Japan

  • Power demand and supply outlooks

  • Institutional and regulatory frameworks

  • Generation mix and fuel security

  • Private sector participation

  • Renewable energy and efficiency promotion

  • Cross-border power trade opportunities

Governance & Regulation

Japan’s power sector is overseen by the Ministry of Economy, Trade and Industry (METI), which sets energy policy through the Agency for Natural Resources and Energy (ANRE). The Organization for Cross-regional Coordination of Transmission Operators (OCCTO) was established in 2015 to enhance grid planning and nationwide reliability. The Electricity and Gas Market Surveillance Commission (EGC) regulates competition, tariffs, and consumer protection, ensuring transparency and fairness in a liberalized market.

Market Structure

Following the 2011 Fukushima disaster, Japan accelerated reforms that unbundled generation, transmission, and retail. The Japan Electric Power Exchange (JEPX) operates the wholesale market, where independent generators and utilities trade electricity. Full retail liberalization was completed in 2016, allowing consumers to choose from over 700 licensed retailers. Transmission and distribution have been legally unbundled since 2020, although regional monopolies still operate the grids.

Private Participation & Renewables

Private companies play a strong role in generation and retail, competing with the legacy utilities. Renewables have surged under the Feed-in Tariff (FiT) scheme introduced in 2012, which supported solar PV and wind. Japan now aims for 36–38% renewables by 2030, alongside nuclear restarts and LNG for stability. The government is also promoting offshore wind, hydrogen, and ammonia co-firing as part of its Green Growth Strategy toward net zero by 2050.

Industry Participants

  • Former Regional Utilities (“The Big 10”): e.g. TEPCO, KEPCO, Chubu Electric, Kyushu Electric — still major players in generation and distribution.

  • Transmission & Distribution Companies: Legally unbundled but still affiliated with regional utilities.

  • Independent Power Producers (IPPs): Domestic and international players active in LNG, solar, and wind.

  • Retailers: Hundreds of licensed suppliers now compete, from trading houses to tech companies.

  • Market Operators: JEPX (wholesale), OCCTO (grid coordination), and EGC (regulation).