Ministry of Economy,
Trade and Industry
Agency for Natural
Resources and Energy
27 July, 2015
Agency for Natural Resources and Energy
Ministry of Economy, Trade and Industry (METI) Japan
Ministry of Economy,
Trade and Industry
Agency for Natural
Resources and Energy
1.
2.
3.
4.
5.
6.
Table of Contents
Energy Policy
LNG
Methane Hydrate
Coal
Nuclear
Electricity System Reform
1
Current Energy Mix in Japan
Ministry of Economy,
Trade and Industry
Agency for Natural
Resources and Energy
LNG increase compensates for the decline of nuclear power.
Renewable etc.
Oil
48%
LNG
25%
Coal
Nuclear
Coal
2
Ministry of Economy,
Trade and Industry
Japan’s Energy Supply Structure
Agency for Natural
Resources and Energy
Japan’s Primary Energy Source
100%
90%
4%*
Renewables etc.
Nuclear power
Hydro
80%
Natural gas
70%
3%
1%
Coal
60%
First
Oil Shock
50%
Coal
25%
23%
７５％
40%
30%
20%
45%
Oil
0%
1953
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
10%
* “Renewables etc.” consists of solar power (0.1%), wind
power (0.2%), geothermal heat (0.1%), and biomass
(3.3%).
Source: Prepared based on “Comprehensive Energy Statistics (Preliminary Report for 2012)”
issued by the Agency for Natural Resources and Energy.”
3
Changes in Primary Energy Self-Sufficiency Rate of Major Countries
100.0
80.0
U.S.A.
86.3
8.3
% 60.0
140.0
64.2
67.9
9.1
9.9
75.2
9.8
120.0
100.0
20.0
0.0
0.0
1990
100.0
2000
2010
53.0
11.3
2010
40.2
13.1
39.5
11.2
38.3
8.1
40.0
Spain
120.0
100.0
1990
2000
2010
2013
Korea
100.0
25.9
13.3
26.9
12.7
29.0
12.7
1990
100.0
60.0
60.0
2000
2010
14.8
18.3
18.0
16.6
15.1
15.5
13.8
2000
2010
2013
0.0
1990
20.0
36.5
42.9
42.6
43.8
1990
2000
2010
2013
100.2
0.0
96.2
0.4
China
89.0
0.8
86.8
2010
2012
0.9
40.0
20.0
1990
2013
Japan
100.0
92.2
0.5
80.0
2000
80.3
1.0
India
73.3
0.9
69.1
1.1
2010
2012
60.0
40.0
24.4
53.9
0.0
0.0
80.0
51.8
60.0
38.4
15.7
80.0
51.9
80.0
20.0
0.0
40.0
2013
60.0
20.0
20.0
2000
80.0
80.0
40.0
57.5
9.7
49.9
0.0
100.0
Germany
60.0
20.0
1990
2013
France
100.0
80.0
73.7
8.0
80.0
20.0
40.0
U.K.
Nuclear
原子力
60.0
power
Others
その他 40.0
40.0
60.0
101.1
8.3
122.2
9.9
40.0
17.1
20.4
19.9
12.0
16.2
15.1
6.0
0.5
1990
2000
2010
2013
0.0
20.0
* IEA “Energy Balance of OECD, Non-OECD Countries 2014” (Data is based on the latest estimate of the year 2013 for OECD countries, and the latest estimate of the year 2012 for non-OECD countries).
0.0
1990
2000
4
Ministry of Economy,
Trade and Industry
Changes in Electricity price
Agency for Natural
Resources and Energy
 Since the Great East Japan Earthquake followed by the nuclear accident, the average electricity
price rose by around 25% for households and around 40% for industry because of increasing fuel
costs and so on.
