Energy Market Reform in Japan
We create a new comprehensive and competitive energy market in Japan, by removing barriers in vertically integrated market. We aim to accomplish the following two goals:
1) Driving growth in Japan
Nurture dynamic innovation including combination of different services and development of revolutionary industrial technology
2) Enhancing consumer benefits
Enhance benefits for consumers including an expansion of energy choices, keeping energy prices to a minimum, ensuring a stable supply of energy, and securing overall safety.
Electricity Market Reform Goals
1) Secure the Stable Supply of electricity
Establish reliable electricity system without relying on planned outages, by promoting i) cross-regional transmission of electricity, ii) effective use of the variety of generation resouces including renewables and in-house power genations, and iii) reasonable power-saving measures such as demand response.
2) Suppress Electricity Rates to the maximum extent possible
Promote market competition to encourage creativity and management efforts among energy-producing and selling companies.
3) Expand Electricity Choices for Consumers and Business Opportunities
–Develop innovation and business opportunities for companies, by introducing full retail choices for all electricity consumers – including both households and corporations.
Gas Market Reform Goals
1) Secure the Stable Supply of Natural Gas
Stabilize the natural gas supply, including the reinforcement of supply during disasters, through increasing gas pipeline networks, maintenance, and interconnection.
2) Suppress Gas Rates to the maximum extent possible
Promote market competition among natural gas procurement and retail services to suppress gas rates to the fullest extent possible and improve lifestyle of citizens.
3) Expand Gas Choice for Consumers and Business Opportunities
Bring about innovation through the new market entry from other industries and business expansion of gas companies to other areas, by offering greater diversity of retail choices of gas companies and pricing plans for gas consumers,
4) Expand Uses for Natural Gas
Promote the participation of businesses that can build new gas-pipeline, offer services that uncover potential needs for gas, and propose new utilization methods for natural gas such as fuel cells and cogeneration.
Related Links
- About electricity market reform (in Japanese)
- About gas business systems (in Japanese)
- Inauguration of The Organization for Cross-regional Coordination of Transmission Operators (OCCTO)- More efficient, nationwide management of electricity supply-demand balancing to be achieved -
Contact Information:
Electricity and Gas Market Reform Office,
Gas Market Division,
Agency for Natural Resources and Energy
Last updated:2021-6-15