In late March, the energy agency (ANRE) published its long-awaited review of electricity market reforms carried out over the past decade, and set out future priorities. The results indicate success in achieving the main aims of ensuring a stable power supply, reigning in power rates, all while offering consumers more choice.

Yet beneath this positive headline lies a critical challenge: how to ensure sufficient capacity and stability in ever more sophisticated power markets without giving up on the energy transition?

ANRE’s review also underscored persistent vulnerabilities, especially around maintaining adequate supply and stable prices as Japan pushes ahead with the twin national strategies: digital transformation (DX) and green transformation (GX). These strategies aim for a rapid shift toward decarbonized infrastructure, but also place greater strain on Japan’s already tight electricity grid – a concern echoed in this year’s 7th Basic Energy Plan.

Japan NRG takes a deeper look at the agency’s concerns and how they relate to the main developments in the electricity sector and markets.