Changes in Electricity price
(Yen/kWh)
26
25.51
24.33
24
Increased
25.2%
22.33
22
21.26
20
20.37
18.86
18
17.53
Increased
38.2％
15.73
16
14.59
14
For
Households
電灯
For
Industry
電力
13.65
12
7
1995
8
1996
9
1997
10
1998
11
1999
12
2000
13
2001
14
2002
15
2003
16
2004
17
2005
18
2006
19
2007
20
2008
21
2009
22
2010
23
2011
24
2012
[Source] Created based on the “Electricity Demand Report” (Federation of Electric Power Companies in Japan) and the materials
concerning the power companies’ final settlement reports, etc.
25
2013
26
2014
Fiscal year
CO2 emission before and after the Great East Japan Earthquake
■ CO2 emission for FY2013 increased 101 million tons compared to FY2010.
■ Although emission except for electricity (*) are decreasing slightly, the emission from electricity production have increased by 110 million tons
compared to FY2010, because of increased use of thermal power generation as this makes up for nuclear power.
（Million t-CO2）
1990
2005
2010
2011
2012
2013
Greenhouse gas emission volume
１，２７０
１，３９７
１，３０４
１，３５４
１，３９０
１，４０８
CO2 emission volume
from energy production
１，０６７
１，２１９
１，１３９
１，１８８ (from
FY2010)
１，２２１ (from
FY2010)
(from
１，２３５
FY2010)
Of which, for electricity*
２７５
３７３
３７４
４３９
+65
４８６
+112
４８４
+110
Of which, except for electricity
７９２
８４６
７６５
７４９
▲16
７３５
▲30
７５１
▲14
*Emission volume “for electricity” means emission volume by general electricity utilities.
(Mt-CO2)
1,397
1400
1200
1,304
1,270
1,354
1,390
1,408
emission of greenhouse gases
other than CO2 from energy
production (5.5 gas)
1000
800
600
emission of CO2 from
energy production
400
200
(2010年度比)
(2010年度比)
+65
+112
(2010年度比)
+110
CO2 emission by general
electricity utilities
0
FY１９９０
FY2005
FY2010
FY2011
FY2012
FY2013
6
Ministry of Economy,
Trade and Industry
Agency for Natural
Resources and Energy
1. Energy Policy
（The Fourth Strategic Energy Plan）
7
Principles of Energy Policy and Viewpoints for Reform
1. Principles of Energy Policy and Viewpoints for Reformation
(1) Confirmation of basic viewpoint of energy policies (3E + S)
Global Viewpoint
Stable Supply (Energy Security)
-Developing
energy
policies
with
international movement appropriately
-Internationalizing energy industries by
Cost Reduction (Economic Efficiency)
facilitating business overseas.
Environment
Safety
+
Economic Growth
-Contribution
to
reinforce
Japan’s
locational competitiveness.
-Activating Japan’s energy market through
energy system reform.
(2) Building multilayered and diversified flexible energy demand-supply structure
 Establishing resilient, realistic and multi-layered energy supply structure, where each
energy source can exert its advantage and complement others’ drawbacks.
 Creating a flexible and efficient supply/demand structure where various players can
participate and various alternatives are prepared by system reforms.
 Improving self-sufficiency ratio by developing and introducing domestic resources to
minimize influence from overseas’ situation.
8
Japan’s New Energy Mix
機密性○
【Direction】
（１）To improve the self-sufficiency ratio to around 25% surpassing the level before the Earthquake.
（２）To reduce the electricity costs lower than today.
（３）To set a high-level GHG reduction goal compared with other developed countries to lead the world.
Electricity Demand
GDP growth
1.7%/year
Energy conservation
196TWh （loss form Electricity
（▲17%）
（Total Electricity generation ）
Electricity generation
1,278TWh
（Total Electricity generation ）
transmission etc,）
Energy Conservation
17%
Energy Conservation
＋Renewable Energy
= about 40%
Renewable Energy
2013
(actual results)
Electricity
Demand
981
TWh
2030
Geothermal
1.0～1.1%
Bioenergy
3.7～4.6%
Wind 1.7%
Renewable Energy
22～24%
Solar PV 7.0%
Nuclear 18～17%
Nuclear 22～20%
Hydro 8.8～9.2%
LNG 22%
LNG 27%
Coal 22%
Coal 26%
Oil 2%
Oil 3%
19～20%
Electricity
Demand
967
TWh
1,065TWh
mix
2030
Total base load
power ratio
：56%
Ministry of Economy,
Trade and Industry
Agency for Natural
Resources and Energy
2. LNG
10
Japan Suffers Huge Trade Deficit
Ministry of Economy,
Trade and Industry
Agency for Natural
Resources and Energy
 The overall cost of LNG imports to Japan has increased from 3.5 trillion yen (2010) to around 8 trillion
yen (2014).
