BY JAPAN NRG TEAM
After nearly three years of debate, government discussions on creating a platform to integrate Japan’s fragmented short-term power markets are moving from concept to design.
While the 21st meeting of METI’s committee studying the introduction of a simultaneous electricity market ended without much fanfare, beneath the procedural tone a key development emerged: the proposal to establish a dedicated working group to design the system architecture. This signals that the policy process has entered a new phase.
The group, expected to begin work in FY2026, will focus on technical feasibility – particularly the design of a complex clearing system capable of coordinating energy and balancing supply in real time. This suggests that years of conceptual debate will now give way to detailed system development, with a decision on implementation likely after a technical verification phase around FY2026–2027.
The policy driver is straightforward. As variable renewables expand, today’s separated markets for spot, intraday and balancing procurement can create conflicting demands for the same flexible capacity. The result is tighter supply-demand conditions, increased volatility, and congestion. The simultaneous electricity market, in theory, offers a way to improve coordination, transparency and system efficiency.
So what exactly are Japan’s energy planners trying to build? Japan NRG reviewed the latest policy discussions.