Japanese Energy Market Liberalization: Identifying New Opportunities in Japan and Learning from Investments Abroad

Shangri-La Hotel | Tokyo, Japan
02 November 2016
Hosted By: NERA Economic Consulting

Capitalize on this unparalleled opportunity to learn how to get the best returns from foreign energy market investments and build a foundation to translate that experience into domestic success in the future.


In 2013, the Japanese government launched the latest in a series of reforms to liberalize the historically vertically integrated energy market, with several goals:

  •  Secure the supply of energy including the ability to supply across regions;
  • Reduce customer rates “to the maximum extent possible;” and
  • Expand choices for consumers and opportunities for businesses.

Market transformation started in 2015, will continue through 2020, and will reshape Japan’s power sector in fundamental ways. First, market entry will lead to increased competition at the retail level. Second, through various measures, the program seeks to improve interconnection between local markets. Coupled with the liberalization of the wholesale market in 2020, this will lead to increased competition at both the wholesale and retail levels. Over time, incumbents will gain access to transmission and distribution system assets outside their historical service territory, creating new expansion opportunities.

METI is currently developing a blueprint for a liberalized wholesale market, which could include a common power pool with a day-ahead market. At the same time, market mechanisms such as auctions are proposed to award solar power contracts. As there is no clarity on how the wholesale market will be liberalized, investments into new generation infrastructure and/or transmission infrastructure is very risky. This program will offer best practices to create procurement strategies, relying on past experience on a global level.

What does this mean for incumbents and new market entrants? 


These reforms represent both an unprecedented opportunity and a challenge for incumbents and new entrants to retain existing customers and revenue streams, to capture new ones, and to do so profitably. Experience and insight gleaned from other liberalized power markets—both the successes and the many failures—will be at a premium.

This event will help you identify current investment opportunities in Japan and will provide you with insight into how players in the market can succeed.

Join experts from NERA Economic Consulting and Marsh Broker Japan, as well as industry leaders who offer unmatched expertise on how the Japanese energy market is being reformed and how overseas experience can help anticipate the market’s future path.

Sessions will cover the following topics:

  • Developing Successful Strategies for a Liberalized Energy Market
    In this session, instructors will share insight and explain how to exploit incentives stemming from market liberalization to transform into a dynamic energy service provider. Develop successful strategies to channel long-term investment into the most attractive areas along the electric power value chain.

  • Investing Abroad: Supporting a Domestic Japanese Energy Businesses by Acquiring Assets Abroad
    Attendees will learn how to redeploy foreign market investment experience back in the home market. Specifically, strategy will be discussed to respond to the inherent challenges associated with implementing an overseas M&A strategy whether primarily to earn returns or to “learn by doing” in liberalized markets outside Japan.

  • Auctions, Competitive Bidding, and Procurement Strategies in a Liberalized Market
    This session will explore the place that competitive bidding process can hold as METI continues to develop its blueprint for a liberalized wholesale market. Instructors will share best practices to craft successful procurement plans by drawing on international experience where auctions, competitive procurement, and bidding are widely used to assess the risks and rewards in all facets of the Japanese market

*Note that the entire seminar will be presented in English. 

 

Please REGISTER below. 

 

To contact us about this event, please click here.