Transmission and distribution

Committee:
Energy
status:
Some progress
Published:
Japan’s transmission network is centred on its production sites, with the main transmission at 500kV. The frequency convertor stations (FC) connecting the 50Hz and 60Hz networks offer only limited additional capacity. Furthermore, the limited interconnections between the individual EPCOs represent a real risk to security of supply. In contrast, European and US grids have extensive plans for use of High Voltage Direct Current (HVDC), which offers more flexibility in energy flows between regions, enables large integration of renewable into the system and also enables long cable connection by subsea or land. The Organization for Cross-regional Coordination of Transmission Operators (OCCTO) ensures network balance by designing national Master Plans. It is encouraging to the ongoing discussion to connect Hokkaido and Tokyo are with HVDC subsea cables.

Recommendations

  • The legal unbundling in April 2020 should implement regulations that will ensure security of supply and fair market mechanisms based on wider grid interconnections and look into increasing ownership or operation separation to further ensure the independence of Transmission and Distribution System Operators (TDSOs).
  • Japan could look at processes in place in Australia, the Middle East or South America to run international tenders dedicated to new HVDC domestic links. International tendering would allow foreign expertise and capital to flow into the country to accelerate and derisk the development of these massive and complex HVDC transmission projects, which are nevertheless unavoidable to strengthen the grid and evacuate the upcoming renewable energy produced in Hokkaido and Kyushu. Japan could easily combine the opening to foreign investments and the need to secure national interest around these strategic assets by putting in place safeguarding measures (equity ownership limitations, local content requirements, cybersecurity rules, mandatory involvement of EPCOs in the design and O&M phase, etc.)
  • Japan should do more to increase interconnection capacity between TDSOs, achieving fair electricity transactions and encouraging mergers between TDSOs for logical and reasonable decision making.
  • The TDSOs should look into further harmonisation of technical standards by integrating individual requirements and also adopting European standards for products and systems to achieve cost efficiency.