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Electricity market reform in Japan after Fukushima

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  • Mika Goto and Toshiyuki Sueyoshi

Abstract

This study reviews the status, progress, and policy issues related to the reform of the Japanese electricity market undertaken in response to the disaster at the Fukushima nuclear power plant in March of 2011. The reform has three stages: (1) establishment of a neutral organization of network operation, (2) extension of retail competition to household consumers, and (3) legal unbundling of the transmission-distribution network sector. Currently, the first stage is underway and the Japanese government is preparing to implement the second stage for a fully liberalized retail market. This study employs government and company data to demonstrate the current and projected influences of the stages on numerous aspects of the reform. The results prove that resistance to nuclear power and promotion of renewable energy generation is expected to have a significant impact on consumer benefits, whereas new business alliances are expected to create new competitive energy markets. Periodic assessments of the status and progress of the stages of the reform are vital to achieving an efficient electricity market that benefits providers and consumers.

Suggested Citation

  • Mika Goto and Toshiyuki Sueyoshi, 2016. "Electricity market reform in Japan after Fukushima," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 1).
    • Handle: RePEc:aen:eeepjl:eeep5-1-goto
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    References listed on IDEAS

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    1. Erkan, Erdogdu, 2011. "What happened to efficiency in electricity industries after reforms?," Energy Policy, Elsevier, vol. 39(10), pages 6551-6560, October.
    2. Woo, Chi-Keung & Lloyd, Debra & Tishler, Asher, 2003. "Electricity market reform failures: UK, Norway, Alberta and California," Energy Policy, Elsevier, vol. 31(11), pages 1103-1115, September.
    3. Defeuilley, Christophe, 2009. "Retail competition in electricity markets," Energy Policy, Elsevier, vol. 37(2), pages 377-386, February.
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    Cited by:

    1. She, Zhen-Yu & Meng, Gang & Xie, Bai-Chen & O'Neill, Eoghan, 2020. "The effectiveness of the unbundling reform in China’s power system from a dynamic efficiency perspective," Applied Energy, Elsevier, vol. 264(C).
    2. Toshiyuki Sueyoshi & Youngbok Ryu & Mika Goto, 2020. "Operational Performance of Electric Power Firms: Comparison between Japan and South Korea by Non-Radial Measures," Energies, MDPI, vol. 13(15), pages 1-23, August.
    3. Mika Goto & Kohei Fujita & Toshiyuki Sueyoshi, 2020. "Marginal Effect of R&D Investment and Impact of Market Reforms—An Empirical Analysis of Japanese Electric Power Companies," Energies, MDPI, vol. 13(13), pages 1-15, July.
    4. Simone Di Leo & Marta Chicca & Cinzia Daraio & Andrea Guerrini & Stefano Scarcella, 2022. "A Framework for the Analysis of the Sustainability of the Energy Retail Market," Sustainability, MDPI, vol. 14(12), pages 1-28, June.
    5. Toshiyuki Sueyoshi & Mika Goto, 2020. "Performance Assessment of Japanese Electric Power Industry: DEA Measurement with Future Impreciseness," Energies, MDPI, vol. 13(2), pages 1-24, January.

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