,
Source: Compiled based on Agency for Natural Resources and Energy,
Energy White Paper 2018.
Energy White Paper 2018.

and the rapid spread of office automation equipment.
In the residential sector, the rapid spread of heating andcooling appliances, such as air conditioners and electriccarpets, and other household appliances driven by risingliving standards ensured that power consumption continued to grow until fiscal 2005. Growth then leveled off
as appliance ownership reached a saturation point andenergy-saving devices began to capture a growing shareof the market. In fiscal 2011, increased awareness of theimportance of saving electricity in the aftermath of the
Fukushima Daiichi Accident caused consumption to go
into decline. In fiscal 2016, non-industrial consumption
accounted for 62% of final power consumption.
The proportional rise in non-industrial demand has
resulted in higher demand in the summer and winterdue to demand for heating and air-conditioning. Thereare consequently wider differences in demand between
winter and summer periods and other seasons than before (Figure 3.5), and also between daytime and nighttime hours (Figure 3.6).
Efficiency of use of generation facilities worsens as
variation in demand widens, pushing up power supply
costs. Nevertheless, the annual load factor (i.e., the ratioof annual average load to annual peak load), an indicator of the efficiency of use of generation facilities, has
actually improved to between 60% and 70% since themid-2000s. This is thanks in large part to the introduction of flexible seasonal and time-of-day pricing, and thepromotion of technologies such as heat pumps that use
electricity during nighttime hours.

on Which Peak Loads Occurredof a Year
90 (TWh)200 (GWh)

80

180

70
60
50

160
140
Power consumption

FY2016
FY2005FY2015
FY1995

July 24, 2001
Aug. 5, 2005
Aug. 23, 2010
Aug. 25, 1995
Aug. 9, 2013
July 27, 2012
July 25, 2014

120
100

FY198540

FY197520

Note 1: Figures for fiscal 1975 and 1985 exclude Okinawa EPCo.
Note 2: Figures are totals for 10 EPCos through fiscal 2015, and for 10 areas in fiscal 2016.
Source: Compiled based on Agency for Natural Resources and Energy,
Energy White Paper 2018.

73

65

July 31, 1975

50

40

0
1

Apr. May June July Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar.

Aug. 29, 1985

76

32

20

0

144

110

88

80

(Total for 10 EPCos)

Aug. 7, 1990

92

60

30

183
178
171
159
156
153

2

3

4

5

6

7

8

9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24(Time of day)
Note: Figures for fiscal 1975 exclude Okinawa EPCo.
Source: Agency for Natural Resources and Energy, Energy White Paper 2018

Figure 3.7 Annual Load Factor, 1975-2016
70%
68

Annual average load / peak load 3-day average

66

Annual average load / peak load

64
62
60
58
56
54
52
50
[FY] ’75

’80

’85

’90

’95

’00

’05

’10

’16

Source: Agency for Natural Resources and Energy, Energy White Paper 2018

4. Electricity Supply and Demand
Measures(1) Recent Developments
Seven years since the Great East Japan Earthquake,Japan’s electricity supply and demand situation is improving. Due to the prolonged shutdown of nuclear power
plants, however, the country still remains dependent on
thermal power to ensure a stable supply of electricity.
More recently, Japan has also been experiencing theso-called “duck curve” problem caused by the increasing
amount of electricity generated by solar power plants
during the day. In addition to addressing this problem
by limiting output from thermal plants during daylight hours, using excess power to pump up water for

pumped storage, and supplying electricity to other service areas via interregional interconnections, utilities in
Kyushu have also curbed output from solar power plants
on several occasions during low load periods.

(2) Supply and Demand Projections
After factoring in the risk of demand growth caused byheat waves or severe winters and the extent of the normalization of the ongoing power conservation efforts being
made by consumers since 2011, it has remained possible
in recent years to maintain the minimum 3% reserve
margin needed to ensure supply continuity in all areasof Japan.

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 201931

III. E L E C T R I C I T Y S U PPLY A N D D E M A N D

Figure 3.6 P
 ower Consumption over the Course of Days

Figure 3.5 E lectric Power Consumption over the Course

Storage battery pilot plant at Minami­soma
Substation (Tohoku EPCO)
The large-scale lithium-ion battery system with an
output of 40 MW and a capacity of 40 MWh has
been installed and connected to the power grid tostudy the potential for deploying further renewables
by improving the balance of supply and demand.

(3) Procurement of Balancing Reserve
Electricity retail suppliers have to be able to always
match supply and demand, and must secure the necessary supply capacity to do so. It falls upon the regional
electricity network operators to secure the supply capacity required to be able to deliver adequate electricity toretailers to meet supply and demand fluctuations. Owing to the separation of generation and transmission following the introduction of a licensing system in April
2016, since fiscal 2017 the capacity required to balance
supply and demand has been procured by tenders conducted by regional electricity network operators in orderto ensure that balancing capacity is procured in a fair
and transparent manner.
The balancing power procured is of two main types:
power source I, which consists of power provided bydedicated sources of balancing power that are always
available to regional electricity network operators; andpower source II, which consists of surplus power fromsources that can be used following gate closure for retail

Central Load Dispatching Center (Kansai EPCo)32

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 2019

power sources. Demand response as well as power output is procured to ensure that the system can cope withsevere weather and similar circumstances.
In fiscal 2018, 11,300 MW of power source I and
142,960 MW of power source II were procured (as ofJanuary 2018). Nine hundred sixty MW of demand wasmet by demand response.
In September 2017, lower than expected solar power
output led to a total of 70 MW of demand being met
by demand response in the Kyushu area. In 2018, record low temperatures from the end of January to thebeginning of February led to demand response being
performed in the Tokyo area a total of 13 times on eightdays, while in July, the tight supply and demand situation due to a heat wave led to demand response being
used in the Kansai area.
In September 2018, a power outage hit the whole of
Hokkaido following an earthquake. EPCos from acrossJapan sent truck-mounted generators, mobile elevating
work platforms, and other resources to assist the rapid
restoration of service.

IV. POW E R G E N E R AT I NG FAC I L I T I E S
As a nation with limited natural energy resources,
Japan depends on imports to satisfy nearly all of its energy needs. Since the first oil crisis of 1973, the electric
power industry has placed a priority on reducing Japan’s
dependence on oil by introducing nuclear, coal-fired,
LNG-fired and hydro power plants, while also developing renewable energy sources with the aim of achieving
an optimal mix of power sources.

1. Power Generating Facilities forElectric Utilities(1) Thermal PowerRegarding thermal power, the industry is pursuing efforts to diversify fuel sources, including coal and LNG,
from an energy security perspective. As of the end of
March 2017, the total installed capacity of thermal power
plants excepting self-generated power was 174,390 MW.
Coal-fired capacity came to 45,910 MW, and coalfired power plants are undergoing various improvements
to ensure that they can continue to fulfill their role asbaseload and medium-load electric power sources. These
include installation of large-capacity units, ultra-supercritical pressure boilers, and variable pressure operationequipment to enhance their efficiency and load-following capabilities. This has positioned coal-fired thermal
power plants as one of the most economically efficient

power sources. Technologies designed to further boost
the efficiency of coal-fired plants, including advanced
ultra-supercritical (A-USC) facilities, integrated coalgasification combined cycle (IGCC) facilities, integrated
coal gasification fuel cell combined cycle (IGFC) facilities, and carbon capture and storage (CCS) facilities, arecurrently under development and moving toward practical application.
LNG capacity came to 80,260 MW. LNG-fired
power plants produce lower SOx, NOx, and CO2 emissions than oil- and coal-fired plants, and constructionof large-scale LNG plants employing high-efficiency
combined-cycle technologies is underway. New plants
recently added to the grid exhibit significant improvements in performance, with gas turbine inlet temperatures of 1,600°C and thermal efficiency of approximately
63% (LHV). The superior load-following capability andhighly economical operation achieved by LNG-fired
plants make them excellent sources of energy.
Oil-fired capacity came to 37,230 MW. Large numbers of oil-fired power plants were built during Japan’shigh growth period when oil prices were low, and capacity at its peak reached 59,240 MW. Capacity subsequently declined, however, due primarily to the effects of theoil crises. The current administration is also promoting
the use of highly economical coal power plants alongside environmentally friendly LNG power plants with
their excellent load-following capabilities, and closures

Shin-Sendai Thermal Power Station (Tohoku EPCO)KAWASAKI Thermal Power Station (TEPCO Fuel & Power, Inc.)
Units 2 and 3 entered operation in January and June 2016 respectively. Bothare 1,600°C-class combined cycle power plants, and have achieved theworld’s best generating efficiency of approximately 61%.

No.3 Series commenced full-scale commercial operations in July 2016. Thisreplacement project received 2017 International Edison Award from the
Edison Electric Institute of the United States in recognition of contributing to
the electric industry-wide development, such as achieving the project for
co-prosperity with local communities and developing the highly-efficient
power generation facilities superior in both environmental performance andcountermeasures against disasters.

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 201933

Nishi-Nagoya Thermal Power Station (Chubu EPCo)
The station Unit 7-1 has achieved 63.08% power generation efficiency andit was recognized by the Guinness World Records as the world’ s most efficient combined cycle power plant.
(All units of Nishi-Nagoya Thermal Power Station went into operation on
March 30, 2018.)

of oil-fired power plants are expected to continue.
By thus introducing and making appropriate useof high-efficiency thermal power generation, the grossthermal efficiency of all thermal power plants in Japanwas maintained at a world-class level of 42.9% (on an
HHV basis) in fiscal 2015.

(2) Nuclear Power
Nuclear power is currently employed as a baseload power source. As of the end of September 2018, no nuclear
power plants have been added to the grid since fiscal
2010, and this, combined with the decommissioning ofsix reactors at the Fukushima Daiichi Nuclear Power
Plant (Units 1 to 4 in April 2012 and Units 5 and 6
in January 2014) and nine old reactors at other plants
between 2015 and 2018, had reduced the number of

Okutataragi Hydro Power Plant (Kansai EPCo)34

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 2019

installed reactors to 39 units (not including three reactors under construction). Japan’s total nuclear generating
capacity of 38,570 MW ranks fourth in the world after
the United States, France, and China. The capacity factor had been maintained at the 80% level through fiscal
2001, but it subsequently fell following the Fukushima
Daiichi Accident of March 2011, after which units
whose operation had been suspended for periodic inspections were unable to restart. As a consequence, thecapacity factor progressively declined, eventually sinking
to zero in fiscal 2014.
Following final inspection by the Nuclear Regulation Authority, however, a total of nine reactors have
now come back online: Unit 1 at the Sendai Nuclear
Power Plant (which reentered commercial operationin September 2015), Unit 2 at the same plant, Unit 3
at the Ikata Nuclear Power Plant, Units 3 and 4 at the
Takahama Nuclear Power Plant, Units 3 and 4 at the
Ohi Nuclear Power Plant , and Units 3 and 4 at the
Genkai Nuclear Power Plant. As another five reactors
have received approval for their installation licenses tobe amended and 11 reactors (excluding the reactor at
the Oma Nuclear Power Plant currently under construction) are having their compliance with the new
regulatory standards reviewed, nuclear power output is
expected to continue to recover in the months and years
ahead. (See Chapter I for details.)(3) Hydro Power
Hydro power is employed as both a base power source
and a power source for responding to peak-load conditions. As of the end of March 2017, the total installedcapacity of hydro power plants excepting in-house facilities in Japan was 49,520 MW, of which pumped
storage power facilities accounted for about 56%. All

Katakai Betsumata Hydro Power Station (Hokuriku EPCo)

(4) Renewable Energy
Renewables (excluding hydro) are seeing increasing
adoption as environmentally friendly energy sources.
Although the Renewables Portfolio Standard (RPS) Act
implemented in fiscal 2003 mandated the use of certain
amounts of renewable energy, development was initiallylackluster. In fiscal 2010 renewables (excluding hydropower) still accounted for only about 1.2% of generated
output. A new feed-in tariff (FIT) scheme for renewable energy was therefore launched in July 2012. This
prompted a surge in the adoption of renewables (especially solar power), with purchases of renewable energy
reaching approximately 1.84 trillion yen in fiscal 2015.

As this figure is projected to continue to rise, the mechanism used to determine purchase prices for renewables
was revised in February 2016. (See Chapter I for details.)
As of the end of December 2017, a total of 42,800
MW of feed-in-tariff certified solar power generating
capacity (including systems operated by non-utility generators) had been installed in Japan, and wind power
plants with a total generating capacity of 3,370 MW
were in operation.

