The ElectricPower Industr y
in JAPAN

2022

JEPICJapan Electric Power Information Center, Inc. (JEPIC) was established in 1958 as a non-profit association of
the electric utility industry in Japan. Our primary purpose is to meet the increasing need for a systematicand sustained exchange of information with the electric utility industries around the world.
In response to government policy, JEPIC also initiated technical cooperation programs for developing
countries in the field of electric power soon after our founding. These programs remain one of our main
activities today.
Research and Information Activities
JEPIC conducts research on the electric power industry in foreign countries in light of situations and issues
facing the industry in Japan currently. We provide information from those studies in various ways to contribute to the industry worldwide. JEPIC also works to enhance cooperation with foreign electric utilities
and other related organizations.
International Exchange 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 for developing countries, mainly in Asia, for the purpose of improving power infrastructure andnuclear power safety in those countries and sharing of general information. These programs include human resource development efforts such as seminars that JEPIC coordinates. JEPIC both receives 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

Contents
EXECUTIVE SUMMARY

2

I. STRUCTURE OF THE ELECTRIC POWER INDUSTRY

5II. ENERGY AND ENVIRONMENTAL POLICY

10

III. SUPPLY AND DEMAND

26

IV. ELECTRIC POWER FACILITIES

32

V. RETAIL BUSINESS AND TRADING MARKETS

44

TOPICS: Actions toward Carbon Neutrality in 2050

52

Statistical Data

59

Overseas Activities of Member Companies

63

Member Companies Data

77

The Electric Power Industry in Japan 2022

EXECUTIVE SUMMARY
The information in this document, including the Executive Summary, was current as of September 17, 2021, unless otherwise specified.

I. STRUCTURE OF THE ELECTRIC POWER INDUSTRY
Liberalization of entry to the power generation sector commenced in 1995 at a time when generation andtransmission were integrated along regional lines under 10 general electric utilities. Liberalization of theretail supply of electricity to all except low-voltage customers was then implemented in stages between
2000 and 2005.
Policy on reform of the electricity system was adopted in April 2013, and liberalization of the electric power
retailing and generation sectors was completed in April 2016. The legal separation of transmission anddistribution from vertically integrated businesses was implemented in April 2020, resulting in the spin-off of
new transmission and distribution companies from the former general electricity utilities. Meanwhile, plans
to abolish regulated electricity rates in April 2020 have been deferred.
Today, Japan’s electrical power industry comprises three major sectors: electricity generation, transmission
and distribution, and retailing. The number of operators in these sectors was 986 (as of June 30, 2021), 49(August 26), and 730 (August 25), respectively.
The government agency responsible for overseeing Japan’s electric utilities is the Agency for Natural
Resources and Energy. The Organization for Cross-regional Coordination of Transmission Operators (OCCTO)
nationally monitors conditions such as the supply/demand situation and grid operational status, andformulates cross-regional grid development plans.

II. ENERGY AND ENVIRONMENTAL POLICYThe Prime Minister announced in October 2020 the goal of making Japan carbon neutral by 2050. In April
2021, the Prime Minister also declared that Japan would seek to reduce its greenhouse gas emissions by 46
percent in fiscal 2030 from its fiscal 2013 levels, and would thereafter further strive toward 50%.
To lay out the path to realizing these goals, the Cabinet approved the Sixth Strategic Energy Plan in October
2021. Under the philosophy of S+3E (safety, energy security, economic efficiency, and environment), theelectricity sector will strive toward its 2030 commitments by working to make renewable energy the main
source of power generation, restart nuclear power plants with top priority placed on safety, and reduce
dependence on thermal power generation as much as possible, including by phasing out inefficient thermal
power generation.
Prior to the March 2011 Fukushima Daiichi Nuclear Power Plant accident, Japan had 57 nuclear reactors inoperation. All were provisionally shut down in 2014. While there is anticipation for their return to service, 24
have been selected for decommissioning. Of the remaining 36 (including three under construction), 17 havereceived approval of their applications for change of installation under the New Regulatory Requirements (i.e.,
have been confirmed as compliant with those requirements). Ten are currently back in operation.

2

EXECUTIVE SUMMARY

Installed capacity of renewables (especially solar) increased as the result of a feed-in tariff (FIT) scheme. The
Act on Special Measures Concerning Promotion of Utilization of Electricity from Renewable Energy Sources,
enacted in June 2020, provides for a complete overhaul of the FIT scheme. As part of the changes, a feed-in
premium scheme that adds premiums to the market prices of large-scale commercial solar and certain otherpower sources will go into effect in April 2022.
In fiscal 2019, Japan’s GHG emissions measured 1,212 million tons (CO2 equivalent), and emissions of CO2
accounted for 91.4% of this total, down 15.9% from the fiscal 2013 level. In December 2020, the government
released the Green Growth Strategy as a roadmap toward achieving carbon neutrality in 2050.

III. SUPPLY AND DEMAND
In fiscal 2020, electricity demand1 in Japan was 863.2 TWh (down 1.6% YoY) and peak national demandcame to 159.2 GW (up 0.3 YoY).
In fiscal 2020, electric power generated2 in Japan came to 845.4 TWh (down 2.1% YoY), of which 16.2 TWh
was generated by solar power and 7.6 TWh by wind power.

IV. ELECTRIC POWER FACILITIES
Total generating capacity in Japan came to 312.8 GW at the end of fiscal 2020. This consisted of 51.1%
thermal power (14.7% coal, 26.9% LNG, and 9.5% oil), 10.6% nuclear power, 15.7% hydro, and 22.5%
renewables (excluding hydro). Development of 20.9 GW of generating capacity is planned to be completed
by fiscal 2030. This consists of 5.05 GW of thermal power, 5.3 GW of renewables (excluding hydro), and 10.3
GW of nuclear power.
As of the end of March 2021, smart meters had been installed at all extra-high voltage and high voltage
customers and at 85.7% of low voltage customers (including households). All customers are expected tohave smart meters by the end of March 2025.
In response to the increased intensity of natural disasters in recent years, the Japanese government enacted
the Act for Establishing Energy Supply Resilience in June 2020, and is leading efforts to improve theresilience of Japan’s energy supply.
Plans have been laid out for the enhancement of interregional interconnections in order to improve theresilience of electricity infrastructure and realize interregional utilization of distributed energy sources.
Recently developed plans include increasing the capacity of frequency converters supporting theinterconnections between Tokyo and the Chubu region, and the capacity of the interconnections between
Tokyo and the Tohoku region.

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

3

The Electric Power Industry in Japan 2022

V. RETAIL BUSINESS AND TRADING MARKETSThe number of registered electricity retailers has continued to rise since the full liberalization of the retailelectricity market in April 2016, reaching 730 retailers as of August 2021. As of March 2021, PPPs accounted
for a 19.5% share of the total volume of electricity sold. PPSs also held 20.2% of sales to households andother low voltage customers.
The volume of trades on the JEPX spot market has been on the rise, reaching 312.8 TWh (equivalent to morethan 30% of all electric power sold nationwide) in fiscal 2020. The average system price has hovered around7-9 yen/kWh since fiscal 2015. Prices fell in April 2020 as demand dropped from the impact of measuresagainst COVID-19. Later in the year, prices skyrocketed from the effects of a summer heat wave and from a
supply crunch in the winter that was driven by fuel procurement. As a result, the average system price of
supply for fiscal 2020 as a whole was 11.21 yen/kWh.
A baseload trading market was created in fiscal 2019. A total volume of 332.1 MW was sold for delivery infiscal 2021, with clearing prices ranging from 6.06 to 9.19% yen/kWh.
Trading in the capacity market began in 2020. Capacity contracts for 2024 totaled 167.69 GW in volume, andhad a clearing price of 14,137 yen/kW.
A balancing market began operating in April 2021 for Replacement Reserve for FIT (balancing capacity witha long response time that balances errors in renewable energy predictions). There are plans to successively
add other products traded in this market.
The non-fossil value trading market was launched in 2018. It will be divided into two markets in 2021 orlater: one trading in non-fossil value from FIT electricity, and another trading in non-fossil value from non-FIT
electricity.

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

I. STRUCTURE OF THE ELECTRIC POWER INDUSTRY

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

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

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

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

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

(3) Electricity System Reform
The Policy on Electricity System Reform describing theoverall shape of reform was approved by the Cabinet in
April 2013. This policy divided the reform process into threephases: (1) establishment by 2015 of an Organization for
Cross-regional Coordination of Transmission Operators(OCCTO) to act as a command center responsible formanaging supply and demand spanning different service
areas; (2) full liberalization of entry into the retail electricity
market by 2016; and (3) the legal unbundling of thetransmission and distribution sector, and elimination ofregulated retail rates by 2020.
Based on this policy, a new entity called the Organization
for Cross-regional Coordination of Transmission Operators(OCCTO) was established in April 2015 with the aim ofenhancing the capacity to adjust supply and demandnationwide in both normal and emergency situations.
In preparation for the second phase of liberalization of
the retail market, another entity, the Electricity Market
Surveillance Commission (now called the Electricity and5The Electric Power Industry in Japan 2022

Roadmap to Electricity System Reform

Implementation: April 2013

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

Implementation: April 2015

Implementation: April 2016

Implementation: April 2020

Approval of establishment

Preparation for establishmentof the OCCTO

Determination of policy on electricity system reform

Figure 1 . 1

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

Establishment of
the OCCTO

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

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

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

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

Review of competition conditions

Detailed system design

Transition to
new regulatory
systemVitalization of wholesale electric power market

Preparation for creation of new system forsecuring supply capacity

Preparation for hour-ahead market

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

Elimination of regulations
on wholesale market

Conducting acapacity market main
auction (2020)

Creation of new system
for securing supply
capacity

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

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

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

Gradual creation ofbalancing market(from April 2021)

Legal separationof transmission
and distribution
from the verticallyintegrated business

Regulation oftransmission anddistribution andmonitoring of neutrality
assurances

Realization ofcompetitive market
environment

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

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

Gas Market Surveillance Commission) was established in
September 2015 to strengthen oversight of the liberalized
electric power market. A licensing system was thenlaunched in April 2016, liberalization of the electric power
retailing and generation sectors was completed. In the third
phase, legal unbundling of the transmission and distributionsector was implemented in April 2020, and new spin-off
transmission and distribution companies were establishedby eight former general electricity utilities other than Tokyo
Electric Power Company Holdings, which was ahead on
setting up new companies, and Okinawa Electric Co., which
was not subject to legal unbundling. Meanwhile, plans
to abolish regulated electricity rates scheduled for theend of March 2020 have been deferred due to insufficientcompetition (see Figure 1.1 and “1. Electricity Rates” in Chapter V).
The necessary legal groundwork for the third phaseof electricity system reform was completed with theenactment of revisions to the Electricity Business Act inNovember 2013, June 2014, and June 2015.

(4) Updated System Design
The Ministry of Economy, Trade and Industry (METI)
emphasized the need to increase economic efficiency byfostering further competition in the electric power sector,
while addressing a number of issues that could not be
resolved solely by relying on the market alone. These issues
include ensuring safety, supply stability, and environmental
acceptability including the promotion of renewableenergies. METI also indicated that in order to solve theseissues, steps should be taken to make existing markets
more liquid and to actualize new forms of value by creatingcompletely new markets, such as a capacity market and a
non-fossil value trading market.
Based on these guidelines, a number of new types of market
have been considered, including (1) a baseload power
market, (2) a capacity market, (3) a balancing market, and(4) a non-fossil value trading market. Trading is underway inmarkets (1), (2), and (4). Market (4) is scheduled to be split
into two markets in fiscal 2021, a market for achieving thetarget mandated by the Act on Sophisticated Methods ofEnergy Supply Structures, and a renewable energy value
trading market (see “3. Trading Markets” in Chapter V). Trading incertain products commenced in (3) in April 2021, and will be
gradually expanded to other products.

2. Current Electricity Supply System(1) Classification of Electricity Utilities
Japan’s electricity utilities had been divided into thefollowing five categories: general electricity utilities,
wholesale electricity utilities, wholesale suppliers, specified
electricity utilities, and specified-scale electricity suppliers(new entrants). Subsequently, with the implementation offull liberalization of the retail market, these classifications
were reviewed and a new system of issuing licenses tobusiness operators was introduced in April 2016. At present,
the licenses define three main categories of electricity
generation, transmission and distribution, and retailing. The
Agency for Natural Resources and Energy imposes necessary
regulations for each sector. The 10 general electricity utilities
that have historically been engaged in power supply since1951 are now called “former general electricity utilities”(Figures 1. 2 and 1. 3).
Data show that 986 entities had obtained power generation
licenses in the electricity generation sector as of June 30,
2021, and generating capacity was 270 GW1 as of March
2021. The group of former general electricity utilities,
J-Power, and the Japan Atomic Power Co. accounted for
80% of generating capacity. In addition, power generation
licenses have been obtained by firms from industries suchas paper manufacturing, steel manufacturing, and gas andpetroleum, as well as by some local governments.
In the transmission and distribution sector, a total of 10
utilities (the 9 utilities spun out from the former generalelectricity utilities other than Okinawa Electric Co., andOkinawa Electric Co.) have been conducting business as
general electricity transmission and distribution utilities.
Three other companies, including J-POWER Transmission
Network Co., Ltd., are conducting business as electricity
transmission utilities. In addition, 36 corporations (as ofAugust 26, 2021), including Sumitomo Joint Electric Power
Co., Ltd., are operating as specified electricity transmission
and distribution utilities.
In the electricity retail sector, data released by METI’s Agency
for Natural Resources and Energy show that a total of
730 entities had obtained retail licenses (as of August 25,2021). In addition to the former general electricity utilities,
electricity retailers include telecommunications carriers,
trading companies, gas and petroleum companies, steel
manufacturers, and subsidiaries of former general electricity

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

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The Electric Power Industry in Japan 2022

Electricity Supply System after Introduction of Licensing

Figure 1 . 2

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

A. Electricity generation business[notification only]
JFE Steel, JERA,
local governments, etc. (986 entities)

Aggregation

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

System of general electricity transmission
and distribution utilities(3) Electricity distribution
business [notification only]

SUMITOMO JOINT ELECTRIC
POWER, JR East, etc. (36 entities)*Commencing in April 2022

(2) Electricity transmission business[license required]

Grid operated byelectricity distributor

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

Specified supply area

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

Specified service points
distinguished fromgeneral demand.

Homes, businesses, stores, etc.

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

Electricity distribution utilities

Specified electricity transmission
and distribution utilities

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

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

Figure 1 . 3

Former general electricity utilities

General electricity transmission and distribution utilities

Electricity generation utilities and retailers• Hokkaido Electric Co.

• Hokkaido Electric Power Network, Inc.

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

• Tohoku Electric Power Network, Co.

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

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

• Chubu Electric Power Grid Co.

• Hokuriku Electric Power Co.

• Hokuriku Electric Power Transmission & Distribution Co.

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

• Kansai Transmission and Distribution, Inc.

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

• Chugoku Electric Power Transmission & Distribution Co.

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

• Shikoku Electric Power Transmission & Distribution Co.

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

• Kyushu Electric Power Transmission and Distribution Co.

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

• Okinawa Electric Power Co.

• Okinawa Electric Power Co. (generation & retail)• Tokyo Electric Power Company Holdings, Inc.,JERA*3, TEPCO Renewable Power, Inc. (generation),
TEPCO Energy Partner, Inc. (retail)*2• Chubu Electric Power Co., JERA (generation),
Chubu Electric Power Miraiz Co. (retail)*1 Only major utilities are listed.
*2 TEPCO Power Grid, Inc. and TEPCO Energy Partner, Inc. were spun out in April 2016.
*3 JERA took over the thermal power generation business of TEPCO and Chubu Electric Power in April 2019.

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

utilities. Net system energy demand in fiscal 2020 cameto 821 TWh, of which former general electricity utilities
accounted for about 81%.

monitor the fairness of transactions and regulate businessconduct to safeguard the neutrality of the electricity and gas
network sectors.

Amidst the spread of distributed energy resources (DER),
the Electricity Business Act was partially revised by the Act
for Establishing Energy Supply Resilience enacted in June
2020. The revisions included licensing provisions regarding
the (1) specified wholesale supply business and the (2)electricity distribution business. Also known as aggregators,(1) licensees aggregate and adjust the electricity of many
DER, including through demand response, and supply
the electricity to electricity retailers and other buyers. (2)Licensees balance electricity supply and demand andengage in other distribution operations in a specified area,
using the distribution grid of a general transmission anddistribution utility. These businesses will begin operatingin April 2022. (For more information on (b), see “2. (5) Efforts(3) Organization for Cross-regional Coordination ofTransmission Operators (OCCTO)

to Improve Resilience and Increase Use of Renewables in Power
Transmission and Distribution Sector” in Chapter IV.)

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

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

The Electricity and Gas Market Surveillance Commission
was established in September 2015—as a separate
entity from the Agency for Natural Resources and Energy
directly reporting to the Minister of Economy, Trade andIndustry—in advance of the liberalization of electricity, gas,and heating supply, with the aim of further strengthening
monitoring of the energy markets and related functions andencouraging 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
reviews of retailer registrations. It also has the power to

OCCTO was established in April 2015 as a governmentauthorized organization that all electricity utilities are
required to join. Its objectives are to promote developmentof the transmission and distribution networks required
to make cross-regional use of generating sources, andto strengthen the industry’s capacity to adjust supply
and demand nationwide in both normal and emergency
situations. OCCTO is operated as a public organization
authorized under the Electricity Business Act.
OCCTO’s main functions include:• To coordinate supply-demand plans and grid plans, boost
the transmission infrastructure (including the capacity of
frequency converters and interregional interconnections),
and facilitate nationwide grid operation spanning different
areas.
• To coordinate cross-regional supply-demand balancing
and frequency adjustment by the transmission operators ineach area under normal conditions.
• To adjust supply and demand by instructing that output
be increased and power shared in the case of power
shortages due to a disaster or other emergency.
• To perform, in an unbiased manner, functions relating to
the acceptance of connections from new power sourcesand disclosure of grid data
• To provide guidance and recommendations to electric
power suppliers, handle complaints from electric power
suppliers, and resolve disputes.
• To study, design in detail, and run both a capacity market
and a balancing market.
• To study the efficient use of electricity transmission anddistribution facilities (“connect and manage”).
• To check the content of disaster response coordinationplans and operate a mutual assistance system for disasterrecovery costs.*• To formulate cross-regional network development plans
and submit them to the government.*• To grant subsidies related to the feed-in tariff (FIT) scheme
for renewable energy and grant premiums related to thefeed-in premium (FIP) scheme.*• To manage the reserve fund for the disposition of solar
panels and other hardware components.**New functions added in conjunction with the June 2020 enactment of the Act for Establishing Energy Supply Resilience..

