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Wholesale and retail electricity markets in Japan: Results of market revitalization measures and prospects for the current reform

This study provides an overview of the current status of the wholesale and retail electricity markets in Japan, with a focus on the results of market revitalization policies, such as the thermal power bidding system, regular backup, and partial supply system. This study also offers a perspective on the future of the Electricity System Reform policy currently under way. Throughout the history of Japan's electricity market reform, the implementation of full-scale retail deregulation and the unbundling of electricity generation from the transmission and distribution (T&D) sectors have been significant issues. The outcomes and issues generated by market revitalization efforts indicate that reforms have entered the crucial stage that determines whether consumers will actually benefit from them.
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JEL Codes:L51: Economics of Regulation, L94: Electric Utilities, Q41: Energy: Demand and Supply; Prices

Keywords: Wholesale market, Retail market, Unbundling, Electricity System Reform, Japan

DOI: 10.5547/2160-5890.5.1.kofu

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Published in Volume 5, Number 1 of The Quarterly Journal of the IAEE's Energy Economics Education Foundation.