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Agency for Natural Resources and Energy The Guidelines for Trading Negawatts Revised An effort toward improving the environment for smarter energy saving

Concerning the Guidelines for Trading Negawatts formulated in March 2015, the Ministry of Economy, Trade and Industry (METI) revised the guidelines aiming at a new negawatts trading market scheduled to be established by the end of 2017. The establishment of the market is expected to vitalize negawatts trading.

1. Outline of the guidelines

In trading negawatts, utilities pay for the amount of electricity saved by consumers (negawatts). The guidelines, formulated in March 2015, stipulate important practical directions that traders should bear in mind, e.g., a method for evaluating the amount of negawatts, aiming to popularize negawatts trading.

2. Background to and key points of the revision

Aiming at a new negawatts trading market scheduled to be established by the end of 2017, METI established a Negawatts Working Group of experts and business operators in April 2016. The working group discussed the draft revisions of the guidelines and finally compiled the revised guidelines taking into consideration the results of public comments called for in May 2016.

As an example of the changes from the previous guidelines, the revised guidelines stipulate new basic rules in negawatts trading between utilities and negawatts business operators.*
*Note: The term “negawatts business operator” refers to those who converge the amount of saved electricity from a number of consumers and trade it with utilities; also called “negawatts aggregator.”

Key points of the revision

  • Methods of setting baselines
    • The methods of setting baselines, i.e., criteria for evaluating the amount of negawatts, were revised based on the estimated amount of negawatts to be traded in the market.
  • Compensation for negawatts
    • In the trading system, electricity retail operators bear the cost in procuring the capacity of supplying electricity, while negawatts business operators take over a part of the capacity on the basis of negawatts trading. The revised guidelines stipulate new provisions in determining compensation for negawatts to align profits between electricity retail operators and negawatts business operators.

Release date

September 1, 2016

Division in Charge

Advanced Energy Systems and Structure Division, Energy Conservation and Renewable Energy Department, Agency for Natural Resources and Energy

Ministry of Economy, Trade and Industry1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8901, Japan Tel: +81-(0)3-3501-1511
Copyright Ministry of Economy, Trade and Industry. All Rights Reserved.