2. Future Plans
The “Aggregation of Electricity Supply Plans for
FY2018” published in March 2018 by the OCCTO calls
for the development of a total of 23,500 MW (excluding
nuclear power and renewables other than hydropower) of new power sources from fiscal 2018 to 2027. A

Table 4.1 Major Power Development Projects (As of March 2017, Output of 400 MW or Above)

UtilityType

Hokkaido EPCo

LNG

Ishikariwan-Shinko Units 1
to 3

Coal

Noshiro Unit 3

Tohoku EPCo

Plant name

Joetsu Unit 1
Kannagawa Units 3 to 6

Hydro

Kazunogawa Unit 3

LNG

Class* (scheduled)

1,708

1,600°C
class CCGT

600

USC

Start of operation
Feb. 2019 (Unit 1),
Dec. 2026 (Unit 2),
Dec. 2030 (Unit 3)
Jun. 2020

572

CCGT

1,880

Pumped storage

From fiscal 2028 onward

400

Pumped storage

From fiscal 2028 onward

Nishi-Nagoya Unit 7 series

2,376

1,600°C
class CCGT

Coal

Taketoyo Unit 5

1,070

USC

Mar. 2022

Hokuriku EPCo

LNG

Toyama Shinko LNG Unit 1424.7

1,500°C
class CCGT

Nov. 2018

Kansai EPCo

LNG

Wakayama

3,700

–––

From fiscal 2027 onward

Chugoku EPCo

Coal

Misumi Unit 2

1,000

USC

Nov. 2022

Shikoku EPCo

Coal

Saijo Unit 1 (replaced)

500 (+344)

USC

2023

Kyushu EPCo

Coal

Matsuura Unit 2

1,000

USC

Dec. 2019

J-POWER

Coal

Takehara New Unit 1

600

USC

Jun. 2020

Coal

Hitachinaka Generation

650

USC

2020

LNG

Goi

2,340

1,650°C
class CCGT

2023

LNG

Anegasaki

1,950

1,650°C
class CCGT

2023

Coal

Yokosuka

1,300

USC

2023

Tokyo EPCo**

LNG
Hydro

Output (MW)Chubu EPCo**

JERA

Jun. 2023

Sep. 2017 (Unit 7-1),
Mar. 2018 (Unit 7-2)

*Abbreviations used are as follows:

CCGT: Combined Cycle Gas Turbine; USC: Ultra Super Critical; SC: Super Critical.
Dashes are used where the type is unknown.
**Tokyo EPCo and Chubu EPCo thermal power plants transferred to JERA effective April 1, 2019.
Source: Summaries of supply plans published by utilities (excluding nuclear energy, which remains undecided) and other sources.

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 201935

IV. P OW E R G E N E R AT I N G FAC I L I T I E S

but two of the 27 hydro power plants with maximum
capacities of 400 MW or above were pumped storage
plants.

Figure 4.1 Generating Capacity by Power Source,

2016-2027

350,000 (MW)

300,000

Generating capacity

Renewables(excluding hydro)
250,000

Hydro
200,000

Oil+LPG
150,000

100,000

50,000

LNG

Coal
Nuclear

0
(FY)

2016

2027

Source: OCCTO
Source:
OCCTO

36

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 2019breakdown of this volume shows that 279 MW is to beprovided by hydro power generation and 17,420 MWby thermal power generation (Figure 4.1).
Electricity producers are also actively adopting utility-scale solar power generation and building large-scalecommercial solar power plants. In the area of wind
power generation, they are investigating locations withappropriate wind conditions and promoting facility installation. However, solar and wind power generation
also present numerous challenges, including the instability of power generation due to variable natural conditions and the impact of their operations on the supply
and demand balance.

V. P O W E R N E T W O R K F A C I L I T I E S
1. Transmission Facilities

the reliability of the power supply to the central districts of large cities.
As of the end of March 2017, the circuit length ofunderground transmission cables with normal voltages of 187 kV or higher was approximately 1,860 km,
while underground transmission cables accounted for
15.2% of the total circuit length of the transmission
lines in the network (Table 5.1).
DC transmission lines are used for the interconnections between Hokkaido and Honshu, and between
Kansai and Shikoku.

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 all EPCos except Hokkaido EPCo (275 kV) andOkinawa EPCo (132 kV).
As of the end of March 2017, these transmission
lines had a total circuit length of approximately 179,000km.
Japan’s three major metropolitan areas, Tokyo,
Osaka and Nagoya, are served by bulk transmission
systems comprising dual 500 kV outer ring transmission lines with additional bulk lines connected to therings in a radial pattern. In the Tokyo Metropolitan
Region, Tokyo EPCo has constructed transmission
lines designed to handle up to 1,000 kV as a third outer
ring, which is currently operating at 500 kV. Extrahigh voltage underground transmission cables (500 kV,
275 kV and 220 kV) are also being installed to enhance

Table 5.1

2. Substation Facilities
The adoption of gas-insulated switchgears is facilitating the construction of more compact substations tomeet the needs of today’s increasingly congested cities.
In November 2000, Tokyo EPCo initiated operationof the Shin-Toyosu Substation, the world’s first 500 kV

Total Circuit Length of Transmission and Distribution Lines and Transformation Facility Capacities
1975

1985

1995

2000

2005

2010

2011

2012

2013

2014

2015

2016

Circuit length of transmission lines (km)*

Under
110kV

69,361

78,66088,64894,762

95,176

104,618

105,038

105,128

105,327

105,804

106,167

106,238

110kV– Under
220kV

28,91335,10636,952

36,66935,96235,69635,63535,56135,56635,50535,58835,709220kV orabove

14,16723,48629,10733,23235,20935,791

36,69036,701

36,65836,84836,94936,845

Total

112,441

137,252

154,707

164,663

166,347

176,105

177,363

177,390

177,551

178,157

178,704

178,792

Substation
outputcapacity(MVA)*

234,748447,866

657,536748,258

778,740

810,924

813,782

821,087

826,015

830,116

833,112842,084

Total
Number of
substation

3,466

5,152

5,814

6,394

6,570

6,686

6,697

6,698

6,701

6,705

6,718

6,766

Circuit length of distribution lines (km)*Overhead 2,623,787 3,179,970 3,661,963 3,827,612 3,918,743 3,966,677 3,967,914 3,975,171 3,985,241 3,995,650 4,005,974 4,015,703
UndergroundTotal

14,35825,34850,371

59,16465,287

66,89667,711

68,54869,35870,02570,73371,3602,638,145 3,205,318 3,712,334 3,886,776 3,984,030 4,033,573 4,035,625 4,043,719 4,054,599 4,065,675 4,076,707 4,087,063*Figures are as of fiscal year-end.

Note: Figures for 1985 and later include Okinawa EPCo.
Source: FEPCTH E ELECTR IC POW ER I N DUSTRY I N JA PA N 201937

Removing snow from power lines (Hokkaido EPCo)

Maintenance of transmission systems (Chugoku EPCo)

underground substation.
As of the end of March 2017, the total capacity ofthe transformers installed in the 6,766 substations operated by the 10 EPCos was 842,084 MVA. Widespread
introduction of remote-control systems has reduced thenumber of operators required for substations.

electricity usage so as to facilitate power-saving measures, and (3) provide a means of limiting power consumption when the supply and demand balance is tight.
Smart meters had been installed in about 34% of households as of March 2017, and all customers should havesmart meters by the end of the 2020s.

3. Distribution Facilities

4. Telecommunications Networks

The standard for high-voltage distribution systems is the
6 kV multi-divided, multi-connected system. Either 22
kV or 33 kV spot network systems are installed in densely populated areas to prevent equipment overcrowding and improve power supply reliability. In principle,
electricity is supplied to low-voltage customers through100/200 V single-phase three-wire or 200 V three-phase
three-wire systems. Low voltage distribution lines arethus generally installed in three-phase four-wire opendelta connection distribution systems used to supply
both single-phase and three-phase power.
As of the end of March 2017, the total length of distribution lines in Japan was approximately 4,087,000
km. Of this, 71,000 km (1.8%) consisted of undergroundlines (Table 5.1).
Efforts to improve supply reliability and business
operating efficiency in the distribution sector include
the widespread use of distribution automation systems
for remote supervision and automatic control of distribution equipment. In response to the recent growth of
distributed generation, switches with sensors and static
automatic voltage regulators (such as STATCOMs) are
increasingly being installed on distribution lines in orderto maintain supply reliability and power quality.
Smart meters for low-voltage customers have been
installed in order to (1) assist electric power companies’
meter reading work, (2) track individual customers’

Telecommunications networks serve as the EPCos’
nervous system, providing efficient, reliable control ofincreasingly diversified, higher capacity electric power
facilities. The EPCos have established their own telecommunications network for electric power supply control, successfully integrating their electric power supply
and telecommunications network operations. Moreover,they have ensured a high level of information security
by avoiding direct connection of their control telecommunications network with the internet or other external
networks.
Today, the EPCos’ telecommunications networks areconstructed primarily of optical fiber cables that connect regionally dispersed electric power plants and otherelectric facilities with single or multiple routes and facilitate efficient transmission of requisite information totheir control facilities.
Moreover, enhanced electric power system control
and supervision have been achieved by constructing
disaster-resistant, dedicated microwave radio transmission networks, the majority of which are highly-reliablenetworks comprising two routes. Microwave radio line
links are also employed to transmit information throughinterconnections among multiple EPCos in areas where
electric power systems operated by more than one EPCo
are linked.

38

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 2019

The Japanese power grid is divided into two frequency systems: a 50 Hz system in eastern Japan and a 60
Hz system in western Japan. All the EPCos, except
Okinawa EPCo, are connected to the grid. The frequency difference is said to date back to 1896, when
50 Hz German-made power generation equipment
was introduced in eastern Japan and 60 Hz U.S.-madeequipment in western Japan.
In eastern Japan, Tokyo EPCo and Tohoku EPCo
are linked by 500 kV AC transmission lines, while
Tohoku EPCo and Hokkaido EPCo are linked by ±250kV DC submarine cables. In western Japan, Chubu
EPCo, Hokuriku EPCo, Kansai EPCo, Chugoku
EPCo, Shikoku EPCo and Kyushu EPCo are linked
by 500 kV AC transmission lines. Chubu EPCo and
Hokuriku EPCo are also connected by back-to-backDC linkage facilities (300 MW), while Kansai EPCoand Shikoku EPCo are linked by ±500 kV DC submarine cables (operating for the time being at ±250kV). The 50 Hz and 60 Hz systems are linked by theinterconnections between the Tokyo EPCo and Chubu
EPCo networks (Sakuma Frequency Converter (300MW), Shin-Shinano Frequency Converter (600 MW),and Higashi-Shimizu Frequency Converter (300 MW):total 1,200 MW) (Figure 5.1). OCCTO plays the leadrole in considering plans to enhance these interconnections taking into account the individual utilities’ views.
Enhancement work on the Hokkaido-Honshu interconnection (600 MW → 900 MW) began in April 2014,

Worksite of refurbishing 275 kV Higashi-Nagoya Tobu Line in progressin Toyota City, Aichi (Chubu EPCo)
The project involves rebuilding the steel towers and replacing the electric
wires under the many restrictions imposed in urban areas.

while enhancement of the Tokyo-Tohoku interconnection is in the planning stages. It has been decided that
the Shin-Shinano Frequency Converter at the TokyoChubu interconnection will be upgraded by 900 MW
by fiscal 2020, and plans are being made for a total of
900 MW across the Sakuma and Higashi-Shimizu
Frequency Converters. (Total 1,200 MW → 2,100 MW→ 3,000 MW)
The individual EPCos are responsible, in principle,
for handling their own system operation and mainlycompensate for load fluctuations on their own grids
using their own generating sources. However, they docooperate with each other across different control areasin efforts to improve economic efficiency and ensurea stable power supply by developing optimal powersources, conducting capital investment and exchanging
power to benefit from differences in regional characteristics and demand structures.
In June 2015, the Electricity Business Act was revised
to provide for full liberalization of the retail market andthe introduction of a new licensing system in order to
put into effect the second stage of the reform of Japan’s
electricity industry. To ensure fair access, the balancing
capacity required to deliver ancillary services has since
October 2016 been procured by regional electricity network operators from electricity producers through asystem of public procurement.
Use of the interconnections that span the service areas of different transmission and distribution operators
is administered by the OCCTO. Traditionally, market
participants have been allowed to use these interconnections on a first-come, first-served basis. However,in October 2018 this first-come, first-served model wasabandoned, and an implicit-auction approach introduced under which, in principle, use of the interconnections will be assigned based on contracts concludedin the day-ahead market. The introduction of these newrules should expand the use of interconnections by newmarket participants and put in place a fair and competitive environment, while at the same time enabling
cross-regional merit orders. Through these measures, it
is hoped that increases in electricity rates can be held toa minimum, and additional business opportunities created for market participants.
The OCCTO has developed a long-term policythat sets a course for developing and updating Japan’s
cross-regional interconnection systems on a nationwide
scale. In this process it has identified the following three
key issues for facilities formation over the mid- andlong-term.
1. Growth in electricity demand is slowing.
TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 201939

V. P OW E R N E T WO R K FAC I L I T I E S

5. Cross-Regional Operation and
System Operation

2. If new interconnection needs are to be addressed
through the conventional approach to facility formation and grid use, it will require a huge update intransmission and distribution facilities.
3. This will result in a reduced efficiency for transmission and distribution facilities, with inevitable upward pressure on wheeling charges.
For this reason, the OCCTO is calling for a pivot
Figure 5.1

from the previous approach of making reinforcements
to the grid in response to interconnection capacity. Premised on more efficient facilities formation throughthe maximum possible utilization of already existing
facilities, the OCCTO is developing a new concept fortransmission and distribution facilities formation thatcan be described as a Japanese-version of the “Connect
and Manage” model.

National Grid Connections (As of End July 2014)

Nishitobetsu
NishinoTransmission line (500 kV)

Kita Shintoku

Nishi Futaba

Minami Hayakita

Transmission line (154 kV-275 kV)

Kitahon interconnected line
Hokkaido and Honshu areinterconnected via overhead andsubmarine cables between AC/DC
conversion stations installed at
Hakodate and Kamikita.

DC interconnected system
Main substation, switchgear
Frequency converter (F.C.)
AC/DC converter

Ono
Hakodate

Kamikita
Kamikita

Akita

60 Hz

Iwate

50 Hz

Miyagi
Nishi Sendai
Minami Souma
Shin Imaichi
HigashiGunma

Kanmon interconnected line
Honshu and Kyushu areinterconnected via a 500 kV
transmission line.

