Study, detailed design, and operation of capacity market

Capacity market contributing security of supply capacity in mid-to-long term

With electricity deregulation and the increasing introduction of renewable energy, the predictability of the return on electricity investment is considered to be circumstantially decreased, but a shortfall in investment in electricity sources could lead to electricity shortages in the future. The capacity market evaluates the supply capacity of power sources (capacity to generate electricity) to efficiently ensure the necessary supply capacity in advance for the future, which is an important mechanism that increases the predictability of investment returns by power generating companies and contributes to ensuring the supply capacity on a medium- to long-term basis.
OCCTO is a market administrator for the capacity market by studying, designing in detail, and operating the system.

Operation of the capacity market

As a market operator, OCCTO holds main auction which procures supply capacity of 4 years ahead before actual delivery since FY 2020, and long-term decarbonized capacity auction which solicit new investment to decarbonized power source since FY 2023.
In FY 2024, supply capacity procured in main auction in FY 2020 has actually delivered electricity, and assessment and billing has implemented surely and smoothly. In addition, incremental auction for FY 2025 delivery has been held in FY 2024, securing necessary supply capacity in nationwide.