Research Paper

Future Energy Landscape - Global Energy Agenda - Challenges in Introducing a Mandatory Quantitative Energy Supply Capacity (kWh) Requirement in Japan

Author	Kenichi Onishi
Summary	Since the full liberalization of the electricity retail market in 2016, Japan’s electricity market has been transitioning toward a more efficient market structure based on competitive principles. Trading volumes in the spot market of the Japan Electric Power Exchange (JEPX) have...
Outline	Since full retail liberalization, electricity market liquidity has increased, but new power suppliers have become more reliant on short-term markets, exposing their vulnerability during price spikes. In response, a mandatory quantitative energy supply capacity (kWh) requirement is under consideration, though its level and design warrant further review. On the generation side, a reliable offtake framework to support long-term fuel contracts is essential. On the retail side, risk hedging through medium-term bilateral contracts and futures is important, while retailers offering real-time pricing require more flexible institutional arrangements. Additionally, new mechanisms such as integrated kWh–kW contracts should be explored.
Keyword	sakiyomi、Quantitative supply capacity (kWh) requirement、Retail suppliers、Spot market、Price spike、Single-buyer、Electricity futures trading
Media	ＨＰ (11/28/2025)
URL	https://test-eneken.mvmt.jp/en/energy_strategy_insights.html
Report PDF	https://test-eneken.mvmt.jp/data/12857.pdf