What you need to know about Japan’s power market

Companies have enough capacity to supply electricity to more than 40% of Japanese households - but there’s a catch.

According to Bloomberg, the problem is that their generators aren’t in Japan.

Bloomberg noted that Mitsui & Co., the second-largest trading house, says that may change as the Fukushima nuclear disaster forces a review of electricity monopolies set up after World War II. It’s an opportunity rivals Marubeni Corp. and Sumitomo Corp. are also looking at, along with Tokyo Gas Co.

According to data compiled by Bloomberg, Japan’s 10 regional utilities dominate production, transmission and distribution of power throughout the country, generating combined annual revenue of 15.7 trillion yen ($200 billion). “The government review of the industry includes plant sales and law changes to spin off transmission businesses from power plants,” it added.

Read the full report here.

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