Nishi
Gunma

Nakanoto
Kaga
Hino

Yamasaki
Shin Ayabe
Chizu

Echizen

ReinanKeihoku
HigashiShin
Minami Kyoto
Okayama Okayama
Seiban
Mie
Nose
Nishi
Higashi Omi
Shin
Sanuki
Kyoto
Higashi
Hiroshima
Yamaguchi Shin Nishi
Shin Ikoma
Awa
Hiroshima
Kihoku
Anan
Toyo
Buzen
KawauchiShin Shinano F. C.
Minami
Fukumitsu
Gifu Shinano

Nishi Shimane

Shin Yamaguchi
Kita Kyushu
Sefuri
Chuo

Nishi Kyushu

Kumamoto

Higashi Kyushu

Naka Kyushu
Minami Kyushu
Miyazaki

Honshu-Shikoku interconnected line,
Anan-Kihoku DC main line
Honshu and Shikoku are interconnected via a
500 kV transmission line laid along the SetoOhashi bridge via overhead and submarine
cables between AC/DC conversion stations
installed at Anan and Kihoku.

Source: FEPC40

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 2019

HokubuToyoneShin Shin Nitta
Chichibu

Minami Iwaki
Shin Iwaki
Shin Motegi

Shin Tochigi
Shin Koga

Shin Sakado
Shin Tokorozawa
Shin Tama
Shin Fuji

Tobu
Sakuma F. C.

Higashi Shimizu F. C.

Frequency converter (F.C.)
The 50 Hz system in eastern Japan and
60 Hz system in western Japan areinterconnected via three frequency
conversion stations: Sakuma in Shizuoka
Prefecture (300 MW), Shin-Shinano in
Nagano Prefecture (600 MW) andHigashi Shimizu in Shizuoka Prefecture(300 MW).

7 (Times)

700 (min.)

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

514 min.

Duration (right scale)4.85 times

5500

Frequency (left scale)

4

400

3

300

[Affected by typhoon No. 19][Affected by typhoons, etc.]

187 min.

200

21.36 times

0.94 times

169 min.

128 min.
0.90 times
0.51 times

1

33 min.
0.35 times

79 min.
0.22 times
37 min.
0.18 times

88 min.
14 min.
14 min.
10 min.
0.33 times
0.20 times 0.18 times
0.13 times

0
’66

’75

’85

’90

’95

’00

’05

’10

100
16 min.
0.16 times
20 min.
0.16 times
25 min.
0.18 times0’16 (FY)

Note: 9 EPCos up to FY1988
Note:
9 EPCos
Source:FEPC up to FY1988

Source: FEPC

6. Supply Reliability
Supply reliability is being greatly improved by conducting patrols to prevent outages in advance as well as developing network facilities as outlined above. Since the1990s, a high level of supply reliability has been maintained except during major disasters such as the Great
East Japan Earthquake. In fiscal 2016, SAIFI (System
Average Interruption Frequency Index) was just 0.18
interruptions per customer and SAIDI (System Average Interruption Duration Index) only 25 minutes per
customer (Figure 5.2).

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 201941

V. P OW E R N E T WO R K FAC I L I T I E S

Figure 5.2 SAIFI and SAIDI per Customer (Total for 10 EPCos)

VI. E L E C T R IC I T Y R ETA I L BU SI N E S S
1. Electricity Rates

competition among the PPSs has intensified, with some
suppliers either being forced out of the market or are
being merged into leading electric utilities. The powercompanies that used to be known as “general electricutilities” are now referred to as “former general electricutilities,” and electricity is now being sold by the retailsector of these utilities.

(1) Outline of Retailers
In April 2016, the scope of deregulation was extended
to include the remaining regulated sector (contracted
demand below 50 kW), thus completing the processof liberalization of Japan’s electricity retail market. By
2018, two years after deregulation, the 10 former general electric utilities had been joined by new entrant
power producers and suppliers (electricity retail suppliers), or PPSs, including companies from the telecommunications, trading, gas, oil, and steel industries aswell as subsidiaries of leading electric utilities (Table
6.1). According to data published by the Agency for
Natural Resources and Energy, a total of 507 companies (including the retailing arms of leading electricutilities) had registered as retail suppliers as of September 20, 2018, an increase of 17% from a year earlier.
These new entrants are winning more customers intheir own various ways, including by bundling electricity with other services.
Figure 6.1 shows trends in the volume of electricity sold by PPSs. As of May 2018, two years since
full deregulation of the retail market, PPSs had captured 9.1% of low-voltage demand. At the same time,
Table 6.1

Top Ten PPSs by Total Electricity Sales(June 2017 to July 2018)(2) Regulated Electricity Rates
Up until the full deregulation of the retail electricity
market in April 2016, the EPCos had supplied electricity and in turn had accepted a legal obligation to supply regulated customers in accordance with provisions
drawn up for standard electricity usage (“general supply
provisions”) and electricity usage contributing to load
leveling (“optional supply provisions”).
The electric utilities that had been regional monopolies required the permission of the Minister of Economy,
Trade and Industry to raise their rates or make similarchanges to the terms laid down in their general supply
provisions, and also were required to report the changes
that would benefit customers, such as rate reductions, tothe minister. While many of these utilities raised their rates
when nuclear power plants were shut down following

Figure 6.1 Trends in PPS Sales Share by Volume
18

Company nameElectricity sales
(MWh)

1

ENNET

12,978,599

2

F-Power.

11,023,499

34Tepco Customer Service
JXTG Nippon Oil & Energy

Extra-high voltage and high voltage
16

12.4 12.1

12
10.9

8,089,367
5,994,439

Tokyo Gas

4,920,525

6

Marubeni Power Retail

4,773,587

6

7

KDDI

3,402,915

4

8

Osaka Gas

2,650,298

2

9

ORIX

2,624,565

0

10Eneres Power Marketing

2,175,483

Source: C ompiled from Agency for Natural Resources and Energy, METI,“Electric Power Demand.”TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 2019

8.3

7.9 7.9

8.5

5.2

1.7

2.7

13.1

10.4

10.5

10
8

15.1

13.7

14

5

42

15.5

3.5

12.4 12.1
11.3

11.8 12.1 12.2

15.9

16.2

15.8 15.6

15.8
15.0

12.6 12.4 12.5 12.7 12.8

8.4 8.4

5.1

13.5

All voltages

9.2

4.6

14.3 14.4

14.9

5.8 6.1

6.7 7.1

8.9
9.1

7.7
7.2 7.3 7.5

Low voltage

0.1
Apr. July Oct. Jan. Apr. May June July Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May
2016 2016 2016 2017 2017 2017 2017 2017 2017 2017 2017 2017 2017 2018 2018 2018 2018 2018

Source: Compiled from Agency for Natural Resources and Energy, METI documents.
Source: Compiled from Agency for Natural Resources and Energy, METI documents.

Customers with demand under 50 kW

Customers with demand of
50 kW or greater

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

Customers
supplied underprovisions forlast-resort
service bygeneral electricutilities

Customers supplied underoptional supply provisions
by general electric utilities

Customers supplied under
supply provisions bygeneral electric utilities

From April 2016
Customers supplied at
deregulated rates set by
PPSs and former generalelectric utilities
Customers supplied at
deregulated rates set byformer general electricutilities

Customers
supplied underprovisions forlast-resort
service under
the new system

Customers supplied at
deregulated rates set by
PPSs and former generalelectric utilities
Measures aspart of generalelectric utilities’
supplyobligations

Customers supplied at
deregulated rates set byformer general electricutilities
Customers supplied under
the provisions oftransitional measures(regulated rates) by former
general electric utilities

Last-resort service

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

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

Customers
supplied underprovisions forlast-resort
service under
new system

Last-resort service

Source: Agency for Natural Resources and Energy, METI documents. Includes amendments.

the Great East Japan Earthquake in March 2011, somereturned a portion of their profits to customers by lowering their rates again when the plants were restarted.
Even following the full liberalization of the retailmarket in April 2016, the regulated rates specified inutilities’ general supply provisions remain in effect until
at least March 2020 as a transitional measure to protect
consumers. These regulated rates are seen as “transitional rates” that will apply until their abolishment.
As of June 2018, regulated rates were being paid bysome 59.90 million meter-rate “residential use” customers (i.e., customers signed up to rate schedules for ordinary households), accounting for approximately 65% of
all low-voltage contracts (including deregulated rates).
However, the regulated rate schedules still include someother special rate schedules, such as schedules that weredrawn up to offer affordable rates for limited agricultural uses in order to assist the development of Japan’s
agriculture following World War II.
One recent development regarding these regulated
rates was the government decision in September 2018
to establish an expert body to consider the abolishmentof transitional rates. This body is expected to engage indetailed discussion of the various topics that will need toTable 6.2

be addressed before the regulated rates can be abolished,including the future shape of transitional rates under
different rate schedules and conditions for special zones
in which transitional rates will continue to apply, so as
to better ensure the protection of customers’ interests.
On the other hand, “optional supply provisions” havebeen newly assigned the role of determining the deregulated rates that will be described in a later section.
a. Contract Categories and Rate Structure
Regulated rates are calculated by the fully distributed
cost method of determining rates based on the sum ofnecessary costs plus an appropriate return. Electricity
contracts for regulated rates are classified according toelectricity use (such as residential use or industrial purposes), and electricity supplied based on the “specificretail supply provisions” of the EPCo concerned. Electricity rates are in principle organized into two parts
comprising demand charges (which are proportional
to contract demand) and energy charges (proportionalto energy consumption). These charges are calculated
based on the unit electricity rates set for each contractcategory. Under this two-part system, rates are structured as indicated in Table 6.2.

Electricity Rates Structure in the Two-Part System

Electricity rate = basic rate + unit electricity rate × electricity consumption ± fuel cost adjustment × electricity consumption+ surcharges to encourage renewable energy generation × electricity consumption
Source: Federation of Electric Power Companies of Japan website.

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 201943

VI. E L E C T R I C I T Y R E TA I L B U S I N E S S

Figure 6.2 Arrangements to Bridge the Transition from Regulated to Deregulated Rates

Figure 6.3 Fuel-Cost Adjustment Timeline (Example)

Nov.

Dec.

Jan.
Calculation period for
average fuel cost

Feb.

Mar.

Apr.

2 months later

Calculation period for
average fuel cost

May

June

July

Aug.

Sep.

Oct.

Period offuel costadjustment
application

2 months later

Calculation period for
average fuel cost

Period offuel costadjustment
application

2 months later

Period offuel costadjustment
application

Source: Federation of Electric Power Companies of Japan website.

For example, electricity demand for residential use
is supplied at low voltage (single-phase 100/200 V) tousers with contracted demand of less than 50 kW. Since
1974, the year following the first oil crisis, a three-tiered
rate system has been employed to charge for electricity used for residential use in order to promote energy
conservation.
Under this system, monthly electricity consumption is divided into three tiers. The first tier covers
consumption up to 120 kWh, considered the amountnecessary for daily life from the perspective of the national minimum, with a relatively low rate unit priceapplied. For electricity consumption in the second tiera unit rate corresponding to the average supply cost
is applied and a slightly higher rate unit price is applied for electricity consumption in the third tier. The
threshold between the second tier and third tier is set
at 300 kWh (280 kWh for Hokkaido EPCo) reflecting
typical electricity consumption by ordinary households.
There is also a low-voltage contract category (threephase, 200 V with contracted demand of less than 50
kW), which applies primarily to small factories.
b. Fuel-Cost Adjustment Scheme
A fuel-cost adjustment scheme was introduced in
January 1996 for the purpose of clarifying the outcomesof the electric utilities’ efforts to increase management
efficiency, reflecting economic changes in rates as expediently as possible and stabilizing the electric utilities’
management environment by externalizing the effects
of fuel prices and exchange rates, which are beyond thecontrol of the electric utilities in their efforts to enhance
efficiency.
The fuel-cost adjustment scheme was revised in
March 2009 in response to changing conditions in theoperating environment of the electric utility industry,44

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 2019such as the sudden, steep fluctuations in fuel prices that
occurred in 2008. Under the revised fuel-cost adjustment scheme, the period (time gap) before fuel pricefluctuations are reflected in electricity prices has beenshortened from three months to two months, the shortest period to date, and fuel price three-month averages
are also now reflected in the electricity rates charged
each month (For example, the average fuel prices for theperiod February-April are now reflected in the electricity rates for July of the same year). These changes enable the electric utilities to reflect changes in fuel prices
in the rates they charge their customers more quickly
than before, and to more effectively level rate fluctuations (Figure 6.3). Meanwhile the ceiling on automatic
adjustments remains unchanged from before.
The fuel-cost adjustment scheme is not limited toregulated rates, and in some cases is also applied to the
deregulated rates described below.
c. Feed-in Tariff Scheme for Renewable Energy
Under the July 2012 Act on Special Measures Concerning Procurement of Electricity from Renewable
Energy Sources by Electricity Utilities, the EPCos are
obligated to purchase electricity generated by renewable energy sources (solar, wind, hydroelectric, geothermal, and biomass) at a fixed price for a prescribedperiod. The EPCos can recover the cost via a surcharge
calculated in proportion to the customers’ usage volume, which is imposed to encourage renewable energy
generation. This surcharge makes up a part of the electricity rate.1
1. Under the new system, premises engaged in business that have electricity consumption relative to turnover exceeding a level prescribed by law, and whose consumption over a year with respect to this business also exceeds a level prescribed by law
are exempt from paying a portion of the surcharge. While the amount of the surcharge has been raised annually to encourage more renewable power generation,
the reduction of the tariff as the use of renewables spreads has been impacting themanagement of renewable power producers.

