Agency for Natural Resources and EnergyMETI to Open a Market for Bidding for Electricity Interchangeable over a Wide Area during Summer- Starting Operation on June 3 in Preparation for Tight Electricity Supply-demand Balance during the Summer of FY 2013 -

On April 26, 2013, the Electricity Supply-Demand Review Committee decided to adopt the "Electricity Supply-demand Measures in the Summer of FY 2012." It announces that "a reserve rate of 3% or more is expected to be secured in the service areas of all electricity utilities as a minimum requirement for stable power supply." However, it also indicates that "Japan will take measures for both electricity supply and demand in preparation for any possible tight electricity supply-demand balance which might be caused by accidents, such as large-scale loss of power supply." In this context, the meeting decided to organize a new system for the wholesale electricity market, under which a wide variety of suppliers are eligible to participate in the market so that electricity utilities are able to flexibly purchase electricity over a wide area."

In response to the measures, ANRE has decided to open a new market titled "Market for Bidding for Electricity Interchangeable over a Wide Area during Summer" at JEPX.Note

• The Market for Bidding for Electricity Interchangeable over a Wide Area during Summer is a market where even people who are not members of JEPX are able to sell electricity according to the needs of general electricity utilities as well as new power producers and suppliers, i.e., trading members of JEPX, when the supply and demand balance is expected to becomes tight. The entry of a wide variety of suppliers to trading will enable electricity utilities to purchase electricity over a wide area during tight electricity supply-demand.
• In the new market, any person may sell electricity, even non-members of JEPX, when reserving excess electricity that is available for sale and when possessing a facility by which such electricity can be transmitted to power grids of electricity utilities (reverse current). No admission or processing fees are required.
• JEPX is to mediate trading, and buyers are to choose optimal sellers (multiple selection allowed) who offer the best conditions, such as prices.
• In the Distributed Model Green Electricity Selling Market, which started operating in June 2012, sellers make tenders to sell electricity when they reserve excess electricity, while in the new market, buyers offer electricity purchase bids* after setting conditions, such as the purchase period or amount of electricity, when a tight supply and demand balance is expected.

*With regard to offering an electricity purchase bid, buyers are able to offer a bid in order to secure the right to buy electricity as a preliminary measure, as well as to buy electricity practically.

From Monday, June 3, to Monday, September 30, 2013

Note: Japan Electric Power Exchange (JEPX) has operated the market for wholesale electric power exchange since April 2005, in which 62 companies, including general electricity utilities in each region and main new power producers and suppliers, have participated. For details, please visit the JEPX website at the following URL:
http://www.jepx.org/English/index_e.html

May 24, 2013

Electricity Infrastructure Division, Electricity and Gas Industry Department, Agency for Natural Resources and Energy