 Japan recorded a trade deficit for the first time in 31 years in 2011. Trade deficit for 2014 was 12.8
trillion yen, which is not a sustainable level for Japan.
Changes in trade balance and current account balance （trillion yen）
30
25
20
Trade Balance
Current Account Balance
Trade
Balance
15
5
0
-5
-15
2014
Difference
6.6
- 12.8
- 19.5
Net Import Costs
10
-10
2010
Trade deficit (2014)
12.8 Trillion yen
LNG
3.5
7.9
+4.4
Crude Oil
9.4
13.9
+4.5
Petroleum
Products
2.5
3.1
+0.7
Coal
2.1
2.1
-0.0
2007 2008 2009 2010 2011 2012 2013 2014
11
of Economy,
Trade and Industry
Enhancing Gas Security – Diversifying Supply SourcesMinistry
Agency for Natural
Resources and Energy
 Japan has mitigated supply disruption and secured stable supply by diversifying supply sources.
 Japan has a diversified portfolio with the largest supplier only accounting for 20% of total supply and
the Middle East Dependency at 30%.
( Russia)
Yamal LNG Project
Vladivostok LNG Project
Far East LNG Project
(Southeast Asia)
Donggi Senoro Project
Abadi Project
(Mozambique)
Rovuma Area 1, Area 4 Project
(Canada)
LNG Canada Project
Pacific Northwest LNG Project
Kitimat LNG Project
(U.S.A)
Sabine Pass Project
Freeport Project
Cove Point Project
Cameron Project
(Australia)
Ichthys LNG Project
Wheatstone LNG Project
12
Ministry of Economy,
Trade and Industry
Agency for Natural
Resources and Energy
3. Methane Hydrate
13
Ministry of Economy,
Trade and Industry
Domestic resource development (Methane Hydrate)
Agency for Natural
Resources and Energy
1. Deep Methane Hydrate
2. Shallow Methane Hydrate
１．Offshore Production Test
１．Actions to understand resource reserves
-
From March 12-18, 2013
-
-
World’s first experiment of methane hydrate gas
production in a sea area using the
Sea of Japan side
-
Total output: 120,000 cubic meters
-
chimneys may exist
２．Future plans
-
Improve technologies for
-
Gathered shallow methane hydrate samples
in 2014
commercialization by 2018
３．Cooperation with USA
Conducted geological research in 2013 and
2014, discovered 971 areas where gas
Ave. daily output: 20,000 cubic meters
-
Will conduct research starting in 2013 to 2016 in
order to understand the resource reserve
depressurization method
-
Shallow methane hydrates mainly exists in the
Flare from offshore
production test
Based on the Statement of Intent which singed
２．Current Situations
-
Conducted detailed and wide-area geological
research and core sampling
in 2008, JOGMEC of Japan and NETL of the
USA singed MOU concerning Japan-U.S.
Collaboration
on Methane Hydrate
research activity in
Alaska on Nov. 6, 2014.
Gas Chimney
Example of cross-section
diagram of the sea bed
Gathered core samples
bearing shallow methane hydrate
14
Ministry of Economy,
Trade and Industry
Agency for Natural
Resources and Energy
4. Coal
15
The Whole Concept of the Future Coal Policy (Interim Report)
機密性○
Basic Understanding on Coal
1. Reserves of coal are abundant and coal is the low-cost energy source which is excellent in stable supply.
2. Coal demand has been increasing mainly in emerging countries. The price was doubled compared with the early 2000s;
therefore, there is a risk that the price may go up in the mid-long-term.
