Insight
Japan's power utilities under pressure
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Japan's 10 former regional power monopolies have had a difficult few years with nuclear issues and commodity price volatility. The latest challenge came after the country's retail power market was fully liberalised in April 2016. Competition is hitting Japan's power utilities as their customers switch to new suppliers. But it's not just retail competition the power utilities need to worry about. New coal, gas and solar additions along with potential nuclear restarts mean a sharp increase in generation capacity. So Japan's power utilities face growing retail and wholesale competition in an electricity market that has recently shrunk.
Table of contents
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Executive summary
- Competition is hitting power utilities as their customers switch to new suppliers
- Nuclear uncertainty hasn’t been resolved – and coal is the back up plan
- Subsidised renewable developments likely to add to Japan's overcapacity
- Japan's power generators will need less LNG overall with more flexibility in supply arrangements
- There are some positives
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Competition is starting to bite in Japan's retail power market
- Over 2 million retail customers have switched away from the incumbent to a new supplier
- Power utility margins will be squeezed as customers look for the best deal
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Weak power demand and growing capacity will hit generators
- Nuclear restarts could boost profitability, but worsen Japan's overcapacity issue
- Japanese utilities are looking to coal
- Japan's power utilities will need LNG flexibility to manage increased uncertainty
- Japan power utility report card
Tables and charts
This report includes the following images and tables:
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Japan Electricity DemandJapan Generation Capacity OutlookJapan's power utilities under pressure: Image 8
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Japan's power utilities under pressure: Image 1Incumbent power company zonesSwitching rates by companyJapan's power utilities under pressure: Table 2Japan's Nuclear FleetList of nuclear reactors that Wood Mackenzie expects to restart or begin operationsContracted LNG by power companyJapan forecast gas for power generation
What's included
This report contains:
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