Integrated Condominium Electricity-Receiving Service Market in Japan: Key Research Findings 2015
Research Outline
- Research period: From April to June, 2015
- Research target: Providers of integrated electricity receiving services, energy companies, and condominium developers
- Research methodologies: Face-to-face research by the expert researchers, surveys via email/telephone, and literature research
What is an Integrated Condominium Electricity-Receiving Service?
Conventionally, the residents of condominiums and apartments receive electric power through contracts with an electric power supply company directly. Such contracts apply to a “low voltage agreement,” the rate of which is higher than that of “high voltage agreement”. An integrated electricity-receiving service indicates an electricity supply service that provides electric power to an entire condominium or an apartment in a bulk via a service provider who receive the electricity from a power supply company. This form of power supply applies to a “high voltage agreement” which reduces the electricity bill at each resident by 5 to 10% compare to a low voltage agreement.
Summary of Research Findings
- Integrated Condominium Electricity-Receiving Service Market in FY2014 Expected to Attain 49.0 Billion Yen
The market of integrated electric-power-receiving services for condominiums has gradually been expanding, with a series of companies entering the market and increasing number of condominiums and apartments, both newly-built and existing, introducing the service. The service has been widely accepted as a countermeasure of rising electricity rate after the Great East Japan Earthquake that struck in 2011. This trend has been driven by MEMS (Mansion Energy Management System), a subsidized business during the period of FY2013 to FY2014, which led the integrated electricity-receiving service to be a standard service at many of newly-built condominiums. The domestic integrated condominium electricity-receiving service market has grown rapidly to 49 billion yen by FY2014 based on the sales of the businesses.
- Integrated Condominium Electricity-Receiving Service Market Expands to 200 Billion Yen by FY2030
Full liberalization of the retail sale of electric power scheduled in 2016, including low voltage electricity, is likely to affect the market of integrated condominium electricity-receiving services. However, as a result of enhanced demand development by the integrated electricity service providers targeting newly-built condominiums, the domestic market size is projected to attain 200 billion yen by FY2030 (based on the business sales), with the service introduced to 2.2 million residents.
- Figure and Table 1: Transition and Forecast of Integrated Condominium Electricity Receiving Service Market Size
