The Japanese cabinet is moving ahead with a proposal to revamp the country’s electricity industry and foster competition by obliging utilities to split power generation and distribution into separate businesses.
The plan, which requires parliamentary approval, is aimed at encouraging innovation and grid modernization as Japan grapples with its energy policy after the shutting down of almost all its nuclear power plants in the wake of the crisis at the Fukushima Daiichi plant.
The idea of liberalizing Japan’s electricity market has been around for years and was included in a series of economic overhauls, intended to improve the country’s competitiveness, being discussed by Prime Minister Shinzo Abe’s administration.