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U.S. Department of Energy
Office of Scientific and Technical Information

Degregulation in Japan

Journal Article · · Independent Energy
OSTI ID:160122
;  [1]
  1. Reid & Priest, Washington, DC (United States)

In recent years Japan has emerged as a major economic force in the world economy which, in spite of its strength, has produced another, less positive side. Driven by continual trade disputes and the unexpectedly high value of the yen, Japan`s Ministry of International Trade and Industry (MITI), the architect of Japan`s industrial policy, has undertaken to increase efficiency in the domestic economy. MITI`s process lies beneath the surface of the current effort to deregulate the electricity sector in Japan. Cited for inefficiency resulting in high energy costs, this key industrial sector is central to MITI`s plan to improve domestic industrial efficiency. Major points include allowing independent power production, developing a bidding system for wholesale power, permitting non-utilities to engage in the retail sale of electricity within certain specified areas, and permitting non-utilities to use the grids of the country`s 10 major utilities. A strong currency and stable economy together with an absence of a significant country risk will be comforting factors to both developers and foreign lending institutions seeking to finance projects in Japan. Japan`s future, therefore, holds some promise for future independent power project development.

OSTI ID:
160122
Journal Information:
Independent Energy, Journal Name: Independent Energy Journal Issue: 7 Vol. 25; ISSN 1043-7320; ISSN IDPEEW
Country of Publication:
United States
Language:
English