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The Electric Power Industry in Japan 2022

II. ENERGY AND ENVIRONMENTAL POLICY

1. Strategic Energy Plan
In October 2020, the Japanese government announced
its goal of making Japan carbon neutral by 2050. This wasfollowed in December by the government’s unveiling of the“Green Growth Strategy Through Achieving Carbon Neutrality
in 2050,” which lays out a vision for achieving carbon neutrality
by setting high targets for 14 growth industries and byimplementing a comprehensive set of policies. In April
2021, the government declared that it would seek to reducegreenhouse gas emissions in fiscal 2030 by 46% from the levelin fiscal 2013, and thereafter further strive toward 50%. To lay
out the path to realizing these goals, the Cabinet approved
the Sixth Strategic Energy Plan.
The Plan looks back at the actions taken over the ten years
that followed the Fukushima Daiichi Nuclear Power Plant
accident (hereafter, “Fukushima Daiichi accident”) andunderscores the government’s duty to carry the disasterarea’s reconstruction process to completion. The Plan alsolays out two other key focuses: responding to climatechange, and tackling the challenges associated with Japan’s
energy supply and demand structure. The basic concept of
the Plan is to achieve what are referred to as the “S+3E”—
namely, striving for energy security in way that gives toppriority to safety and balances both economic efficiency andenvironmental protection.

currently practical decarbonization technologies to pursue
new options that need to be innovated, such as hydrogen/ammonia power generation, or thermal power generation
founded on carbon storage and reuse through CCUS (see“1. (2) Future Plans” in Chapter IV).

(2) Policy Measures towards 2030
The following goals are set for the S+3E concept: (1)regarding energy security, an improvement in energy selfsufficiency to approximately 30%); (2) regarding economic
efficiency, a reduction of costs in the face of an anticipatedincrease in surcharges arising from widening adoption ofrenewables; (3) regarding the environment, the pursuit of,among other greenhouse gas reduction targets, a reductionof energy-related CO2 emissions by approximately 45%; and(4) regarding safety, action to increase the safety of nuclear
power.

Power Generation Mix in Fiscal 2030
Total power generation
approx. 1,024 TWh

Non-fossil
24%

The Plan maps out the challenges and actions for achievingcarbon neutrality in 2050, as well as government policy
measures to be implemented towards 2030 based on thosechallenges and actions.

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

10

Figure 2 . 1

Total power generation
approx. 934 TWh

Renewableenergy18%
Nuclear 6%

Hydrogen &ammonia1%

Non-fossil
59%

LNG
37%

Nuclear20–22%

Fossil
76%

Coal
32%

Renewableenergy36%–38%LNG
20%Fossil
41%

Coal
19%

Oil, etc. 7%

FY2019

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

Oil, etc. 2%

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

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

According to the Plan’s outlook for energy supply anddemand in fiscal 2030, electricity demand will be contained
at 864 TWh despite anticipated economic growthby pursuing thoroughgoing energy (electric power)
conservation efforts. Regarding the power generation
mix, the Plan aims to realize a well-balanced mix thatenables simultaneous achievement of the S+3E by making
renewables the main power source, restarting nuclear
power plants with top priority placed on safety, andreducing dependence on thermal power generation as
much as possible. Specifically, the energy mix (in terms ofelectric power generated) in fiscal 2030 will be raised theshare of renewables from the previous Plan’s target of 22%–
24% to 36%–38% (the actual level in fiscal 2019 was 18%),
while nuclear power’s contribution will be kept at 20%–22%.
The share of thermal power will be minimized as muchas possible by steadily phasing out inefficient coal-fired
generation, while retaining the installed capacity needed toprovide a supply capacity capable of countering momentaryor sustained drops in electricity generation from renewables.
Specifically, the Plan aims to reduce dependence on LNG
and coal from 37% and 32% in 2019 to 20% and 19% (Figure
2.1).

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

The March 2011 accident at Tokyo Electric Power Company’s
Fukushima Daiichi Nuclear Power Plant (Fukushima Daiichi
accident) led to an overhaul of the system of administrationof nuclear power in order to separate safety regulationfrom its use and to unify nuclear safety regulation work. The
Nuclear Regulation Authority (NRA), comprising a chairman
and four commissioners, was established in September 2012as an affiliated agency of the Ministry of the Environment.
As a result of this change, the resumption of a nuclear
power plant’s operation is predicated on the acquisition oflicensing through a safety review performed in accordancewith the NRA’s New Regulatory Requirements (described
below), and on the local governments’ consents (not a legal
requirement).

Safety Measures Required by New Regulatory Requirements

Establishment of emergency
response center
Measures against
deliberate plane crashes

Securing of electricity
supply capabilities

Figure 2 . 2

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

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

Securing of alternative
water injection capabilities

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

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

11

The Electric Power Industry in Japan 2022

b. New Regulatory Requirements

c. Initiatives by the Private Sector

The Act on the Regulation of Nuclear Source Material,
Nuclear Fuel Material and Reactors (Nuclear Reactors
Regulation Act) was revised following the Fukushima Daiichi
accident. The main revisions are as follows.
• Thorough reinforcement of regulatory standards fornuclear facilities to include measures against severe
accidents (Figure 2.2).
• Requirement for bringing existing nuclear power facilities
into conformance with new standards informed by thelatest insights (introduction of a backfitting program).
• Setting the period of operation of electricity-generating
nuclear reactors at 40 years. Also, limiting the extension of thisterm to one time only and a length not to exceed 20 years.
• Integration of nuclear power safety regulations with the
Nuclear Reactors Regulation Act (separation from theElectricity Business Act).

Alongside the measures being taken by the regulatory
agencies, in November 2012 the nuclear power industry,
seeking to prevent the occurrence of accidents like the
Fukushima Daiichi accident, launched the Japan Nuclear
Safety Institute (JANSI) as an organization for encouraging
nuclear power plant operators to voluntarily strive for safety
excellence. JANSI advances efforts to ensure a higher levelof safety at each power plant through approaches that go
beyond the regulatory framework. In order to firmly implant
this initiative, the nuclear power industry also establishedthe Atomic Energy Association (ATENA) in July 2018 as anorganization whose role is to draft effective safety measuresby leveraging insights and resources across the industry andby engaging in dialogue with regulatory authorities. JANSI
and ATENA are working together to encourage nuclear
power plant operators to introduce more effective safetymeasures, with the goal of raising the safety standards ofnuclear power plants.

The NRA verifies whether the installation, operation, etc.
of electricity-generating nuclear reactors conform to the
New Regulatory Requirements through the following
3-tier regulatory review process. Tier 1 grants permission
for changes in reactor installation; Tier 2 approves theconstruction plan and requires preservice inspections; andTier 3 approves the operational safety program and requires
the passing of pre-service inspections.

(2) State of Nuclear Power Generation
Prior to the March 2011 Fukushima Daiichi accident, Japan
had 57 nuclear reactors in operation, and nuclear power
accounted for roughly 25% of the total electric power
generated in fiscal 2010. In 2014, all nuclear reactors
were provisionally shut down. After it became possible

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

12

II. E N E R G Y A N D E N V I R O N M E N TA L P O L I C YCurrent State of Nuclear Plant Reviews and Restarts

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

Table 2.1

Restarted

10 units

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

Electric Power
Plant
Company
KansaiTakahama Unit 3

Feb. 26, 2016

KansaiTakahama Unit 4

Jun. 16, 2017

KansaiOhi Unit 3

Apr. 10, 2018

KansaiOhi Unit 4

Jun. 5, 2018

Kansai

Mihama Unit 3

Jul. 27, 2021

Shikoku

Ikata Unit 3

Sep.7, 2016

KyushuGenkai Unit 3

May 16, 2018

KyushuGenkai Unit 4

Jul. 19, 2018

KyushuSendai Unit 1

Sep. 10, 2015

KyushuSendai Unit 2

Nov. 17, 2015

Restart date7 units

Under Tier 1 review (including 2 units under construction)

10 units

Applications not yet filed (including 1 unit under construction)

9 units

Total (including 3 units under construction)

36 units

To be decommissioned

24 units

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

Source: Compiled from Japan Atomic Industrial Forum, Inc.,“Current Status of Nuclear Power Plants” (August 10, 2021)
and other materials

Nuclear Power Plant Capacity Factor (calendar year basis)

Capacity factor [%]Table 2.2

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

68.3

38.0

4.4

3.6

0.0

1.2

5.0

8.4

15.0

21.4

15.5

Source: Compiled from Japan Atomic Industrial Forum, Inc., “Current Status of Nuclear Power Plants” (August 10, 2021)

to determine the economic viability of each plant in lightof the New Regulatory Requirements, 24 of the reactors,
representing aging small and medium-sized models, wereselected for decommissioning. As a result, the number ofreactors fell to 36 (including three under construction) as ofAugust 2021. Starting in 2015, some of those reactors werebrought back into service, with a total of 10 operating as ofAugust 2021 (nuclear power provided around 5% of total
electricity generated in 2020).
One of the restarted reactors, the No. 3 reactor at Kansai
Electric Power Company’s Mihama plant, had exceeded its
mandated service life of 40 years but was able to resume
operation in July 2021 through an extension approved by
the NRA, which was the first such approval to be granted.

However, the reactor was stopped again in October 2021 for
failure to complete its specialized safety facility1 on schedule.
Of the 36 available reactors, 27 (including two underconstruction) applied for permission for change in reactor
installation under the Tier 1 review. Permission was granted
to 17 reactors, and 10 of them were able to resume
operation after passing the Tier 2 and 3 reviews and gaining
their local governments’ consents (Table 2.1). However, all 27
need to return to full operation in order for Japan to achieve
the goal of raising nuclear energy’s contribution in the fiscal
2030 power generation mix to 20%–22%, as envisioned by
the Sixth Strategic Energy Plan approved by the governmentin October 2021.

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

13

The Electric Power Industry in Japan 2022

For reference, the capacity factor of nuclear power plantsfrom 2010 to 2020 is listed in Table 2.2.

(3) Nuclear Fuel Cycle

with the New Regulatory Requirements. Following areview, the application was approved by the NRA in July
2020. Construction of the new facilities is expected to becompleted in fiscal 2022.

a. Basic Policy

Japan, a country lacking in energy resources, has adopted
a basic policy that seeks to make effective use of resources
and reduce the volume and harmfulness of high-level
radioactive waste by pursuing a nuclear fuel cycle that
reprocesses spent fuel and effectively utilizes the plutonium
and other fuels recovered (as outlined in the 6th Strategic
Energy Plan, approved by the Cabinet in October 2021).
To this end, the Federation of Electric Power Companies ofJapan (FEPC) unveiled in December 2020 its “Pluthermal
Program” (“pluthermal” is a portmanteau of “plutonium”
and “thermal [reactor]”), the main focus of which is toexpeditiously maximize the use of MOX made fromplutonium as a fuel for light water reactors. This program
responds to several needs, such as maintaining energy
security and fulfilling Japan’s principle of not possessing
plutonium stocks that have no purpose. FEPC studied
all operating reactors for inclusion in the program, andannounced in December 2020 that it would implement it for
at least 12 reactors2 by fiscal 2030.
b. JNFL’s Nuclear Fuel Cycle Operations

Japan Nuclear Fuel Ltd. (JNFL), which is owned by anumber of electric power companies and other privatesector enterprises, engages in five nuclear fuel cycle
operations at its sites in Rokkasho Village, Aomori Prefecture:uranium enrichment, reprocessing, MOX fuel fabrication,
management of high-level radioactive waste, and disposalof low-level radioactive waste.
Its enrichment plant began operating in 1992. In May 2017,
JNFL received the NRA’s approval of its application for
permission to switch to using a new, cost-efficient type ofcentrifuge offering improved performance and to introduce
other changes in compliance with the New Regulatory
Requirements enacted after the Fukushima Daiichi accident.
JNFL voluntarily suspended its operation of enrichment in
the following September in order to carry out construction
for the upgrades being made to its enrichment plant.
JNFL’s reprocessing plant (maximum capacity: 800 tU/year), the construction of which began in 1993, started
accepting spent fuel in 2000 and launched active
testing in 2006. An application was filed with the NRA
for approval of operational changes needed to conform

14

Construction of the MOX fuel fabrication plant (maximum
capacity: 130 tHM/year) started in 2010 and is scheduled forcompletion in fiscal 2024.
The Vitrified Waste Storage Center receives vitrified highlevel waste (HLW) of ten Japanese utilities from theirreprocessing contractors in the UK and France, and holds
it in interim storage for 30 to 50 years. The return of HLWgenerated through reprocessing in France (1,310 casks intotal) started in 1995 and completed in 2007. JNFL has been
receiving the HLW processed in the UK since 2010.
The Low-Level Radioactive Waste Disposal Center has been
disposing of low-level waste from nuclear power plants inJapan since 1992 in underground pits.
c. Recyclable-Fuel Storage Center (interim storage of spent
fuel)Tokyo Electric Power Company Holdings (TEPCO) and theJapan Atomic Power Company are currently building afacility in Mutsu City, Aomori Prefecture, for dry-cask interim
storage of spent fuel until it is transported to a reprocessing
plant, which will start with 50-year storage of up to 3,000t, and its capacity will be ultimately expanded to 5,000 t.
Approval of the application for operational changes tocomply with the New Regulatory Requirements was granted
in November 2020, and operation is expected to begin in
fiscal 2023, following the completion of additional safety
features and other construction.
d. Disposal of High-level Radioactive Waste

As for high-level radioactive waste generated from spent
fuel, the Nuclear Waste Management Organization of Japan(NUMO) was established in 2000 by mainly electric powercompanies to implement final disposal of the waste, and
METI published in July 2017 the Nationwide Map of ScientificFeatures for Geological Disposal showing potential candidate
sites as a preparatory step toward final disposal. In October
2020, Suttsu Town and Kamoenai Village in Hokkaido each
voted to accept a literature review,3 which is the first stepin the process of host selection. NUMO initiated literature
reviews in both municipalities in the following month.

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

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

e. Development of Fast Reactors and High-temperature
Gas-cooled Reactors

In line with the Japanese government’s basic policy for
dealing with the country’s limited energy resources, theJapan Atomic Energy Agency (JAEA) constructed the
Joyo experimental fast breeder reactor (thermal output:
140,000 kW), and later the Monju prototype fast breeder
reactor (electrical output: 280,000 kW), which reached its
first criticality in April 1994. However, in December 2016,
the government finally decided to decommission Monju
for several reasons, including a series of accidents thatbegan with a sodium leak in 1995, concerns over the JAEA’s
competence to operate the reactor, and poor economic
viability. Fast reactor research and development using the
Joyo experimental reactor at Oarai Research & Development
Institute in Ibaraki Prefecture will continue to be pursued
in partnership with other countries following the roadmap
developed in accordance with the new policy on fast reactor
development adopted by the Inter-Ministerial Council for
Nuclear Power in December 2016.
In July 2021, the JAEA restarted the HTTR (High Temperature
Engineering Test Reactor; thermal output: 30,000 kW) at
Oarai Research & Development Institute after a hiatus often and a half years. The HTTR is a high-temperature gascooled reactor that was built to perform demonstration

tests such as extracting high-temperature helium gas(950°C) and using it to produce hydrogen. The resumptionof its operation is expected to lead to implementation ofresearch contracts from the OECD Nuclear Energy Agency
and to bilateral collaborations with countries such as the
UK and the USA. Full-scale hydrogen production testing isscheduled to start around 2028.

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

In December 2011, nine months after the Fukushima Daiichi
accident, Fukushima Daiichi’s reactors were declared to
be in cold shutdown and TEPCO released a roadmap fordecommissioning Units 1–4 and dealing with radioactive
contaminated water resulting from the decommissioning
process. The roadmap was most recently revised in
December 2019. By October 2020, radiation levels in thesurrounding area had decreased by 80% (Figure 2.3) andChanges in Air Dose Rate

Figure 2.3

8 years later

November 5, 2011

October 2, 2020
Source: Reconstruction Agency, “Acceleration of Reconstruction Efforts”

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

15

The Electric Power Industry in Japan 2022

Milestones on the Mid- to Long-Term Roadmap

Initiatives toward stabilization
Achievement of cold shutdown
Major reduction in radiation
releaseDecember 2011

Phase 1
Period from start of spent fuelassembly removal(2 years or less)Figure 2.4

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

December 2021

(start of spent fuel assembly
removal from Unit 4)

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

Phase 3-1

End of 2031

30 to 40 years later

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

gradual progress was being made in reconstruction and thereturn of displaced residents. The latest revised edition gives
top priority to safety and early reduction of risk and calls
for simultaneously advancement of both reconstruction
and decommissioning work. The roadmap lays out several
key tasks, including removal of spent fuel from the reactor
buildings’ spent fuel pools, retrieval of melted fuel debris,and control of radioactive contaminated water. The entire
decommissioning project is divided into three phases
expected to span 30 to 40 years (Figure 2.4). Phase 1, whichbegan with the completion of the reactors’ cold shutdown
in December 2011 and ended in November 2013, laid
the groundwork for the commencement of operations
to remove the spent fuel. Phase 2, scheduled to last until
December 2021, initiated the process of spent fuel removal
and is advancing preparations for the start of debris retrieval.
Phase 3 will launch debris retrieval work and end with thecompletion of all decommissioning operations.
b. Removing Fuel from Spent Fuel Pools

After the accident, it was decided in the interests of risk
mitigation to remove the spent fuel then being stored in
the spent fuel storage pools at Units 1–4 and to store it ina shared pool at the site. The removal of spent fuel fromthe pool in Unit 4, where the most spent fuel was stored,
was completed in December 2014, and work to remove
spent fuel from Unit 3 ended in February 2021. Currently,
a platform for aiding fuel removal at Unit 2 is being
constructed, and rubble impeding fuel removal at Unit 1 isbeing taken away. The entire removal process is slated forcompletion in 2031.

16

c. Retrieval of Fuel Debris

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 the debris emits extremely high levels ofradiation that preclude entry by personnel, a plan was madeto retrieve the debris in the Unit 2 reactor with a roboticarm, starting in 2021. However, the plan was set back byaround one year due to, among other issues, the spread of
COVID-19 in the UK, where fabrication and testing of therobotic arm was underway.
d. Control of Radioactive Contaminated Water

The amount of radioactive contaminated water has
increased in Units 1–3 as a result of the mixing of inflowing
groundwater with water pumped into the reactor buildings
to cool the fuel debris. In response, three strategies havebeen implemented: treatment of the contaminated water,
prevention of groundwater intrusion, and preventionof leakage of the contaminated water. The radioactive
contaminated water is being treated to a level below
the discharge standards using a Multi-nuclide Removal
Facility (Advanced Liquid Processing System: ALPS) andother equipment, and the treated water is stored on site.
Since the amount of this water has continued to grow, thegovernment decided in April 2021 to release the water
into the ocean after diluting the concentration to below
the legal limit. In July, an agreement was reached with theInternational Atomic Energy Agency (IAEA) concerning thescope of its technical assistance for the discharge of thetreated water. Prior to the scheduled discharge in 2023, the
IAEA will conduct a safety review of the plan, monitor theII. E N E R G Y A N D E N V I R O N M E N TA L P O L I C YInstalled Capacity of Renewable Energy (as of end December 2020)

Table 2.3
[Unit: MW]

Combined total
by end June 2012

Combined capacity
installed under FIT

Solar power (residential)

4,700

7,461

12,161

Solar power (non-residential)

900

47,39048,290Wind power

2,600

1,955

4,555

Small / medium hydropower

9,600

670

10,270

Biomass

2,300

2,606

4,906

500

91

591

20,60060,17480,774Type

Geothermal power
Total

Total

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

area of release, and carry out other preparations. In August
2021, the TEPCO announced its intention to dilute thetritium concentration of the water to one seventh of theWHO’s drinking water standard by adding large volumesof seawater, and to discharge the diluted water at a point
approximately one kilometer off the coast of the power
plant, via a tunnel that will be bored in the bedrock.

