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The Electric Power Industry in Japan 2019

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The Electric Power Industry in Japan 2019 THE ELECTRIC POWER INDUSTRY IN THE ELECTRIC POWER INDUSTRY THE ELECTRIC POWER J APAN 2019 INDUSTRY IN JAPAN 2019 15-33, Shibaura 4-chome Minato-ku, Tokyo 108-0023, Japan http://www.jepic.or.jp/ Printed in Japan with vegetable-based ink on recycled paper EPCo Distribution Areas and Frequency (As of January 2019) Member Companies (As of March 2019) Hokkaido Electric Power Co., Inc. The Chugoku Electric Power Co., Inc. 2, Higashi 1-chome, Odori, Chuo-ku, Sapporo, Hokkaido 060-8677, Japan 4-33, Komachi, Naka-ku, Hiroshima-shi, Hiroshima 730-8701, Japan http://www.hepco.co.jp/english/index.html http://www.energia.co.jp/e/index.html Tohoku Electric Power Co., Inc. Shikoku Electric Power Co., Inc. 1-7-1 Honcho, Aoba-ku, Sendai, Miyagi 980-8550, Japan 2-5, Marunouchi, Takamatsu, Kagawa 760-8573, Japan http://www.tohoku-epco.co.jp/english/index.html https://www.yonden.co.jp/english/index.html Hokkaido EPCo Tokyo Electric Power Company Holdings, Inc. Kyushu Electric Power Co., Inc. 1-1-3, Uchisaiwai-cho, Chiyoda-ku, Tokyo 100-8560, Japan 1-82, Watanabe-dori 2-chome, Chuo-ku, Fukuoka 810-8720, Japan http://www.tepco.co.jp/en/index-e.html http://www.kyuden.co.jp/en_index.html Chubu Electric Power Co., Inc. The Okinawa Electric Power Co., Inc. 1, Higashi-shincho, Higashi-ku, Nagoya, Aichi 461-8680, Japan 2-1, Makiminato 5-chome, Urasoe, Okinawa 901-2602, Japan http://www.chuden.co.jp/english/index.html http://www.okiden.co.jp/en/ Hokuriku Electric Power Co. Electric Power Development Co., Ltd. 15-1, Ushijima-cho, Toyama-shi, Toyama 930-8686, Japan (J-POWER) http://www.rikuden.co.jp/english/index.html 6-15-1, Ginza, Chuo-ku, Tokyo 104-8165, Japan http://www.jpower.co.jp/english/index.html Tohoku EPCo The Kansai Electric Power Co., Inc. 3-6-16, Nakanoshima, Kita-ku, Osaka 530-8270, Japan The Japan Atomic Power Co. http://www.kepco.co.jp/english/ 5-2-1, Ueno, Taito-ku, Tokyo 110-0005, Japan http://www.japc.co.jp/english/index.html Hokuriku EPCo TEPCO Power Grid Chubu Chugoku Kansai EPCo EPCo EPCo Shikoku EPCo Kyushu EPCo 60 Hz 50 Hz JEPIC’s member companies include JEPIC Office the 10 EPCos indicated on the map and two wholesale electric utilities, J-POWER and the Japan Atomic Power Company. Head Office European Office 15-33, Shibaura 4-chome, Minato-ku, Tokyo 108-0023, Japan 10, rue de la Paix, 75002 Okinawa Tel: +81 (3) 6361-8210 Fax: +81 (3) 3455-0991 Paris, France EPCo http://www.jepic.or.jp/en/ Tel: +33 (1) 42.86.90.11 Fax: +33 (1) 42.86.50.80 Washington Office Beijing Office 1120 Connecticut Avenue, N.W., Suite 1070 Chang Fu Gong Office Building 401, Jia-26 Washington, D.C. 20036, U.S.A Jianguomenwai Dajie, Chaoyang-qu, Beijing 100022 Tel: +1 (202) 955-5610 Fax: +1 (202) 955-5612 The People’s Republic of China Tel: +86 (10) 6513-9885, 9886 Fax: +86 (10) 6513-9887 THE ELECTRIC POWER INDUSTRY IN JAPAN 2019 CONTENTS Message from the Chairman 2 Executive Summary 4 I. Energy Policy 8 II. Electricity Supply System 24 III. Electricity Supply and Demand 29 IV. Power Generating Facilities 33 V. Power Network Facilities 37 VI. Electricity Retail Business 42 VII. International Cooperation and Exchange 50 Operating and Financial Data 53 MESSAGE FROM THE CHAIRMAN s the Chairman of the Japan Electric Power I observed that the nation’s electric power industry AInformation Center (JEPIC), I am delighted to has changed considerably. Sixty years ago, electricity present this year’s edition of The Electric Power demand soared as Japan’s economy grew, and power Industry in Japan(EPIJ). JEPIC’s activities range from sources and transmission facilities were rapidly devel- conducting research on the world’s electric power in- oped and expanded to keep pace. dustries to collaborating and cooperating with agencies Change in the industry began with the shift from and organizations involved with the industry around hydropower to thermal power as the main means of the world. This report was produced to provide our generating electricity in Japan from the latter half of overseas readers with a better understanding of the the 1960s. This was followed by the oil crises of 1973 electric power industry in Japan. and 1979, which caused the nominal import price of “This pamphlet has been prepared for the purpose of crude oil to soar approximately tenfold between 1972 introducing abroad the present status of the electric power and 1979. In 1973, over 60% of the plants generating industry in Japan. Years have passed since the termination power for the electric power industry were oil-fired. of the war; during which period Japan has seen the arrival Given that Japan produces virtually no oil of its own, of the threshold of industrial rehabilitation that has led the it should not be hard to imagine how much turmoil nation to a new era of its economic