VI. E L E C T R I C I T Y R E TA I L B U S I N E S S

Figure 6.4 Rate Choices Following Full Liberalization of Retail Market Entry

After full liberalization of retail market entry
From April 2016
Various EPCos and rate schedules

Electricity rates ofregional EPCos(regulated rates)

Electricity rates ofregional EPCos(regulated rates)

Electricity rates ofregional EPCos(unregulated rates)

Electricity rates ofother EPCos or PPSs
(unregulated rates)

Source: Agency for Natural Resources and Energy, METI documents. Includes amendments.

(3) Unregulated Rates(4) Wheeling Charges

High-voltage customers who were the target of deregulation prior to April 2016 are already able to freely
select their suppliers (EPCos or PPSs). Their contracts
set unregulated rates that are determined by negotiation between customer and supplier based on theirplanned and actual usage (including scale, form, andperiod of use and load characteristics). With deregulation of the retail market in April 2016, retail customers, too, have greater choice than before. In addition tosimply continuing on with the “regulated rate” plans
still provided by the EPCos, they can also choose fromamong “unregulated rate” plans offered by both the
EPCos and the PPSs (Figure 6.4).
The former general electric utilities have started toprovide new rate schedules better suited to customers’
lifestyles in accordance with their own business strategies. Some EPCos offer rate discount plans by bundling
products in collaboration with other providers, such as
gas and telecommunications companies. Many PPSs,
on the other hand, offer rate schedules that give heavy
users larger discounts than the regulated rates offeredby their EPCo counterparts, or else provide discountplans that bundle electricity with gas or telecommunications services.
The unregulated rate plans of both the former
general electric utilities and PPSs have grown morediverse since full deregulation of the retail market.
Despite some regional variation, a greater diversity ofunit rates and customer options are now being offeredby utilities of all descriptions, ranging from rates on apar with those offered under the ordinary residential
plans traditionally offered by the former general electric utilities to rates that reflect individual companies’
customer strategies.

Even in a deregulated environment, it is the transmission and distribution sector that builds and maintains
transmission and distribution networks to ensure stablesupply. When PPSs retail electricity and general electric utilities supply electricity on a retail basis outside of
their own service areas, they must use the network of
the regional electricity network operator that owns the
supply facilities in the service area concerned. Wheeling charges are the fees imposed by transmission anddistribution operators on the users of their network.
Like regulated rates, wheeling charges are calculatedusing the fully distributed cost method of determining
the charge based on the sum of necessary costs plus anappropriate return.
Wheeling charges are calculated according to use by
first breaking down regional electricity network operators’ total costs into generation costs, transmission, transformation, and distribution costs, and sales costs, etc.,
and then allocating these transmission, transformation,and distribution-related costs to expenses according touse (extra-high voltage, high voltage, and low voltage).
The regional electricity network operator in the supply area concerned sets “wheeling provisions” stipulating
the charges and terms and conditions for wheeling, inorder to ensure fair competition between all the users of
its network. These provisions are then submitted to the
Minister of Economy, Trade and Industry. The wheeling charges are deliberated by a review meeting of 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 arethen, opened to public comment prior to final adoption.
Since April 2016, regional electricity network
TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 201945

Figure 6.5 Position of Wheeling Charges in Electricity Rates

Wholesale
electricity charges

Power generators
Power generation plantCustomers

Electricity rates

Retailers

Wheeling charges

Transmission anddistribution
operators
Transmission anddistribution network

Operating costs

Retailer’s internal
company costs

Source: Agency for Natural Resources and Energy, METI

Figure 6.6 Authorization Process for Wheeling Charges

EPCos

Minister of Economy,
Trade and Industry

Electricity and Gas Market
Surveillance Commission

Application

Announcement of provisions

Collection ofwheeling charges

AcceptanceApproval
Request for review

Review

Opinions

Source: Agency for Natural Resources and Energy website. Includes amendments.

operators have been under obligation to provide electricity via a universal service for customers on isolatedislands, applying the same rate levels as on the mainland in order to protect customers. The requisite costs
for the provision of a universal service for the islands
are passed on to all the customers of the regional electricity network operator in the service area in question
via wheeling charges. The electricity delivered to island
customers is primarily thermal in nature, and a “Universal Island Service Price Adjustment System” has been
introduced to reflect any price variations affecting fuelcosts for thermal generation in the wheeling charges.

46

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 2019

2. Efforts to Acquire Customers(1) Customer Response
Since the full deregulation of retail electricity supplies
in April 2016, all customers have been able to select the
EPCo they wish to use. Switching EPCos can be used
as an indicator of customer choices, especially choices by
low-voltage customers.
Trends in switching by low-voltage customers areshown in Figure 6.7. In this graph, switching refers only
to changing from a former general electric utility to a PPS
contract. It does not include changing to an unregulatedrate contract that is offered by a former general electricutility.

8,000 (Unit: number of switched customers (in thousands) )
7,000

16.0%

16.0%
15.5%

Cumulative number of switchers
Switching rate

14.8%

14.0%

14.0%

12.0%

12.0%

Hokkaido
6,000

11.4%
5,000

11.3%
10.0%

10.0%

8.0%

8.0%

3,000

7.5%

6.0%

4.0%

4.0%
3.3%

1,000

2.0%

0

0.0%

Hokuriku
Kansai

6.0%

5.6%
5.1%

2,000

Tokyo
Chubu

8.8%
4,000

Tohoku3.5%

Chugoku
Shikoku
Kyushu2.0%

Okinawa
Nationwide

Apr. 2016

Oct. 2016

Apr. 2017

Oct. 2017

0.0%

0.0%

Apr. 2018

Source: Compiled from power trading report data, Agency for Natural Resources and Energy, METI.

As of the end of June 2018, there had a cumulative
7.06 million cases of switching since March 2016, whenswitching applications were first accepted. Among general households, some 11.3% of the regular contracts ineffect immediately prior to deregulation (approximately
62.53 million) had been switched. A breakdown by region shows that the proportion of switchers came to
15.5% in Tokyo EPCo’s service area, 14.8% in Kansai
EPCo’s service area, and 11.4% in Hokkaido EPCo’s
service area. It is evident that while utilities in major
metropolitan areas like Tokyo and Osaka have beenleading the way in attracting switchers, change is underway in provincial urban areas as well.
The number of retail sector contracts held by theformer general electric utilities and by PPSs are shownin Figure 6.8. Customers with contracts providing transitional rates accounted for 74.3% of the total as of theend of June 2018.

(2) Company Marketing Activities
Contracts for high-voltage power (6 kV or above), whichhave been deregulated since before April 2016, are commonly negotiated between the supplier and each customer to decide contract details and unit prices, basedon projected electricity usage and actual circumstances.
The EPCos, which have traditionally served as generalelectric utilities for retail electricity sales, have striven tohandle these kinds of customers by strengthening theirbusiness capacity, establishing specialized marketingorganizations, increasing personnel to take charge ofbusiness for corporate customers, and implementing
business training. For example, they have assigned a
dedicated business manager for each major customer
and increased the frequency of customer contact so thatthe customer’s needs can be suitably met. In addition,
they are diagnosing and analyzing the customer’s energy
usage, and making proactive proposals to their customers regarding the efficient use of energy in concert with
their sales and technology sections.
Following the full deregulation of retail supply in
April 2016, both the EPCos and PPSs have been developing attractive electricity rate schedules to entice
the many customers receiving low-voltage electricity
to select their services. As the following review shows,these schedules offer a range of services and discounts
tailored to customer needs and lifestyles. The EPCos
are also providing customer services over the internet,
using the web to notify individual customers of theirown electricity usage and suggesting more efficient ways
to use electricity. They are also offering point-based loyalty programs to encourage customers to renew theircontracts.
a. Lifestyle-matched Rate ScheduleLifestyle-matched rate schedules are electricity rateschedules for customers 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 overnight and during off-peak hours. Unit
TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 201947

VI. E L E C T R I C I T Y R E TA I L B U S I N E S S

Figure 6.7 Low-Voltage Customer Switching Trends and Regional Proportions (As of End June 2018)

Figure 6.8 Trends in Numbers of Contracts (Nationwide as of End June 2018)
0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

70,000,000(Unit: number of contracts)
80,000,000
90,000,000

Apr. 2016
July 2016
Oct. 2016
Jan. 2017
Apr. 2017
July 2017
Oct. 2017
Jan. 2018
Apr. 2018
June 2018

Transitional low-voltage rates

Unregulated low-voltage rates (“deemed retailers”)

Extra-high voltage (“deemed retailers”)

Low voltage (PPSs)

High voltage (PPSs)

High voltage (“deemed retailers”)
Extra-high voltage (PPSs)

Source: Compiled from power trading report data.

prices are set differently per time of day, for example,
offering lower electricity unit prices overnight.
Other schedules are also provided, including a schedule that applies discounts on the contracted unit price asusage increases for customers who use large amounts ofelectricity due to family size or pets, and a schedule inwhich electrical bills can be kept in check by establishing different rates according to the amount of electricity used simultaneously, encouraging customers to use
electricity more wisely.
One supplier also offers unique discounts, such assummer-only discounts for households with one or moremembers aged 75 or over in order to encourage the useof air conditioning to prevent heat stroke.
b. A
 dditional Services and Discounts for Bundled
Products
There are also rate schedules that offer additional services to inspect, examine and take immediate action toprevent trouble in the customer’s electrical equipment,such as a fault in the room wiring keeping the powerfrom turning on. Some EPCos are even providing services that go beyond electricity-related issues to support
the customer’s daily life in general; for example, services
to identify and report water leaks, find lost keys andservices that can check on elderly customers at home.
There are also service plans providing discounts forbundled products including supply contracts for nonelectricity-related goods and services. Examples include
discount services for cellular phone and internet services,gas, automobile gasoline, and more. By bundling various
48

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 2019

lifestyle-related commodities and services together, thecompany benefits by pulling in the customer and improving customer retention.
c. Renewable Energy Rate Menus
Many customers are attracted to electricity rate schedules that incorporate renewable energy, and this approach to pricing is drawing strong interest. However,certain constraints remain, such as ensuring customers
a steady power supply when only a limited number ofcompanies offer such rate schedules. Furthermore, mostof these companies limit access to only certain service
areas.
A prerequisite for customers to be able to select theirown rate schedules, including rate schedules incorporating renewable energy, is transparency and the disclosureof the offering company’s actual power composition andCO2 emissions information. Various companies are now
making strong efforts in this area. Meanwhile, some ofJapan’s leading manufacturers are joining the “RE100”
100% renewable energy initiative, and it is possible that
suppliers will develop new measures in the extra-highand high voltage sectors as well.

(3) Rate Comparison Sites
As seen above, EPCos and PPSs are offering a varietyof electricity rate schedules, and there are now morethan 1,000 types to choose from. Rate comparison sites
have therefore been launched to help customers choose
the schedules that best meet their needs. The number

Table 6.3(4) Regulations and Guidelines
As previously mentioned, companies are competing toacquire customers, and competition has become particularly intense in major metropolitan areas. Measures are
now being taken from a consumer protection perspective to ensure that excessive marketing efforts do not put
customers at a disadvantage.
To address this concern, in January 2016 the Electricity and Gas Market Surveillance Commission, established to encourage competition in the market, enacted
the Guidelines Concerning the Management of theElectricity Retail Business to ensure that customer selections are made appropriately. These guidelines provide instructions to the companies in question, such asretail suppliers, on how to observe relevant laws andregulations, as well as instructions encouraging theirautonomous efforts on compliance. It is hoped thatthese guidelines will enhance protection for electricity
customers, allowing them to receive electricity with confidence while also contributing to the healthy growth ofthe electricity business itself.
Specifically, the guidelines indicate desirable conduct
by operators in order to protect consumers and bringabout the healthy growth of Japan’s electricity business.
These include: (1) provision of appropriate information
to customers, (2) suitable forms of business and contracts,(3) optimized contract contents, (4) appropriate response
to customer complaints and inquiries, and (5) optimized

 umber of Selectable Companies and Number
Nof Electricity Rate Schedules Offered (As of
End September 2018)
No. of selectablecompanies

Number of rateschedules

Hokkaido

22

73

Tohoku26

82

Kanto, Koshin’etsu(Tokyo EPCo area)

62

254

Chubu
(includes Nagoya)

35

104

Hokuriku

14

39

Kansai, Kinki(includes Osaka)

38

119

Chugoku

25

65

Shikoku

22

60

Kyushu31

98

Okinawa2

8

RegionNote: Aggregated number of companies and electricity rate schedules per region.
As the same company and the same plan are counted in multiple regions,the numbers in the chart are higher than in the main text.
Source: Enechange website.

contract cancellation procedures. The guidelines also
specify behavior which would constitute a problem under the Electricity Business Act (i.e., actions that could
lead to the issuance of a business improvement order ora business improvement recommendation).
These guidelines are to be revised as and when necessitated by future changes in the electricity retail environment. Two revisions (in June 2017 and September2018) have already been made so far.

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 201949

VI. E L E C T R I C I T Y R E TA I L B U S I N E S S

of companies operating per region and the number ofelectricity rate schedules they offer are as shown in Table
6.3. In addition to active competition in Japan’s majorurban centers of Tokyo, Osaka, and Nagoya, there aresigns as well of growing competition in provincial urban
areas in regions such as Hokkaido and Kyushu.

VII.