(2) FIT Scheme and Issues

3. Renewable Energy

The electricity supply sources, purchase prices and purchaseperiods covered by the FIT scheme for each fiscal year are to
be determined by METI. The purchase prices and periods forfiscal 2020 are as shown in Table 2.4. Under the FIT scheme,
electricity utilities are permitted to pass on their costs forthe purchase of electricity generated by renewable energy
sources to their customers in the form of a surcharge by
including them in the electricity bill. The surcharge for fiscal
2021 is 3.36 yen per kWh (2.6986 trillion yen for Japan asa whole), or 10,483 yen per year for the standard model
household. Under this system, electricity utilities collectthe surcharge from customers based on electricity sales
volume and transfer the funds to a cost-bearing adjustment
organization called the Green Investment Promotion
Organization (from April 2022 onward, the Organization
for Cross-regional Coordination of Transmission Operators),
which refunds their purchase costs to them in due course(Figure 2.5).

(1) Current Status and Targets
The Sixth Strategic Energy Plan that was announced by
the government in October 2021 sets as its top priority thetransformation of renewable energy into the main electric
power source. It thus calls for maximizing the adoption ofrenewables. To this end, it lays out the goal of raising thecurrent target for renewable energy’s contribution to power
generation in 2030 from 22%–24% to 36%–38% (see “1.
Strategic Energy Plan” in this chapter).
To assist the adoption of renewables, a system forpurchasing excess electricity generated by solar power
plants was launched in November 2009, and a feed-in tariff(FIT) scheme covering a wider range of power sources (seebelow for details) was introduced in July 2012. This scheme
accelerated capital investment in renewables, with installedcapacity growing by 60 GW between the launch of the FIT
scheme and the end of December 2020. Including preFIT capacity, total installed renewables capacity reachedapproximately 81 GW.

The government passed the Act on Special Measures
Concerning Procurement of Electricity from Renewable
Energy Sources by Electricity Utilities in August 2011, which
requires the electricity utilities to purchase all the electricity
generated from renewable energy sources (includinghydropower plants with a capacity of under 30 MW). Thisact led to implementation of the FIT scheme for renewableenergy on July 1, 2012.

The scheme also contains a provision that reduces thesurcharge for industrial customers who use extremely highvolumes of electricity and who satisfy certain conditions.

17

The Electric Power Industry in Japan 2022

Outline of the FIT Scheme

Figure 2.5

Those engaged in
the power generation
business using renewableenergy sources

Sale of electricity produced fromrenewable energy sources

Solar power

Purchase of electricity at a fixedprice for a governmentguaranteed period

Wind power

Electric powercompanies
Electricity supply

Collection of surcharge together
with electricity charge
Submission ofcollected surcharge

Payment forpurchase cost

Small- andmedium-scalehydro power

Electricity customers

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

GeothermalPower

BiomassThose who generate power
at home

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

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

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

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

Government

Source: Green Investment Promotion Organization website

Sakai Solar Power Station (Kansai Electric Power Co.)18

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

Purchase Prices and Durations under the FIT Scheme
Purchase price [yen/kWh]Purchase category

Solar

Table 2.4

FY2017 FY2018 FY2019 FY2020 FY2021

Output controller not required

28

26

24

Output controller required*1

30

28

26

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

25

24

27

26

10 kW–50 kW
50 kW–250 kW

21

250 kW–500 kW

18

14

19

13

12

12

11

Bidding system

500 kW–2,000 kW

55

20 kW or above Newly installed
250 kW or above

21

20

19

18

17
Biddingsystem

18

17

16

16

Bottom-fixed offshore wind power

36

36

36

Biddingsystem32

Floating offshore wind power

36

36

36

36

36

Less than 15,000 kW

40

40

40

40

40

15,000 kW or above

26

26

26

26

26

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

30

30

30

30

30

15,000 kW or above

20

20

20

20

20

Geothermal (replacement ofequipment excepting
underground equipment)Less than 15,000 kW

19

19

19

19

19

15,000 kW or above

12

12

12

12

12

Less than 200 kW

34

34

34

34

34

200 kW–1,000 kW

29

29

29

29

29

Offshore wind power
Geothermal

Hydro

Hydro using existing
conduits*2

Biomass

Replacement capacity

15

1,000 kW–5,000 kW

27

27

27

27

27

5,000 kW–30,000 kW

20

20

20

20

20

Less than 200 kW

25

25

25

25

25

200 kW–1,000 kW

21

21

21

21

21

1,000 kW–5,000 kW

15

15

15

15

15

5,000 kW–30,000 kW

12

12

12

12

12

Methane fermentation gasification(biomass-derived)

39

39

39

39

39

Less than 2,000 kW

40

40

40

40

40

2,000 kW or above

32

32

32

32

32

13

13

13

13

13

17

17

17

17

17

Woody biomass(thinnings, etc.)20

Bidding system

Less than 20 kW

All capacities

10

Bidding system

2,000 kW or above

Onshore wind power

21

Duration

Construction material
All capacities
waste
General waste and otherAll capacities
biomass

20

15

20

20

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

19

The Electric Power Industry in Japan 2022

As the investment in renewable energies has increased
and FIT-approved capacity has grown since 2012, problems
have emerged and the government revised the FIT scheme
in 2016. Many solar power generation projects remain
unfinished despite having already been approved under
the FIT scheme. Most of these were approved between
2012 and 2014 just after the launch of the FIT scheme
when purchase prices were high, and so the government
revised the startup deadlines and purchase prices for theseprojects. Regarding wind power, geothermal, small/mediumhydropower, and biomass power generation, the pricing
system was changed to allow purchase prices to be set for
multiple years. A tender scheme for solar power generation
and biomass generation above a certain level has also
been introduced to bring down purchase prices. Results oftenders are shown in Table 2.5 and 2.6.

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

(4) Development of Legal Framework for Advancing
Offshore Wind Farm Projects, and Start of Bidding
Expectations for the potential of offshore wind power
continued to rise as efforts to expand onshore wind power,
mired by locational constraints and other issues, progressedmore slowly than the installation of solar power systems
after the launch of the FIT scheme in 2012. Accordingly, thegovernment enacted the Act on Promoting Utilization of Sea
Areas for Development of Power Generation Facilities Using
Maritime Renewable Energy Resources to lay out, among
other things, rules for lease agreement of maritime areas andthe process for coordinating the interests of stakeholders
such as members of the fishing industry. Under this act,
which went into effect in April 2019, the government
designates certain offshore areas suited for wind power
generation as targeted promotional areas and selects
developers by tender to carry out projects in those areas.
In June 2021, a developer was selected for an area off Goto
City, Nagasaki Prefecture. Also, tenders have been taken for
two areas off Akita Prefecture and one off Chiba Prefecture.
Many Japanese utilities are seeking to enter this market
through collaboration with various partners, particularly
European utilities experienced in developing offshore windfarms. Because of the potential for installing large generation
capacity and reducing costs, the government sees offshore
wind power as a trump card for making renewable energy
the main source of electricity, and is studying options suchas developing a system for DC power transmission from thegenerating areas to consumption areas. .

Yonago Biomass Power Station
The Yonago Biomass Power Station is a woody biomass electric power plant witha power output of 54,500kW. The estimated annual generated energy isapproximately 390 million kWh. The commercial operation is scheduled in March
2022. The investment ratio of Chubu Electric Power Co. is 30 %.

20

II. E N E R G Y A N D E N V I R O N M E N TA L P O L I C YResults of Tenders for Solar Power Generation
TimingTable 2.5

Eligible facilities

Successful bids

First tender (November 2017)

2,000 kW or above

Total output: 141,366 kW (9 bids)
Successful bid price: 17.20–21.00 yen/kWh

Second tender (September 2018)

2,000 kW or above

No bids came in below the ceiling priceThird tender (December 2018)

2,000 kW or above

Total output: 196,960 kW (7 bids)
Successful bid price: 14.25–15.45 yen/kWh

Fourth tender (September 2019)

500 kW or above

Total output: 195,883 kW (63 bids)
Successful bid prices: 10.50–13.99 yen/kWh

Fifth tender (January 2020)

500 kW or above

Total output: 39,818 kW (27 bids)
Successful bid prices: 10.99–13.00 yen/kWh

Sixth tender (November 2020)

250 kW or above

Total output: 368,373.5 kW (254 bids)
Successful bid prices: 10.00–12.00 yen/kWh

Seventh tender (December 2020)

250 kW or above

Total output: 69,400.5 kW (254 bids)
Successful bid prices: 10.48–11.50 yen/kWh

Eighth tender (June 2021)

250 kW or above

Total output: 208,000.0 kW (254 bids)
Successful bid prices: 10.00–10.98 yen/kWh
Source: Compiled from Green Investment Promotion Organization website.

Results of Tenders for Biomass Power Generation
TimingTable 2.6

Eligible facilities

Successful bids

December 2018

Facilities that generate power output of 10,000 kW or moreusing general wood material and other biomass

Total output: 2,000,000.0 kW (1 bid)
Successful bid price: 19.60 yen/kWh

December 2018

Facilities that generate power using liquid biomass fuelNo bids came in below the ceiling price

January 2020

Facilities that generate power output of 10,000 kW or moreusing general wood material and other biomass

No bids came in below the ceiling priceDecember 2020

Facilities that generate power output of 10,000 kW or moreusing general wood material and other biomass

Total output: 1,920.0 kW (1 bid)
Successful bid price: 18.50 yen/kWh

Source: Compiled from Green Investment Promotion Organization website.

Ministry of the Environment: Project for the Promotion of Practical
Applications of Tidal Power Generation Technology• Project launch: June 2019• Operator: Kyuden Mirai Energy Company, Incorporated•System: Output, 500kW; Manufacturer, SIMEC Atlantis Energy

Choshi Offshore Wind Power Station (TEPCO Renewable Power)

21

The Electric Power Industry in Japan 2022

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

At the 21st Conference of the Parties to the United Nations
Framework Convention on Climate Change (COP21) heldin December 2015, 195 countries and regions adopted theParis Agreement, which addresses greenhouse gas (GHG)
emission reductions from 2020 onward. The Paris Agreement
sets forth long-term shared global targets, including
containing the average global temperature increase at 2°C
above pre-industrial revolution levels and striving to keep
it no higher than 1.5°C, as well as balancing anthropogenic
GHG emission and absorption in the second half of thiscentury. The agreement requires all signatories to set out
emissions reduction targets as well as the domestic policies
to be employed to achieve those targets. The extent towhich those targets have been attained is to be evaluatedevery five years.
The Japanese government set in 2015 the goal of reducing
emissions in fiscal 2030 by 26.0% from fiscal 2013, andestablished in June 2019 a reduction target of 80% for fiscal
2050. Both goals were reported to the UN Secretariat.
Subsequently, amidst the rise in the international

community’s interest in addressing global warming, Prime
Minister Yoshihide Suga declared in a policy speech October
2020 that “by 2050 Japan will aim to reduce greenhousegas emissions to net-zero, that is, to realize a carbon-neutral,
decarbonized society.” In the following December, thegovernment announced the Green Growth Strategy as a
specific set of policies for achieving that goal. This action
plan identifies challenges in 14 priority sectors and lays out
processes for tackling them. The goal of achieving carbon
neutrality in 2050 was codified as a core policy througha revision of the Act on Promotion of Global WarmingCountermeasures that was passed in May 2021.
Speaking at the Leaders Summit on Climate hosted onlineby the USA in April 2021, Prime Minister Suga stated thatJapan “aims to reduce its greenhouse gas emissions by 46
percent in fiscal year 2030 from its fiscal year 2013 levels,
setting an ambitious target which is aligned with the longterm goal of achieving net-zero by 2050” and “will continue
strenuous efforts in its challenge to meet the lofty goal of
cutting its emission by 50 percent.”b. Green Growth Strategy

In December 2020, the government released the Green
Growth Strategy (GGS) as an industrial policy for creatinga virtuous cycle of economic growth and environmental
protection that would pave the way for achieving carbon
neutrality in 2050. It establishes 14 priority sectors andGovernment Action on GHG Reduction Targets
Date

Table 2.7

Trend

December 1997

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

October 1998

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

April 2005

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

July 2015

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

December 2015

Paris Agreement adopted.

June 2019

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

October 2020

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

December 2020

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

April 2021

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

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

hydrogen as a key realm of technology that can be applied
to decarbonization across many different sectors, such as
power generation, industry, and transport. Plans include
developing hydrogen-fueled gas turbines, establishing themarket for this technology, and exporting the technology toother parts of Asia. One more example of the energy-related
strategies is to implement comprehensive measures formaking all new vehicles sold electrified by no later than the
mid-2030s. The government will study detailed policies forworking toward this goal.

outlines the challenges of each and how they will be
resolved, providing a roadmap for attaining carbon neutrality
through the use of key policy tools such as grant funding, tax
incentives, financial guidance, and international collaboration.
The GGS’s 14 focus areas include several energy-related
sectors, one of which is offshore wind power. Here, thegovernment is considering increasing generation capacity
to 10 GW by 2030, and to 30–40 GW by 2040, constructing
grids to connect wind farms to areas with power demand(DC power transmission), and carrying out harbor and port
improvements needed to install, maintain, and manage
large wind turbines. The GGS also calls for the leveraging ofammonia, which does not emit CO2 when combusted, as aneffective fuel for thermal power generation, particularly cofiring with coal. The goal is to establish practical technology
for 20% ammonia co-firing and introduce and spread its use
domestically by 2030, followed by transfer of the technology
to Southeast Asian countries. Moreover, the GGS positions(2) GHG Emissions and Voluntary Efforts by thePrivate Sector
a. GHG Emissions in Japan

In fiscal 2019, Japan’s GHG emissions measured 1,212 million
tons (CO2 equivalent), and emissions of CO2 accounted
for 91.4% (1,108 million tons) of this total. CO2 emissions
showed 15.9% decrease from fiscal 2013 and a 14.4%
decrease from fiscal 2005 (Figure 2.6).

Changes in CO2 Emissions by Sector

Figure 2.6

500 [Million tons-CO2 ]

503

463

467

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

Industrial (plants, etc.)
400<-17.0%>(-17.7%)384

300

Transportation (vehicles, etc.)
244
Operations and others

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

200

238

220

206<-8.2%>(-15.7%)

224
208

171

131
100

129

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

96

0

66
24
6.7

Waste (incineration, etc.)
Other emissions (agriculture, indirect CO2 emissions, etc.)<-23.3%>

Residential

159 (-6.6%)

102

106

56

Industrial processes and use of products

32

4.6

<-18.8%>193 (-12.4%)

49
30
3.6

89 <-15.9%>(-12.8%)<-7.4%>

45 (-20.0%)
31 <+3.2%>(-3.5%)
3.1 <-13.3%>’90 ’91 ’92 ’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16 ’17 ’18 ’19(-32.8%)[ FY ]

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

Source: Ministry of the Environment, “Japan’s National Greenhouse
Gas Emissions in Fiscal Year 2018 (Final Figures)” (2020)23

The Electric Power Industry in Japan 2022

CO2 emissions in individual sectors have been decreasing
since 2013, and declining by 17.0%, 18.8%, and 23.3%
respectively in the industrial sector, the commercial sector,
and the residential sector between fiscal 2013 and fiscal
2019. 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. CO2 Emission and Global Warming Countermeasures
Implemented by the Electric Power Industry

The Federation of Electric Power Companies of Japan(FEPC) (consisting of former general electricity utilities)
is participating in the Commitment to a Low Carbon
Society that was announced by Japan Business Federationin 2013, and has been promoting measures on both the
supply and demand sides of the electricity. In July 2015,
the 10 FEPC members, J-POWER, the Japan Atomic Power
Co. and 23 PPSs announced their own Commitment toa Low-Carbon Society in the Electricity Industry, which
commits them to achieving a CO2 emission factor in theelectricity in fiscal 2030 of approximately 0.37 kg-CO2/kWh(equivalent to a reduction of 35% from the fiscal 2013 level).
The Electric Power Council for a Low Carbon Society (ELCS)
was established in February 2016 with the aim of moving
forward with the attainment of these targets for all electricity
utilities as a whole. According to data released by ELCS, CO2
emissions in fiscal2020 (preliminary figures) came to 328
million tons-CO2 and the CO2 emission factor was 0.439 kgCO2/kWh.
For some time, FEPC has worked to reduce carbon emissions
from both electric power supply and demand, including
by establishing interconnections with renewable energy
grids and improving the efficiency of thermal power plants.
With the Japanese government’s announcement of thegoal to achieve carbon neutrality in fiscal 2050 and decision
to raise the fiscal 2030 emissions reduction target to 46%(compared with fiscal 2013), FEPC is looking to step up

24

their efforts in this endeavor. In May 2021, FEPC released“Achieving Carbon Neutrality in 2050,” a policy statement
outlining the members’ commitment to maximize theirtransition to renewable energy and make every effort tosolve challenges to the adoption of renewables throughcollaboration with partners such as the government andresearch institutes. The members also see the continued
use of nuclear power generation at a certain scale to be
essential to the achievement of carbon neutrality, and thus
will further utilize this form of energy while voluntarily
making safety improvements. Moreover, they will strive
to decarbonize thermal power generation by seeking toovercome challenges that stand in the way of innovationand deployment of CCUS/carbon recycling and power
generation using the next-generation fuels hydrogenand ammonia. In addition to decarbonizing the supply
side, the path to carbon neutrality also requires actions
on the demand side. Specifically, the members will strive
to maximize the electrification of the industrial, transport,commercial, and residential sectors, including by conducting
R&D on high-efficiency heat pumps to pave the way for theirwide use.
The Transmission and Distribution Grid Council, comprising
the ten general electricity transmission and distribution
utilities, announced in May 2021 “Toward Carbon Neutrality
in 2050: A Roadmap to the Next-generation Electric Power
Network.” Among other policies, the roadmap states thatthe council members will further increase the share of
renewables in their power generation mix and establish
supply/demand control technologies that utilize VPP andother forms of distributed power generation, as part of theircontributions to the achievement of carbon neutrality in
2050.
Figure 2.7 shows CO2 emission trends in the electric powerindustry.

