Japan’s Koizumi Eyes Reform in a $15 Billion Power Market
- Changes should help expand clean energy: Environment Minister
- Nation’s surplus electricity generation world’s priciest: BNEF
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In a couple of years, Japan will be paying the highest rates in the world to incumbent power utilities simply for maintaining generation capacity, including coal and nuclear plants, to help meet electricity demand in times of scarcity.
That windfall comes at a time when Japan is seeking to liberalize its market, encourage new entrants and boost the use of renewables. That’s why the extra billions to traditional power plants don’t sit right with Environment Minister Shinjiro Koizumi, who said Tuesday the system should be reformed so that it helps expand Japan’s clean energy capacity.