Set my electrons free!

A huge change is coming to Japan, and I only found out about it a few weeks ago.

The electricity market is going to be opened up from April this year, and consumers will be able to buy their electricity from a number of companies instead of their local monopoly.

I think this is a hugely positive step. I also find it hilarious to see the electricity companies slowly realizing that they will have to compete for customers instead of just sitting there enjoying government subsidies. My local utility, Tohoku Electric, just sent us a rather desperate-sounding leaflet announcing ‘new pricing plans better suited to customers!’ and ‘loyalty points!’. Gee, thanks for subjecting us to pricing plans unsuited to customers for the last fifteen years… 😉

Personally, I would like to see cheaper bills but more importantly I would like to use only renewable energy. Softbank and even convenience stores are planning to enter the energy market, which will give the people of Japan a chance to influence energy policy through grass-roots action.

There’s an explanation in Japanese here, and a Japan Times editorial here.

Now, there is a chance that prices will go up, but I don’t see that as a negative if it pushes people to use more insulation or more energy-efficient products and think about their energy use more.

Did you know about the energy market plans? Any information to add?

9 Responses

    1. Hi Suzanne
      I’m interested in solar energy, but not an expert. What were you hoping to read about? I might try and get a guest post on this.

      1. Ive just been noticing solar panel configurations popping up all over in inaka covering abandoned rice fields…Chiba…Gifu… My friend was telling me that TEPCO has some sort of deal set up with land owners. Im not sure of the specifics, but would love to read an article about it.

  1. Looks like we got the same flier, but I haven’t really had the time to look into what the options will be. Are you switching or staying out for now?
    I do like the option of choosing where your power comes from, and it looks as if nuclear may or may not be the cheapest option with the shift in government subsidy.

  2. It’s not a huge priority right now, to be honest 🙂
    I did one online price coparison (through kakaku.com) and it came out as we should stay put.
    Seems like the mobile phone companies are doing bundling deals, as well as the other utilities.
    Probably worth looking into in March or so, when they are desperately trying to sign people up.

  3. Well, I found this article: http://www.reuters.com/article/us-japan-power-solar-idUSKCN0R306L20150903
    I guess with the feed in tariffs, it can be profitable for landowners to become mini-solar utilities.
    Also with the electricity liberalisation, all sorts of companies are getting into solar (Softbank, 7-11, Aeon Group). Hope to see it spread 🙂
    Now the thing I am really curious about is why my university hasn’t covered all the (flat) roofs with solar panels, especially given how much the administration sends us whiny emails about power use…

    1. I’m not an expert either, but I do have solar panels installed on my roof in Sendai. We get about 35Y per kilowatt hour from Tohoku Denryoku for power we generate and only pay 30Y-ish for power we get back during peak hours … only 10Y-ish for off-peak).
      But I don’t think you can get that deal anymore – we signed our contract in late 2014, and I think the feed-in-tariffs here were lowered in, if memory serves, April 2015. Utilities across Japan have been complaining that they can’t handle the loads of intermittent power they’ve been getting and the FITs as a whole are under review: http://www.japantimes.co.jp/opinion/2015/10/31/editorials/review-feed-tariff-system/#.VrMQ-PkrLIU
      I suspect the rural solar panels on farmland that Suzanne has been noticing might be due to the depressed state of Japanese agriculture? I think I’ve read that the average age of a Japanese farmer is roughly 65, and that the total area of unused farmland is the roughly equivalent to the area of Saitama. If you own unused farmland, it makes sense to try to get something for it …
      In any event, I have to say I enjoy my solar panels regardless of the economics. Walking over to the meter on a sunny day to see my “score” is just, well … fun!

      1. Thanks Steve! Unfortunately I live in a ‘mansion’, otherwise I would definitely have solar panels…