In the second of three articles in Public Utilities Fortnightly (PUF) related to power market reform in Japan, NERA Managing Directors Sean Gammons, Dr. Glenn R. George, Senior Consultant Willis Geffert, and former Managing Director Robert Southern examine the motivations behind Japanese direct foreign investment in overseas energy sector assets, which include the desire to gain global experience in restructured energy markets so as to thrive in the newly liberalized power market back home in Japan. The article explores this phenomenon, with a focus on Japanese experience investing in the energy sectors of the US, Mexico, the UK, and Australia. Through these strategic investments, Japanese investors learn from several decades of experience and many billions of dollars in investment worldwide, and gain extremely valuable guidance for success in newly liberalized energy markets in Japan and almost anywhere else.

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