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Agency for Natural Resources and EnergyThe Electricity Supply-Demand Verification Subcommittee has Compiled a Report

The Ministry of Economy, Trade and Industry (METI) has been conducting meetings for the Electricity Supply-Demand Verification Subcommittee under the Strategic Policy Committee of the Advisory Committee for Natural Resources and Energy since October 2014, and the subcommittee compiled a report on the results of the electricity supply-demand in the summer of FY2014 and the results of a study on the electricity supply-demand outlook for the winter of FY2014.

1. Background and purpose

In light of the situation surrounding the electricity supply-demand after the Great East Japan Earthquake, it has been necessary to examine the electricity supply-demand outlook, which is a basis for the electricity supply-demand measures, while securing objectivity and transparency in the examination, from the viewpoint of securing a stable supply of energy.

To achieve this goal, METI established the subcommittee under the Strategic Policy Committee of the Advisory Committee for Natural Resources and Energy, and compiled a report on the results of the electricity supply-demand in the summer of FY2014 and the results of a study on the electricity supply-demand outlook for the winter of FY2014.

2. Key points of the report

  1. Prospects for the electricity supply-demand in the winter of FY2014 show that a reserve margin of 3% or more is expected to be secured, which is the minimal rate required for a stable supply of electricity, taking into account the risk that cold weather in 2014 will become as severe as the level in the winter of FY2011 (regarding the service area of Hokkaido Electric Power Co., Inc., it is expected to be as severe as the level in the winter of FY 2010, which was much harsher than the level in the winter of FY 2011, and regarding the service areas of Tohoku Electric Power Co., Inc. and Tokyo Electric Power Co., Inc., it is expected to be as severe as the level in the winter of FY2013).
  2. However, as for the service area of Hokkaido Electric Power, despite the improvement of the reserve margin from the level in 2013, METI takes into consideration the following possibilities: a continuous restriction of electricity interchange from other utilities; the potentially large impact of an unscheduled shutdown of a power plant on reserve margin; and the possibility of a threat to people’ lives and safety due to severe coldness this winter and unexpectedly-tightened electricity supply-demand. In light of these possibilities, the report says that special measures should be taken for realizing the stable supply-demand balance of electricity. In addition, it also says that a possible impact of electricity rate hike by Hokkaido Electric Power on electricity demand in the area should be considered appropriately.
  3. However, as for the service area of Hokkaido Electric Power, despite the improvement of the reserve margin from the level in 2013, METI takes into consideration the following possibilities: a continuous restriction of electricity interchange from other utilities; the potentially large impact of an unscheduled shutdown of a power plant on reserve margin; and the possibility of a threat to people’ lives and safety due to severe coldness this winter and unexpectedly-tightened electricity supply-demand. In light of these possibilities, the report says that special measures should be taken for realizing the stable supply-demand balance of electricity. In addition, it also says that a possible impact of electricity rate hike by Hokkaido Electric Power on electricity demand in the area should be considered appropriately.

Release date

October 23, 2014

Division in Charge

Office for Electricity Supply, Demand, Transmission, and Distribution Policy, Electricity Infrastructure Division, Electricity and Gas Industry Department, Agency for Natural Resources and Energy

Ministry of Economy, Trade and Industry
1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8901, Japan Tel: +81-(0)3-3501-1511
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