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

CO2 Emissions in the Electric Power Industry

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

600 (CO2 emissions [million tons CO2 equivalent])

0.75
0.70

500

484

409

400

CO 2 emissions

0.570
0.552

317

332
301

275

0.476

200

0.423

0.417

441

0.65

430

411
0.60

373

300

100

415

469

0.487

372
0.531
0.516
0.496

345

0.55

328
0.50

0.463

0.45

0.444 0.439
0.40

CO2 emission factor
0.373
0.351

0.35

0.350

0.30

0

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

Note: Reflected adjustments made for Kyoto Mechanism credits’19 ’20

Source: Compiled from FEPC, “Energy and Environment” (2018)25

The Electric Power Industry in Japan 2022

III. SUPPLY AND DEMAND
Demand had been trending downward since April 2020 due
to the impact of the COVID-19 pandemic, but has shifted
upward since December 2020.

1. Electricity Demand and Peak Load
Japan’s electricity demand increased for the most part until
the early 2000s. The real GDP growth rate in fiscal 2020, a year
in which economic activity was constrained by the COVID-19
pandemic, was -4.6% compared to fiscal 2019, when it stoodat 0.0% versus the preceding year. Annual electricity demand1
has either declined or remained unchanged since reaching959.7 TWh in fiscal 2007, and in fiscal 2020 came to 863.2 TWh(1.6% decrease from previous fiscal year) (Figure 3.1). This trend
is attributable to several factors, including (1) the slowing of
economic growth, (2) improved energy conservation, and(3) demographic decline. More recently, however, growing
solar power generation in the residential sector, which is notincluded in these statistics, also appears to have played a part.
Peak national demand has also remained largely unchanged
since fiscal 2011 and the average of the three highest dailyloads in fiscal 2020 came to 159.2 GW (0.3% increase fromprevious fiscal year).

Power consumption in fiscal 2020 breaks down by use as
follows: 27% residential demand, 34% commercial demand,and 37% industrial demand (Figure 3.2). Industry remains thelargest consumer of electricity. Since the 1990s, however,industrial demand has entered a downward trend due
to changes in industrial structure and growing energy
conservation. Over the longer term, the growth in power
consumption has thus been driven by consumption in nonindustrial sectors, namely the residential and commercial
sectors. Growth in consumption in the commercial sector
has been propelled by growth in offices and commercial
facilities triggered by development of a service economy
and the accompanying use of air conditioners and otherappliances. In the residential sector, the rapid spread ofheating and cooling appliances, such as air conditioners andelectric carpets and other household appliances, driven byrising living standards, ensured that power consumption
continued to grow until fiscal 2005. Growth then leveled

Changes in Electricity Demand, 1975–2020

Figure 3.1[ TWh ]

1,000

918
858

927

960

926

897

931
884

875

876

900
855

842

914

896

877 863

777

750
678

541

500

464
374

250

0

1975 1980 1985 1990 1995 2000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
[ FY ]

Source: Compiled from Agency for Natural Resources and Energy, “Handbook of Electric Power Industry” (2020) and “Surveys and Statistics of Electricity” (2021)

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

26

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

Breakdown of Power Consumption by Sector, 1975–2019

Figure 3.2

Transportation

100%

Industrial

Residential

Commercial

75%

50%

25%

0%

1975

1985

1995

2000

2005

2010

2011

2012

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

2013

2014

2015

2016

2017

2018

2019 [ FY ]Source: Agency for Natural Resources and Energy, “Energy Balance in Japan” (2021)

accident caused consumption to go into decline. In fiscal
2019, non-industrial consumption accounted for 61% of final
power consumption.

off as the population continued to decline, applianceownership reached a saturation point, and energy-saving
devices began to capture a growing share of the market.
In fiscal 2011, increased awareness of the importance ofsaving electricity in the aftermath of the Fukushima Daiichi

Electric Power Consumption over the Course of a Year
90

Figure 3.3[ TWh ]

80

FY2020FY2005FY2015
FY199570
60
50

FY19854030

FY197520

FY1965

10
0

Apr.

May

June

July

Aug.

Sep.

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

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

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

27

The Electric Power Industry in Japan 2022

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

Figure 3.4(Total for 10 electric power companies)
183

178

180

171

160

165

154
Power consumption

140

July 24, 2001
Aug. 23, 2010
Aug. 5, 2005
Aug. 25, 1995
Aug. 2, 2019
Aug. 7, 2015
Aug. 7, 1990

144

120
94

100

88

80

110

92
92

76

July 31, 1975

50

40

32

20
0

Aug. 29, 1985

73

65

60

1

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 Electric Power Co.

Source: Japan Atomic Energy Relations Organization, “Graphical Flip-chart of Nuclear & Energy Related
Topics” (2021)

Annual Load Factor, 1975–2019

Figure 3.5

70%

65%

60%

55%

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

50%

1975

1980

1985

1990

1995

2000

2005

2010

2015

2019
[FY]

Source: Compiled from Agency for Natural Resources and Energy, “Handbook of Electric Power Industry” (2018)
for annual average load / peak load 3-day average (up to fiscal 2015); and OCCTO, “Outlook of Electricity
Supply-Demand and Cross-regional Interconnection Lines” for annual average load / peak load (from fiscal 2015)28

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

In the years preceding the March 2011 Great East Japan
Earthquake, the rise in the non-industrial share of demand
widened the gap between summer/winter demand andspring/fall demand (Figure 3.3), and between daytime andnighttime hours (Figure 3.4) due to the use of electricity forheating and cooling. Since the disaster, however, power
conservation, wider adoption of solar power generation, andother measures have curbed daytime grid power demandduring the summer, thus shrinking the disparities between
the summer and other seasons, and between daytime andnighttime hours during the summer.
Efficiency in the use of generation facilities declines withgrowing variation in demand, pushing up power supply
costs. Nevertheless, while the annual load factor (i.e.,
the ratio of annual average load to annual peak load, an
indicator of the efficiency of use of generation facilities)
followed a downward trend up to the mid-1990s, it actually
improved to 60%–70% from the mid-2000s. This is thanks inlarge part to the introduction of electricity rates designed tolevel loads and nighttime electricity use (Figure 3.5).

2. E
 lectric Power Generated
Electric power generated2 came to 845.4 TWh in fiscal 2020
(2.1% decrease from previous fiscal year). The progressive
shutdown of nuclear power plants following the Fukushima
Daiichi Nuclear Power Plant accident precipitated by the
March 2011 earthquake and tsunami increased dependence
on thermal power plants and caused thermal’s share of power
generated to rise from 79.1% in fiscal 2010 to 82.6% in fiscal
2020 (Figure 3.6). While nuclear power’s share stood at 31.4% 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 90.8%. Since the restart ofUnit 1 of Kyushu Electric Power Co.’s Sendai Nuclear Power
Plant in September 2015, several other plants have gradually
come back online. However, nuclear’s share of power
generated in fiscal 2020 was still only 4.4%.

Power Generation Mix, 1975–2020

Figure 3.6

ThermalNuclear

100
90
80

19%

13%

10%

9%

8%

8%

9%

9%
8%

8%

2%

1%

9%

Hydro

1.5%

1.8%

2.1%

2.5%

10%

9%

10%

10%

10%

1%

2%

3%

7%

7%

4%

81%

81%

83%

2018

2019 2020 [FY]

12%
6%
26%

70

33%

34%

31%

Renewables (excluding hydro)

0.3%

3.1%
10%

31%

60

90%

50

75%
40

90%

91%

89%

88%

85%

2015

2016

2017

79%
60%

60%

57%

56%

1995

2000 2005

2010

60%

30
20
10
0

1975

1985

2011 2012

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

2013

2014

Source: Compiled from Agency for Natural Resources and Energy, “Handbook ofElectric Power Industry” (2020) and “Surveys and Statistics of Electricity” (2021)

2 Electric power generated by electricity utilities.

29

The Electric Power Industry in Japan 2022

Trends in Electric Power Generated by Wind and Solar Energy

Figure 3.7[TWh] 18
16.2

Wind (for business use)

16

Solar (for business use)

14

Wind (self-consumption)
Solar (self-consumption)

12
10
8

7.6

6
4
2
0

2000

2005

2010

2011

2012

2013

2014

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

On the other hand, the construction of renewable energy
installations such as wind and solar power plants has
increased. In fiscal 2020, 7.6 TWh of electric power was
generated by wind power, and 16.2 TWh by solar power(Figure 3.7). As an effect of the FIT scheme launched in July
2012, the use of solar power has saliently increased sincethen, and solar power installations have been growing witheach passing year, not only for business use, but also for
self-consumption.

30

2015

2016

2017

2018

2019

2020 [FY]

Source: Compiled from Agency for Natural Resources and Energy, “Handbook ofElectric Power Industry” 2020) and “Surveys and Statistics of Electricity” (2021)

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

Ten years since the Great East Japan Earthquake, Japan’s
electricity supply and demand situation is improving. Due tothe prolonged shutdown of nuclear power plants, however,the country still remains dependent on thermal power
to ensure a stable supply of electricity. Moreover, a grim
outlook has been forecast for supply and demand going
forward. This is mainly because the lackluster trading prices
in the electric power market in recent years have weakened
the power generation business, leading to a spate ofthermal power plant closures and idlings. Some strategies
for addressing this challenge have been proposed, suchas timing planned outages of generation facilities to takeplace outside periods of peak demand, and ensuring supply
capacity by leveraging markets, demand response, andinterregional electric power sharing.

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

Projected Electricity Demand and Supply Capacity
Electricity demand [GW]

[GW]

200

Figure 3.8

Supply capacity [GW]Reserve margin [%]

[%]
25

180
20

160
140
120

15

100
10

80
60
40

5

20
0

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030 [FY] 0

Source: OCCTO, “Aggregation of Electricity Supply Plans for FY2021”

b. Supply and Demand Projections

As for the electricity supply and demand situation, it hasremained possible in recent years to maintain the minimum
3% reserve margin needed to ensure supply continuity in allareas of Japan. The average rate of change in both electricity
demand and supply capacity over the 10-year period fromfiscal 2021 to fiscal 2030 will be almost 0%, and electricity
demand and supply capacity are expected to remain atcurrent levels (Figure 3.8).

(2) Securing Balancing Capacity
Electricity retailers have to be able to always match supply
and demand, and they secure the necessary supply capacity
to do so. It falls upon general electricity transmission anddistribution utilities to secure the supply capacity required
to be able to deliver adequate electricity to retailers tomeet supply and demand fluctuations. Since fiscal 2017,
the capacity required to balance supply and demand has

been procured by tenders conducted by these transmission
and distribution utilities in order to ensure that balancing
capacity is procured in a fair and transparent manner.
The balancing capacity procured is of two main types: powersource I and power source II. Power source I consists of power
provided by dedicated sources of balancing capacity that arealways available to transmission and distribution utilities; andpower source II consists of surplus power from sources thatcan be used following gate closure for electricity retailers.
Power source I’ provides balancing capacity when weather
conditions are severe, and is procured utilizing generated
output and demand response programs.
In fiscal 2021, 11,110 MW of power source I and 133,810
MW of power source II were procured. In addition, 4,270
MW of power source I’ was procured, of which 1,760 MW ofdemand was met by demand response.

31

The Electric Power Industry in Japan 2022

IV. ELECTRIC POWER FACILITIES

1. Power Generation Facilities1
Total generating capacity in Japan was 312.8 GW at the endof fiscal 2020. This consisted of 51.1% thermal power (14.7%
coal, 26.9% LNG, and 9.5% oil), 10.6% nuclear power, 15.7%
hydro, and 22.5% renewables (excluding hydro). Figure 4.1
shows the breakdown of total generating capacity by powersource at the end of fiscal 2020.

(1) Power Generation Facilities for Electric Utilities
a. Thermal PowerThe total installed capacity of thermal power plants was
159.9 GW as of the end of fiscal 2020. This accounts for
51.1% of Japan’s total generating capacity, making thermal
power the predominant source of electricity. In recent years,
the increasing deployment of variable renewable energy(solar power) has spurred greater need to leverage thebalancing capacity of thermal power to match supply withdemand. The average power generation efficiency (gross

Breakdown of Commercial Power Generation
Facilities by Power Source (FY2020)
Figure 4.1
Wind 1.4%
Biomass andwaste 1.4%

Solar
19.6%

Others 0.3%

LNG
26.9%

Nuclear
10.6%

Oil
9.5%

Total generating capacity 312.8 GW
Source: OCCTO, “Aggregation of Electricity Supply Plans for FY2021”

32

Coal-fired generating capacity came to 45.9 GW. Coalgenerates higher CO2 emissions than other fuels, but offers
superb supply stability and economy. Inefficient coal power
plants are being gradually phased out toward 2030,
meanwhile high efficiency coal power plants are being
developed to further lessen its environmental impact. The
past 20 years have seen emissions reduced by the
introduction of ultra-supercritical (USC) coal power plants.
The government’s approach for phasing out inefficient coal
power is to start offering incentives for curtailing power
generation through the capacity market from fiscal 2021
onward, and to launch in fiscal 2023 a power generation
efficiency benchmark system based on the Act on the
Rational Use of Energy.
LNG-fired generating capacity totaled 84.3 GW. LNG-fired
power plants produce lower SOx, NOx, and CO2 emissions
than oil- and coal-fired plants. Construction of large LNGfired power plants employing high-efficiency combinedcycle technologies is underway to further reduce emissionsof these substances. A new plant2 added to the grid in 2018
exhibits significant improvements in performance, with gas
turbine inlet temperatures of 1,600°C and power generation
efficiency of approximately 63.08%.
Oil-fired generating capacity was 29.7 GW. Oil plays ameasurable role in peak power supply and balancing but
accounted for just 1.7% of all power generated in fiscal 2020,
representing a considerably smaller contribution versus
other thermal power generation methods (coal, 32.5%; LNG,
41.9%).

Coal
14.7%

Hydro
15.7%

efficiency) of all thermal plants in Japan was maintained at aworld-class level (Figure 4.2).

b. Hydro Power

Hydro power generating capacity stood at 49.1 GW at the endof fiscal 2020. Hydro power plants have been promoted inJapan to take advantage of the country’s high levels of rainfall.
Conventional hydro accounted for 21.7 GW and pumped
storage for 27.5 GW. Variable speed pumped storage systems
have also been adopted for a portion of pumped storage
power generation. These systems provide a means ofaddressing fluctuations in output from variable renewableenergy as they allow power output to be flexibly adjusted.

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

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

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

Figure 4.2[%] 52

UK & Ireland

50
48

FranceJapan

46

Power generation efficiency

44

South Korea
US

42

Germany
Northern Europe

40
38

China
India
Australia

36
34
32
30
28

'90

'92

'94

'96

'98

'00

'02

'04

'06

'08

'10

'12

'14

'16

'18 [Year]

Note: 1. Power generation efficiency is generation-end weighted average of power generation efficiencies of coal, oil, and gas (low heating value basis).
2. Covers facilities of electricity generation utilities whose main business is selling electricity to third parties.
3. Figures for Japan are for the Japanese fiscal year (April–March).
Source: FEPC, “INFOBASE 2020” (2020)

Comparison of SOx and NOx Emissions per Unit of Power Generated at
Thermal Power Plants of Major Countries (2018)

Figure 4.3[g/kWh]3

SOx emissions
NOx emissions

2

1.8

1.1
1

0.8
0.4

0.7

0.7

0.6

0.4

0.4
0.1

0

US

CanadaUK

France0.1

Germany

0.2

Italy

0.2

0.2

Japan

Source: FEPC, “INFOBASE 2020” (2020)

2 Chubu Electric Power Co.’s Nishi-Nagoya Thermal Plant Unit 7-2 (operation started in March 2018)33

The Electric Power Industry in Japan 2022

Osaki CoolGen Project
Ownership: J-POWER 50%, Chugoku Electric Power Co. 50%
Type: Oxygen-blown IGCC
Output: 166MW

Hekinan Thermal Power Station (JERA)

Odomari Dam (Chugoku Electric Power Co.)

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

Yanaizunishiyama geothermal power station (Yanaizu-city, Fukushima)(Tohoku Electric Power Co.)c. Renewable Energy

morning decrease in net demand3 and the evening increasein net demand have become more extreme than before. Thishas become a grid operation issue for some regions. Since it
started becoming difficult to adjust supply and demandversus the fluctuating output of solar power using only thebalancing capacity of thermal power and pumped storagehydro power, the output of solar power has been curtailed in• SolarInstalled solar power generating capacity at the end of fiscal
2020 was 61.2 GW. The deployment of renewable energies,
mainly solar power, has been progressing in Japan. Solar
power makes up approximately 86.3% of total FIT-certified
renewable power generating capacity. As a result, the

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

34

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

Kyushu and its remote islands since 2018. Resolution of thisfluctuating output challenge is a critical task for advancing
the further deployment of solar power.
• WindWind power generating capacity was 4.4 GW as of the endof fiscal 2020. The installation of wind power facilities has
lagged behind that of solar power facilities, due to factors
such as the longer time needed to assess environmental
impacts, and constraints on grid capacity. The majority of
installed wind power generation facilities are onshore, andonly around 20 MW of capacity is offshore. However, theFIT-certified capacity of offshore installations has trended
upward, reaching 668 MW at the end of fiscal 2020.
• Biomass and waste
Biomass and waste generating capacity at the end of fiscal
2020 came to 4.2 GW. In Japan, this form of power
generation has centered upon municipal waste incinerationand the direct combustion of black liquor from papermaking
and wood waste from lumber production. Biomass andwaste power, low environmental load type thermal power isa renewable that, unlike variable renewable energy (solar
and wind), can stably generate power with minimal
fluctuation. This means that it can be used to reliably
generate electricity in the wake of disasters, and thus isbeing increasingly introduced as a power source that canhelp to strengthen disaster resilience, even when comparedwith other renewables.
d. Nuclear Power Generation

Total nuclear power generating capacity at the end of fiscal
2020 was 33.1 GW (33 units, excluding 3 under constructionand 24 scheduled for decommissioning). Ten nuclear
reactors (all PWRs) were in commercial operation as of
September 2021 (see “2. Nuclear Power Generation” in Chapter II).

