Ministry of Economy, Trade and Industry
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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 April 2015, and the subcommittee compiled a report on actual electricity supply and demand in the winter of FY 2014 and the result of a study on the electricity supply-demand outlook for the summer of FY 2015.

1. Background and purpose

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

To achieve this goal, METI established the Electricity Supply-Demand Verification Subcommittee under the Strategic Policy Committee of the Advisory Committee for Natural Resources and Energy and compiled a report based on actual electricity supply and demand in the winter of FY 2014 and the result of a study on the electricity supply-demand outlook for the summer of FY 2015.

2. Key points of the report

  1. Prospects for electricity supply and demand in the summer of FY 2015 show that, in every electrical power service area, it is expected that a reserve margin of 3% or more will be secured, which is the minimum ratio required for a stable supply of electricity, taking into account the potential of an extremely hot summer in 2015, if every level of society continues to make power-saving efforts,.
  2. However, the report says that appropriate measures should be continuously taken with respect to supply and demand because (1) the service areas of Kansai Electric Power and Kyushu Electric Power cannot maintain the reserve margin of over 3% by themselves, and therefore it is necessary to consider electricity interchange with other utilities; and (2) unplanned shutdowns of power plants including aged thermal power plants are still increasing, leading to the possibility of tightened supply and demand caused by large-scale power outages if dependency on thermal power generation remains at a high level.
  3. In addition, the Organization for Cross-regional Coordination of Transmission Operators (OCCTO), which was established on April 1, 2015, is expected to continually monitor the status of electricity supply and demand, decisively give instructions to members who are electric power operators if necessary, and make all possible efforts to secure a stable supply of power.
  4. In addition to the quantitative supply-demand balance of electricity, the report mentions serious issues that Japan is facing, including fuel costs increased by maximizing the operation of thermal power plants due to the shutdown of nuclear power plants and an increased amount of carbon dioxide emissions. It is expected to be necessary for Japan to endeavor to curb fuel costs, diversify energy sources, and secure multilateral procurement sources based on discussions on the energy mix.

Release date

April 30, 2015

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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