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Restructuring the Electricity Sector and Promoting Green Growth in Japan

Author

Listed:
  • Randall S. Jones

    (OECD)

  • Myungkyoo Kim

    (OECD)

Abstract

The 2011 disaster and nuclear problems opened the door to a new energy policy, as they raised fundamental questions about the electricity system’s ability to prevent and respond to accidents. In particular, the system has had difficulty coping with the shortages caused by the accident and the suspension of operations of nuclear power plants. Addressing these problems requires creating a more competitive electricity sector by reducing the dominance of the ten regional monopolies through ownership unbundling of generation and transmission and by expanding the wholesale market. It is also important to increase interconnection capacity, while introducing real-time pricing. The reduced role of nuclear power following the Fukushima accident makes it necessary to accelerate the expansion of renewable energy, which requires setting a sufficiently high and consistent price for carbon. Finally, the government should ensure the independence of the new Nuclear Regulatory Agency and create an independent regulator for the electricity sector to promote competition. This Working Paper relates to the 2013 OECD Economic Survey of Japan (www.oecd.org/eco/surveys/japan) Restructurer le secteur électrique et favoriser la croissance verte au Japon La catastrophe naturelle et nucléaire de 2011, parce qu’elle a posé des questions fondamentales concernant la capacité du système électrique d’éviter et de réagir à des accidents, a ouvert la voie à l’élaboration d’une nouvelle politique énergétique. Ce système notamment n’a pu sans mal gérer les pénuries d’électricité provoquées par l’accident et par la suspension de l’exploitation des centrales nucléaires. S’attaquer à ces faiblesses nécessite la création d’un secteur de l’électricité plus concurrentiel, en atténuant la position dominante des dix monopoles régionaux ; pour cela, il faut dissocier la production du transport et dynamiser le marché de gros. Également, il est important d’augmenter les capacités d’interconnexion, tout en introduisant la tarification en temps réel. L’énergie nucléaire ayant un rôle moins important depuis l’accident de Fukushima, le Japon doit accélérer le développement des énergies renouvelables, ce qui impose de fixer un prix suffisamment élevé et cohérent pour le carbone. Enfin, le gouvernement doit assurer l’indépendance de la nouvelle Autorité de sûreté nucléaire et créer une autorité de régulation indépendante pour le secteur de l’électricité afin de stimuler la concurrence. Ce Document de travail a trait à l’Étude économique de l’OCDE du Japon, 2013 (www.oecd.org/eco/etudes/japon).

Suggested Citation

  • Randall S. Jones & Myungkyoo Kim, 2013. "Restructuring the Electricity Sector and Promoting Green Growth in Japan," OECD Economics Department Working Papers 1069, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:1069-en
    DOI: 10.1787/5k43nxrhfjtd-en
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    Cited by:

    1. Wang, Yang & Liu, Yongzhang & Huang, Liqiao & Zhang, Qingyu & Gao, Wei & Sun, Qian & Li, Xi, 2022. "Decomposition the driving force of regional electricity consumption in Japan from 2001 to 2015," Applied Energy, Elsevier, vol. 308(C).
    2. Kuramochi, Takeshi, 2015. "Review of energy and climate policy developments in Japan before and after Fukushima," Renewable and Sustainable Energy Reviews, Elsevier, vol. 43(C), pages 1320-1332.

    More about this item

    Keywords

    efficacité énergétique; electricity sector; electricity shortages; emissions trading system; energy conservation; energy efficiency; feed-in-tariffs; interconnection; interconnexion; Japanese economy; marché de l’électricité de gros; monopoles régionaux de l’électricité; nuclear power; ownership unbundling; real-time price; regional electricity monopolies; renewable energy; secteur de l’électricité; système d’échange de droits d’émissions; tarification en temps réel; tarifs d’achat garantis; wholesale electricity market; économie japonaise; énergies nucléaire; énergies renouvelables;
    All these keywords.

    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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