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

In March 2021, OCCTO published the “Aggregation ofElectricity Supply Plans for FY2021.”4 Figure 4.4 shows
generating capacity by power source, and Table 4.1 shows
the breakdown of power development plans up to fiscal
2030 (new installation, uprating/derating, and retirement
plans).5

upward overall as construction of new capacity willoutweigh ongoing decommissioning. As the global trend to
reduce GHG emissions continues, however, the withdrawalof plans for new coal-fired power plants and the shift togas-fired power plants are observed in Japan.
Decommissioning of oil-fired power plants will continue andgenerating capacity will shrink. Note that net generating
capacity will decrease because the number of new gas-fired
power plant construction projects is less than the number ofdecommissionings. While renewable generating capacity
will increase driven by construction of new solar power
plants and wind farms, hydro will increase only marginally.
b. Actions toward Achieving Carbon Neutrality in 2050

The Sixth Strategic Energy Plan (see “1. Strategic Energy Plan”
in Chapter II) announced by the government in October
2021 calls for efforts to steadily advance decarbonization
through the use of currently practical decarbonizedelectricity (such as power generated from renewable or
nuclear energy), and for the pursuit of innovation in areas
such as hydrogen/ammonia power generation, and thermal
power generation founded on carbon storage and reusethrough CCUS and carbon recycling.
• Hydrogen and Ammonia
Hydrogen and ammonia will be used as fuels for thermal
power generation. These fuels do not release CO2 when
combusted, and thermal power generation with them offers
balancing and inertial functionalities, thereby contributing
to stable grid operation. Moreover, many types of existing
power generation equipment, such as gas turbines, cancontinue to be used without modification or replacement.
Because of these advantages, hydrogen/ammonia firing isseen as an effective choice among the set of power
generation options for achieving carbon neutrality.
Accordingly, Japan will seek to overcome various
technological obstacles so that hydrogen and ammonia
power generation can play a key role in the supply andbalancing capacities of the electric power system in 2050.
Regarding hydrogen, METI formulated a “Strategic Roadmap
for Hydrogen and Fuel Cells” in March 2019. Among othergoals, this plan aims to commercialize hydrogen power
generation by around 2030, and calls for efforts to establish
the technologies needed and to reduce the production costof hydrogen. It also seeks to make hydrogen power
generation as cost competitive as existing LNG-fired power
generation, including with regard to environmental value.6

Looking forward, coal-fired generating capacity will trend

4 All electricity utilities are annually required to submit to the national government (via OCCTO) a supply plan that maps out their supply of electricity
and development of power sources and transmission lines over the ensuing 10 years.
5 Aggregated including facilities for which the date of commercial operation is “uncertain.”
6 The plan aims to reduce the cost of hydrogen delivered from plants to 30 yen/Nm3 in around 2030 and to 20 yen/Nm3 thereafter.

35

The Electric Power Industry in Japan 2022

Trends in Generating Capacity by Power Source, 2020–2030 (*1)

Generating capacity [GW]

Conventional hydroPumped storage hydro

Coal

LNG

Figure 4.4

NuclearOil and others (*2)

350

1.6%

1.6%

1.4%

10.4%

9.8%

9.5%

9.5%

9.1%

8.2%

8.0%

26.9%

25.6%

24.9%

24.0%

14.7%

15.2%

15.6%

15.1%

8.8%

8.7%

8.1%

7.9%

6.9%

6.9%

6.5%

6.3%

2020

2021

2025

2030

10.6%
200

150

4.3%

2.9%

1.7%

Others

23.1%

22.1%

20.7%

19.6%
250

Solar

1.9%

2.0%

300

Wind

100

50

0

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

Source: OCCTO, “Aggregation of Electricity Supply Plans for FY2021”

Power Development Plans up to FY 2030 by Stages

Table 4.1

		Power source

Hydro

ThermalConventional
Pumped storage
Coal
LNG
Oil

NuclearRenewables

Wind
Solar
Geothermal
Biomass
Waste
Total

[Output: MW]

New installation plan

Updating/derating plan

OutputSites

OutputSites

OutputSites

Output

391

61

60

36

-183

33

268

Total

391

61

60

36

-183

33

268

–

–

–

–

–

–

–

11,63830

0-6,603

35

5,035

0

4,413

6

–

–

-518

3

3,895

7,174

15

–

–

-4,326

12

2,848

51

9

–

–

-1,75920-1,708

10,180

7

152

1

0

0

10,332

5,953

250

2

1

-647

66

5,308

1,566

54

–

–

-474

52

1,092

3,323

168

–

–

-2

1

3,321

44

3

–

–

-24

1

20

968

20

–

–

-75

5

893

52

5

2

1

-75

7

-21

28,162

348

214

38

-7,432

134

20,944

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

36

Retirement plan

Source: OCCTO, “Aggregation of Electricity Supply Plans, FY2021”

IV. E L E C T R I C P O W E R FA C I L I T I E SRegarding carbon recycling, METI formulated a “Roadmap
for Carbon Recycling Technologies” in June 2019. This statesthat CO2 emissions can be reduced by recycling CO2.
Capturing CO2 from the exhaust gas generated by power
plants and other emission sources and combining it with“clean” hydrogen produced by surplus variable renewableenergy to synthesize fuel (such as methane). Using fuelproduced from clean hydrogen at thermal power plants is
also expected to reduce CO2 emissions from thermal power
plants.
• Storage Batteries
METI is also seeking to further expand the adoption ofrenewable energy7 by using storage batteries and othertechnologies to address the power output fluctuations
associated with intermittent renewables.
The use of battery storage systems is rising. A cumulative
total of over 490,000 stationary lithium-ion battery storage
systems with a capacity in excess of 3.5 GWh were in use in
fiscal 2020 (Figure 4.5). Meanwhile, METI is conducting
experimental projects using battery storage systems.
Themes selected for these projects include the adoption oflarge grid stabilization systems for storing power generated
from variable renewable energy and the development of
virtual power plants using customer-side energy resources(such as battery storage system and demand response). An
example of the kinds of projects underway is that being
conducted at the Buzen battery substation by Kyushu
Electric Power Co. using NAS batteries. This commenced
with the installation of NAS batteries with an output of 50
MW and capacity of 300 MWh in fiscal 2016, and it has
demonstrated the possibility of avoiding solar power
curtailment up to 300 MWh per day.

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

Figure 4.5

900

3,453

Shipped Second half of fiscal year

3,500

814

Shipped First half of fiscal year

800

885

3,000

Cumulative total capacity
700

2,568

458

2,500

600
500

1,754

497

439

2,000

400

1,500

1,256

315

300
200

177

180
117

100
0

Cumulative
capacity[MWh]Totaltotal
capacity(MWh)• CCUS and Carbon Recycling
Looking at carbon capture and storage (CCS) technologies, agovernment-led project has been carrying out large-scaledemonstration testing toward commercialization of CCS.
Testing began in 2016 with a CO2 injection rate of 100,000 t/
year, reaching a total of 300,000 t in 2019.

70
11 12 8 82

199

45

4

25

FY2011FY2012

60

102

379
78

FY2013

FY2014

238

313
427

500

185
105

1,000

376

199

133

694
138

57

932

325

125

0

FY2015FY2016FY2017FY2018FY2019FY2020Source: The Japan Electrical Manufacturers’ Association, "Shipments of Stationary Lithium-Ion Storage Battery Systems” (2021).

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

37

The Electric Power Industry in Japan 2022

(3) Digitalization in the Power Generation Sector
The power generation sector is developing digitaltechnology-driven methods of data analysis and forecasting
to answer various challenges and needs, including reductionof the power generation costs and environmental impact offacility operation, and labor-saving approaches toequipment maintenance. For example, a former generalelectricity utility teamed up with an IT firm and a power
plant builder to create an AI-enhanced combustion
adjustment model at a thermal power plant. The model
achieved reductions in NOx emissions and fuel costs
compared with human operation.

2. T ransmission and Distribution
Facilities(1) Transmission Facilities
Japan’s bulk transmission systems comprise 500 kV, 275 kV,
220 kV, 187 kV, 154 kV, and 132 kV transmission lines. The
maximum transmission voltage is 500 kV for the 10 generalelectricity transmission and distribution utilities except
Okinawa Electric Power Co. (132 kV). As of the end of March
2021, these transmission lines had a circuit length ofapproximately 180,000 km (Table 4.2).
Japan’s three major metropolitan areas, Tokyo, Osaka andNagoya, are served by bulk transmission systems comprising
500 kV multiple outer ring transmission lines surrounding
demand areas with additional transmission lines for demandareas connected to the rings in a radial pattern. In the Tokyo

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

38

Metropolitan Region, TEPCO Power Grid, Inc. has constructedtransmission lines designed to handle up to 1,000 kV as athird outer ring, which is currently operating at 500 kV, inorder to accommodate the large-scale grid expansions
expected to accompany the future decentralization or
centralization of power source locations. Ultra-high voltage
underground transmission cables (500 kV, 275 kV, 220 kV and
187 kV) are also being installed to enhance the reliability ofthe power supply to the central districts of large cities.
DC transmission lines are used in limited areas such as forthe interconnections between Hokkaido and Honshu (tworoutes), and between Kansai and Shikoku.

(2) Substation Facilities
As of the end of March 2021, Japan’s ten general electricity
transmission and distribution utilities had 7,137 substations
with a total installed capacity of approximately 869,000 MVA(Table 4.2). Almost all substations are now unmanned, withremote monitoring and control.
It is difficult to find additional sites for substations in urban
areas because of the heavy concentration of commercial
establishments and residences. To address this challenge,
general electricity transmission and distribution utilities are
reducing their footprints with the use of gas insulated
switchgear (GIS) and are installing substations beneath officebuildings, schools, and other existing structures.

(3) Distribution Facilities
Distribution lines are classified into extra-high voltage lines(33/22 kV), high voltage lines (6kV), and low voltage lines

Removing snow from power lines (Hokkaido Electric Power Network)

IV. E L E C T R I C P O W E R FA C I L I T I E STransmission and Distribution Facilities
1975

1985

Table 4.2

1995

2005

2015

2016

2017

2018

2019

2020

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

14,16723,48629,10735,20936,94936,84536,86536,98637,021

37,216110kV Under 220kV

28,91335,10636,95235,96235,58835,70935,45935,39035,44135,457

Under 110kV

69,361

78,66088,64895,176106,167

106,238

106,341

106,494

106,784

107,058

Total

112,441

137,252

154,707

166,347

178,704

178,792

178,665

178,870

179,246

179,731Transformation facility capacities
Substation output capacity (MVA)

234,748447,866

657,536

778,740

833,112842,084

843,886

846,638

850,313868,556

Total Number of substations

3,466

5,152

5,814

6,570

6,718

6,766

6,774

6,783

6,786

7,137

Circuit length of distribution lines [km]Overhead
UndergroundTotal

2,623,787 3,179,970 3,661,963 3,918,743 4,005,974 4,015,703 4,023,882 4,031,278 4,038,426 4,046,028
14,35825,34850,371

65,28770,73371,36072,096

72,73573,42073,9952,638,145 3,205,318 3,712,334 3,984,030 4,076,707 4,087,063 4,095,978 4,104,013 4,111,846 4,120,023
Source: FEPC, “Electricity Statistics Information”(200/100 V), and the standard for high voltage distribution
systems is the 6 kV multi-divided, multi-connected system.
In densely populated areas, electricity is supplied via extrahigh voltage lines to prevent equipment congestion andimprove supply reliability, and spot network systems areused to meet the needs of customers who requireparticularly reliable supplies. Normally, electricity is supplied
to low voltage customers through 100/200 V single-phase
three-wire or 200 V three-phase three-wire systems. Low
voltage distribution lines are thus generally installed inthree-phase four-wire open-delta connection distribution
systems used to supply both single-phase and three-phasepower. As of the end of March 2021, the total length of
distribution lines in Japan was approximately 4,120,000 km.
Of this, approximately 74,000 km (approximately 1.8%)
consisted of underground lines (Table 4.2).
Efforts to improve supply reliability and operating efficiency
in the distribution sector include the widespread use of
distribution automation systems for remote supervision andautomatic control of distribution equipment. In response to
the recent growth of distributed energy sources, switcheswith sensors and static automatic voltage regulators (such as
STATCOMs) are increasingly being installed in distribution
networks in order to maintain supply reliability and power
quality.

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

39

The Electric Power Industry in Japan 2022

distribution network facilities as outlined above. Since the1990s, a high level of supply reliability has been maintained
except for major disasters such as the Great East Japan
Earthquake (Figure 4.6).

Smart meters for customers have also been installed in orderto (1) facilitate meter reading by general electricity
transmission and distribution utilities, (2) track individual
customers’ electricity usage so as to facilitate power-saving
measures, and (3) provide a means of limiting power
consumption when the supply and demand balance is tight.
All extra-high voltage and high voltage customers and85.7% of low voltage customers (including households) had
been provided with smart meters as of the end of March
2021. All customers should have smart meters by the end of
March 2025.

In fiscal 2019, the System Average Interruption Frequency
Index (SAIFI) was 0.23 interruptions and the System Average
Interruption Duration Index (SAIDI) was 85 minutes. The
national averages were lower than in fiscal 2018 despite
major interruptions such as the lengthy, large-scale power
outage that occurred in the Tokyo Electric Power Company’s
service area due to Typhoon Faxai (No. 15) in September
2019 (930,000 households were without power at the peak,
and it generally took 12 days to restore service).

(4) Supply Reliability (SAIDI, SAIFI)Supply reliability is being kept high compared tointernational standards by conducting patrols to prevent
outages in advance as well as by developing high voltage

SAIFI and SAIDI Trends[events]
7●

Figure 4.6

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

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

514 min.

Duration (right scale)4.85 events

5500

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

187 min.
2

1.36 events

1

169 min.

128 min.

1966

1975

Note: 9 electric power companies up to FY1988

40

1985

1990

200

79 min.

0.90 events
0.51 events
33 min.
0.35 events

0

225 min.

88 min.

0.94 events
0.22 events
14 min.

14 min.
10 min.
0.20 events
0.18 events

1995

2000

20 min.

0.33 events
0.13 events

2005

0.16
events2010

0.31
events100
85 min.

0.23
events

2015

2019

0

(FY)

Source: FEPC, “INFOBASE 2020” (2020)

IV. E L E C T R I C P O W E R FA C I L I T I E S(5) Efforts to Improve Resilience and Increase Useof Renewables in Power Transmission andDistribution Sector
It has become imperative to secure an electrical power supply
system that is tailored to the expanded use of renewables andis capable of swift recovery from typhoons, torrential rains,
and other natural disasters that have become more frequent
in recent years. To address this need, the Act for Establishing
Energy Supply Resilience was enacted in June 2020 to securea resilient and sustainable power supply system throughmeasures supporting rapid disaster recovery, facilitatedinvestment in transmission/distribution grids, increased
implementation of renewables, and other enhancements.
The provisions of the act that pertain to the electricity
business can be largely divided into the following threeareas of action. (a) Enhancing inter-business collaboration indisaster responses: Require general electricity transmission
and distribution utilities to formulate action plans forcollaborating with one another during disasters, and to
update local governments and other authorities on thestatus of power supply service during disaster recovery.
(b) Enhancement of transmission/distribution grid resilience:
Add to OCCTO’s functions the duty to formulate forwardlooking plans for development of cross-regional networks;
and establish a wheeling rate system that would encourage
electricity transmission and distribution utilities to pursue
cost efficiencies that would keep them below the revenue
caps based on their investment plans and approved by the
Minister of the Economy, Trade and Industry.
(c) Establishment of disaster-resilient distributed power
supply systems: Introduce an electricity distribution
licensing system to provide legal standing to electricity
distribution utilities, which, unlike general electricity
transmission and distribution utilities, operate local
distribution grids including distributed power sources andoperate as independent networks in emergencies.
Certain provisions came into effect in October 2020, whileother ones, such as the establishment of an electricity
distribution licensing system, will go into effect from April
2022 onward.

(6) Digitalization in the Transmission andDistribution Sector
To address challenges such as aging equipment andreduced maintenance staffing, digital technologies arebeing used in the power transmission and distributionsector to streamline maintenance and inspections. For

example, general transmission/distribution utilities areseeking to shrink manpower needs and improve
maintenance techniques through the development of an“Autonomous Flight System for Transmission Line Inspection
Drones” that enables drones to autonomously follow andphotograph transmission lines, and through demonstration
projects that use imaging analysis and AI tools toautomatically detect failures from photographs of facilities.

3. C ross-Regional Operation andInterregional Interconnections(1) Cross-Regional Operation
The Japanese power grid is divided into two frequency
systems: a 50 Hz system in eastern Japan and a 60 Hz systemin western Japan8. The neighboring grids of nine of thegeneral electricity transmission and distribution utilities’service areas are connected to one another (Okinawa area isthe exception). Japan has no international interconnections.
The former general electricity utilities have worked witheach other interregionally in order to improve economic
efficiency and ensure a stable power supply by developing
optimal power sources, conducting capital investment, andexchanging power so as to benefit from differences in theirregional characteristics and demand structures. Today,
OCCTO nationally monitors conditions such as the supply/
demand situation and grid operational status, and instructs
the utilities to interregionally exchange electricity when the
supply/demand situation deteriorates. It is also reviewing
the ways that the interconnections are used.
Traditionally, electricity generation utilities have been
allowed to use these interconnections on a first-come,first-served basis. However, this model was abandoned in
October 2018, and an implicit-auction approach wasintroduced under which, in principle, use of theinterconnections will be assigned based on contracts
concluded in the spot market for next-day delivery. The
introduction of these new rules should expand the use of
the interconnections by new market participants and put inplace a fair and competitive environment. At the same time,by implementing power generation based on cross-regional
merit orders, it is hoped that increases in electricity rates canbe held to a minimum and additional business opportunities
created for operators.

8 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.-made equipment in western Japan.

41

The Electric Power Industry in Japan 2022

Prior to the legal separation of electricity generation andtransmission into different sectors, the principle was forelectricity utilities to independently operate their own grids,
and they essentially balanced supply and demand
fluctuations in their grids with their own electricity.
Following the separation, it also had been the rule forgeneral electricity transmission and distribution utilities toadjust the supply and demand fluctuations in their service
areas, with load fluctuations in their grids balanced using
electricity acquired from their service areas, in principle.
Subsequently, the general electricity transmission anddistribution utilities (excluding Okinawa Electric Power
Company) established a balancing market in April 2021 to
improve the efficiency of supply and demand management.
As a result, the utilities can use this market to procurebalancing capacity from sources across the country, rather
than just from their own supply areas.

(2) Interregional Interconnections
As of 2021, the interregional interconnections in operation
are mainly AC transmission lines. In the eastern region (50Hz), Tokyo area and Tohoku area are linked by 500 kV ACtransmission lines, while Tohoku area and Hokkaido area arelinked by DC submarine cables that span the approximately
20 km strait between Honshu and Hokkaido. Tohoku areaand Hokkaido area are connected via two ±250 kV links (600
MW, 300 MW). In the western region (60 Hz), Chubu area,
Hokuriku area, Kansai area, Chugoku area, Shikoku area andKyushu area are linked by 500 kV AC transmission lines.
Okinawa is not connected with other regions of Japan.
DC lines are used by Chubu area and Hokuriku area, which
are connected by back-to-back DC linkage facilities (300MW), and by Kansai area and Shikoku area, which are linked
by ±500 kV DC submarine cables (currently operated at±250 kV) that span the Kii Channel.
The 50 Hz and 60 Hz systems are linked by fourinterconnections (totaling 2,100 MW) between the Tokyo
area and Chubu area networks: Sakuma Frequency
Converter (300 MW), Shin-Shinano Frequency Converter(600 MW), Higashi-Shimizu Frequency Converter (300 MW),and a new addition, Hida-Shinano Frequency Converter (900MW), which began operating in March 2021 (Figure 4.7).
Along with the increasing large-scale adoption of distributed
energy sources in recent years, OCCTO has been consideringplans to enhance these interconnections, taking into accountthe individual utilities’ views. As part of those plans, the42

Sakuma and Higashi-Shimizu frequency converters’ capacity
will be expanded by a total of 900 MW by the end of fiscal
2027 (from 2.1 GW to 3.0 GW in total). Responding to callsfrom IPPs and others, OCCTO plans to increase the capacity of
the Tokyo-Tohoku interconnection by 4.6 GW by fiscal 2027.

