Publication date: April 14, 2026
METI to Set Up Three WGs to Rewire Market Design, Capacity Mechanisms, and Retail Obligations in Parallel
The Ministry of Economy, Trade, and Industry (METI) announced at the Next Generation Infrastructure Development Subcommittee that it will establish three new working groups (WGs) related to power system reform. The Power Supply Stability WG will cover issues such as the capacity market and reserve power, the Power Business Environment Development WG will discuss long-term supply capacity obligations for retail electricity suppliers and financing, and the Mid-Long Term Market Design WG will be established for about a year to work on detailed market design. All WGs will work under the Next-Generation Infrastructure Development Subcommittee, and each WG is expected to meet once a month from FY2026.
The Power Supply Stability WG will examine a prior consultation system for the suspension or decommissioning of power plants, as specified in the Electricity Business Act amendment submitted to the Diet, as well as the Long-Term Decarbonization Auction (LTDA). The Power Business Environment Development WG will address public financing for large-scale power plants and transmission lines, as well as the simultaneous market – a planned market that trades and clears energy (kWh) and flexibility (ΔkW) simultaneously. It will also discuss retailers’ supply obligations and transitional tariff measures.
🔍 Shulman Commentary: The reorganization into theme-focused working groups is likely to alleviate the concentration of diverse topics within the existing WG framework, such as the former System Review WG, and enable more focused and in-depth discussions on key issues, including market reform, retailers’ supply obligations, and the design of the Mid-Long Term Market targeted for launch around FY2028. For market participants, these WGs will effectively set the rules of the next market cycle, requiring early engagement and close tracking.
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