I N T E R NAT IONA L COOPE R AT ION
A N D E XC H A NG E

1. Efforts by Japan’s Electric Utilities
to Address International Issues
Japan’s electric utilities participate in international conferences with the electric power industry utilities of othercountries on a regular basis to exchange views on current conditions and common challenges facing the electric utility industry worldwide and other issues. One ofthese conferences is the International Electricity Summit,
which brings together management representatives
from the electric power utilities of Japan (FEPC: The
Federation of Electric Power Companies of Japan), theUnited States (EEI: Edison Electric Institute) and Europe(EURELECTRIC: Union of the Electricity Industry).
Another is the Meeting of the General PlanningManagers of the Southeast and Northeast Asian Electric
Utilities, whose membership comprises the electric power
utilities of the 10 ASEAN countries and three countries
in Northeast Asia. These conferences provide opportunities for lively, meaningful discussions on issues confronting the world’s electric utility industry.
The Japanese electric utilities are actively engaged inongoing efforts to deal with the issue of climate change,
motivated by an awareness of global warming as an issue that must be combated on a global scale over thelong term with the entire business community taking
part, and a recognition that it is essential for electricutilities to cooperate in these efforts with a view to simultaneously satisfying environmental and economic
requirements.
Further, in October 2008, the FEPC joined its
counterpart federations of electric utilities in Europe
and the United States in establishing the International
Electricity Partnership (IEP). The IEP provides a forum for exchanging views and the joint disseminationof shared information on matters of common concern
to the electricity sectors in the various member countries, including creation of a technology roadmap for the
global electric power industry. In December 2009, theIEP held a workshop at the United Nations Framework
Convention on Climate Change (COP15) in Copenhagen, Denmark, where it announced the “Roadmap for a
Low-Carbon Power Sector by 2050.” The roadmap bothpresents prospects for dissemination of technologies inadvanced countries and provides guidelines for technology provision and support in developing countries.
50

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 2019

In April 2013, the International Electricity Summit(IES) was held in San Diego. The summit was attended
by electricity industry organizations from around theworld, including the Canadian Electricity Associationand the Energy Supply Association of Australia as wellas the FEPC, EEI, and EURELECTRIC. Topics discussed included fuel choice, energy efficiency, the roleof distributed generation, smart grids, and strategies towork on climate change. The attending world leadersannounced that discussions concerning international climate change would be continued under the frameworkof the IEP.
Another international organization, the Asia-PacificPartnership on Clean Development and Climate (APP),
was launched in January 2006 at the initiative of theUnited States with a membership comprising Japan,
the United States, Australia, China, India, South Korea
and, soon thereafter, Canada, which became an official
member in October 2007. The APP’s objective was tofind appropriate means of dealing with such issues asenvironmental pollution, energy security and climatechange, while at the same time responding to growing energy demand in the Asia-Pacific region. Japan’s
electric utilities participated actively in these efforts, including implementation of peer reviews (good practice
sharing through exchanges among engineers) aimed
at maintaining and improving the thermal efficiencyof the member countries’ existing coal-fired thermal
power plants. Since the disbanding of APP in April
2011, these activities have been continued by its successor organization, the Global Superior Energy Performance Partnership (GSEP). Working in collaboration
with electric utilities in other countries and regions, andcooperating with public and private entities in a sectorbased approach, the GSEP is vigorously promoting realization of a lower-carbon, energy-saving global society
by encouraging the development and introduction oftechnologies.
In the field of nuclear power, nine EPCos, the Japan
Atomic Power Company (JAPC) and the Electric Power
Development Company (J-POWER) engage proactively
in communication and information exchange with nuclear power operators around the world as members of
the World Association of Nuclear Operators (WANO),
an organization established to increase the safety andreliability of nuclear power plants.

2. International Communication andCooperation by Japan’s Electric Utilities
Japan’s electric utilities conduct various programs organized to promote mutual exchange of engineers andtechnical cooperation with electric power industry utilities, manufacturers and related organizations in othercountries. The electric utilities accept training program
participants, dispatch technical specialists and offer technical guidance concerning such issues as environmental
preservation measures, power-generation efficiency enhancement and energy conservation technologies.
In addition to the above, individual electric utilities
also conduct independent international cooperation activities, accepting training program participants fromand dispatching specialists to electric power companies,
research institutes and other organizations in various

countries. They also participate in international cooperation programs through organizations such as theJapan International Cooperation Agency (JICA), an
independent administrative institution.

3. Other International Activities Undertaken
by Japan’s Electric Utilities
Some of Japan’s electric utilities have capitalized on theirtechnologies and know-how to establish overseas operations with the dual aim of contributing to a stable electric power supply and GHG reduction in their partnercountries and increasing their own revenues. They are
currently engaged in investment and consulting activities in Asia and other regions.

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 201951

VII. I N T E R NAT I O NA L C O O P E R AT I O N A N D E XC H A N G E

Explaining how to assemble and utilize
kWh electric meters to maintain the accuracy of electricity consumption measurement values in the Philippines(Shikoku EPCo)Operating and Financial Data

Operating Data
54

Company Data
Electric Power Generation

55

Electric Power Consumption
Electric Power Demand
Number of Customers by Type of Contract
Power Consumption by Sector of Industry

56

Installed Generating CapacityInstalled Generating Capacity and Electric Power Generation
by Electric Utilities

57

Fossil Fuel Consumed for Power Generation by Electric Utilities
Transmission, Transformation and Distribution Facilities of the EPCos
Network Loss, Total Loss and Thermal Efficiency

58

Principal Thermal Power Plants Owned by Electric Utilities

60Renewable Energy

61

Nuclear Power Plants

62

Principal Hydroelectric Power Plants Owned by Electric Utilities

63 eak Capacity, Peak Load, Energy Requirement, Reserve Margin andP
Load Factor
Balance of Electricity Supply and Demand

Financial Data
64

Revenues and Expenditures for the EPCosBalance Sheet for the EPCos

65
65

Uses and Sources of Funds for the EPCos

Summarized Comparative Table Classified by Country
for the Year 2015

Operating Data

Company Data
Company(As of March 31, 2018)
Electricity Sales for the Year* (GWh)
Capital Stock **( Million yen)
& High Voltage andResidential Commercial
Industrial
Extra-High Voltage

Revenues fromEnergy Sales
for the Year*(Million yen)

Total

Installed
Generating
Capacity**(MW)

Employees

Hokkaido EPCo

114,291

10,8282,448

13,463

26,739676,649

7,957

5,642

Tohoku EPCo

251,441

23,872

3,537

46,57073,9791,729,716

18,20912,316TEPCO Power Grid

80,000

0

33

221

254

1,657,976

53

TEPCO Energy Partner

10,00086,3809,324

145,822

241,525

4,989,464***67,541

Chubu EPCo

430,777

33,276

5,498

83,048

121,821

2,343,597

33,13816,461

Hokuriku EPCo

117,641

8,232

1,157

18,714

28,103496,612

8,074

5,229

Kansai EPCo

489,320

43,6895,224

72,586

121,500

2,569,487

36,57820,848

Chugoku EPCo

185,527

18,1202,135

36,88557,1401,100,731

11,536

9,169

Shikoku EPCo

145,551

9,081

1,552

15,06425,697

603,433

6,342

4,594

Kyushu EPCo

237,304

28,065

4,775

44,827

77,666

1,685,082

19,221

13,022

Okinawa EPCo
Subtotal

7,586
2,069,438

2,821
264,364

1,506
37,1892,814
480,0147,141
781,565

170,834
18,023,581

2,166
210,815

1,535
130,341

J-POWER

180,502

16,960

2,407

JAPC

120,000

2,260

1,169

2,369,940

44,484
274,519

133,917

OthersTotal* Figures are for fiscal 2016. ** As of March 31, 2017.
Source: METI, 10 EPCos, J-Power, JAPC

264,364

37,189480,014

781,565

18,023,581*** Figures are for Tokyo Electric Power Company Holdings and TEPCO Fuel & Power.

****41,525****  On a consolidated basis.
(TWh)Electric Power Generation
FY

Thermal*Electric Utilities
Industry-owned
NuclearElectric Utilities
Industry-owned
HydroelectricElectric Utilities
Industry-owned
Wind PowerElectric Utilities
Industry-owned
Solar Cell
Electric Utilities
Industry-owned
Geothermal
Electric Utilities
Industry-owned
Fuel Cell
Electric Utilities
Industry-owned
OthersElectric Utilities
Industry-owned
Total
Electric Utilities
Industry-owned

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

839.0
661.0
180.2
263.8
263.8
–
84.2
76.8
7.3
2.6
*0.0
2.6
*0.0
*0.0
*0.0
3.0
2.8
0.2
**0.0
–
**0.0
–
–
–
1,195.0
1,004.6
190.4

798.9
621.3
177.6
258.1
258.1
–
83.5
75.9
7.6
2.9
*0.0
2.9
*0.0
*0.0
*0.0
2.8
2.6
0.2
**0.0
–
**0.0
–
–
–
1,146.3
957.9
188.4

742.5
568.4
174.1
279.8
279.8
–
83.9
74.5
9.3
3.6
*0.0
3.6
*0.0
*0.0
*0.0
2.9
2.7
0.2
**0.0
–
**0.0
–
–
–
1,112.6
925.4
187.2

771.3
553.3
218.0
288.2
288.2
–
90.7
74.2
16.5
4.0
*0.0
3.9
*0.0
*0.0
*0.0
2.6
2.4
0.2
**0.0
–
**0.0
–
–
–
1,156.9
918.2
238.7

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

986.8
735.9
250.8
15.9
15.9
–
83.7
67.4
16.3
4.8
0.2
4.7
0.2
0.1
0.1
2.6
2.5
0.1
**0.0
–
**0.0
–
–
–
1,094.0
822.0
272.0

987.3
743.1
244.2
9.3
9.3
–
84.9
68.6
16.3
5.2
0.2
5.0
1.2
0.1
1.1
2.6
2.4
0.2
**0.0
–
**0.0
–
–
–
1,090.5
823.7
266.8

955.3
717.8
237.6
–
–
–
86.9
70.3
16.7
5.0
*0.0
5.0
3.8
0.1
3.7
2.6
2.4
0.2
**0.0
–
**0.0
–
–
–
1,053.7
790.6
263.1

908.8
675.7
233.1
9.4
9.4
–
91.4
74.9
16.5
5.2
0.1
5.1
6.8
0.1
6.7
2.6
2.4
0.2
**0.0
–
**0.0
–
–
–
1,024.2
762.6
261.6

877.2
794.7
82.5
17.3
17.3
–
84.5
81.9
2.7
5.5
5.0
0.5
11.1
6.5
4.6
2.2
2.2
0.1
**0.0
–
**0.0
0.3
0.3
–
998.1
907.9
90.2

* Including biomass- and waste-to-energy power plants.
** Less than a unit
Source: METI54

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 2019

Electric Power Consumption

(TWh)
FY

2008

2009

2010

2011

2012

2013

2014

2015

289.7
49.7
595.6
16.8
7.8
959.7
117.8
1,077.5

285.3
46.8
571.7
12.1
9.6
925.5
110.0
1,035.5

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
113.7
955.2

FY

2016

Residential
Commercial and Industrial
High Voltage
Extra-High Voltage
Specified Supply
Others (Last-Resort Service and Supply to Isolated Islands)
Self-Consumption
Supplied by Electric Utilities
Self-Consumption of Independently Generated Power
Total Consumption

271.8
37.6
307.4
231.4
3.4
2.3
45.8
899.8
63.4
963.1

Source: METIElectric Power Demand (Deemed Retailers, Etc.)
FY

Customers in Regulated Fields
Residential
Commercial and Industrial
Deregulated Customers
Total

(TWh)

2007

2008

2009

2010

2011

2012

2013

2014

2015

339.5
289.7
49.7
580.1
919.5

332.0
285.3
46.8
556.9
888.9

330.1
285.0
45.1
528.4
858.5

351.7
304.2
47.5
554.7
906.4

333.9
288.9
44.9
525.9
859.8

329.9
286.2
43.7
521.7
851.6

327.1
284.3
42.8
521.4
848.5

313.6
273.1
40.5
509.4
823.0

306.0
266.9
39.1
491.1
797.1

FY

2016

Low Voltage
Residential
Commercial and Industrial
High Voltage
Extra-High Voltage
Others (Last-Resort Service and Supply to Isolated Islands)
Total

301.6
264.3
37.2
262.3
217.7
2.3
783.8

Source: FEPC (2007-2015), METI (2016)

Number of Customers by Type of Contract (10 EPCos) 			
FY

Residential
Commercial and Industrial
Total(1,000 customers)

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

74,772
8,212
82,98375,2408,044
83,28475,6297,885
83,51475,765
7,714
83,47976,3207,571
83,89176,785
7,419
84,204

77,372
7,291
84,663

77,9507,184
85,13478,567
7,087
85,65465,612
4,784
70,396

Note: All figures exclude demand in deregulated fields.
Source: FEPC (2007-2011), METI (2012-2016)

Power Consumption by Sector of Industry
FY

MiningFoodstuffs
TextilesPulp and Paper
Chemicals
Oil and Coal Products
RubberClay and Stone
Iron and Steel
Nonferrous Metals
Machinery
Other Manufacturing
Railways
Others
Total

(TWh)

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

1.0
16.1
3.2
10.5
29.3
1.6
3.3
11.8
38.9
15.1
78.6
29.3
18.7
29.7
287.2

0.9
17.2
3.2
11.0
31.3
1.7
3.3
12.1
39.6
16.8
82.6
30.5
18.7
30.3
299.3

0.9
17.3
2.8
10.6
29.4
1.9
3.1
11.4
35.4
15.7
75.7
28.7
18.7
30.0
281.6

0.8
17.2
4.0
9.4
26.1
1.8
2.8
10.3
29.7
14.7
69.0
27.4
18.1
29.6
260.9

0.9
17.7
4.5
9.9
27.9
2.1
3.1
11.5
36.3
16.0
74.0
29.0
18.1
29.4
280.4

0.9
17.4
4.3
9.2
27.0
2.1
3.0
11.5
36.4
15.7
71.1
27.9
17.2
27.9
271.5

0.9
17.5
4.0
8.5
26.2
2.2
2.9
11.1
35.9
15.1
68.5
27.1
17.3
28.0
265.1

0.9
17.9
4.0
8.5
26.4
2.2
2.9
10.7
37.3
14.3
68.8
27.5
17.3
27.8
266.5

1.0
17.8
4.0
8.1
26.1
2.3
2.9
10.4
36.6
14.6
68.5
26.8
17.1
27.1
263.2

0.9
17.9
3.8
7.5
25.3
2.2
2.7
9.9
34.1
14.4
67.3
25.9
17.2
26.7
255.9

Note: “Industrial” refers to customers with a contracted demand of 500kW or above.
Source: FEPCTH E ELECTR IC POW ER I N DUSTRY I N JA PA N 201955