(3) Medium- and Long-range Grid Improvements
OCCTO is required to develop a long-term policy that sets a
course for developing and updating Japan’s cross-regional
interconnection systems on a nationwide scale. In thisprocess it has identified the following three key issues forfacility formation over the mid- and long-term.
• Growth in electricity demand is slowing.
• If new interconnection needs are to be addressed throughthe conventional approach to facility formation and griduse, it will require a huge increase in transmission anddistribution facilities.
• This will result in a decreased capacity factor fortransmission and distribution facilities, with inevitable
upward pressure on wheeling charges.
Also, to support the achievement of Japan’s goal of
becoming carbon neutral in 2050, which was announced by
the government in 2020, the general electricity transmission
and distribution utilities are advancing efforts to develop a
more resilient electric power network.
In the area of grid strengthening, OCCTO is working out amaster plan to be issued in 2022 as a cross-regional network
development framework for systematic implementation offacility expansions to interregional interconnections andmain grids. Under the master plan, the transition tosystematic development of the power transmission network
will involve a shift from a “pull” approach, where planning isdone in response to requests from the power sources as
they are made, to a “push” approach in which systematicdevelopment is carried out based on the master plan, withconsideration given to the potential of each power source.
Premised on this, OCCTO has developed an approach totransmission and distribution facility development that
tailors the “connect and manage” model already used in the
United Kingdom and elsewhere to Japanese conditions. It
employs three mechanisms. Firstly, available capacity is
calculated based on estimates that closely resemble actual
use, rather than on full-capacity operation of all powersources. This method has been in full use since fiscal 2018.
Secondly, there is the “N-1 inter-trip scheme,” which is amethod of instantly limiting power output to secure stable

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

National Grid Connections

Figure 4.7

Hokkaido area

• The figures for each area are the forecasted transmission-end peak load 3-day averages for fiscal 2021.
• The figures for each interconnection are the average daily operating capacities (annual plan) of August 2021.

4,150 MW

Frequency converter→

Connection between
Hokkaido and Honshu
900 MW
900 MW→

AC/DC converter→ 4,250 MW→

230 MW

2,780 MW

→1,500 MW

1,900 MW→

Hida Shinano F.C.

Chubu area→

4,920 MW

Connection between
Kansai and Shikoku→ 1,400 MW

Chubu-Kansai
interconnection→ 2,500 MW→

1,150 MW

Shin Shinano F.C.

Tokyo area
53,290 MW

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

Sakuma F.C.
Higashi Shimizu F.C.

Connection between Tokyo and Chubu→ 2,100 MW

1,400 MW→→→

24,530 MW

Shikoku area→

Hida Shinano F.C.

27,260 MW

1,200 MW 1,200 MW

1,500 MW2,360 MW6,050 MW→Kansai area

Chugoku-Shikoku
interconnection

Okinawa area

Tohoku-Tokyo interconnection

300 MW
300 MW

10,320 MW

15,210 MW

12,930 MW

4,920 MW

Connection between
Chubu and Hokuriku

Chugoku area
Kyushu area

Tohoku area

Hokuriku area→

→ 2,410 MW

Hokuriku-Kansai
interconnection→

Kansai-Chugoku
interconnection

Chugoku-Kyushu
interconnection

2,100 MW→

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

Source: Compiled by the authors from Agency for Natural Resources and Energy, “Detailed Design for Constructing a Sustainable Electric Power System” (2020),
and OCCTO, “Grid Operating Capacity in FY2021–2030 (Annual & Long-term)” (2021)

transmission capacity in the event of N-1 failure.9 This has
been partially deployed since October 2018. Thirdly, there is“non-firm access,” which is a method of allowing fresh accesson condition that output is limited while other powersources are in operation. This has already been put into
practice since January 2021 for main grids without available
capacity. It is also being implemented for local grids on apilot basis in certain areas, with an eye on nationwide
deployment in the future.

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

43

The Electric Power Industry in Japan 2022

V. RETAIL BUSINESS AND TRADING MARKETS

1. Electricity Rates(1) Regulated Electricity Rates
Up until full liberalization of the retail electricity market in
April 2016, general electricity utilities supplied electricity tocustomers covered by rate regulations with the approval of
the Minister of Economy, Trade and Industry at rates basedon standard electricity use and at rates assuming use ofelectricity in a manner that contributed to load leveling, etc.
The standard rates for households have remained regulated
since full liberalization in order to protect customers. As of
April 2021, 50.54 million low voltage customers (61% of thetotal) paid regulated rates.
Regulated rates were originally to be discontinued at

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

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

Arrangements to Bridge the Transition to Competitive Rates

Customers with demand under 50 kW

Customers with demand of
50 kW or greater

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

Customers
supplied underprovisions forlast-resort
service bygeneralelectricity
utilities

Customers supplied atcompetitive rates set by
PPSs and former generalelectricity utilities

Customers supplied atcompetitive rates set byformer generalelectricity utilities

Measures aspart of generalelectricity
utilities’ supply
obligations

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

Last-resort service

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

Customers
supplied underprovisions forlast-resort
service under
the new system

Customers supplied atcompetitive rates set by
PPSs and former generalelectricity utilities

Customers supplied underoptional supply provisions bygeneral electricity utilities

Customers supplied
under supply provisions
by general electricity
utilities

From April 2016

Figure 5.1

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

Customers
supplied underprovisions forlast-resort
service under
new system

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

44

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

Two-Component Rates Structure

Table 5.1

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

months in order to level rate fluctuations, and fuel pricethree-month averages are reflected in the electricity rates
charged each month (Figure 5.2).

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

c. Feed-in Tariff Scheme for Renewable Energy

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

b. Fuel-Cost Adjustment Scheme

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

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

Feb.

Mar.

Apr.

May

2 months later

Period for calculation of
average fuel cost

Period for calculation of
average fuel cost

Period for calculation of
average fuel cost

Figure 5.2

June

July

Aug.

Sep.

Application of fuel costadjustment unit price

2 months later

Application of fuel costadjustment unit price

2 months later

Application of fuel costadjustment unit priceSource: Compiled from FEPC materials

45

The Electric Power Industry in Japan 2022

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

(3) Trends in Unit Electricity Rates
Electricity rates in Japan climbed sharply in the 1970s andearly 1980s due to the oil crises, but subsequently entered along-term decline, owing in part to operational streamlining
efforts by the former general electricity utilities. Since theGreat East Japan Earthquake in 2011, however, rates haveagain risen due to the increased cost of generating powerat thermal power plants resulting from the shutdown ofnuclear power plants and escalating fuel prices. Electricity

rates fell from 2015 due to lower fuel costs, but began risingagain in 2017, and then started declining again in fiscal 2019
(Figure 5.3).

(4) Wheeling Charges
Even in a deregulated environment, it is general electricity
transmission and distribution utilities that build, operate,
and maintain transmission and distribution networks toensure stable supply. When former general electricity utilities
and PPSs retail electricity, they must use the network of thegeneral electricity transmission and distribution utilities
that own the supply facilities in the service area concerned.
Wheeling charges are the fees imposed by transmission anddistribution utilities on the users of their network (Table 5.2).
The wheeling charges are deliberated by a review meetingof specialists on electricity pricing under the auspices of theElectricity and Gas Market Surveillance Commission, taking
into account both the appropriate recovery of requisite
costs and fairness for network users. They are then opened
to public comment prior to final adoption.
Since April 2016, general electricity transmission anddistribution utilities have been required to provide electricity
via a universal service for customers on isolated islands,
applying the same rate levels as on the mainland in order toprotect customers. The electric power supplied to islands ismainly generated by thermal power plants, and the cost of[yen/kWh]

Trends in Electricity Rates

Figure 5.3

30

Residential

25

Average for residential
and commercial/industrial

20

Commercial/industrial

15

10

5

0

1970

1975

1980

1985

1990

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

46

1995

2000

2005

2010

2016 2019 [FY]

Source: Agency for Natural Resources and Energy, “FY2020 Annual Report on Energy” (2021)

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

Average Unit Wheeling Charges of General Electricity Transmission and Distribution Utilities

Table 5.2

(As of October 2021)

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

High voltage

Extra-high voltage

Hokkaido

8.75

4.16

1.83

Tohoku

9.77

4.56

2.04

Tokyo

8.60

3.80

2.01

Chubu

8.98

3.51

1.83

Hokuriku

7.80

3.76

1.81

Kansai

7.86

4.06

2.07

Chugoku

8.28

3.98

1.61

Shikoku

8.79

4.21

1.96

Kyushu

8.35

3.89

2.14

Okinawa

9.93

5.20

3.01

Source: Agency for Natural Resources and Energy, “Process of Rates Reform Allowing for Changes in the Business Environment” (2017);
general electricity transmission and distribution utilities’ websites

provision of universal service to islands (including the portionof the price that varies according to thermal fuel costs) is
passed on to all customers in the individual service areas ofgeneral electricity transmission and distribution utilities inquestion via wheeling charges under what is known as the“universal island service price adjustment system.”

July 2018) included a plan to introduce a fee to be levied on
the power generation side. The details of this scheme arebeing worked out, with an eye on launching it in fiscal 2024.

Currently, revisions to the wheeling charge system arebeing developed for implementation around fiscal 2023.
The discussions include detailed design of a new schemethat would set revenue caps at certain intervals on generalelectricity transmission and distribution utilities based on
their investment plans and other considerations, with theaim of encouraging them to make the operational efficiency
improvements needed to keep their business sustainable
under the revenue caps.

2. Efforts to Acquire Customers(1) Number of Registered Electricity Retailers,and PPS ShareThe number of registered electricity retailers has continued
to rise since the full liberalization of the retail electricity
market in April 2016, reaching 730 retailers as of August2021. For reference, in the cumulative total for April 2016 toJune 2021, there were 95 transfers of business and 38 casesof business discontinuance or corporate dissolution.

(5) Fee on the Power Generation Side
Under the current system, the expenses associated withpower transmission and distribution equipment are, as a rule,borne by electricity retailers as part of the wheeling charges.
However, the government has been considering introducing
a new scheme that would seek to realize fair and appropriate
cost sharing and to encourage efficient use of transmission
and distribution networks by also having power generationside operators, as grid users, bear some of the costs, with theirshare based on their level of revenue. Based on this review,
the Fifth Strategic Energy Plan (approved by the Cabinet in

As of March 2021, PPSs accounted for a roughly 19.5%
share of the total volume of electricity sold, andapproximately 20.2% of sales to low voltage customers(Figure 5.4). Here, PPSs include electricity retailers that newly
entered the market (other than the former general electricity
utilities), and subsidiaries of the former general electricity
utilities. The former general electricity utilities’ retail sales
outside their established service areas contributed 2.3% tothe total.

47

The Electric Power Industry in Japan 2022

(2) Activities of Electricity Retailers
Electricity retailers supply extra-high voltage and highvoltage customers in accordance with contracts and unit
prices negotiated on the basis of projected electricity
usage and actual circumstances. Former general electricity
utilities are working to strengthen their business capacity
by establishing specialized marketing operations, increasing
personnel to take charge of business for corporate
customers, and implementing business training. For
example, they have assigned a dedicated business manager
for each customer and increased the frequency of customer
contact so that the customer’s needs can be suitably met. In
addition, they are diagnosing and analyzing the customer’s
energy usage, and making proactive proposals to theircustomers regarding the efficient use of energy.
On the other hand, electricity retailers provide low voltage
customers with customer services and so on through rateplans tailored to customers’ needs and lifestyles, point-based
loyalty programs, and membership websites. Services thatutilize information on electricity usage obtained from smart
meters are also emerging.
a. Rate Plans Tailored to Lifestyles

Electricity retailers are offering time-of-use rate plans forcustomers who tend to be out during the day and consume
most of their electricity at night, as well as for customers
who use storage heaters and/or water heaters overnightand during off-peak hours. Such plans offer lower unit
rates for nighttime electricity use. Other options are alsoavailable. These include plans that provide discounts off thecontracted unit price as usage increases for customers who
use large amounts of electricity due to family size or pets,
and plans that offer lower rates for devising ways of using
electricity more wisely.
There are also plans that offer summer-only discounts forhouseholds with elderly members in order to encourage theuse of air conditioning to prevent heat stroke.
Meanwhile, PPSs are seeking to acquire new customers
through diverse approaches, including offering lower rates
to families with heavy electricity usage.
b. Additional Services and Discounts for Bundled Goods

There are also rate plans that offer non-electricity-related
goods and services to households. These include inspectionand emergency repair of faulty electrical equipment,such as wiring faults that keep the power from turning
on. Other everyday support services include services to

PPS Share of All Electricity Sold

Figure 5.4

Extra-high voltage

All voltages

[%]

30.0

FY2016FY2017FY2018High voltage

FY2019Low voltage

FY202025.0High voltage
26.70%
Low voltage
20.20%

20.0

All voltages
19.50%
15.0

Extra-highvoltage
8.90%

10.0

5.0

48

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

20

Ju

r.
Ap

7

20
18

20
1
t.

Note: Shares are based on volume of electricity sold.

Ja
n.

Oc

7

01
7

l. 2

20
1

Ju

r.
Ap

20
n.

17

16
20

Ja

01
6

t.
Oc

l. 2

r.
Ap

Ju

20

16

0.0

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

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

identify and report water leaks, find lost keys, and check onelderly customers at home. Other plans provide discounts
for supply contracts that are bundled with cellular phone,internet, gas, automobile gasoline, and other services.
Bundling lifestyle-related commodities and services with
rate discounts in this way is expected to improve customer
satisfaction and help electricity retailers to attract and retain
customers.

behavior which would constitute a problem under theElectricity Business Act.

c. Renewable Energy Rate Plans

3. Trading Markets

Among the green options being offered are rate plans thatdeliver electricity generated using renewable resources.
Although there are limits to how much electricity canbe generated and procured from renewables, a growing
number of electricity retailers are offering plans of this kind
amidst the trend toward stronger measures for reducing
greenhouse gas emissions, and they are also increasing theirdisclosure of information on their power generation mix andCO2 emissions.

(3) Rate Comparison Sites
As seen above, electricity retailers are offering a variety ofrate plans, and more than 1,000 types of plans were available
as of the end of July 2021. Rate comparison websites havetherefore been launched by service providers to help
customers choose the plans that best meet their needs.
These websites are playing an increasingly important role asplans become more diversified with the rise in the numberof electricity retailers.

(4) Regulations and Guidelines
The Electricity and Gas Market Surveillance Commission
established the Guidelines Concerning the Management of
the Electricity Retail Business in January 2016. The purposeof these guidelines is to enhance protection for electricity
customers, allowing them to receive electricity withconfidence while also contributing to the healthy growthof the electricity business itself. These guidelines provide
instructions to the utilities in question, such as electricity
retailers, on how to observe relevant laws and regulations, aswell as instructions encouraging their autonomous efforts.
Specifically, the guidelines indicate desirable conduct byoperators in order to protect customers and bring about thehealthy growth of Japan’s electricity business. These include:(1) provision of appropriate information to customers, (2)suitable forms of business and contracts, (3) optimized
contract contents, (4) appropriate handling of customer
complaints and inquiries, and (5) optimized contract
cancellation procedures. The guidelines also identify

These guidelines are revised as needed to reflect changes inthe electricity retail environment.

(1) Wholesale Electricity Market
The Japan Electric Power Exchange (JEPX) was establishedin November 2003 and commenced trading in April 2005.
The purpose of JEPX is to stimulate electricity transactions
on the exchange. Specifically, transactions will be stimulated
by offering enhanced instruments for selling and sourcing
electricity and encouraging the formation of index prices toassist assessments of investment risk, etc. Initially, JEPX wastreated as a privately operated, voluntary wholesale exchange.
Later, it was designated a wholesale electricity market under
the provisions of the Electricity Business Act in April 2016.
The principal market participants are the electricity
generation utilities and electricity retailers involved inwholesale power transactions. However, other players, suchas general electricity transmission and distribution utilities
that accept electricity under the feed-in tariff scheme,
are also involved as “special trading members” in orderto facilitate the sale and purchase of “non-fossil value,” asdescribed in a later section. Business operators such as
demand response aggregators that enter into negawatt
trading contracts with transmission and distribution utilities
have also been permitted to participate in the market since
March 2017. As of July 28, 2021, there were 266 trading
members and 10 special trading members.
JEPX currently provides a marketplace for the following
electricity transactions:• Spot market: Trading in 30-minute increments of electricity
for next-day delivery.
• Forward market: Trading in electricity for delivery over thecourse of a specified future period. Products are createdby packaging together specific periods and times, such asmonthly 24-hour products or weekly daytime products.
• Intra-day market: A market for correcting unexpected
misalignments between supply and demand occurring
between a spot market transaction and delivery (aminimum of one hour later).

49

The Electric Power Industry in Japan 2022

• Bulletin board trading market: JEPX mediates the trading ofelectricity for prospective buyers and sellers.
The spot market is the largest of the above four markets
in trading volume and is a particularly important market.
Trading is done through a blind single-price auction system.
It is blind because participants cannot see other participants’
bids when they make their bids. A single-price system is one
that defines the intersections between the sell and buy bid
curves as the system price and trade volume. As a rule, highbuy bids and low sell bids are executed at the system price.
Market fragmentation can occur due to the existence ofconstraints concerning, for example, the available capacityof connections between services areas. When market
fragmentation occurs, system prices and trade volumes arecalculated at the level of each of the fragmented markets.
The volume of trades on the spot market has been on the rise
since 2016, reaching approximately 312.8 TWh in fiscal 2020.
This means that more than 30% of all electricity sold in Japanis sold through JEPX. PPSs procure more than 80% of theirelectricity from the spot market. The average system price has
hovered around the 7–9 yen/kWh mark since fiscal 2015, andstood at 7.93 yen/kWh in fiscal 2019. Prices fell in April 2020
as demand dropped from the impact of measures against
COVID-19. In that month, trading occurred at the lowest
possible system price of 0.01 yen/kWh. Later in the year, prices
skyrocketed from the effects of a summer heat wave andfrom a supply crunch in the winter that was driven by fuelprocurement. As a result, the average system price of supply
for fiscal 2020 as a whole was 11.21 yen/kWh (Figure 5.5).

