ANRE forms subcommittee to discuss power system reform
The Agency for Natural Resources and Energy (ANRE) of the Ministry of Economy, Trade and Industry (METI) formally launched discussions on institutional design for power system reform at an expert meeting on May 23. In addition to issues already under consideration in separate forums, such as creating a business environment conducive to power source decarbonization, new agenda items were presented. These include securing long-term LNG contracts, establishing rules for retail electricity suppliers, and ensuring financing for power generation and grid investments. The move follows a review of power system reforms that highlighted the challenge of ensuring stable supply, prompting the implementation of institutional measures.
A new body, the “Next-Generation Electricity and Gas Business Infrastructure Subcommittee,” was established under the Electricity and Gas Business Subcommittee of METI’s Advisory Committee for Natural Resources and Energy. Professor Hiroshi Ohashi of the University of Tokyo Graduate School has been appointedas chair of the subcommittee. To serve as a forum for more detailed examination, a “Working Group (WG) on Institutional Design Based on the Verification of Electricity System Reform” will also be established under the subcommittee. The WG’s findings are to be reported to the subcommittee by around autumn. Professor Hirotaka Yamauchi of Musashino University will serve as chair of the WG.
At the opening of the subcommittee, Takashi Kume, Director-General of the Electricity and Gas Business Department at ANRE, reflected: “One of the major concerns raised in the system reform review was the risk of insufficient supply capacity.” He noted that the spread of renewable energy has reduced the operating rates of thermal power plants, leading to more shutdowns and decommissioning. “In the next-generation power system, decarbonized power sources necessary for stable supply through institutional measures will be secured ,” he stated.