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Tag Archives: Japan energy policy

Capacity Market Reforms Create New Opportunities Amid Tightening Supply

Publication date: Nov 3, 2026  Capacity Market Reforms Create New Opportunities Amid Tightening Supply Japan’s capacity market is undergoing significant reforms as the country prepares for rising electricity demand, particularly from AI-driven data centers. These changes will reshape how future generation capacity is secured, with important implications for investment decisions, revenue opportunities, and business strategies …

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Japan’s Long-Term Decarbonization Auction (LTDA) to Introduce Fixed Repayment Option for LNG Power Plants

Publication date: Oct 24, 2026  Japan’s Long-Term Decarbonization Auction (LTDA) to Introduce Fixed Repayment Option for LNG Power Plants A new mechanism will allow LNG-only thermal power plants awarded contracts in the long-term decarbonization auction LDTA to choose to fix the amount they repay from earnings in the wholesale and other markets. The auction forms …

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METI Explores Measures for Faster Data Center Connections

Publication date: Oct 23, 2026  METI Explores Measures for Faster Data Center Connections A working group under the Ministry of Economy, Trade and Industry (METI) has begun discussions on accelerating grid connections for large-scale electricity consumers, including data centers and semiconductor plants. In some regions, a sharp increase in grid connection applications has put pressure …

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Intraday Market Displays Bids by Area, Adjusted Imbalance Cap Rises to JPY 300/kWh

Publication date: Oct 23, 2026  Intraday Market Displays Bids by Area, Adjusted Imbalance Cap Rises to JPY 300/kWh On October 1, the Japan Electric Power Exchange (JEPX) began displaying bid information by area in its intraday market. The screen for trading participants now shows bid information for the nine areas grouped into five zones, allowing …

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Mid-Long-Term Market Update: Trading Areas and Mandatory Generator Offers

Publication date: Oct 2, 2026  Mid-Long-Term Market Update: Trading Areas and Mandatory Generator Offers The planned Mid-Long-Term Market will allow electricity retailers to procure power one and three years ahead to meet their supply capacity obligations. The Mid-Long-Term Market Design Working Group (WG) recently advanced discussions on two key elements of the planned market: how …

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Tighter Grid Connection Rules for Low-Voltage BESS and Large-Scale Demand

Publication date: Aug 10, 2026  Tighter Grid Connection Rules for Low-Voltage BESS and Large-Scale Demand The Ministry of Economy, Trade and Industry (METI) presented plans at an expert meeting to extend stricter grid connection rules to low-voltage grid-scale BESS facilities. METI has already introduced measures for generation facilities, including BESS facilities connected at high voltage …

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Amended EBA allows METI oversight of Balancing and planned Mid-Long Term markets

Publication date: Aug 3, 2026  Amended EBA allows METI oversight of Balancing and planned Mid-Long Term markets The amended Electricity Business Act (EBA) was officially passed by the House of Councilors on July 17th, 2026, and will come into effect in September. The amended EBA’s main provisions are as follows: The Act establishes a financing …

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Balancing Market Price Caps Are Lowered to JPY 10/ΔkW-30 Min from September

Publication date: July 24, 2026  Balancing Market Price Caps Are Lowered to JPY 10/ΔkW-30 Min from September The Ministry of Economy, Trade and Industry (METI) presented a policy at the Power Supply Stability Working Group (WG) to lower the price caps for certain products in the balancing market. For Frequency Containment Reserve (FCR, or Primary), …

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Japan to Update Battery Industry Strategy With New Targets and Timelines

Publication date: June 30, 2026 Japan to Update Battery Industry Strategy With New Targets and Timelines Amid a global oversupply of batteries, Japan aims to differentiate its domestic production by focusing on high-value-added areas such as performance and safety, alongside next generation battery technology. In response to evolving conditions, the Ministry of Economy, Trade and …

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METI Outlines Plan to Replace Up to 14 Nuclear Reactors by the 2050s

Publication date: June 23, 2026 METI Outlines Plan to Replace Up to 14 Nuclear Reactors by the 2050s The advisory body meeting of the Ministry of Economy, Trade and Industry (METI) has revealed a target to replace up to five nuclear reactors by the 2040s and a total of 11 to 14 reactors by the …

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