(2) New Markets
New markets have been developed to encourage further
competition in the electricity sector, secure stable power
supply, and actualize environmental value. The intention isthat the creation of these unconventional new markets willserve to actualize and render tradable new forms of value
to accompany the lowered entry/exit barriers in existing
markets. The new markets are mainly the following: (a) abaseload power market, (b) a capacity market, (c) a balancing
market, and (d) a non-fossil value trading market. In addition,
trading has begun in the electricity futures market.
a. Baseload Power Market

New market entrants find it difficult to own or enter
contracts to buy electricity from affordable baseload power

Average System Prices and Trade Volumes on the Spot Market
Total trade volume [TWh]

[TWh]

350

Figure 5.5[yen/kWh]18

Avg. system price [yen/kWh]
16.51

300

312.8
292.5

14.67

14.43

14

13.72
250

11.32
9.76

200

9.72

9.78
8.38

150

11.21

208.6

9.76

8.46

8
6

6.52

4

58.6
50

0

12
10

7.93

100

16

2.3

3.5

3.5

5.5

2007

2008

2009

2010

7.4

10.3

12.6

15.4

23.0

4.7

2011

2012

2013

2014

2015

2016

2

2017

2018

2019

2020

0

Source: Compiled from Agency for Natural Resources and Energy, “Handbook of Electric Power Industry” (2020), and JEPX data50

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

sources such as coal, large hydropower, and nuclear power
plants. To surmount this challenge, a market dedicated tothe trading of electricity produced by baseload power plants
was created, in which former general electricity utilities
and new entrants are given equal access to electricity
from baseload power plants (this market was launched
in July 2019). It is expected that the resulting increase intransactions in the wholesale market will lead to increased
competition in the retail market. Three auctions for delivery
in fiscal 2021 were conducted, for a total volume of 332.1
MW, with clearing prices ranging from 6.06 to 9.19 yen/kWh.
b. Capacity Market

The predictability of the payback on investment in power
generation business is likely to decline, depending on theincreasing competition and changes in environmental
trends. If the adoption of renewables expands
simultaneously, it is expected that the power generation
operating rate will decline, the selling price of electricity will
fall, and revenues from selling electricity from all sources will
come down. Conversely, regulatory organizations have been
concerned that if investments in power generation capacity
are not made at the appropriate time, there could be
more situations in which the supply and demand balance
becomes too tight, and electricity balancing capacity cannot
be secured. Therefore, a capacity market was establishedin 2020 for the purpose of (1) ensuring a greater degree ofinvestment predictability, (2) the replacement of old power
plants with new ones and (3) the securing of supply capacity(installed capacity) through market mechanisms.
Auctions are conducted in the capacity market for securing
capacity four years in advance. Capacity traded in 2020 fordelivery in fiscal 2024 amounted to 167.69 GW in volume,and had a clearing price of 14,137 yen/kW. The awardingof contracts for delivery in fiscal 2025 through auction isscheduled to be announced in December 2021.
c. Balancing Market

The tasks of controlling frequency and balancing supply anddemand are performed by general electricity transmission anddistribution utilities in each area. With regard to balancing, it isimportant that system operators secure the capacity requiredfor practical purposes while avoiding giving preferential
treatment to particular sources of electricity or creating too
great a cost burden. The first auction for balancing capacity
was held by general electricity transmission and distribution
utilities at the end of fiscal 2016 for fiscal 2017 (see “3. (2)Securing Balancing Capacity” in Chapter III).

Subsequently, a balancing market for procuring andoperating balancing supply and demand more efficiently
on a cross-regional basis was studied, and began operatingin April 2021 for Replacement Reserve for FIT (balancing
capacity with a long response time that balances errors
in renewable energy predictions). There are plans to
successively add other types of balancing capacity as
products traded in this market.
d. Non-Fossil Value Trading Market

The wholesale electricity market makes no distinction
between fossil fuel and non-fossil fuel power generation,and there were concerns that this omission could obscure
the actual value of non-fossil power generation capacity.
It was also pointed out that it would be difficult for new
entrants to buy electricity from non-fossil fuel sources, as
they do not have enough trading experience comparedwith former general electricity utilities. Furthermore, it
was proposed that the cost of the environmental value ofelectricity derived from renewables purchased through the
FIT scheme should not have to be borne by all customers,
but instead should be borne primarily by those customers
who desire that value. As one step to help address theseconcerns, a non-fossil value trading market was establishedin the wholesale electricity market in May 2018 to isolate
non-fossil value of the electricity only and to certify it fortrading. It is hoped that the establishment of this market
will help Japan achieve the targeted level of reductions
in greenhouse gas emissions by fostering use of a power
generation mix consistent with its most suitable energy mix.
In addition, the existing non-fossil value trading market will
be divided into two markets in 2021 or later to improvethe environment for consumer access to renewableenergy value: a renewable energy value trading market
in which consumers can directly participate in trading(market dealing in FIT renewable energy certificates), anda market for achieving the target1 mandated by the Act
on Sophisticated Methods of Energy Supply Structures
regarding the non-fossil share of the power generation mix(dealing in non-FIT renewable energy certificates).
In addition, an electricity futures market run by Tokyo
Commodity Exchange, Inc. was established on September
17, 2019 to reduce electricity price fluctuation risks. The
market is operating on a three-year trial basis, and thedecision on approval for full listing will be made based on its
trial performance.

1 T he Act on Sophisticated Methods of Energy Supply Structures was established in 2009 as a regulatory framework for encouraging energy suppliers
to increase their adoption of non-fossil energy sources and to make sophisticated and effective use of non-fossil fuels. It requires electricity retailers
that annually sell 500 GWh or more to raise the non-fossil share of the electricity they sell to at least 44% in 2030.

51

The Electric Power Industry in Japan 2022

TOPICS: Actions toward Carbon Neutrality in 2050
The global movement toward decarbonization has gained
momentum in recent years, with many major countries
setting targets for reducing their greenhouse gas emissions.
The Japanese government announced in October 2020 thegoal of attaining carbon neutrality by 2050, and pledgedin the following April to achieve a 46% cut in greenhousegas emissions by 2030 compared to fiscal 2013. Measures
for reaching these goals are outlined in the Sixth Strategic
Energy Plan released in October 2021.
Following this course set by the government, businesses
have also been stepping up their efforts to advance toward
carbon neutrality. Given that the electrical power industry
accounts for roughly 40% of all energy-related emissions andthat other sectors such as manufacturing and transportation
will likely shift to greater use of electricity, it is hoped thatvoluntary initiatives by electric utilities will contributesignificantly to carbon neutrality.
The Federation of Electric Power Companies of Japan has
drawn up a roadmap for achieving carbon neutrality by
2050, declaring its intention to decarbonize power sourceson the supply side and promote electrification on the
demand side, through approaches designed to realize
the “S + 3E” (safety, energy security, economic efficiency,
and environment). Under the current level of technology,
however, it is not realistically possible to satisfy all electrical
power demand with electricity from only one type ofenergy source. Accordingly, this situation calls for the pursuitof a full spectrum of options, including the development ofbreakthrough innovations. This section presents examplesof the electric power industry’s efforts to contribute thereduction of greenhouse gas emissions with promisingtechnologies.

(1) M aximizing the adoption of renewable energy
Actions need to be taken now to maximize the adoptionof renewable energy in order to lay the foundation for
its use as the primary energy source for electric power
generation in the future. These actions include decreasing
renewable energy costs, seeking the local community
support and regulatory reforms needed to secure land for
new installations, and utilizing storage batteries to get themost out of variable renewable energy. Major electricity
generation utilities, comprising mainly the former generalelectricity utilities, have set targets for their adoption ofrenewable energy (Table 1).
One of the more distinctive initiatives is Hokuriku ElectricPower Company’s use of the third-party ownership model
for solar power generation. This enables customers to
use renewable energy without having to make initialinvestments in the solar power generation systems installedat their site. The company has already secured high voltage
customer contracts (including informal agreements) totaling
4,000 kW, and started expanding this service for low voltage
customers in fiscal 2021 (Figure 1).

Overview of Third-party Ownership Model
Subsidiary*

Contract

Figure 1

Solar power
generation system(owned by Hokuden BEST)

Exampleof installation

Service charge(self-consumption)

Hokuriku ElectricPower Company

Solar power
generation

Supplementary supplyof electricity
Service charge

Customer site

Customer facility(factory, warehouse,
shop, etc.)

Source: Hokuriku Electric Power Company *Note added by JEPIC52TOPICS: Actions toward Carbon Neutrality in 2050

Renewable Energy (RE) Adoption Targets of Former General Electricity Utilities and J-POWERUTILITY

TARGET

Table 1KEY ACTIONS

Hokkaido
EPCo

Increase RE power capacity by atleast 300,000 kW by FY2030• Participation in an offshore wind farm project (Ishikari Bay)• Participation in one of Mexico’s largest solar power generation projects• Repowering of a hydroelectric power plant (Shintoku)

TohokuEPCoDevelop RE power capacity of 2
million kW in mainly the Tohoku
and Niigata areas as early as
possible from 2030 onward• Development of new hydroelectric power plants (Tamagawa No. 2 & Shinkamimatsuzawa)• Participation in offshore wind farm projects (Tsugaru offshore & Northern Akita offshore)• Refurbishing and new development of geothermal power plants (Matsukawa & Kijiyama)

TEPCO

Development of new RE capacityof 6 to 7 million kW domesticallyand internationally by early 2030s• Repowering of domestic hydroelectric power plants• Development of overseas hydroelectric power plants (Dariali & Coc San)• Participation in offshore wind farm projects (Choshi Offshore & Northern Akita Offshore)

Chubu EPCo

Develop RE capacity of at least 2
million kW by around 2030• Development of new hydroelectric power plants (Abekawa & Seinaiji)• Wind farm development & project participation (Akita Port/Noshiro Port offshore & Atsumi
onshore)• Development of biomass power plants (Yatsushiro, Omaezaki Port & Yonago)

Hokuriku
EPCo

Increase RE capacity to 2 billion
kWh/yr by FY2030• Development of new hydroelectric power plants and improvement of existing ones (+0.14
bln kWh/yr)• Increasing of biomass co-firing ratio (+1.5 bln kWh/yr)• Development of RE capacity of 300,000 kW (mainly wind power)

Kansai EPCo

Raise RE capacity to 6 million kW
by 2030s (new development of atleast 2 million kW domestically /internationally)• Development of hydroelectric power plants (Shin-Utsubo & Shin-Sakagami)• Development of biomass power plants (Aioi Unit No. 2 & Iwaki, Fukushima)• Wind farm development & project participation (Northern Akita offshore & Akita Port/Noshiro
Port offshore)

Chugoku
EPCoIntroduction of new RE capacity of
300,000 to 700,000 kW by FY2030• Repowering of a hydroelectric power plant (Takiyamagawa)• Coal & biomass co-firing (Misumi Unit No. 2)• Participation in wind farm project (Yunlin offshore, Taiwan)

Shikoku
EPCo

Seek to develop RE capacity of
500,000 kW domestically /internationally by FY2030• Development of new hydroelectric power plant (Kurofujigawa)• Solar power plant development & project participation (Huatacondo, Chile)• Participation in wind farm project (Yunlin offshore, Taiwan)

Kyushu EPCo

Seek to develop RE capacity of 5
million kW domestically /internationally by FY2030• Repowering of hydroelectric power plants (Tsukahara, Sugiyasu & Shin-Taketa)• Refurbishing and development of geothermal power plants (5 sites in Kyushu;
Sarukuradake in Fukushima)• Wind farm development & project participation (Hibikinada offshore & Yurihonjo offshore

Okinawa
EPCo

Develop new RE capacity of
100,000 kW by FY2030• Photovoltaic Third-Party Ownership project implementation & expansion• Development of wind power• Demonstration of community microgrid (Kurimajima, Miyakojima)

J-POWER

Develop new RE capacity of atleast 1.5 million kW by FY2025•Repowering of hydroelectric power plants (Nagayama & Ogamigo)•Wind farm development & project participation (Hibikinada & Kaminokuni No. 2)•Refurbishing& development of geothermal power plants (Onikobe & Appi)
Source: Federation of Electric Power Companies of Japan, “Achieving Carbon Neutrality in 2050”

53

The Electric Power Industry in Japan 2022

Another notable initiative is Chugoku Electric Power
Company’s participation in an energy aggregation
demonstration project that seeks to construct a stableand efficient electrical power system and spread the useof renewable energy. The project, which combines thecompany’s renewable energy power generation and storage
battery systems, is attempting to acquire the technical andoperational expertise needed to run an energy aggregation
business, and to demonstrate the economic viability of thebusiness model.

(2) Utilizing nuclear power
Nuclear power has a significant role to play as atechnologically established zero-emission energy source.
Efforts are now underway to leverage this energy source,founded on a commitment to improving nuclear safety.
These include laying the groundwork for the early restartingand stable operation of existing reactors, and research on
next-generation reactors.
Hokkaido Electric Power Company is among the electricutilities that are vigorously striving to utilize nuclear power.
The company has set a goal of achieving a 60% reduction
in carbon emissions by 2030 compared to fiscal 2013,
and, assuming that its Tomari Nuclear Power Plant will berestarted at an early stage, plans to make nuclear power thedominant source of its supply of non-fossil fuel electricity byfiscal 2030 (Figure 2).

Energy Composition of the HEPCO Group’s Electricity Generation Business

Figure 2

Non-fossil energy sources: Slightly over 10%

FY2013

Thermal(oil & coal)

Hydro

Non-fossil energy sources: Over 60%
FY2030After restartingof Tomari Nuclear
Power Plant

Renewable
Hydro

NuclearThermal(oil & coal)

Source: Hokkaido Electric Power Co., Inc.

Schema for hydrogen/ammonia co-firing

Fuel (natural gas/LNG)

Hydrogen/ammonia

Steam turbine

Generator

Figure 3

Gas turbine

Waste heat recovery boiler

Flue

Source: Tohoku Electric Power Co., Inc

54

TOPICS: Actions toward Carbon Neutrality in 2050

(3) Utilizing Hydrogen and Ammonia
Power generation using fuels that do not release CO2 when
combusted, such as hydrogen and ammonia, is seen as one
promising area of technology for attaining zero emissions
on the supply side. However, several challenges stand in theway of large-scale hydrogen power generation, including
not only the establishment of viable methods for hydrogen
manufacturing and storage, but also development oftransportation infrastructure and reduction of costs. In
contrast, technologies are already in use for ammonia
production, transport, and storage, and thus ammonia isseen as having greater potential for early deployment as a
zero-emission fuel.

Tokyo Electric Power Company and Chubu Electric Power
Company, working through an electricity generation utility
they jointly formed, are carrying out a demonstration
project subsidized by the New Energy and Industrial
Technology Development Organization (NEDO) to establish
a technology for ammonia combustion. The project isseeking to realize 20% ammonia co-firing with coal by fiscal
2024, using a 1 million kW-class commercial coal-fired power
plant.

Tohoku Electric Power Company is using the Niigata Thermal
Power Station’s Unit No. 5 (109,000 kW) to carry out a projectfor demonstrating the stable combustion of hydrogen andammonia, among other testing. The insights gained fromthe project will be used to inform plans for deployment in
2026 or later of power plant units that combust a mix of thetwo fuels, or just one of them (Figure 3).

Hokuriku Electric Power Company and Kansai Electric Power
Company are conducting a feasibility study on developmentof a clean fuel ammonia supply chain. This project aims
to establish a supply chain whereby clean fuel ammonia
is manufactured in Australia—with CCUS technology andbio-sequestration are used to abate the CO2 released fromthe process of producing ammonia from natural gas—andis transported by sea to Japan for use as a fuel in power
generation and ship operation (Figure 4).

Overview of Australia-Japan Clean Fuel Ammonia Supply Chain

AUSTRALIA

Figure 4JAPAN

Clean fuel ammonia production

Transport

ReceivingBlue hydrogen
Natural gas

Steam reforming

CCUS & biosequestration

Clean fuelammonia
Ammonia
production

Clean fuelammonia
Transportationby ship

Receiving at
thermal power
plantGreen hydrogen
RenewableenergyElectrolysis

Source: Kansai Electric Power Co., Inc.

55

The Electric Power Industry in Japan 2022(4) CCUS: Carbon Dioxide Capture, Utilization,and Storage

Company, working together with the Japan Post Group ina strategic partnership announced in April 2021, is making
efforts to promote demand-side electrification. These efforts
include utilizing renewable energy for the electrical power
consumed at post offices, expanding the deploymentof electric vehicles for postal delivery, and installing EV
charging stations at post offices that can be used bycustomers and local businesses, among other actions.

Due to constraints inherent in the structure of society andindustry, the release of carbon emissions is unavoidable
to a certain extent in some sectors where electrification
is difficult to implement, such as those with demand forheat that depends on ultra-high temperatures. CCUS
technologies need to be established to address such
emissions.

(6) U shering in the next-generation electric power
network

J-POWER has been involved in various carbon storage
demonstration and technological development projects.
Since May 2020, it has been formulating, under a Joint
Crediting Mechanism1 (JCM) feasibility study, a detailed plan
for a CCS project demonstrating the underground injection
and storage of CO2 emitted by natural gas production inIndonesia (Figure 5).

(5) Promoting demand-side electrification
In order to successfully realize carbon neutrality acrosssociety as a whole, actions must be taken not only
to decarbonize the supply side, but also to advance
electrification on the demand side. The Tokyo Electric PowerIn May 2021, the ten general electricity transmission anddistribution utilities comprising the Transmission andDistribution Grid Council laid out a roadmap for developing
the next-generation electric power network that will
provide the foundation for achieving carbon neutrality. The
plan encompasses key initiatives such as: systematic griddevelopment for making renewable energy the main sourceof power; addressing the technological challenges broughtby the increase in the ratio of non-synchronous powersources; and utilization of existing and new resources toensure balancing capacity and increase the sophistication ofgrid stabilization technologies.

Schema of the Joint Crediting Mechanism

JAPAN

Figure 5

Facilitate diffusion of leading low-carbon
technologies and implementation of emission
reduction activities

PARTNERJCM Projects

Used to achieve Japan’semission reduction
targetOperation and management by jointcommittee consisting of representatives fromboth countries

Measurement, reporting,verification

Credits

Greenhouse gas
emission reductions
and removals

Source: Ministry of Foreign Affairs of Japan website

56

1 This is a program for bilateral sharing of carbon reduction effects gained through the diffusion of decarbonization technologies to developing
countries. Japan has been entering into JCM consultations with developing countries since 2011. To date, JCMs have been established with
Mongolia, Bangladesh, Ethiopia, Kenya, Maldives, Vietnam, Laos, Indonesia, Costa Rica, Palau, Cambodia, Mexico, Saudi Arabia, Chile, Myanmar,
Thailand, and the Philippines.

TOPICS: Actions toward Carbon Neutrality in 2050

Overview of next-generation electric power network for achieving carbon neutrality in 2050

Responding to grid congestion
2022
Introduce re-dispatching
methodMaintainpower
generation

Grid development for making renewableenergy the main power source

Mid-2020s onward
Designate demand-side“Welcome Zones”(effective use of existing grids)

2022
Formulate master plan(participate in study of
OCCTO master plan)

Reduce output

Latter 2020s onward
Transition tomarket-driven model

Resolve congestion
based on merit order

Transmission networks
in other areas

Utilize existing grids

Grid development

2030s
Long-distance HVDC
transmission

Converter
stations

Transmission network
Improve renewable energy ratioof remote distributed grids
Streamline local grids &reduce transmission loss
Remote areas(mountainous areas, etc.)

