Locally-Produced and Consumed Power Retail Market in Japan: Key Research Findings 2016
Research Outline
- Research period: April to July, 2016
- Research target: Electric power retail business that respectively involve local governments, Co-op, and developers/engineers
- Research methodologies: Face-to-face interviews by the specialized researchers, surveys via telephone/FAX, and literature research
<What is the Locally-Produced and Consumed Power Retail Market?>
Locally-produced and consumed power retail market in this research indicates business styles that mainly supply (or retail) electricity generated from renewable energy in the specific areas to the customers in the region or to the aligned communities and facilities under special initiatives. It includes those business styles that retail or directly deliver to the associated communities and facilities outside of the specific regions where electric power is generated from renewable energy.
Summary of Research Findings
- Locally-Produced and Consumed Power Retail Market for FY2015 Attained 13.5 Billion Yen
While feed-in tariff contributed to wide acceptance of the systems generating power from renewable energy, progressive liberalization of power retail has brought about more companies to enter the power retail business. These moves have led establishment of such a business model of locally-produced and consumed power retail market, where users in the specific areas choose and purchase the power locally generated from renewable energy. The domestic locally-produced and consumed power retail market of FY2015 grew to 13.5 billion yen, based on the sales of electric power retailers.
- Locally-Produced and Consumed Power Retail Market for FY2020 to Expand to 53.0 Billion Yen
Since low tension power less than 50kW has been deregulated for retailing, enterprises have started selling household electricity from FY2016. This is likely to expand the domestic locally-produced and consumed power retail market to attain 24 billion yen, based on the sales of the electric power retailers. The future of the market is expected to be promising because of more electric power users are to increase, and with more companies are to start the locally-produced and consumed power retail business in various regions throughout the country.
The domestic locally-produced and consumed power retail market in FY2017 is projected to achieve 34 billion yen and to attain 53 billion yen by FY2020, based on the sales of the electric power retailers.
- Figure 1. Transition and Forecast of the Locally-Produced and Consumed Power Retail Market Size
