About Japan s energy storage shutdown
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3 FAQs about [Japan s energy storage shutdown]
Will Japan's coal-fired power plants close or suspend operations?
Based on such a cutoff, we assess the 100 oldest facilities (approximately 24 gigawatts [GW] of coal-fired capacity) could close or suspend operations. This policy would reduce Japan’s total installed coal capacity by about 40%. Only 1.2 GW of new coal capacity is currently under construction.
Why does Japan need a multi-layered energy supply structure?
Japan is a country with limited natural resources. There is no one source of energy that is superior in every way. Therefore, it is essential to create a multi-layered energy supply structure in which each energy source is exploited fully for its best performance and compensates for disadvantages of other resources.
What is happening in Japan's electricity market?
Liquidity in the wholesale market is also increasing, with some 30% of electricity now being traded at the Japanese Electric Power Exchange. New markets (including a balancing, baseload, capacity and non-fossil certificate market) have been established to address market barriers and further foster competition.
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