“Act on Rationalizing Energy Use” came into effect

The obligation to report the number of DR implementations annually has been added

On April 1 2023, the “Act on Rationalizing Energy Use" (referred to as the "Revised Energy Conservation Law"), under the jurisdiction of the Natural Energy Agency of the Ministry of Economy, Trade and Industry, came into effect.

This revision calls for the rationalization and conversion to non-fossil fuels of all energy use, including non-fossil fuels, in order to achieve the ambitious greenhouse gas reduction goals for 2030 and the carbon-neutral target by 2050, as declared by Prime Minister Suga in his policy speech on October 26, 2020. With regard to the optimization of electricity demand, two evaluation criteria were established: the evaluation of the actual implementation of Demand Response (DR), and the evaluation of the electricity demand optimization unit.

What is Demand Response?

The obligation to report the number of DR implementations annually has been added to the energy conservation periodic report for businesses with a certain scale, with the aim of further promoting Demand Response. DR targets in this report include the Turn Up (demand creation) _(note1)during surplus renewable energy generation, the Turn Down (demand reduction) _(note2)during periods of supply-demand imbalance, and either of these in the demand response market.

＊(note2) Turn Up＝ Turn Up refers to contributing to system stabilization by using more electricity when power supply exceeds demand, such as when generating excess solar power on clear spring days in some regions where load adjustment of thermal power generation facilities has reached its limits. By using more electricity during such times, it is possible to use surplus electricity efficiently.

＊(note3) Turn Down＝ Turn Down refers to contributing to system stabilization by reducing electricity usage when the power supply is expected to fall short of demand, particularly during extreme weather conditions such as heat waves and severe cold. By reducing electricity usage during peak demand times, it is possible to avoid power outages and troubles and achieve more efficient electricity operation.

「If you are interested in adding Demand Response performance to your energy conservation yearly reports, please do not hesitate to reach out to us.」

Hiromitsu Miyamoto

Country Manager, Enel X Japan

Enel X was founded as a subsidiary of Enel, one of the largest utility companies in the globe, and has a wide range of experience and know-how in the field of energy. Enel X Japan is an aggregator that has been providing Demand Response programs in Japan since 2012. Our experienced experts will analyze and propose a customized program based on your industry and requirements to add DR performance to the annual report and maximize your revenue from Demand Response.