OPERATI NG AND FI NANCI AL DATA

Residential
Commercial and Industrial
Deregulated Customers
Customers in Designated Service Districts
Consumption of Power for Station Operation
Supplied by Electric Utilities
Consumption of Independently Generated Power
Total Consumption

2007

Installed Generating Capacity*

(MW)

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

176,412179,324

181,736

182,381

185,309

188,903191,258

193,356

190,805

193,910

Electric Utilities

138,127

140,023

142,574

135,070

136,132

139,794

141,901

143,777

143,040

174,392

Industry-owned

38,28539,302

39,16247,312

49,177

49,10949,35749,57947,765

19,517FY

Thermal**Nuclear49,46747,935

48,847

48,96048,96046,14844,26444,26442,04841,482

Electric Utilities

49,46747,935

48,847

48,96048,96046,14844,26444,26442,04841,482

Industry-owned

–

–

–

–

–

–

–

–

–

–

47,63747,94947,966

48,111

48,41948,934

48,932

49,59750,03550,058

Electric Utilities

45,977

46,25245,221

43,84944,16844,651

44,67645,40345,78649,521

Industry-owned

1,660

1,697

2,745

4,262

4,250

4,282

4,256

4,194

4,248

536

1,527

1,756

1,997

2,294

2,419

2,562

2,646

2,750

2,808

3,203
2,893

HydroelectricWind PowerElectric Utilities

4

4

12

85

85

83

82

30

50

Industry-owned

1,523

1,752

1,985

2,209

2,334

2,479

2,563

2,720

2,758

310

10

13

16

32

85

267

1,559

4,085

5,624

9,110

0

0

0

13

61

65

67

81

87

5,655

Solar
Electric Utilities
Industry-owned

10

13

16

19

24

202

1,492

4,005

5,536

3,455

532

532

535

537

537

512

512

508

517

526

Electric Utilities

497

497

500

502

502

477

477

473

473

511

Industry-owned

35

35

35

35

35

35

35

35

43

15

3

1

1

–

–

–

–

–

–

64

Electric Utilities

–

–

–

–

–

–

–

–

–

64

Industry-owned

3

1

1

–

–

–

–

–

–

0

275,588

277,511

281,099

282,315

285,729

287,327

289,171294,560

291,836

298,352

Electric Utilities

234,073

234,711

237,153

228,479

229,908

231,219

231,468

234,028

231,484

274,519

Industry-owned

41,51642,80043,946

53,83655,821

56,10757,70360,53260,352

23,834

Geothermal

OthersTotal* Figures for industry-owned generation represent the total amount generated by power plants with a generating capacity of 1,000kW or above.
** Including biomass- and waste-to-energy power plants.
Source: FEPC (2007-2015), METI (2016)

Installed Generating Capacity and Electric Power Generation by Electric Utilities
Company

Hokkaido EPCo

Thermal*
MW
GWh

4,214

19,297

Tohoku EPCo

12,265

Tokyo EPCo**
Chubu EPCo
Hokuriku EPCo
Kansai EPCo
Chugoku EPCo

NuclearMW
GWhHydroelectric
MW
GWh

3,794

–

–

Solar
MW GWh11

Geothermal Others
MW
GWh MW GWh

MW

Total
GWh

25

104

–

–

7,957

23,19661,801

2,070–

54,128

3,274

–

2,441

6,885

–

–

5

5 224

783

–

–

18,20945,060 190,276

12,612–

9,871

10,034

18

24

30

33

3

10

–

–

67,594 200,378

24,034 110,217

3,617

–

5,450

8,573

22

24

15

19

–

–

–

–

33,138 118,832

4,400

22,010

1,746

–

1,924

5,746

–

1

4

4

–

–

–

–

8,074

27,76019,41381,606

8,928

–

8,226

13,362

–

0

11

11

–

–

–

–

36,57894,978

7,801

33,943

820

–

2,910

3,833

–

–

6

8

–

–

–

–

11,53637,783

Shikoku EPCo

3,736

13,274

1,456

4,717

1,147

2,222

–

–

2

2

–

–

–

–

6,342

20,216

Kyusyu EPCo

10,73045,615

4,699

12,584

3,580

4,787

3

2

3

4 206 1,128––

19,22164,119Okinawa EPCo

2,164
6,490
133,817 576,856–
39,222–
17,301–37,197–59,236

2
46

2
53

–
76

–
–
–
87 458 2,025

–
–

–
2,166
6,492
– 210,815 655,558

Subtotal
J-POWER

1,648

Wind
MW GWh(As of March, 2017)

8,374

51,651

–

–

8,571

9,304

–

–

–

–

15

15

–

–

16,96060,971

–

–

2,260

–

–

–

–

–

–

–

–

–

–

–

2,260

–

Others32,201 166,228

–

–

3,753

13,329 2,847 4,947 5,579 6,436

38– 64 269

Total

174,392 794,735

41,482

17,301

49,52181,870 2,893 5,000 5,655 6,522 511 2,158 64 269 274,519 907,853

JAPC* Including biomass- and waste-to-energy power plants.
** Total for Tokyo Electric Power Company Holdings, TEPCO Fuel & Power, and TEPCO Power Grid.
Source: METI56

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 201944,484 191,324

Fossil Fuel Consumed for Power Generation by Electric Utilities		
2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

14,23912,566721

6,318

11,846

16,09012,697

9,434

7,095

8,236

6,339

Crude Oil (thousand kl)

11,301

7,978

3,643

4,759

11,567

13,477

11,576

6,758

5,700

2,789

1,587

Naphtha (thousand kl)

–

–

–

–

–

–

–

–

–

–

–

55,68852,922

LNG (thousand t)

42,10541,03440,671

41,74352,87055,70956,092

56,61052,306

Coal* (thousand t)

84,20580,99276,805

72,15369,93471,08480,88480,23080,285 110,859 114,997

140,503

131,112 118,577 113,573 139,925 151,676 151,993 145,334 136,190

Total(thousand kl heavy oil equivalent)**––* Coal refers to wet coal.
** Total includes small amounts of NGL, gas oil, LPG, natural gas and other gases.
*** The total amount is not available after 2016.
Source: FEPC (2007-2015), METI (2016-2017)

Transmission, Transformation and Distribution Facilities of the EPCos(As of March 31, 2017)

Transmission Lines ( km)Transformers

Route length
Voltage (kV)

Circuit length

Maximum Output( MVA )

NumberOverhead

Underground

Overhead

Underground

500

7,811

89

15,237177

83

224,050

275

7,428

607

14,694

1,519

158

173,375

220

2,684

61

5,085

133

62

38,960

187

2,735

15

5,229

35

39

16,735

110–154

15,515998

28,252

1,920

681

155,600

66–77

38,175

7,290

68,351

13,1904,468

223,645<55

13,351

6,122

14,596

10,101

1,275

9,718

Distribution Transformers

Distribution Lines (thousand km)
Route length*

Maximum Output [MVA]

Circuit length

Overhead

Underground

Overhead

Underground

Overhead

Underground945,627

42,8394,015,703

71,360331,212

34,106* Distribution route length indicates actual length.
Source: METI

Network Loss, Total Loss and Thermal Efficiency (10 EPCos)
FY

		

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Network Loss (%)

4.9

5.1

5.2

4.8

5.0

4.7

5.0

4.9

4.7

4.7

Total Loss (%)

8.4

8.5

8.6

8.2

8.3

7.8

8.1

7.9

7.8

–

41.01

41.35

41.78

41.86

41.74

41.81

42.20

42.80

42.93

–

Thermal Efficiency (Gross, %)** Principal Thermal Power Plants Owned by Electric Utilities.
Source: FEPC (2007-2015), METI (2016)

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 201957

OPERATI NG AND FI NANCI AL DATAFY

Heavy Oil (thousand kl)

Principal Thermal Power Plants Owned by Electric Utilities (1,500 MW or Above) (As of March 31, 2017)
Installed Capacity(MW)

Unit Capacity (MW)× No. of Units

Tohoku EPCo

1,633

350 × 2600 × 1

Heavy, crude oil
Heavy, crude oil

1972-74
1980

333 × 1

Light oil (Gas turbine)

2012

Anegasaki

Tokyo EPCo (F&P)*

3,600

600 × 2600 × 2

LNG, heavy, crude oil
LNG, LPG, heavy, crude oil

1967-69
1971-72

600 × 2

LNG, LPG

1977-79

Atsumi

Chubu EPCo*

1,900

500 × 1**700 × 2

Heavy, crude oil
Heavy, crude oil

1971
1981

Chiba

Tokyo EPCo (F&P)*

4,380

1,440 × 2
1,500 × 1

LNG (Combined-cycle)
LNG (Combined-cycle)

2000
2014

Chita

Chubu EPCo*

3,966

375 × 2500 × 1

LNG
LNG

1966-671968

700 × 1

LNG

1974

700 × 2

LNG

1978

154 × 4

LNG (Gas turbine)

1994-96

LNG
LNG (Gas turbine)

1983
1994-96

LNG (Combined-cycle)
LNG (Combined-cycle)

1986-88
2003-10

Name of Plant(A-Z )

Company

Akita

Fuel

Year
Commissioned

Chita No. 2

Chubu EPCo*

1,708

700 × 2
154 × 2

FuttsuTokyo EPCo (F&P)*

5,040

1,000 × 2
1,520 × 2

Gobo

Kansai EPCo

1,800

600 × 3Heavy, crude oil

1984-85

Goi

Tokyo EPCo (F&P)*

1,886

265 × 4350 × 2

LNG
LNG

1963-661968

126 × 1

LNG (Gas turbine)

1994

Haramachi

Tohoku EPCo

2,000

1,000 × 2

Coal, Biomass

1997-98

HekinanChubu EPCo*

4,100

700 × 31,000 × 2

Coal, Biomass
Coal, Biomass

1991-93
2001-02

Higashi Ohgishima

Tokyo EPCo (F&P)*

2,000

1,000 × 2

LNG

1987-91

Higashi-Niigata

Tohoku EPCo

5,149

600 × 2
1,210 × 1

LNG, NG, heavy, crude oil
LNG (Combined-cycle)

1977-831985

1,700 × 1

LNG (Combined-cycle)

2006

350 × 2

LNG, heavy oil

1972-75

339 × 1

LNG (Gas turbine)

2012

729 × 1713 × 1

LNG (Combined-cycle)
LNG (Combined-cycle)

1995
1996

Himeji No. 1

Kansai EPCo

1,507.4

32.7 × 2

LNG (Gas turbine)2012

Himeji No. 2

Kansai EPCo

4,086

481 × 6600 × 2

LNG(Combined-cycle)
LNG

2013-141973

HironoTokyo EPCo (F&P)*

4,400

600 × 2
1,000 × 2

Heavy, crude oil
Heavy, crude oil

1980
1989-93600 × 2

Coal

2004-13

Hitachinaka

Tokyo EPCo (F&P)*

2,000

1,000 × 2

Coal

2003-13

JoetsuChubu EPCo*

2,380

1,190 × 1
1,190 × 1

LNG(Combined-cycle)
LNG(Combined-cycle)

2012-132013-14KainanKansai EPCo

2,100

450 × 2600 × 2

Heavy, crude oil
Heavy, crude oil

1970
1973-74

Kashima

Tokyo EPCo (F&P)*

5,660

600 × 41,000 × 2

Heavy, crude oil
Heavy, crude oil

1971-72
1974-75

1,260 × 1

City gas(Combined-cycle)

2014

Kawagoe

Chubu EPCo*

4,802

700 × 2

LNG

1989-90

1,701 × 2

LNG (Combined-cycle)

1996-97

Kawasaki

Tokyo EPCo (F&P)*

3,420

1,500 × 1
500 × 1

LNG (Combined-cycle)
LNG (Combined-cycle)

2009
2013

710 × 2

LNG (Combined-cycle)

2016

58

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 2019

Unit Capacity (MW)× No. of Units

Kansai EPCo
J-POWER

1,800
2,000

900 × 2
1,000 × 2

Coal, Biomass
Coal, Biomass

2004-101990-97

Joban Joint Power Co., Ltd.

1,700

250 × 1600 × 1

Coal, Biomass
Coal, Biomass

1970
1983

600 × 1

Coal, heavy oil, Biomass

1983

Company

Maizuru
Matsuura
NakosoFuel

Year
Commissioned

250 × 1

Coal (IGCC)

2013

600 × 3400 × 5LNG
LNG (Combined-cycle)

1990-91
2009-101,800

600 × 3

LNG

1978-83

3,058

1,458 × 1
1,600 × 1

LNG (Combined-cycle)
LNG (Combined-cycle)

1998
2008

690 × 1920 × 1

LNG (Combined-cycle)
LNG (Combined-cycle)

1991
1995

Nanko
SakaikoKansai EPCo
Kansai EPCo

Shin Kokura

Kyushu EPCo

Shin Nagoya

Chubu EPCo*

Shin Oita

Kyushu EPCo

2,804

1,800
2,000

735 × 1

LNG (Combined-cycle)

1998

459 × 1

LNG (Combined-cycle)

2016

ShinchiSoma Joint Power Co.

