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Japan's energy transition is accelerating

Japan’s energy system is changing due to renewable power and ongoing electricity market reforms. As we build new renewable power sources, this creates new challenges for the electricity grid. There is a growing need for dispatchable resources to help balance the intermittency of renewables, and to help meet energy demand with supply at all times.

Japan’s renewable energy transformation journey

Having completed the implementation of its utility reforms in 2020, Japan is now world’s largest liberalized power market under a single regulator, with a system capacity in excess of 160GW. The energy market is becoming more dynamic and complex as a result. For instance, in 2020, more than 40% of Japan’s power traded on the Japanese Power Exchange, up from only 3% in 2017. This is creating significant opportunities for businesses to support the grid, and change how they power their operations. Instead of relying on traditional power plants for electricity, businesses are harnessing a new way of tapping their own energy resources.

Japan's renewable energy transformation

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Virtual Power Plants and Demand Response

Enel X is a global and local leader in Virtual Power Plant (VPP) and Demand Response, enabling our commercial and industrial customers to harness a new opportunity. We are the second biggest market player in Japan today, second to Tokyo Electric Power Company. We aggregate the power generated by our customers' facilities across the country and offer it to support the grid. Businesses who work with us intelligently adjust when they use electricity from the grid to drive down their energy costs, reduce price risk, and facilitate the transition to renewable power.

Demand Response is a growing opportunity

As the leading independent market player, we unlock access to multiple demand response opportunities with our VPP. These include one-dash reserves to provide emergency support to the grid when demand outstrips supply; ‘negawatt trading’ – offering DR capacity in the spot market for power; and offering DR in Japan’s new and complex balancing reserves markets. We have already secured more than 1GW of DR resources to support Japan’s upcoming capacity market in 2024.

Powerlines in Japan

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