Navigating Japan’s Evolving Power Market

Japan’s electricity market has undergone a significant transformation since liberalization in 2016, but the landscape continues to evolve. Ten regional utilities still control around 80% of demand, while more than 700 new retailers compete for the rest. For large energy buyers, this creates both opportunity and risk.

Volatility during the 2021–22 energy crisis underscored the risks of overreliance on spot markets and emphasized the importance of assessing counterparty risk. At the same time, the growth of wholesale trading, new retailer options, and the rise of Power Purchase Agreements (PPAs) are opening meaningful pathways to cost savings and decarbonization.

Looking ahead, sweeping regulatory reforms planned for 2028 will fundamentally change how electricity is procured in Japan, requiring retailers to secure the majority of their demand years in advance. These changes are expected to drive greater stability but also demand more sophisticated procurement strategies from large consumers.

Together with our partners at E&C Consultants, we explore these dynamics in detail in our joint article: “Navigating electricity market deregulation in Asia-Pacific: Strategic procurement in Japan’s evolving landscape.”

Read the full article on E&C Consultants’ website.
Navigating Japan’s Evolving Power Market