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» Gov’t plan a news system to pay power-saving cooperation fee to companies

The Abe administration is studying a plan to require that power companies make “cooperation” payments to firms that cut their electricity use when demand peaks.

It hopes to have the new system ready to go by fiscal 2016, when the sale of electricity will be fully liberalized, they said.

The country’s electricity supply has become tight, mainly in high-demand summer and winter, as a result of the suspension of all reactors in the wake of the 2011 nuclear disaster at Tokyo Electric Power Co.’s Fukushima No. 1 facility.

The administration is trying to work out a more effective power-saving plan for the business sector, which accounts for some 60 percent of demand.

Under the plan from the Ministry of Economy, Trade and Industry, businesses would be required to work out beforehand their power-saving hours and amounts through an intermediary firm called an aggregator.

In times of tight supply, utilities would ask the firms to cut back on electricity use and pay those that do so.

The United States and Europe are going ahead with so-called “negawatt power” transactions, which regard electricity saved as the equivalent of electricity generated.
<Media Report>
Administration eyes system for utilities to pay power-saving firms (Japan Times)


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