expansion.” these crises caused. This was also a time when air pol- Thus began the introduction to the very first edi- lution resulting from an overdependence on oil was tion of EPIJ, published in 1959. This year marks the gradually emerging as a major social issue. Since then, 60th anniversary of this publication. Japan’s electric the diversification of power sources (centered particu- power industry has changed immensely during those larly on the expansion of liquified natural gas (LNG) six decades. EPIJ, too, has evolved considerably since and nuclear power plants) and the attainment of the that first edition, and the contents of this report have “optimal energy mix” for the nation have been key been gradually updated and improved to better reflect principles guiding the development of Japan’s electric- changes in society and the industry. However, ity facilities. throughout all this time, our goal has always been to In time, the previous steep rise in electricity demand keep our overseas readers informed about Japan’s elec- slowed, and with the modernization of facilities largely tric power industry. complete, deregulation of the industry commenced 2 THE ELECTRIC POWER INDUSTRY IN JAPAN 2019 MESSAGE FROM THE CHAIRMAN with the approval of the entry of independent power homes and property destroyed as a result of these ca- producers (IPPs) in 1995. This was followed by the tastrophes. The electric power industry, too, was se- phased deregulation of rates for larger electric power verely affected, as the earthquakes and typhoons users in 2000 and 2005, and the approval of new entries caused widespread power outages around the country. to the retail market. Full deregulation of the retail While I believe that Japan is a marvelous country electricity sector was completed in 2016, and now the with much that we can and should be proud of, the next major change to the industry will come in 2020 events of last year are a reminder that severe natural with the legal separation of transmission and distribu- disasters are an inevitable part of our life here. In tion from the vertically integrated business. This step Japan as elsewhere, it is impossible for the electric will transform the vertically integrated structure that power industry, given the huge scale of its facilities, to has characterized Japan’s electric power industry since escape the impact of natural disasters. Despite the ma- 1951. jor damage caused by last year’s power outages in var- That, in outline, is how Japan’s electric power in- ious parts of the country, services have now been dustry has evolved over the past 60 years. What must restored thanks to the unstinting efforts made by the not be forgotten, however, is the 2011 accident at utilities and the prompt support provided by other Tokyo Electric Power Company’s Fukushima Daiichi companies. Here I must pay tribute to all of those in- Nuclear Power Plant (Fukushima Daiichi Accident). volved in providing the stable supply of electricity, not Public access to some of the land around the plant re- only here in Japan but all around the world. mains restricted, and residents in the area have had to As I noted above, full deregulation of the electricity be evacuated. At one point all of Japan’s nuclear power retail market (including the residential sector and oth- plants were shut down, and some nuclear power gen- er small-scale customers) was completed in 2016. The erating units have since been decommissioned. environment surrounding the industry will be further Meanwhile, the Basic Energy Plan unveiled by the transformed by the legal separation of transmission government in July 2018 reaffirms that nuclear power and distribution from the vertically integrated business is to remain a key baseload power source for the nation in 2020. However, the importance of electricity to soci- while calling for renewables to be developed to func- ety, and the expectations for its stable supply, have not tion as a core power source. Regarding nuclear power, declined in the least. Japan’s electric power utilities are working hard to fur- Japan’s electric power industry faces a wide range of ther improve safety by complying with the tough new challenges, including the restart of nuclear power regulatory standards, and as a result, plants have been plants, further improvement of environmental friendli- gradually coming back online. ness, and growing market competition. History, how- The Fukushima Daiichi Accident was triggered by ever, shows us that the industry has faced and overcome a natural disaster of historic proportions. However, last a variety of challenges over the past 60 years. I am con- year, too, saw a number of major natural disasters in fident that in another 60 years electric power will still Japan, including landslides caused by torrential rain, serve as the bedrock of social affluence, and will still typhoons, and earthquakes.
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