My Account

Post: Japan urges energy demand reduction

Insights

Energy management insights for
better business decisions
Home | Japan urges energy demand reduction

Posted 3 years ago | 2 minute read

Net zero pledges: how to make yours count

Japan urges energy demand reduction

Japan is stepping up appeals to consumers to conserve electricity with the nation facing a summer supply squeeze and escalating fuel import costs. 

According to a Ministry of Economy, Trade and Industry document, Prime Minister Fumio Kishida’s government has convened the first national meeting in five years dedicated to discussing the power outlook as it prepares for tight supplies. Published on 7 June, the document noted that electricity supply and demand this summer is expected to be extremely severe, with a reserve ratio for the Tohoku, Tokyo and Chubu areas at 3.1% in July, although this is above the minimum reserve ratio of 3% required for a stable supply against demand assuming a once-in-a-decade heat wave. The supply-demand situation in Winter 2022 is also forecast to be severe, with reserve ratios falling below 3% in some areas of the country.

The document noted that preparations are being made to restart idled thermal power plants and to help grid operators smoothly initiate planned outages if needed as a last resort. Officials will also extend efforts to promote power conservation measures among consumers and consider demand measures to be taken beyond the Summer.

GridBeyond CEO and Co-founder Michael Phelan said:

“Japan’s energy market is changing due to renewable power and ongoing electricity market reforms. As we build new renewable power sources, this creates new challenges for the electricity grid. There is a growing need for dispatchable resources to help balance the intermittency of renewables, and to help meet energy demand with supply at all times.

“This comes amid already high energy prices, should Japan experience periods of supply tightness, we would expect power prices to escalate further. Businesses that are able to take part in programmes to reduce demand during peak events could reap the rewards.

“GridBeyond is already working with I&C customers around the world to optimize pricing opportunities and increase sustainability by automating the management of energy use with a single intelligent energy platform. Businesses who work with us intelligently adjust when they use electricity from the grid to drive down their energy costs, reduce price risk, and facilitate the transition to renewable power.”

Find out more about GridBeyond’s services in Japan

Enjoyed this content? Why not share it:

Back to all Insights

Latest energy insights

What's your site worth in the energy markets? Find out more in 4 simple steps.
Go to Energy Opportunity Calculator