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A Review of Electricity Market Reform in Japan

In: ELECTRICITY MARKET REFORMS IN THE ASEAN, CHINA, INDIA, AND JAPAN

Author

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  • Hadi Farabi-Asl
  • Farhad Taghizadeh-Hesary
  • Han Phoumin
  • Saeid Mohammadzade Bina

Abstract

The 2011 Great East Japan earthquake impacted the country’s electricity market reform (EMR). By considering three reform objectives of stable electricity supply, low electricity tariffs, and expanding the consumer’s choices and electricity companies’ business opportunities, the Cabinet approved the Policy on Electricity Reform in 2013. The concept of ‘3E+S’ was introduced as the centre point of the Japanese strategic energy plan in 2014, covering energy security, economic efficiency, environment, and safety.In this chapter, after reviewing EMR studies from a policy and technology perspective and country case studies, we provide an overview of the electricity generation statistics in Japan. We investigate the data on power generation to clarify the role of conventional and renewable power generation technologies on the supply side and industrial, residential, and commercial sectors on the demand side. This chapter provides insights into EMR in Japan from a historical perspective by investigating the actions, policies, and deregulation pathways to achieve fairness and competitiveness. Even though the electricity market of each country has its specifications and might deal with unique circumstances, the findings of this study could be helpful for other countries that are aiming to reform their electricity market in the coming years.

Suggested Citation

  • Hadi Farabi-Asl & Farhad Taghizadeh-Hesary & Han Phoumin & Saeid Mohammadzade Bina, 2023. "A Review of Electricity Market Reform in Japan," World Scientific Book Chapters, in: Phoumin Han & Farhad Taghizadeh-Hesary & Fukunari Kimura & Rabindra Nepal (ed.), ELECTRICITY MARKET REFORMS IN THE ASEAN, CHINA, INDIA, AND JAPAN, chapter 10, pages 253-301, World Scientific Publishing Co. Pte. Ltd..
    • Handle: RePEc:wsi:wschap:9789811270581_0010
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    Keywords

    Electricity Market Reform; Market Liberalisation; Tariff Reform; Electricity Trade; Renewable Energy; Resource Allocation; Sustainability; Electricity Market; ASEAN; Southeast Asia; Japan; India; China; Renewable Energy; Energy Transition; Sustainable Electricity Market; Liberalised Electricity Markets; Efficiency; Emission Reduction; Carbon Reduction; Clean Energy; Green Energy; Electricity Tariffs;
    All these keywords.

    JEL classification:

    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • 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
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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