3. The coal-fired power was re-evaluated as “a fuel for the base load power supply which is excellent in stable supply and
economic efficiency” in the new Strategic Energy Plan.
4. Japanese power generating efficiency of the coal-fired power is at the highest level in the world. (If it is applied to the coal-fired
power in the U.S., China, and India, 1.5 billion tons of CO2 per year (= the amount of emissions in Japan as a whole) can be reduced)
5. Introduction of the Japanese highly-efficient coal-fired power will contribute to reduce the global environmental burden. It is
also one of the important sectors in infrastructure export.
Issues on the supply side
Issues on the utilization side
・Lowering the import cost
・Excessive dependency on Australia and Indonesia
(Over 80%)
・Lowering the supply risk such as weather,
oligopolization, etc.
Issues in the overseas deployment
・Utilization of the coal-fired thermal power ・Making more efficient the increasing coalas a base load power supply
fired power generation in the world
・Controlling CO2 emissions from the coal・Response to the movements of controlling
fired power
public support in the U.S.
Future direction of the measures
(1) Securing stable supply with low
cost
i. Examination of the diversification of
suppliers, etc.
-Stable supply from major coal producing countries
and re-evaluation in terms of costs
ii. Technology development to expand the
use of low-quality coal
Low-Quality Coal
-Development of the
technology to efficiently use
the low-quality coal which had
not been effectively used
-Development of the
technology for reformed coal,
SNG manufacturing technology,
etc. for commercialization
Brown Coal
(23%)
Total Bituminous
861 billion Coal +
Hard Coal
tons
(47%)
Subbituminous
Coal
(30%)
(2) Promotion of the use of coal
compatible with the environment
(3) Overseas deployment of
Japanese low-carbon technologies
i. Technology development for highlyefficient use and low carbonization
i. Contribution to reduce the global
environmental burden by introducing the
highly-efficient coal-fired power
generation in emerging countries, etc.
-Practical use of A-USC and
IGCC (in the 2020s)
-Practical use of IGFC that is
more efficient and
suitable for CO2 capture
(Around the 2030s)
Osaki Cool Gen Demonstration Project
-Practical use of advanced
(IGCC and IGFC)
IGCC and IGFC of which CO2
emissions are equivalent to the existing LNG thermal
power (Around the 2040s)
ii. Technology development for capture and
efficient use of CO2
ii. Active promotion of infrastructure export
for highly-efficient coal-fired power plants
iii. Projects to demonstrate low-carbon coal
utilization technologies in foreign
countries
16
機密性○
Power generation efficiency and even higher efficiency of coal thermal power generation
For further improvement of coal thermal power generation efficiency, development of technologies such as Integrated coal Gasification
Combined Cycle (IGCC), Integrated coal Gasification Fuel Cell combined Cycle (IGFC),Advanced Ultra SuperCritical pressure thermal power
generation (A-USC) taking advantage of Japan’s technologies is important.
<Efficiency improvement of coal thermal power generation>
Existing power generation technologies
Future technology development
60
Integrated coal gasification
fuel cell combined system (IGFC)
Heat efficiency (%) (generating end, HHV)
55
IGCC
1700℃GT
IGCC
1500℃GT
50
45
40
35
30
Advanced ultra supercritical pressure
(A-USC) (steam temperature 700 Celsius
degrees, steam pressure 24.1MPa)
Ultra supercritical pressure (USC) (steam
temperature 566 Celsius degree or
Supercritical pressure (SC)
higher, steam pressure 22.1MPa)
Integrated coal gasification combined
(steam temperature 566 Celsius degree
system (IGCC) test facilities
or lower, steam pressure 22.1MPa)
1200℃GT
Sub supercritical pressure (Sub-SC)
(Steam pressure lower than 22.1MPa)
1960
1970
1980
1990
2000
2010
2020
2030
2040
Year
17
CO2 Emissions Reduction through Technological Transfer
機密性○
○If the most advanced coal fired power technology is introduced to all the coal fired power plants in the
US, China, and India, the CO2 reduction effect is estimated to be about 1,500 million tons, which is
larger than the amount of total annual CO2 emissions in Japan
Actual CO2 Emissions from Coal Fired Power Generation (2010) and
Case of Adopting currently Most Advanced Technology
＋▲380 (Mt)
＋▲765 (Mt)
＋▲311 (Mt)
approx. 1.46
Japan
US
China
(Gt)
India
Source: " IEA World Energy Outlook 2012 ", " Ecofys International Comparison of Fossil Power Efficiency and CO2 Intensity 2013 "
18
Coal Thermal Power generation (Promotion of Low-Carbon Technologies)
機密性○
○Coal thermal power generation in Japan achieved the highest level of efficiency in the world.
