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Agency for Natural Resources and Energy Electricity Supply-Demand Verification Report Has Been Compiled

The Ministry of Economy, Trade and Industry (METI) compiled a report on actual electricity supply and demand for the summer of FY2016 as well as the results of a study on the electricity supply-demand outlook for the winter of FY2016 at the Electricity and Gas Basic Policy Subcommittee under the Electricity and Gas Industry Committee of the Advisory Committee for Natural Resources and Energy held in October 2016.

1. Background and purpose

In light of the situations surrounding electricity supply and demand since the Great East Japan Earthquake, it is necessary to examine the electricity supply-demand outlook, which is an important basis for electricity supply-demand measures, in transparent and objective manner, for the purpose of ensuring a stable supply of electricity.

To achieve this goal, at the meetings of the Electricity and Gas Basic Policy Subcommittee, which METI established under the Electricity and Gas Industry Committee of the Advisory Committee for Natural Resources and Energy, a report based on actual electricity supply and demand for the summer of FY2016 and the results of a study on the electricity supply-demand outlook for the winter of FY2016 were compiled.

2. Key points of the report

  1. Prospects for electricity supply and demand in the winter of FY2016 show that, in all areas, 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 risk that cold weather in 2016 could become as severe as in the winter of FY2011 (regarding the Hokkaido area, as severe as the winter of FY2010, which was much harsher than the winter of FY2011; regarding the Tohoku and Tokyo areas, as severe as the winter of FY2013; and regarding the Okinawa area, as severe as the winter of FY2015).
  2. However, for the Hokkaido area, although it is expected that a reserve margin of 16.2% will be secured for January 2017, the report points out the necessity to consider additional measures for realizing the stable supply-demand balance of electricity in light of the following factors: a continued restriction of electricity interchange from other utilities; the potentially large impact of an unscheduled shutdown of a power plant on the reserve margin; and the possibility of a threat to people's lives and safety in the event of unexpectedly-tightened electricity supply-demand  due to severe cold.
  3. Japan, which is poor in natural resources, should endeavor to secure a stable supply of energy while emphasizing safety as a major premise and giving due consideration to economic performance and the issue of climate change. Japan needs to systematically implement comprehensive measures toward FY2030 while striving to reduce the public burden in order to address various problems, including thorough efforts for energy conservation, introduction of renewable energy to the extent possible, reduction of CO2 emissions, diversification of energy sources and suppliers, and restart of nuclear power plants premised on safety.

Release date

October 25, 2016

Division in Charge

Electricity Infrastructure Division, Electricity and Gas Industry 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
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