5 THE POLITICS OF NUCLEAR POWER PLANT RESTARTS …
121
Seikatsu Kurabu Eneji-, part of a nationwide consumer cooperative, began offering members renewable energy plans using solar, wind,
and biomass in Tokyo from June 2016, and in Hokkaido, Tohoku,
and the Nagoya and Osaka regions from October 2016. To date, it
has not offered power sales in other regions (Seikatsu kurabu enaji-,
n.d.). Another distinctive sub-category of new entrants was renewableelectricity-promoting retailers owned by municipal governments, with
31 such companies already established by mid-2017. Miyama Smart
Energy, in Kyushu, is one example. It started selling power to residential customers from April 2016, and by September 2017, 20% of the
city’s residents were buying their electricity from this company, which was
able to procure 30% of its electricity from renewable sources, compared
with 12% for Kyushu EPCO (Bloomberg 2017). Another example is
Izumisano Denryoku company in Osaka prefecture that was established
by Izumisano city, and sells solar electricity from 2.4 MW of contracted
capacity (Izumisano Denryoku 2019).
Retail electricity deregulation has produced significant competition,
with many entrants, including EPCOs competing in each other’s service
areas, and price competition evident at least so far. The number of
companies that initially offered consumers access to renewable power as
a major power source remains limited, although less limited in number
than in geographic scope and in the percentage of renewable energy in
their power mix. During the first two months of liberalization, a total
of 1,030,000 consumers switched electricity suppliers throughout Japan,
but major urban centers were heavily overrepresented. Thus, while over
640,000 switched in the Tokyo region, and over 210,000 in the Osaka
region, none switched in Okinawa, while in the regions of Hokuriku and
Chugoku only 2300 and 2500 switched, respectively. On the fourth main
island of Shikoku only 4200 switched. The paucity of new market entrants
outside of large metropolitan regions was the most important reason, with
companies offering renewable energy as a choice being even more scarce
outside of big cities (Asahi Shimbun 2016b). By the end of 2016 2.6%
of low-voltage retail consumers had switched suppliers, rising to 11.4%
by the end of 2018. By March 2019, out of 88 million low-voltage
customers, 10 million had switched suppliers (REI 2019b).
Renewable energy offerings to consumers have been expanding significantly since April 2016, albeit from a low base. By 2020, 26 renewableenergy-promoting retailers were selling power in every EPCO service
region of Japan except Okinawa (it is perhaps no coincidence Okinawa
121
Seikatsu Kurabu Eneji-, part of a nationwide consumer cooperative, began offering members renewable energy plans using solar, wind,
and biomass in Tokyo from June 2016, and in Hokkaido, Tohoku,
and the Nagoya and Osaka regions from October 2016. To date, it
has not offered power sales in other regions (Seikatsu kurabu enaji-,
n.d.). Another distinctive sub-category of new entrants was renewableelectricity-promoting retailers owned by municipal governments, with
31 such companies already established by mid-2017. Miyama Smart
Energy, in Kyushu, is one example. It started selling power to residential customers from April 2016, and by September 2017, 20% of the
city’s residents were buying their electricity from this company, which was
able to procure 30% of its electricity from renewable sources, compared
with 12% for Kyushu EPCO (Bloomberg 2017). Another example is
Izumisano Denryoku company in Osaka prefecture that was established
by Izumisano city, and sells solar electricity from 2.4 MW of contracted
capacity (Izumisano Denryoku 2019).
Retail electricity deregulation has produced significant competition,
with many entrants, including EPCOs competing in each other’s service
areas, and price competition evident at least so far. The number of
companies that initially offered consumers access to renewable power as
a major power source remains limited, although less limited in number
than in geographic scope and in the percentage of renewable energy in
their power mix. During the first two months of liberalization, a total
of 1,030,000 consumers switched electricity suppliers throughout Japan,
but major urban centers were heavily overrepresented. Thus, while over
640,000 switched in the Tokyo region, and over 210,000 in the Osaka
region, none switched in Okinawa, while in the regions of Hokuriku and
Chugoku only 2300 and 2500 switched, respectively. On the fourth main
island of Shikoku only 4200 switched. The paucity of new market entrants
outside of large metropolitan regions was the most important reason, with
companies offering renewable energy as a choice being even more scarce
outside of big cities (Asahi Shimbun 2016b). By the end of 2016 2.6%
of low-voltage retail consumers had switched suppliers, rising to 11.4%
by the end of 2018. By March 2019, out of 88 million low-voltage
customers, 10 million had switched suppliers (REI 2019b).
Renewable energy offerings to consumers have been expanding significantly since April 2016, albeit from a low base. By 2020, 26 renewableenergy-promoting retailers were selling power in every EPCO service
region of Japan except Okinawa (it is perhaps no coincidence Okinawa