In 2020, Japanese Electric Power Company will separate their Grid from their own to subsidiary. Already, Tokyo Electric Power Co, which is substantially state-run, separate their Power Plant, Grid, and Sales to their subsidiaries in 2016.
Is separation of unified Electric Power correct policy?
It means the separation of production(=power plant) and distribution(=Grid). In the world of manufacture, it is possible to separate them. They can minimize total cost of product by sharing their roles(to product and t]o distribute) respectively. If there is difference between the amounts of product and distribution, it will be adjusted through inventory.
It doesn’t work in Electricity World.
Electricity is, as often referred, cannot be stocked. Therefore, when they plan the construction of Power Plant, at the same time, they have to plan how to distribute newly powered Electricity. (Otherwise, Power Generation will be a simple turbine which simply rotate by burning fuel)
But in the world of separation, Generators just take account of geographical conditions for Power Plant. Especially in near Tokyo, they have a lot of plans of Power Plant. In Tochigi, Ibaragi, Chiba, Kanagawa, Shizuoka prefectures, many Coal & Gas Power Generations are under planned construction process. Grid is rarely prepared in those places. More often than not, there are power plants already constructed on the soil which is suitable for new plants. If new power plant be constructed on such soil, thermal capacity of Grid will run short generally. That’s why Grid company consider the necessity of increase or renewal of existing equipment every time new generators are planned.
That will be wasteful.
Furthermore, when increase of existing equipment is needed, considering the large cost and long term of construction process, some plans of new plants are recently retracted.
Formerly, under so-called Unified System of Power Plant & Grid, plans of generators and grid are considered altogether, so there have been no withdrawal due to inconsistency between them. Under the Separation System of Plant & Grid, sorry to say, they are inconsistent at all.Those going to undertake product and maintain power plants, must prepare for procurement of published project, not without question as formerly they did, but deliberately considering the real possibility of the project.