Remote islands

Latter 2040s onward
Establish technologies for
integrated control of DERs

Areas suited foroffshore wind
power generation
Converter
stations

To FY2027, 2030s
Strengthen interconnections, etc.

Transmission networks
in other areas

Mid-2020s
Improve accuracy of
renewable energy
forecasting

Latter 2020s onward
Secure grid inertia throughestablishment of grid
codes, markets, etc.

Responding to further
challenges (exploitation of

Mid-2020s onward
Develop necessary
technologies, etc.

systems other thansynchronous power generators)

Distribution network

2030s
Commence full-scale
operation
2040s
Extend toremote islands

Figure 6

Secure balancing capacity
By 2030
Utilize demand
response forincreasing demandMid-2030s onward
Utilize EVs andother electrification(new demand) resources

Latter 2040s onward
Utilize new resources(water electrolyzers）

Mid-2020s onward
Introduce/use next-generation
smart meters, etc.

Increase sophistication of supply/demand balancing and gridstabilization technologies

Source: Transmission and Distribution Grid Council, “Toward Carbon Neutrality in 2050”

57

STAT IS T IC AL DATAThe Electric Power Industry in Japan 2022

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

[TWh]

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

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

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

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

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

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

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

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

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

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

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

FY

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

Source : METI (2011-2020)

Electric Power Consumption

Low Voltage

[TWh]

FY

2010

2011

2012

2013

2014

2015

Residential
Commercial and Industrial

304.2
47.5
574.9
0.0
4.4
931.1
125.4
1,056.4

289.0
44.9
545.6
0.0
4.3
883.8
118.7
1,002.4

286.2
43.7
541.0
0.0
4.4
875.3
116.3
991.6

284.3
42.8
544.4
0.0
4.5
876.0
116.6
992.6

273.1
40.5
537.8
0.0
3.9
855.4
114.1
969.4

266.9
39.2
531.5
0.0
4.0
841.5
113.8
955.3

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

Low Voltage
Specified-Scale Demand*

FY

2016

2017

2018

2019

Residential
Commercial and Industrial
High Voltage
Extra-High Voltage

272.9
37.9
308.3
231.4
6.0
43.2
899.8
70.8
970.6
2.3

280.4
38.4
310.6
233.8
6.1
45.1
914.4
70.0
984.3
2.3

271.4
37.1
307.8
236.3
6.3
37.4
896.2
77.2
973.4
2.3

267.7
35.7
302.8
229.9
6.2
34.9
877.1
75.6
952.7
2.2

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

60

Source: METIS TAT I S T I C A L D ATA

Installed Generating Capacity*
FY

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

[MW]

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

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

48,93444,651
4,282
188,903
139,794
49,10946,14846,148
–
2,562
83
2,479
267
65
202
512
477
35
–
–
–
287,327
231,219
56,10748,932
44,676
4,256
191,258
141,901
49,35744,26444,264
–
2,646
82
2,563
1,559
67
1,492
512
477
35
–
–
–
289,171
231,468
57,70349,59745,403
4,194
193,356
143,777
49,57944,26444,264
–
2,750
30
2,720
4,085
81
4,005
508
473
35
–
–
–
294,560
234,028
60,53250,03545,786
4,248
190,805
143,040
47,76542,04842,048
–
2,808
50
2,758
5,624
87
5,536
517
473
43
–
–
–
291,836
231,484
60,35250,05849,521
536
193,910
174,392
19,51741,482
41,482
–
3,203
2,893
310
9,110
5,655
3,455
526
511
15
64
64
0
298,352
274,519
23,83450,01449,562452
193,462
173,261
20,201
39,132
39,132
–
3,483
3,091
391
12,592
7,318
5,274
471
466
5
54
54
0
299,209272,885
26,32450,03749,582455
193,026
171,469
21,55738,042
38,042
–
3,498
3,165
332
14,974
8,922
6,052
473
463
11
43
43
0
300,093271,685
28,40750,03349,635398
189,784
168,760
21,02433,08333,083
–
3,951
3,580
371
16,522
10,549
5,973
481
463
18
43
43
0
293,897
266,11227,78550,03349,635
398
191,758
170,260
21,49833,08333,083
–
4,119
3,750
369
19,02812,408
6,620
487
469
18
43
43
0
298,550
269,648
28,903*Figures represent the total amount generated by power plants with a generating capacity of 1,000kW or above.
*In conjunction with the launch of the licensing system in fiscal 2016, certain utilities’ power generation facilities that had beencounted under “Industry-owned” up through fiscal 2015 have been counted under “Electric Utilities” since fiscal 2016.
**Including biomass and waste-to-energy.

Source : FEPC (2011-2015), METI (2016-2020)

Transmission, Substations and Distribution Facilities of General Electricity Transmission and Distribution Utilities(As of March 31, 2021)

Transmission Lines [km]Route length

Voltage [kV ]Overhead

Substations
Circuit length

Underground

Overhead

UndergroundNumberOutput Capacity
[MVA]

500

8,044

113

15,60220185

228,650

275

7,449

611

14,727

1,524

162

176,165

220

2,617

61

5,028

134

71

43,860

187

2,686

15

5,227

35

48

19,005

110–154

15,495

1,045

28,221

1,974

758

161,939

66–77

38,303

7,438

68,537

13,421

4,665

229,019≦55

13,7196,153

14,955

10,145

1,348

9,919

Total

88,312

15,436

152,295

27,435

7,137

868,556

Transformers

Distribution Lines [km]Route length

Circuit length

Output Capacity [MVA]

Overhead

Underground

Overhead

Underground

Overhead

Underground954,994

44,071

4,046,028

73,995

348,689

35,967
Source : FEPC

61

The Electric Power Industry in Japan 2022

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

2012

2013

2014

2015

2016

2017

2018

2019

2020

Peak Load [GW]

156.4

157.2

161.6

154.3

161.2

156.2

157.1

159.7

158.7

159.2

Supply Capability [GW]

175.9

176.9

179.5

179.8

184.2

180.4

185.2

178.9

178.4

167.3

Annual Electricity Demand [TWh]

926.8

914.7

917.5

898.9

888.2

887.1

892.6

886.9

879.9

850.8

Reserve [GW]*

19.5

19.7

17.9

25.6

23.0

24.2

28.1

19.2

19.7

8.1

Reserve Margin [%]*

12.5

12.6

11.1

16.6

14.3

15.5

17.9

12.0

12.4

5.1

Load Factor [%]**

67.4

66.4

64.8

66.5

62.9

64.8

64.9

63.4

63.3

61.0

FY

* Reserve= Supply Capability-Peak Load

Reserve Margin= Reserve/Peak Load×100		

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

Source: Japan Electric Power Survey Committee (2011-2014), OCCTO (2015-2020)

Summarized Comparative Table Classified by Country for the Year 2019
USA

UK

FranceGermany

RussiaChina

India*

Japan

1,212,584

77,898135,328

226,396

275,800 2,010,060

411,773

293,897

Hydroelectric

100,816

4,365

25,557

14,66251,800358,040

45,44750,033

Thermal829,875

43,91018,58978,529191,900

1,189,570

282,350

189,784

Nuclear106,351

9,261

63,1309,516

30,30048,7406,780

33,083

Renewables and others

175,542

20,362

28,051

123,6881,700

413,710

77,91620,997

Total Energy Production [GWh]4,131,152

323,801

537,700

609,406

1,121,000

7,326,900

1,521,785

970,771

287,949

7,602

60,00019,730196,000

1,302,100

134,991

86,314

Thermal2,569,164

146,319

42,600266,223

714,000

5,046,500

1,244,959

792,810

Nuclear809,057

56,184

379,500

75,071

209,000

348,700

37,813

61,035

Renewables and others

464,981

113,694

55,600248,382

2,100

629,600

104,022

30,612

–

42.4

45.4

30.7

–

43.7

56.0

35.0

12,586

4,847

8,295

7,340

7,638

5,233

1,172

7,688

Domestic Energy Supplies [GWh]4,150,188

328,198

473,410–

1,110,100

6,283,500––

Energy Sales [GWh]3,811,151

273,493–439,830–

5,911,100

1,209,972

836,038

Number of Customers [At year-end; thousand]

154,898

31,275–––603,454

298,877

88,329Maximum Demand [MW]786,214

48,23088,500–151,700–

183,804

164,610Annual Load Factor [%]

59.9

70.5

61.1

–

79.7

–

–

60.7

Thermal Efficiency [%]

–

32.2

–

43.7

40.5

40.1

–

–

Loss Factor (Transmission and Distribution) [%]

5.1

8.0

7.7

–

–

5.9

20.7

–

Total Consumption per capita [kWh]

–

4,431

6,739

6,107

6,888

5,186

932

7,545

Total Installed Capacity [MW]Hydroelectric

Capacity Factor [%]Total Energy Production per Capita [kWh]*Figures other than Capacity Factor and Maximum Demand represent the actual figures for 2018.

62

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

This section presents information on member companies’ overseas activities, provided by a number of member
companies. Although JEPIC has compiled this information with care, no guarantee can be made as to its accuracy.

The Electric Power Industry in Japan 2022

Recent Overseas Activities of Member Companies

North and South America
Capacity

Equity

[MW]

[%]

PV

290

12

2018

Mexico

CCGT

2,233

10

2001

Falcon Gas Thermal IPP

Mexico

CCGT

2,233

20

2001

JERA

Linden Gas Thermal IPP

USA

Gas

972

50

1992 (Unit1-5),
2002 (Unit 6)

KansaiAviatorUSA

Onshore Wind

525

48.5

2020

ChugokuSouth Field Energy

USA

CCGT

1,182

10.0

2021

Shikoku

Huatacondo

Chile

PV

98

30

2019

ShikokuSouth Field Energy

USA

CCGT

1,182

9

2021

KyushuSouth Field Energy

USA

CCGT

1,182

18.1

2021

KyushuThermochem, Inc

USA

Geothermal Services–(Private)–

KyushuProject on Master Plan Study for Development ofRenewable Energy with Stabilization Measures for
the National Electric System

Cuba

Consulting

–

–

2020

J-POWER

Jackson

USA

CCGT

1,200

100

2022

J-POWER

Refugio

USA

Solar

400

25

2023

Location

Type

Capacity

Equity

[MW]

[%]

4

30

2021

Company

Project

LocationType

Hokkaido PV project in Mexico

MexicoTohokuFalcon Gas Thermal IPP

JERA

COD

EuropeCompany

Project

COD

Tokyo

TetraSpar floating offshore winddemonstration project

NorwayFloating Offshore Wind

Chubu

Offshore Transmission Business(Hornsea One)

UK

Transmission

–

49

2021

Chubu

Acquisition of 20% shares of Eneco Group

Netherlands

Integrated Energy
Business

–

20

2020

JERA

Gunfleet Sands Offshore Wind IPP

UK

Offshore Wind

173

25

2010

KansaiMoray East

UK

Offshore Wind

952

10

2022

KansaiElectricity North West

UK

Distribution

–

22

–

J-POWER

Triton Knoll

UK

Offshore Wind

857

25

2022

64

OVERSEAS ACTIVITIES OF MEMBER COMPANIESAsia
Capacity

Equity[MW][%]

Geothermal

98

10

2021

VietnamCoal (SC)

1,200

10

2022

Coc San Hydro Power Plant

Vietnam

Hydro

30

33

2018

Tokyo

Deep C Industrial Park

VietnamDistribution and Retail

–

50

2018

Tokyo

Dhaka underground substation

Bangladesh

Consulting

–

–

2024

Chubu

New Clark City

Philippines

Distribution and Retail

–

9

2019

JERA

TeaM Energy IPP

Philippines

Coal/Gas

3,592

10~50

–

JERA

EGCO Corporation

Thailand

Gas/Coal/Renewable

6,016

12.3

–

JERA

ReNew Company

India

Solar/Wind

8,271

8

–

KansaiNam Ngiep 1

Laos

Hydro

290

45

2019

Kansai

New Clark City

Philippines

Distribution and Retail

–

9

2019

Chugoku

YunlinTaiwanOffshore Wind

640

3.375

2022

ChugokuFeng Ping Xi

Taiwan

Hydro

37.1

25.0

2024

Shikoku

AhloneMyanmar

CCGT

121

28.5

2013

Shikoku

YunlinTaiwanOffshore Wind

640

4.4

2022

KyushuSarulla/Geothermal IPP

Indonesia

Geothermal

330

25

2017

Kyushu

EGCO

ThailandElectric Business

5,691

6.1

–

J-POWER

Central Java

Indonesia

Coal (USC)

2,000

34

2022

Company

Project

Location

Type

TohokuRantau Dedap Geothermal Power Plant ProjectIndonesia

TohokuNghi Son 2 BOT Thermal Power Plant Project

Tokyo

COD

OthersCompany

Project

Location

Type

United Arab Emirates

Capacity Equity

COD

[MW]

[%]

CCGT

2,400

19.6

2023

Hokuriku

Fujairah F3 IPP

Chugoku

Energy Fiji Limited

Fiji

Electric
Company

329

44

–

KyushuTaweelah B IWPP

United Arab Emirates

Hydro

2,000

6

2020

KyushuExecution of Agreement on "The Project for
Capacity Development of Power Transmission
Systems in Kenya“ With JICA

Kenya

Consulting

–

–

2021

Okinawa

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

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

ODA

–

–

20172022

J-POWER

K2-Hydro

Australia

Hydro(PumpedStorage)

250

10

2024

65

The Electric Power Industry in Japan 2022

Hokkaido Electric Power Co.

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Tohoku Electric Power Co.
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Chubu Electric Power Co.
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6  ,(15  ,(1  -1$0
$1/-%(11(,&1'$"-+!201(-,0401$+1-$, !*$"-%(/(,&-%/$%(,$/4./-#2"$#%2$*
(,"*2#(,&'4#/-&$, 1,(1 3(1'1'$
1 /&$1"-+.*$1(-, /-2,#  

69

The Electric Power Industry in Japan 2022

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

# # " $  %#   " !"" " ! !"%""$# " "" 
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70


 
 

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

Kansai Electric Power Co.

       +!/&+*
5 +'#+0*/4#3. !&(&/&#.
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71

The Electric Power Industry in Japan 2022

Chugoku Electric Power Co.
     
 "    #$!!  ! $$
   #$" !$## ! $#  $    '(%& * %"' !%) '
* "'"! 
*
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72



#')  &   )%"  ! * $(')% O V E R S E A S A C T I V I T I E S O F M E M B E R C O M PA N I E S

Kyushu Electric Power Co.
         
 
                  

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$"%#,#"

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

+'  &$ &!  !$"!$&! !' &$%
%&"  $  ! %'& &%  !' &$%

$! !' &$%





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

73

The Electric Power Industry in Japan 2022

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

74

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

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

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 "12/"0,+01/2 1&,+0&1",#1%" (0,+-,4"/-)+10,#2+"  

77

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%& $,

7

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7

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77

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75

The Electric Power Industry in Japan 2022

The Japan Atomic Power Co.
 


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

 %"! # " $"**

%$ "
%!! "$$ $" % *$"$ #!

$#*  #%"%$"$"*

#%$ "

 #%$#*"!"$  #$"! "$" %$  %"! '"%"! '"!$#%$ "76&!" &%$  "
!!" ($) %$"#! !$ '#%!! "$  " $" %#  %"(!"#Member Companies Data (As of March 31, 2021) *FY 2020

Approved maximum output of power facilities [MW]**

Capital (¥m)
Nonconsolidated

Sales (¥m)
Consolidated

Electricity
sold retail

Hydro

ThermalNuclearHokkaido EPCo

114,291

740,790

22,683

1,651

4,469

2,070

–

8,190

Tohoku EPCo

251,441 2,286,803

65,952

2,556

12,0732,750

243

17,622TEPCO HD

1,400,975 5,866,824

204,484

9,874

–

8,212

51

18,137[GWh]

Renewable(excl. hydro)

Total

Chubu EPCo

430,777

2,935,409

110,729

5,463

–

3,617

88

9,167

Hokuriku EPCo

117,641

639,445

25,940

1,963

4,565

1,746

–

8,274

Kansai EPCo

489,320

3,092,398

102,331

8,235

14,5666,578

11

29,391

Chugoku EPCo

197,024

1,307,498

46,390

2,905

6,951

820

6

10,682

Shikoku EPCo

145,551

719,231

21,986

1,153

3,395

890

2

5,440

Kyushu EPCo

237,304

2,131,799

75,171

3,584

10,0104,140

213

17,948

Okinawa EPCo

7,586

190,520

7,137

–

2,145

–

2

2,147

J-POWER

180,502909,144

–

8,560

8,773

–

580

17,913

JAPC

120,000

96,336

–

–

–

2,260

–

2,260

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

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

JERA

5,000

2,730,146––

65,476––65,476

Source: Financial statement

77

CONTRIBUTORS:

Dai Ukita
Ryosuke Sato
Masato Nabeshima
Manabu Hirano
Yuta Masaki
Shota Sakamoto
Takakazu Watanabe
Tomoaki Okamura
Takanori Yamamoto
Kaori Kodama
Kenta Takahashi

COVER PHOTO:

Koushi Tsubota

DISCLAIMER

This publication was prepared by the Japan Electric Power
Information Center (JEPIC), based on publically available
information. While we presume this information to beaccurate and reliable, we provide no guarantee as to theaccuracy of the data or information contained herein. JEPIC
shall therefore assume no legal responsibility for any trouble,
loss, or damages resulting from any actions taken based on
the content of this publication.
All rights reserved.
©2022 Japan Electric Power Information Center, Inc.

Distribution Areas and Frequency of General Electricity
T&D Utilities(As of February 2022)

Hokkaido
Electric Power
Network

TohokuElectric Power
Network

Hokuriku
Electric Power
T&D
ChugokuElectric Power
T&D

KyushuElectric Power
T&D

Kansai
T&D

Chubu
Electric
Power Grid

TEPCOPower Grid

ShikokuElectric Power
T&D

60 Hz

50 Hz

Okinawa
Electric Power Co.

Member Companies (As of February 2022)
Hokkaido Electric Power Co., Inc.
2, Higashi 1-chome, Odori, Chuo-ku, Sapporo, Hokkaido 060-8677, Japan
http://www.hepco.co.jp/english/

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

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

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

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

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

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

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

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

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

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

The Elec tric
Power Industr y
in JAPAN

2022

Head Office15-33, Shibaura 4-chome Minato-ku,
Tokyo 108-0023, Japan
https://www.jepic.or.jp/en
Washington Office1120 Connecticut Avenue, N.W., Suite 1070,
Washington, D.C. 20036, U.S.A
Tel: +1 (202) 955-5610
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Tel: +33 (1) 42.86.90.11
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The People’s Republic of China
Tel: +86 (10) 6513-9885

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