Economic Analysis of Markets and Networks in Electricity Power Reform

2008 - 2010

This project is aimed at providing academic support to the process of electric power industry reform in Japan. For this purpose, the latest available transactions data will be used to conduct economic analyses of institutional and systemic designs for electric power markets and power transmission networks as well as performance assessment. In past years, this project focused on developing and refining a number of models for conducting quantitative evaluation and analysis. Combining these models with the actual transactions data that is now being accumulated, the project will successively undertake detailed quantitative evaluation and analysis of such practices as retail bidding and wholesale electric power transactions. Regarding problems related to specific institutional and systemic designs pertaining to markets and networks, the project will conduct surveys and applied research with an emphasis on applicability to reality while taking maintenance of reliable supplies of electric power into consideration. The scope of research will be further expanded to include quantitative evaluation and analysis of gas markets, which have a close relationship with electric power markets.

2007

This project is aimed at providing academic support to the process of electric power industry reform in Japan. For this purpose, the latest available transactions data will be used to conduct economic analyses of institutional and systemic designs for electric power markets and power transmission networks as well as performance assessment. In past years, this project focused on developing and refining a number of models for conducting quantitative evaluation and analysis. Combining these models with the actual transactions data that is now being accumulated, the project will successively undertake detailed quantitative evaluation and analysis of such practices as retail bidding and wholesale electric power transactions. Regarding problems related to specific institutional and systemic designs pertaining to markets and networks, the project will conduct surveys and applied research with an emphasis on applicability to reality while taking maintenance of reliable supplies of electric power into consideration. The scope of research will be further expanded to include quantitative evaluation and analysis of gas markets, which are closely related to electric power markets.

2006

In order to assist system reform in the electricity industry in Japan we will conduct more realistic research than previously into the issues of performance evaluation and system design in regard to the electric power market and the electricity transmission network, primarily from an economic perspective. Based on the results of project research conducted up to fiscal 2005, we have completed a number of prototype models for conducting quantitative evaluation and analysis concerning the electric power market and the electricity transmission network. In the project from fiscal 2006 onward we will further refine and develop these prototype models in line with the realities of the situation. After that, we will assemble and arrange the actual transaction data from 2005 onwards, and carry out more realistic quantitative evaluation and analysis for the purpose of assisting the continuous monitoring of the wholesale electric power exchanges, and investigation of impacts of changes in the system. In addition, with regard to individual system design issues relating to the market and the network, with a view to assisting ongoing system reform we will conduct applied research focusing on the application of these to real situations.

Until March 31, 2009