○If the most advanced technology in operation in Japan is applied to coal thermal power
generation in the U.S. , China and India, it is estimated that CO2 emission could be reduced by
about 1.5 billion tons.
The most advanced high efficiency
coal thermal power generation
J-Power (Isogo Thermal Power Plant)
The estimation of CO2 reduction
in case Japan’s technology is applied
Japan’s
technology
The effect of
CO2 reduction
from coal
thermal power
generation
U.S.
China
India
1.8 billion
ton
3.5 billion
ton
0.8 billion
ton
▲0.4 billion
ton
▲0.8 billion ▲0.3 billion
ton
ton
Total ▲1.5 billion ton
(The total emission in Japan: 1.3 billion ton)
19
Ministry of Economy,
Trade and Industry
Agency for Natural
Resources and Energy
5. Nuclear
20
Ministry of Economy,
Trade and Industry
Nuclear Electric Power Plants in Japan (As of July 10th, 2015)
Agency for Natural
Resources and Energy
25 units out of 15 sights are under review for restart by the Nuclear Regulation Authority (NRA) in accordance with its new safety
regulations.
Tokyo Electric Power Co.１
Electric Power Development Co.-Ohma
Kashiwazaki Kariwa
２
３
４
１
５
６
３
７
Hokkaido Electric Power
Co.-Tomari
Hokuriku Electric Power Co.- Shika
１
２
Tohoku Electric Power Co.-Higashidori
１
２
Tokyo Electric Power Co.-Higashidori
１
The Japan Atomic Power Co.-Tsuruga
２
１
Tohoku Electric Power Co.-Onagawa
The Kansai Electric Power Co.-Mihama
２
１
Fukui
１
３
The Kansai Electric Power Co.-Ohi
１
２
３
２
３
３
Tokyo Electric Power Co.-Fukushima Daiichi
４
２
１
The Kansai Electric Power Co.-Takahama
１
２
３
４
１
２
６
Tokyo Electric Power Co.-Fukushima Daini
４
The Chugoku Electric Power Co.- Shimane
１
５
２
３
４
The Japan Atomic Co.-Tokai Daini
３
Chubu Electric Power Co.-Hamaoka
Kyushu Electric Power
Co.-Genkai
１
２
３
２
３
４
４
Kyushu Electric Power
Co.-Sendai
１
１
Shikoku Electric Power
Co.-Ikata
Output scale
５
：Under review by
NRA
：Decommissioning by
operator
運転中の原子力発電所
In operation
停止中の原子力発電所
Under suspension
１
２
３
＜500ＭＷ
＜1000ＭＷ
≧1000ＭＷ
建設中の原子力発電所
Under construction
Relation between import of fossil fuel and utilization of nuclear power (2013)
Ministry of Economy,
Trade and Industry
Agency for Natural
Resources and Energy
dependence on Middle East (Oil)
100.0%
90.0%
Korea
80.0%
Japan
Turkey
70.0%
60.0%
New Zealand
Non-utilization of Nuclear power countries
50.0%
Utilization of Nuclear power countries
Greece
40.0%
30.0%
United States
Netherlands
Belgium
France
20.0%
Spain
Canada
Austria
10.0% Portugal
United Kingdom
Ireland
Switzerland
0.0% Norway Denmark
Luxembourg
0.0% Sweden10.0%
20.0%
30.0%
Italy
Austria
Hungary
Germany
40.0%
50.0%
60.0%
70.0%
Poland
80.0%
Czech Republic Finland
Slovak Republic
90.0%
100.0%
dependence on Russia (Gas)
OIL INFORMATION(IEA,2014) ,
NATURAL GAS INFORMATIONS(IEA,2014)
22
Examples of New Safety Requirements
Reinforcement of AC power source
- Connect to two or more substations located in different
places through two or more transmission lines
- Storage of fuel for emergency diesel generators for7 days
Emergency response center
- Secure earthquake protection by a seismic
isolation function
- Secure safe habitability even if emissions of
radioactive materials which is equivalent to
those of 1F accidents occur
Measures to prevent containment vessel failure/Measures
to prevent core damage
- Mobile water injection system
Water sources to prevent severe
