Developing a fully liberalised and competitive energy market

METI’s goals and roadmaps for Japan’s energy mix have been announced in a series of long-term energy plans for 2030, based on an energy mix scenario where LNG and renewables will hand in hand play center stage to Japan’s fuel demand.

With market liberalization, an energy market worth Yen 10,500 billion/year has been opened. A national grid company has been established to overcome regional shortages and the retail power market has been open for business since 1 April 2016. The gas industry is also changing, with deregulation coming into effect on 1 April 2017.

Striking the right energy balance to keep Japan COP22 compliant, while ensuring security of supply is now a key focus for Japan’s energy market suppliers with new techniques and technologies finding their place in the evolving energy scenario. There will be increasing numbers of commercial opportunities and how to make the most of these opportunities will form the main theme of the conference.

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Japan's Energy Market Reforms


Writing for Power Engineering International, Matthew Rennie, EY’s Global Energy Reform & Unbundling Leader says:

"Of all the investment opportunities presented by reforming energy markets, those on offer in Japan are the most significant in the world right now.

The size and scope of the Japanese reforms are huge, impacting every aspect of the value chain.

Already the opening of the Japanese market is attracting huge interest – we’ve seen close to 500 new generation companies register in the last few months, and several new non-conventional players register for electricity retailing.

One move worth noting is the decision by some of Japan’s incumbent utilities to form joint ventures in preparation for unbundling.”

“There is little time to waste for those planning entry into Japan. For incumbents, the to-do list is long.

Cultural change, structural separation and developing individual identities as separate companies are key. Businesses will also have to design and master new processes to deal with customer churn and “arms-length” communications with new retailers.”