Jan 2nd - Japan Smart Meter business open to global companies

Smart meter to open the global and Japanese markets 

The global market for social infrastructure for smart meter is expanding rapidly. Focus has been on the US, Europe and emerging economies but Japan is part of the global competition for smart-meter business. 

The GoJ plans to roll-out smart meters to 80% of nationwide electricity consumption over the next 10 years, with demand for smart meter expected to reach around 70 million units, a Japanese domestic market value of more than 700 billion yen (£5.2bn). TEPCO and the GoJ-backed Nuclear Damage Liability Facilitation Fund plan to install 27 million smart meters from 2014 to 2023. 

To reduce the cost of the project TEPCO will adopt international standards for smart meter specifications. This decision has created opportunities for foreign firms to enter the Japanese smart meter market. In November, TEPCO invited domestic and foreign firms to submit open bids to supply smart meter communication systems, worth tens of billions of yen (NB: the public offering for these bids was closed on 27 November). 

Up until now, only four domestic companies have sold power meters to TEPCO, but new entrants could change this picture. Itron Inc, a major U.S. firm recently announced a strategic partnership with Panasonic, aiming to submit joint bids.  Other foreign companies like General Electric and Enel SpA (a top Italian energy firm) also showed interest. 

Manufacturers will team up with other companies to meet project requirements which cover a wide range of technology fields. Foreign players still need to compete with domestic manufacturers who have local experience and advantage and advanced technology and know-how. Partnerships with local companies will be therefore be key to their success.