accidents
- Secure water sources
Measures to suppress radioactive materials
dispersion outside the Facility
- Outdoor water splay equipment (bubble
water cannon)
Measures to prevent containment vessel failure
- Filtered venting system (for BWR)
Addition of natural disasters to be assumed
- Include volcanic eruptions, tornadoes, and forest
fires into design consideration
※Back-up facilities
improving reliability shall
be ready within a five year
period
PUmp
Power source
Power supply against severe accidents
- Mobile units, another emergency
diesel generator, the third DC power
source
Measures to prevent hydrogen
explosions
- Hydrogen recombiner
Measures against loss of final heat
sink
- Alternative UHS system
Measures against tsunami
inundation
- Installation of a seawall to
prevent site inundation
- Relocate facilities to a higher
place
Internal flooding
- Introduce measures against internal flooding
Agency for Natural
Energy
Blue: Strengthening ofResources
Designand
Basis
Red: Severe accident measures
Specialized safety facility※
- An emergency control room back up
facilities to suppress radioactive materials
dispersion by containment vessel failure
after core damage
- Response to intentional aircraft crashes
Measures of Anticipated Transient Without Scram(ATWS)
- Additional turbine trip circuit against ATWS
Design Basis Tsunami
- Define a Design Basis Tsunami as one which
exceeds the largest ever recorded
Ministry of Economy,
Trade and Industry
Active faults
- Facilities that are important to safety cannot be
installed right above a capable fault.
- Fault activities are evaluated as far back as approx.
400,000 years ago if they cannot be clearly denied during
the period from 120,000-130,000 years ago up to now.
Fire protection
- Protective measures of fire prevention, fire
detection and extinguishment, and mitigation of
fire effects in order not to spoil safety functions
Determination of More Accurate Design Basis
Seismic Ground Motions
- Three-dimensional evaluations of the subsurface
structure
- A concept of ground motion without a specific
seismic source
23
Ministry of Economy,
Trade and Industry
Agency for Natural
Resources and Energy
6. Electricity System
Reform
24
Ministry of Economy,
Trade and Industry
Problem revealed by 3.11
Agency for Natural
Resources and Energy
• Negative aspects of regional monopoly system with 10 big and vertically integrated
EPCOs were revealed in the Great Earthquake on March 11, 2011:
1. Lack of system to transmit electricity beyond regions
2. Little competition and strong price control
3. Limit in handling the change in energy mix including the increase in renewables
Frequency in West: 60Hz
Frequency in East: 50Hz
Hokkaido
[2012] 5.52 GW
* DC – direct current, FC – frequency conversion
DC Tie line
Chugoku
[2012] 10.85
GW
5.56GW
Kyushu
[2012] 15.21
GW
16.66GW
2.4GW
5.56GW
Kansai
[2012] 26.82
GW
DC Tie line
1.4GW
Shikoku
[2012] 5.26 GW
Tohoku
[2012] 13.72
GW
Hokuriku
[2012] 5.26 GW
BTB
5.56GW
0.6GW
0.3GW
12.62GW
Chubu
[2012] 24.78
GW
Tokyo
[2012] 50.78
GW
FC
1.2GW
25
of Economy,
Trade and Industry
Electricity Market Reform in Japan: RoadmapMinistry
Agency for Natural
Resources and Energy
 April 2, 2013, Cabinet decided the “Policy on Electricity System Reform” to realize three
objectives in Japan’s market with a three-step approach.
