JERA Predicting High Electricity Demand in Japan This Summer

With the Olympics happening, there is likely to be extra load on the system, here’s the official press info from JERA;

JERA Co., Inc. (“JERA”) has, based on this summer’s electricity supply and demand outlook, drawn up measures to address supply and demand this summer that include the establishment of an Electricity Supply-Demand Measures Sub-committee.

According to the electricity supply and demand outlook presented on 25 May 2021 at the 35th meeting of the ​Ministry of Economy, Trade, and Industry’s Electricity and Gas Basic Policy Subcommittee, this summer is expected to be the tightest in several years. For this reason, JERA has designated the period from 1 July to 30 September of this year as a period for measures to address the heavy-load summer season and established the Electricity Supply-Demand Measures Subcommittee under the Risk Management Committee. Furthermore, to prepare for the tight situation this summer, the following countermeasures will also be implemented.

• Checks of priority equipment at thermal power plants during targeted patrols and regular inspections (completed by the end of June)
• Trial implementation of JERA’s own demand estimate, and the identification of related issues, with the aim of accurately grasping electricity supply and demand over the Tokyo and Chubu area as a whole
• Adjustment of fuel procurement and delivery schedules to ensure appropriate inventory levels
• Preparation in advance to ensure supply capability at times when supply and demand balance is tight in the Tokyo and Chubu area (consideration of increased-output operation of thermal power plants, cooperation with transmission system operators, etc.)

The environment for thermal power generation is extremely difficult given uncertainty in the electricity supply and demand outlook caused by increased renewable energy, a tightening supply and demand balance in the fuel market, and an increased risk of failure at aging power generation facilities. In cooperation with related parties, however, the JERA group will make every effort to ensure a stable supply of energy.