Publication date: Oct 17, 2025 Six Common Pitfalls in Japan’s Retail License Process — and How to Avoid Them

Six Common Pitfalls in Japan’s Retail License Process — and How to Avoid Them

Entering the Japanese wholesale electricity market is complex and involves many steps. From language barriers to post-license registrations, each stage presents unique risks that can delay or derail entry. Here are six common challenges applicants face and strategies to navigate them effectively.

1. Japanese-speaking representative required: METI requires frequent communication. A Japanese-speaking individual—ideally an employee or someone with a clear corporate relationship—is essential for responding to METI’s questions during the initial interview and beyond.
2. Language and paperwork hurdles: The entire METI retail license application is in Japanese, with extensive documentation and frequent back-and-forth. Having a Japanese speaker on the ground significantly accelerates the process.
3. Financial stability under scrutiny: METI places strong emphasis on financial stability to safeguard consumers. Engage with them early, demonstrate robust financials, and make clear your commitment to supplying physical power.
4. Post-approval hurdles: METI approval is only the first step. Applicants often underestimate the additional requirements that follow—registration with OCCTO, contracting with each TSO, joining JEPX, and completing other market entry procedures—all of which can be time-consuming and complex.
5. Wheeling (transmission) agreement bottlenecks: These require close coordination with each TSO, via email and physical mail. Miscommunication or delays at this stage can slow the entire process.
6. Timeline often underestimated: The full licensing and registration process can take anywhere from 8 to 24 months. Streamline internal approvals and prepare key documents early, especially when operating from overseas.

Navigating the retail market entry process as a foreign entrant presents various challenges beyond just the regulatory framework. The language barrier, the highly formalized application style, and the nuances of business culture in Japan often require careful handling to avoid missteps or delays. This is where expert consultation becomes critical to streamline processes, be proactive in anticipation of common pitfalls, and maintain momentum toward license approval.