3 Objectives
(1) Securing a stable supply of electricity
(2) Suppressing electricity rates to the maximum extent possible
(3) Expanding choices for consumers and business opportunities
(1st Bill)
2013
Apr. 2, 2013
Cabinet Decision
Nov. 13,
2013
(2nd Bill) (3rd Bill)
2014
2015
Jun. 11,
2014
【1st Step】
2015.4.1
【2nd Step】
2016
【3rd Step】
2020
Jun. 17,
2015
The 3rd Bill
The 2nd Bill
The 1st Bill
2nd reform
3rd reform
Cabinet Decision on the Policy
on Electricity System Reform
1st reform
Establishment of the
Organization for Crossregional Coordination of
Transmission Operators
(OCCTO)
Full retail
competition
Period of transitional
arrangement for retail tariff
(Review the competition
situation by the government)
Abolishment of
retail tariff
(At the same time as or
after the unbundling)
Legal unbundling of
transmission
/distribution sector
（※At around 2015:Transition to new regulatory organizations）
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1st
Ministry of Economy,
Trade and Industry
step: Establish the OCCTO
Agency
for Natural
The
1st Bill
Resources and Energy
• Established the Organization for Cross-regional Coordination of Transmission
Operators (OCCTO) in Apr. 2015
 Main functions of OCCTO
1. Aggregate and analyze the EPCO’s supply-demand plans and grid plans, and
order to change EPCO’s plans such as tie lines construction
2. Order EPCOs to reinforce generations and power interchanges under a tight
supply-demand situation
Frequency in West: 60Hz
Frequency in East: 50Hz
Hokkaid
o
OCCTO
JEPX
(Power Exchange)
TDSO
(Coordination of TDSOs )
Retail
Generation
16.66GW
Chugoku
Generation
5.56GW
Kyushu
Kansai
Generation
TDSO
Retail
Retail
2.4GW
Generation
Generation
TDSO
TDSO
Retail
Retail
Hokurik
u
TDSO
5.56GW
TDSO
Generation
DC Tie line
Tohoku
0.6GW
Generation
TDSO
Retail
Retail
BTB
0.3GW
12.62GW
5.56GW
Tokyo
(TEPCO) Generation
Generation
DC Tie line
1.4GW
TDSO
TDSO
Retail
Retail
Chubu
Shikoku
* DC – direct current, FC – frequency conversion, TDSO – Transmission and Distribution System Operator
FC
1.2GW
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2nd
step: Full Retail Competition
Ministry of Economy,
Trade and Industry
Agency The
for Natural
2nd Bill
Resources and Energy
• Expand retail competition to the residential sector in 2016, opening a new market
• Maintain regulated tariffs to 10 big EPCOs until the same time as or after the unbundling
Liberalized Sector
(50kW～）
Market Volume ; \10.1 trillion (=$ 84.2bn, € 74.8bn)
Large factory
Large building
Share of total power supply
: 62%
Building
Medium factory Small Factory
Regulated Sector
（～50kW）
Market Volume ; \8.1 trillion (=$ 67.5bn, € 60.0bn)
Number of contracts
Residential Customers : 77.3m
Small shops and offices: 7.3m
Small shop
Share of total power supply
: 38%
Residential Customer
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3rd
step: Unbundle the T/D sector
Ministry of Economy,
Trade and Industry
Agency
for Natural
The
3rd Bill
Resources and Energy
• Unbundle the transmission/distribution sectors of big EPCOs by legal unbundling
style in 2020
Holding company style
Affiliated company style
<Note>
 Big EPCOs will be required to unbundle transmission and distribution
companies from generation ones or retail ones, in “legal unbundling.”
 Both the holding company style and the affiliated company style, in
which a generation and retail company has a transmission and
distribution company as a subsidiary company ,are allowed.
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