Bill Amending the Electricity Business Act Enacted

On Friday, July 17, 2026, the Bill Amending the Electricity Business Act was passed and enacted by the House of Councillors plenary session. The amendments concern promoting the development of large-scale transmission lines and large-scale power sources, improving the environment for the stable and sustainable development of the electricity business, and enhancing the safety of solar power generation facilities and other equipment.

While the international energy situation is changing due to Russia's invasion of Ukraine and heightened tensions in the Middle East, domestic electricity demand is expected to increase as digital transformation and green transformation progress. In light of these circumstances, the bill includes measures to secure a stable electricity supply and promote energy security.

The amended law provides measures to secure supply capacity through the promotion of transmission line and large-scale power source development, thereby contributing to a stable electricity supply and the promotion of energy security.

It improves the environment for the stable and sustainable development of the electricity business and enhances the safety of solar power generation facilities and other equipment.

The Minister of Economy, Trade and Industry certifies development plans for large-scale power sources prepared by large-scale power generation businesses, as well as development plans for intra-regional transmission lines and other facilities prepared by general transmission and distribution utilities and others. The Organization for Cross-regional Coordination of Transmission Operators provides loans for the funds necessary for development and related activities by utilizing fiscal investment and loans. The organization is an authorized corporation that monitors electricity supply and demand and promotes the securing of supply capacity.

The bill expands the funding base, using fiscal investment and loans and other resources, for loans provided by the Organization for Cross-regional Coordination of Transmission Operators to general transmission and distribution utilities and others for the development of interregional transmission lines and related facilities. In addition, price-difference revenues arising from electricity trading across supply areas, such as Hokkaido and Tokyo, will be paid into the national treasury and used for the development of interregional and intra-regional transmission lines and related activities through subsidies to the organization.

When a large-scale power generation business retires or suspends a large-scale power source, it must consult in advance with general transmission and distribution utilities and others.

To ensure the proper operation of the retail electricity business, the grounds for revoking a retail electricity business registration will be expanded to include suspension for a specified period and other circumstances. In addition to the existing day-ahead market, the Minister of Economy, Trade and Industry will be able to designate and supervise wholesale electricity exchanges that open medium- to long-term markets and balancing markets, which are important for securing a stable supply.

To prevent accidents caused by design defects in solar power generation facilities, supports and other components will be subject to confirmation of conformity with technical standards by registered conformity assessment bodies before construction. When it is difficult for the installer alone to determine the causes of product defects, construction defects, or other problems and prevent recurrence, measures will be established to request necessary cooperation from manufacturers, import and sales businesses, and construction businesses.

Except for certain provisions, the law will enter into force within nine months after promulgation.