#Japan #Renewable Energy #Tokyo #Japan Power Market #BNE

A Glimpse into the Future of Japan's Electricity Market

As the demand for sustainable energy increases, understanding electricity market pricing becomes crucial. Japan's Electricity Procurement Solutions (JEPS) has taken a significant step in this direction by collaborating with Beyond Next Energy (BNE) to create a long-term forecast for the domestic electricity market up to 2050. This innovative approach aims to provide corporations with valuable insights into energy costs, especially concerning renewable energy purchases and contracts.

The Forecasting Model

The newly developed forecasting service utilizes a robust model known as the 'Realistic Merit Order Model', designed to enhance the accuracy of price predictions. Unlike traditional methods that focus solely on past trends, this model incorporates factors essential for ensuring grid stability, such as the minimum output from thermal power plants. By simulating different scenarios of demand, generation patterns, and marginal costs, the model outputs predicted market prices every half-hour.

This methodology not only takes into account future demand and availability of energy sources but also adds a layer of complexity by factoring in CO2 pricing. Thus, the forecasts reflect a realistic view of how market dynamics influence prices, making them a reliable foundation for corporate decision-making.

Practical Applications

The service intends to benefit various stakeholders:

Renewable Energy Producers and Retailers

For those engaged in signing long-term Power Purchase Agreements (PPAs), understanding the economic viability of these agreements is crucial. The forecasts provided by JEPS and BNE allow for:

• - Estimating profitability at the time of PPA implementation
• - Predicting settlement amounts for virtual corporate PPA arrangements
• - Anticipating premium amounts under the Feed-in Premium (FIP) system

Energy-Intensive Industries

For industries such as manufacturing, data centers, and chemicals, electricity costs represent a significant portion of total costs. A clear view of long-term pricing allows these companies to:

• - Make informed investment decisions regarding self-generation and renewable energy adoption
• - Compare costs with overseas operations
• - Assess the return on investment for Green Transformation initiatives

Service Delivery and Pricing

The new forecasting service is available across key areas including Tokyo, Chubu, Kansai, and Kyushu. Key details about the service include:

• - Delivery Method: Forecast summaries along with underlying demand-supply data and CSV data (17,520 entries per year until 2050)
• - Validity: Forecasts are updated annually and valid for a year from the date of receipt
• - Pricing: A promotional launch price of 900,000 yen (excluding tax) for each area, available for the first 10 companies signing up.

Contact and Company Information

For those interested in the service, inquiries can be directed to JEPS:

• - Phone: 03-5843-8696
• - Email: [email protected]

Company Profiles

• - Japan Electricity Procurement Solutions

- CEO: Yuto Takahashi
- Location: Minato-ku, Tokyo
- Established: April 2024
- Business Focus: Energy procurement consulting, renewable energy procurement, pricing forecasts, and electricity budget support.
- Website: JEPS

• - Beyond Next Energy

- CEO: Koichi Yamaguchi
- Location: Minato-ku, Tokyo
- Established: May 2020
- Business Focus: Long-term market price predictions, analysis of market trends, and practical consulting in energy businesses.
- Website: BNE

With the strategic insights offered by JEPS and BNE, businesses across Japan can anticipate market fluctuations and make informed decisions that align with their energy strategies for a sustainable future.