2,000

1,000 × 2

Coal

1994-95

Sodegaura

Tokyo EPCo (F&P)*

3,600

600 × 11,000 × 3

LNG
LNG

1974
1975-79

Tachibanawan

J-POWER

2,100

1,050 × 2

Coal

2000

Tomatou-Atsuma

Hokkaido EPCo

1,650

350 × 1600 × 1

Coal
Coal

1980
1985

700 × 1

Coal

2002

Toyama Shinko

Hokuriku EPCo

1,500

500 × 2250 × 2

Heavy, crude oil
Coal, heavy oil

1974-81
1971-72

Yokohama

Tokyo EPCo (F&P)*

3,460

175 × 1350 × 1

LNG, heavy, crude oil
LNG, heavy, crude oil

1964
1968

1,481 × 1***

LNG (Combined-cycle)

1998

1,454 × 1***

LNG (Combined-cycle)

1998* Tokyo EPCo (F&P) and Chubu EPCo thermal power plants transferred to JERA effective April 1, 2019.
* * Unit 1 closed down effective December 26, 2017.
* * * Improvement work completed in December 2017. Present output 1,508MW.
Note: Plants are listed in alphabetic order.
“Year Commissioned” refers to the date operation began with the installed capacity indicated in the chart.
Source: METI

Under Planning, Under Construction (400MW or Above) (As of March 31, 2017)
Name of Plant

Company

Ishikariwan Shinko Unit1
Ishikariwan Shinko Unit2
Ishikariwan Shinko Unit3
Noshiro Unit3
Joetsu Unit1
Nishi Nagoya Unit7-1T*
Nishi Nagoya Unit7-2T*
Taketoyo Unit5
Toyama Shinko LNG #1***
Wakayama
Misumi #2
Saijo #1 (Replace)Matsuura Unit2
Takehara Unit1
Hitachinaka Generation
Goi
Anegasaki
Yokosuka

Hokkaido EPCo
Hokkaido EPCo
Hokkaido EPCo
Tohoku EPCo
Tohoku EPCo
Chubu EPCo**
Chubu EPCo**
Chubu EPCo**
Hokuriku EPCo
Kansai EPCo
Chugoku EPCo
Shikoku EPCo
Kyushu EPCo
J-POWER
JERA
JERA
JERA
JERA

Fuel

LNG (Combined-cycle)
LNG (Combined-cycle)
LNG (Combined-cycle)
Coal (USC)
LNG (Combined-cycle)
LNG (Combined-cycle)
LNG (Combined-cycle)
Coal (USC)
LNG (Combined-cycle)
LNG
Coal (USC)
Coal (USC)
Coal (USC)
Coal (USC)
Coal (USC)
LNG (Combined-cycle)
LNG (Combined-cycle)
Coal (USC)

Unit Capacity (MW)Planned Start of Operation

569.4
569.4
569.4
600.0
572.0
1,188.2
1,188.2
1,070.0424.7
3,700.0
1,000.0500 (+344)
1,000.0
600.0
650.0
780 × 3650 × 3650 × 2

2019
2026
2030
2020
2023
2017
2018
2022
2018
From fiscal 2027 onward
2022
2023
2019
2020
2020
2023
2023
2023

* All units of Nishi Nagoya Thermal Power Station went into operation on March 30, 2018.
**  Tokyo EPCo (F&P) and Chubu EPCo thermal power plants transferred to JERA effective April 1, 2019.
* * *Toyama Shinko Thermal Power Station #1 went into operation on November, 2018.
Source: 10 EPCos, J-POWER

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 201959

OPERATI NG AND FI NANCI AL DATA

Installed Capacity(MW)

Name of Plant(A-Z )

Renewable Energy (1,000kW or Above) (As of March 31, 2017)
Name of Plant

Unit
NumberCompany

Date Solar
Fukuyama

Hokkaido EPCo
Chugoku EPCo

HachinoheHaramachi
Komekurayama

Installed Capacity(MW)

Generation TypeYear
Commissioned

01.0
03.0

Solar
Solar

Tohoku EPCo

01.5

Solar

2011

Tohoku EPCo

01.0

Solar

2015

Tokyo EPCo HD

10.0

Solar

2012

Matsuyama

Shikoku EPCo

02.0

Solar

2010

Mega Solar Iida

Chubu EPCo

01.0

Solar

2011

Mega Solar Omuta

Kyushu EPCo

03.0

Solar

2010

Mega Solar Shimizu

Chubu EPCo

08.0

Solar

2015

Mikuni

Hokuriku EPCo

01.0

Solar

2012

Ohgishima

Tokyo EPCo HD

13.0

Solar

2011

Sakai

Kansai EPCo

10.0

Solar

2011

SendaiTohoku EPCo

02.0

Solar

2012

Shika

Hokuriku EPCo

01.0

Solar

2011

Suzu

Hokuriku EPCo

01.0

Solar

2012

ToyamaHokuriku EPCo

01.0

Solar

2011

Ube

Chugoku EPCo

03.0

Solar

2014

Ukishima

Tokyo EPCo HD

07.0

Solar

2011

Higashi Izu

11

2011
2011

Tokyo EPCo PG

18.37

Onshore Wind

2015

Nomamisaki

Kyushu EPCo

03.0

Onshore Wind

2003

Omaezaki

Chubu EPCo

22.0

Onshore Wind

2010-111999

Hachijojima

Tokyo EPCo PG

03.3

Geothermal

1

Kyushu EPCo

55.0

Geothermal

1977

2

Kyushu EPCo

55.0

Geothermal

1990

Kyushu EPCo

02.0

Geothermal

2006

1

Tohoku EPCo
Tohoku Sustainable & Renewable Energy Co.

50.0

Geothermal

1978

2

Tohoku EPCo
Tohoku Sustainable & Renewable Energy Co.

30.0

Geothermal

1996

MatsukawaTohoku Sustainable & Renewable Energy Co.

23.5

Geothermal

1966

Mori

Hokkaido EPCo

25.0

Geothermal

1982

Ogiri

Kyushu EPCo
Nittetsu Mining Co., Ltd.

30.0

Geothermal

1996

OnikobeJ-POWER

15.0

Geothermal

1975

Otake

Kyushu EPCo

12.5

Geothermal

1967

Sumikawa

Tohoku EPCo
Mitsubishi Material Co.

50.0

Geothermal

1995

Takigami

Kyushu EPCo
Idemitsu Oita Geothermal Co.

27.5

Geothermal

1996

UenotaiTohoku EPCo
Tohoku Sustainable & Renewable Energy Co.

28.8

Geothermal

1994

Yamagawa

Kyushu EPCo

25.96

Geothermal

1995

Yanaizu-Nishiyama

Tohoku EPCo
Okuaizu Geothermal Co.

65.0

Geothermal

1995

Hatchoubaru
Hatchoubaru Binary

Kakkonda

Note: Plants are listed in alphabetical order by type.
Source: METI60

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 2019

Nuclear Power Plants (As of March 31, 2017)
Company

Installed Capacity(MW)

Fukushima No. 2

Tokyo EPCo

4,400

GenkaiKyushu EPCo

2,919

Hamaoka

Chubu EPCo

3,617

Higashi-dori
Ikata

Tohoku EPCo
Shikoku EPCo

1,100
1,456

Kashiwazaki Kariwa

Tokyo EPCo

8,212

MihamaOhi

Kansai EPCo
Kansai EPCo

826
4,710

Onagawa

Tohoku EPCo

2,174

SendaiKyushu EPCo

1,780

Shika

Hokuriku EPCo

1,746

ShimaneTakahama

Chugoku EPCo
Kansai EPCo

820
3,392

Tokai No. 2
TomariJAPC
Hokkaido EPCo

1,100
2,070

Tsuruga

JAPC

1,160

Unit Capacity (MW) Year Commissioned

Unit Number

Type of Reactor

1
2
3
4
2
3
4
3
4
5
1
2
3
1
2
3
4
5
6
7
3
1
2
3
4
1
2
3
1
2
1
2
2
1
2
3
4
1
2
3
2

BWR
BWR
BWR
BWR
PWR
PWR
PWR
BWR
BWR
ABWR
BWR
PWR
PWR
BWR
BWR
BWR
BWR
BWR
ABWR
ABWR
PWR
PWR
PWR
PWR
PWR
BWR
BWR
BWR
PWR
PWR
BWR
ABWR
BWR
PWR
PWR
PWR
PWR
BWR
PWR
PWR
PWR
PWR

1,100
1,100
1,100
1,100
559
1,180
1,180
1,100
1,137
1,380
1,100
566
890
1,100
1,100
1,100
1,100
1,100
1,356
1,356
826
1,175
1,175
1,180
1,180
524
825
825
890
890
540
1,206
820
826
826
870
870
1,100
579
579
912
1,160

1982
1984
1985
1987
1981
1994
1997
1987
1993
2005
2005
1982
1994
1985
1990
1993
1994
1990
1996
1997
1976
1979
1979
1991
1993
1984
1995
2002
1984
1985
1993
2006
1989
1974
1975
1985
1985
1978
1989
1991
2009
1987

Unit Number

Type of Reactor

Unit Capacity (MW)Planned Start ofOperation

Note: Plants are listed in alphabetical order.
Source: METI

Under Planning, Under Construction (As of March 31, 2017)
Name of Plant

Company

ShimaneOma

Chugoku EPCo
J-POWER

3
1

ABWR
ABWR

1,373
1,383

Undecided
Undecided

Higashi-doriTokyo EPCo

1

ABWR

1,385

Undecided

Source: 10 EPCos, JAPC, J-POWER

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 2019

61

OPERATI NG AND FI NANCI AL DATA

Name of Plant

Principal Hydroelectric Power Plants Owned by Electric Utilities (400 MW or Above) (As of March 31, 2017)Type

Installed Capacity(MW)

Maximum Discharge(m3/sec)

Effective Head
(m)

Year
Commissioned

Tokyo EPCo
Shikoku EPCo

Pumped-storage
Pumped-storage

623
615

540.0
140.0

136
528

1970
2003

ImaichiKannagawaKazunogawa

Tokyo EPCo
Tokyo EPCo
Tokyo EPCo

Pumped-storage
Pumped-storage
Pumped-storage

1,050
940
1,200

240.0
170.0
210.0

524
653
714

1991
2012
2014

Kisenyama

Kansai EPCo

Pumped-storage

466

248.0

219

1970

Kyogoku (No. 1, No. 2)

Hokkaido EPCo

Pumped-storage

400

190.5

369

2015

Matanogawa

Chugoku EPCo

Pumped-storage

1,200

300.0

489

1996

NabaraChugoku EPCo

Pumped-storage

620

254.0

294

1976

Numappara

J-POWER

Pumped-storage

675

173.0

478

1973

Numazawa No. 2

Tohoku EPCo

Pumped-storage

460

250.0

214

1982

Ohira

Kyushu EPCo

Pumped-storage

500

124.0

490

1975

OkawachiKansai EPCo

Pumped-storage

1,280

382.0

395

1995

Okukiyotsu

J-POWER

Pumped-storage

1,000

260.0

470

1982

Okukiyotsu No. 2

J-POWER

Pumped-storage

600

154.0

470

1996

OkuminoChubu EPCo

Pumped-storage

1,500

375.0

486

1995

Okutadami

J-POWER

Conventional

560

387.0

170

2003

Okutataragi

Kansai EPCo

Pumped-storage

1,932

594.0

388

1998

Okuyahagi No. 2

Chubu EPCo

Pumped-storage

780

234.0

404

1981

Okuyoshino

Kansai EPCo

Pumped-storage

1,206

288 .0505

1980

Omarugawa

Kyushu EPCo

Pumped-storage

1,200

222 .0646

2011

Shimogo

J-POWER

Pumped-storage

1,000

314 .0387

1991

Shin Takasegawa

Tokyo EPCo

Pumped-storage

1,280

644.0

229

1981

Shin Toyone

J-POWER

Pumped-storage

1,125

645.0

203

1973

Shiobara

Tokyo EPCo

Pumped-storage

900

324 .0338

1995

Tagokura

J-POWER

Conventional

400

420.0

105

2012

TanbaraTokyo EPCo

Pumped-storage

1,200

276.0

518

1986

TenzanKyushu EPCo

Pumped-storage

600

140.0

520

1987

Name of Plant

Company

Azumi
Hongawa

Notes: 1. Plants are listed in alphabetical order.						2. “Year Commissioned” refers to the date operation began with the installed capacity indicated in the chart.
Sources: METI													

Under Planning, Under Construction (As of March 31, 2017)
Expected Capacity Maximum Discharge(MW)(m3/sec)

Effective Head(m)

Planned Start ofOperation

653

2028-

280.0

714

2028-

190.5

369

2028-

Name of Plant

Company

Kannagawa Unit No. 3-6

Tokyo EPCo*

Pumped-storage

1,880

510.0

Kazunogawa unit No.3

Tokyo EPCo*

Pumped-storage

0400

Kyogoku unit No.3

Hokkaido EPCo

Pumped-storage

0200

Type

* Tokyo EPCo construction plants as of March 31, 2018.

