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A Peek At The Immediate Future of Japans Electricity Market-in a Flux

Press Release

In July 2018, Japan’s cabinet approved the fifth Strategic Energy Plan as the basis for formulation of Japan’s new energy policy to 2030 and further toward 2050. According to a white paper by the Ministry of Economy, Trade and Economy (METI) released last year, the country’s energy policy is based on three strategies: strengthening energy security; implementing energy conservation and renewable energy policies that consider environmental concerns alongside growth; and balancing public interest issues, such as stable supplies of energy and reduced costs, with market liberalization and growing competition.

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A key starting point of the new plan is to take measures keeping in mind the lessons learnt from TEPCO’s Fukushima Daiichi Nuclear Power Station accident. Safety remains a top priority for nuclear power plants. Further, the plan also states that the country is looking at reducing its dependency on nuclear power by expanding renewable energy in its fuel mix. A key policy requirement for Japan is also to reduce energy costs and reduce the dependence on overseas energy. Furthermore, the country is also looking at decarbonization as an important aspect of its energy policy, in view of the Paris Agreement.

The energy sector of Japan faces a number of structural issues. The country has a very high dependency on overseas energy resources. It relies on imports for almost all of its energy resources. The rapid aging of the country’s population is expected to have an impact on future power demand. The volatility in fuel prices further adds to the variability for Japan’s energy policy planners. Finally, the climate change commitments based on the Paris Agreement limit the energy choices of the country.


– An overview of Japan’s fifth strategic energy plan.
– Detailed overview of the country’s electricity market and structural issues faced by the energy sector.
– Provides information on the challenges faced by the country’s renewable energy industry.

Reasons to buy

– Gain insight into Japan’s fifth strategic energy plan.
– Understand the country’s power market conditions and structural issues.
– Identify key challenges associated with the country’s renewable sector.
– Facilitate decision-making based on Japan’s electricity market scenario.

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