Note: Plants are listed in order of the year that the first generator will commission.
Source: EPCos62

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 2019

Peak Capacity, Peak Load, Energy Requirement, Reserve Margin and Load Factor		
2009

2010

2011

2012

2013

2014

2015

2016

2017

201.5

199.0

175.9

176.9

179.5

179.8

184.2

180.4

185.2

Peak Load (GW )*

160.8

178.9

156.4

157.2

161.6

154.3

161.2

156.2

157.1

Energy Requirement ( TWh)**

941.8

974.3

926.8

914.7

917.5

898.9

888.2

887.1

892.6

Reserve (GW )***

40.7

20.1

19.5

19.7

17.9

25.6

23.0

24.2

28.1

Reserve Margin (%)***

25.3

11.2

12.5

12.6

11.1

16.6

14.3

15.5

17.9

Load Factor (%)****

66.9

62.2

67.4

66.4

64.8

66.5

62.9

64.8

64.9

* Peak capacity and peak load are for all electric utilities in Japan.
Peak capacity is the largest possible supply capacity; peak load is the average value of the three highest daily loads at the transmission end occurring during the month in which theannual peak is recorded.
** Energy requirement is the total annual demand for electric utilities in Japan.
Capacity— Peak Load*** Reserve = PeakReserve
× 100
Reserve Margin =Peak Load
Energy Requirement × 100**** Load Factor = Peak Load × 365 (366) × 24hours
Source: Japan Electric Power Survey Committee (2009–2014), OCCTO (2015–2017)

Balance of Electricity Supply and Demand (Electric Utilities)
FY

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

971.4

941.8

974.3

926.8

914.7

917.5

898.9

888.2

887.1

892.6

199.5

201.5

199.0

176.0

176.9

179.5

179.8

184.2

180.4

185.2

Peak Load

181.0

160.8

178.9

156.4

157.2

161.6

154.3

161.2

156.2

157.1

Reserve

18.5

40.7

20.1

19.5

19.7

17.9

25.6

23.0

24.2

28.1

Reserve Margin (%)

10.2

25.3

11.2

12.5

12.6

11.1

16.6

14.3

15.5

17.9

Thermal Power Plants*

149.9

152.3

151.2

153.3

157.1

159.4

163.6

156.2

164.9

163.4

Nuclear Power Plants

47.9

48.8

49.0

49.0

46.1

44.3

44.3

39.8

39.0

36.7

Hydroelectric Power Plants

46.5

46.7

46.7

47.0

47.5

47.5

48.0

48.5

49.1

49.2

–

–

–

–

–

–

–

50.6

47.7

53.1

244.4

247.6

247.8

249.2

250.7

251.1

255.8

295.1

301.1

302.5

Electric Energy Requirement ( TWh)At Transmission End
Total Peak Capacity

Total Generating Capacity

New Energy
Total* Includes geothermal power plants.

Source: Japan Electric Power Survey Committee (2009–2014), OCCTO (2015–2017)

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 2019

63

OPERATI NG AND FI NANCI AL DATAFY

Peak Capacity (GW )*Financial Data

Revenues and Expenditures for the EPCos(Billion yen)
FY

2011

2012

2013

2014

2015

2016

Revenues
Residential

6,143

6,393

6,919

6,967

6,460

3,960

Commercial and Industrial

8,330

8,892

9,888

10,373

9,356

5,654

Intercompany Power Sales

521

501

490

462

381

76

Power Sales to Other Utilities

96

106

194

262

215

338

Others

3,318

1,843

3,146

2,471

2,683

718

18,40817,735

20,694

20,54519,093

11,632

Personnel

1,434

1,339

1,257

1,213

1,257

952

Fuel

5,949

7,080

7,731

7,292

4,521

2,217
1,076

Total
Expenditures

Maintenance

1,422

1,354

1,151

1,369

1,423

Interest Charges

345

350

356

358

301

184

Depreciation

2,026

1,890

1,928

1,861

1,839

1,214

Taxes and Public Charges

922

923

934

947

923

595

Intercompany Power Purchases

521

501

490

462

380

78

Power Purchases

1,976

2,260

2,504

2,763

2,834

2,198

32

–14

–7

–6

46

1

Provision for (Reversal of) Reserve for Fluctuationsin Water Levels
Income Taxes

–106

–183

–47

183

243

90

Others

5,473

3,828

4,441

3,825

4,706

2,602

19,993–1,58519,327–1,592

20,56020,26918,473

11,207

134

276

621

426

Total
Net Income
Note: The figures may not add up to the totals shown due to rounding.
Source: METI

Balance Sheet for the EPCos(Billion yen)
FY

2011

2012

2013

2014

2015

2016

Electric Utility Fixed Assets

23,93423,89323,32923,25322,85915,685Investment and Other Fixed Assets

13,781

13,094

13,27912,84912,788

7,757

Current Assets

4,751

5,604

5,924

5,652

5,001

3,052

42,46642,591

42,531

41,75340,64926,494Long-Term Liabilities

29,85430,68930,602

28,69926,100

16,250Current Liabilities

6,654

6,622

6,545

7,272

8,205

5,463

139

128

125

122

173

171

Total Liabilities

36,64837,43937,27236,093

34,47921,884

Shareholders’ Equity

5,759

5,048

5,154

5,513

6,074

4,484

59

103

105

146

95

125

5,818

5,151

5,259

5,660

6,170

4,610

42,46642,591

42,531

41,75340,64926,494

Assets

Total
Liability and Net Assets

Reserves

Valuation, Translation Adjustments and Others
Total Net Assets
Total
Note: The figures may not add up to the totals shown due to rounding.
Source: METI64

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 2019

Uses and Sources of Funds for the EPCos(Billion yen)
2011

2012

2013

2014

2015

2016

2,123

2,087

1,961

2,016

2,260

Debt Redemption

6,321

6,118

4,351

4,799

5,276

2,208
–

Total Required Funds

8,444

8,204

6,312

6,816

7,536

–

Source of Funds
Bonds

70

1,434

1,302

877

637

Loans

7,511

5,957

3,484

2,958

3,310

–

7,581

7,392

4,786

3,836

3,947

–

Expansion Work

–

–

–

–

–

597

Improvement Work

–

–

–

–

–

1,496

Research Cost

–

–

–

–

–

8

Nuclear Fuel

–

–

–

–

–

104

Total Source of Funds
Investment Breakdown

Investment Total

2,208* Includes nuclear fuel.
Note: The figures may not add up to the total shown due to rounding.
Source: FEPC (2011-2015), METI (2016)

Summarized Comparative Table Classified by Country for the Year 2015

Total Installed Capacity (MW)USA

CanadaUK

FranceGermany

Italy

Russia

China

Korea

1,176,981

135,268

81,026

129,119–

116,955

257,100

1,525,270

101,590

Hydroelectric

100,442

79,232

4,330

25,430–22,22051,000319,540

6,471

Thermal878,525

34,14853,967

22,335–65,938179,100

1,005,540

67,754

Nuclear107,360

14,033

9,487

63,130––26,30027,17021,716

Renewables and others

90,654

7,855

13,242

18,224–

28,797–173,020

5,649

Total Energy Production (GWh)

4,077,601

631,192

338,917546,767

646,888282,994

1,067,540

5,740,000

547,802

Hydroelectric

243,989373,845

9,037

59,07924,89846,970169,910

1,112,700

5,796

Thermal2,814,779

139,463

182,429

34,381

340,442

192,053

698,400

4,230,700

359,926

Nuclear797,178

95,682

70,345

416,797

91,786–

195,470

171,400

164,762

Renewables and others

221,655

22,202

77,10536,510189,762

43,971

3,760

225,200

17,318

40.2

52.1

45.5

48.3

–

26.2

–

45.6

61.7

Total Energy Production per Capita(kWh)12,707

17,606

5,359

8,490

7,904

4,655

7,439

4,176

10,778Domestic Energy Supplies (GWh)

4,135,896

579,360

339,489

476,052

421,460

316,897

1,060,200

4,857,200

519,196

Energy Sales (GWh)

3,786,426

478,044

286,161–

450,775

272,056–

4,534,700

483,655

Number of Customers(At year-end; thousand)

150,081–

30,03836,761–

37,639––22,030Maximum Demand (MW)741,056

95,50752,75391,90077,99260,491147,000

797,730

78,790

Annual Load Factor (%)

61.1

65.6

68.3

59.1

61.6

51.1

78.3

81.7

72.6

Thermal Efficiency (%)

–

–

35.6

–

–

45.3

38.6

39.0

40.9

Loss Factor(Transmission and Distribution) (%)

5.1

–

8.0

7.5

6.1

6.2

–

6.6

3.6

-

17,508

4,798

6,837

6,483

4,888

6,666

4,221

9,953

Capacity Factor (%)

Total Consumption per capita (kWh)Source: JEPICTH E ELECTR IC POW ER I N DUSTRY I N JA PA N 2019

65

OPERATI NG AND FI NANCI AL DATAFYInvestments*

JEPICJ

apan Electric Power Information Center, Inc. (JEPIC)
marked the 60th anniversary of our founding in May
2018. Established in 1958 as a non-profit association ofJapan’s electric utility industry, our primary purpose is tomeet the increasing need for systematic and sustained exchange of information with electric utility industries aroundthe 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 inforeign countries in light of situations and issues faced by
the industry in Japan today. We provide information fromthose studies in various ways to contribute to the industry
worldwide. JEPIC also works to enhance cooperation withforeign electric utilities and other related organizations.

Exchange and Cooperation Activities
JEPIC is promoting information exchanges with the foreign
electric utilities and organizations in the electric utility 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 inthose 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 these seminars to Japan and dispatches experts to their countries. Including these seminarprograms, JEPIC carries out the following tasks:• Cooperation with electric utilities in ASEAN countries• Technical cooperation under ODA programs• Technical cooperation for nuclear power safety

General Meeting
Chairman and CEO

Senior Managing Director

Planning and Public
Relations Department

Washington Office

Managing Directors
Executive Directors

Board of Directors

European Office

Auditors

Beijing Office

Advisory
Committees

General Affairs
Department
Research Department

Editorial Division
Division No. 1
Division No. 2

International Cooperation
Department

Electric Cooperation
Division
Nuclear Power
Cooperation Division

Auditor’s Office

JEPIC-USA

66

TH E ELECTR IC POW ER I N DUSTRY I N JA PA N 2019

EPCo Distribution Areas and Frequency (As of January 2019)

Hokkaido
EPCo

Member Companies (As of March 2019)

Hokkaido Electric Power Co., Inc.

The Chugoku Electric Power Co., Inc.

2, Higashi 1-chome, Odori, Chuo-ku, Sapporo, Hokkaido 060-8677, Japan
http://www.hepco.co.jp/english/index.html

4-33, Komachi, Naka-ku, Hiroshima-shi, Hiroshima 730-8701, Japan
http://www.energia.co.jp/e/index.html

Tohoku Electric Power Co., Inc.

Shikoku Electric Power Co., Inc.

1-7-1 Honcho, Aoba-ku, Sendai, Miyagi 980-8550, Japan
http://www.tohoku-epco.co.jp/english/index.html

2-5, Marunouchi, Takamatsu, Kagawa 760-8573, Japan
https://www.yonden.co.jp/english/index.html

Tokyo Electric Power Company Holdings, Inc.

Kyushu Electric Power Co., Inc.

1-1-3, Uchisaiwai-cho, Chiyoda-ku, Tokyo 100-8560, Japan
http://www.tepco.co.jp/en/index-e.html

1-82, Watanabe-dori 2-chome, Chuo-ku, Fukuoka 810-8720, Japan
http://www.kyuden.co.jp/en_index.html

Chubu Electric Power Co., Inc.

The Okinawa Electric Power Co., Inc.

1, Higashi-shincho, Higashi-ku, Nagoya, Aichi 461-8680, Japan
http://www.chuden.co.jp/english/index.html

2-1, Makiminato 5-chome, Urasoe, Okinawa 901-2602, Japan
http://www.okiden.co.jp/en/

Hokuriku Electric Power Co.

Electric Power Development Co., Ltd.
(J-POWER)

15-1, Ushijima-cho, Toyama-shi, Toyama 930-8686, Japan
http://www.rikuden.co.jp/english/index.html

TohokuEPCo

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

6-15-1, Ginza, Chuo-ku, Tokyo 104-8165, Japan
http://www.jpower.co.jp/english/index.html

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

Hokuriku
EPCo

Chugoku
EPCo

Kansai
EPCo

Chubu
EPCo

TEPCO
Power Grid

Shikoku
EPCo
KyushuEPCo

JEPIC Office
60 Hz

50 Hz
JEPIC’s member companies include
the 10 EPCos indicated on the map
and two wholesale electric utilities,
J-POWER and the Japan Atomic
Power Company.

Okinawa
EPCo

Head Office

European Office15-33, Shibaura 4-chome, Minato-ku, Tokyo 108-0023, Japan
Tel: +81 (3) 6361-8210 Fax: +81 (3) 3455-0991
http://www.jepic.or.jp/en/

10, rue de la Paix, 75002
Paris, France
Tel: +33 (1) 42.86.90.11 Fax: +33 (1) 42.86.50.80

Washington Office

Beijing Office1120 Connecticut Avenue, N.W., Suite 1070
Washington, D.C. 20036, U.S.A
Tel: +1 (202) 955-5610 Fax: +1 (202) 955-5612

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 Fax: +86 (10) 6513-9887

DISCLAIMER
This publication was prepared by the Japan Electric Power Information Center (JEPIC), based on publically available information. While we presume thisinformation to be accurate and reliable, we provide no guarantee as to the accuracy of the data or information contained herein. JEPIC shall therefore assume nolegal responsibility for any trouble, loss, or damages resulting from any actions taken based on the content of this publication.
All copyrights pertaining to this publication belong to JEPIC. Unauthorized reprinting of the content of this publication is forbidden, and unauthorized copying or
reproduction is also forbidden, except in cases where this is allowed under Japan’s Copyright Act.

15-33, Shibaura 4-chome Minato-ku,
Tokyo 108-0023, Japan
http://www.jepic.or.jp/

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