Tokyo is promoting collective renewable energy scheme for households

Renewable energy provides sustainable energy, massively cuts down on greenhouse gas emissions and helps to minimize the impact of climate change. Tokyo, the economic center of Japan, has been seeking to contribute to the global goal of zeroing out greenhouse gas emissions by 2050.

Starting at the end of July, the Tokyo Metropolitan Government took on the responsibility to expand the use of renewable energy among citizens, in collaboration with iChoosr, a group buying agency. Under this pilot scheme, Tokyo will invite citizens interested in switching from regular power providers to renewable energy providers. This enterprise is the first trial in Japan to test the validity of a collective energy switching scheme, and it is expected to continue until March 2021.

Japan’s electricity industry had been dominated by 10 major electricity suppliers, including Tokyo Electric Power Company, but since the liberalization of the retail electricity market in 2016, citizens can now choose the provider that best meets their needs. One thing Tokyo is hoping to achieve in this project is to offer economical renewable energy plans to households by promoting collective buying.

The scheduled process specified by Tokyo begins with Tokyo informing citizens about the details of renewable energy, including how it works, its environmental impact, and the benefits of group buying. Secondly, iChoosr will handle the registration of prospective purchasers and give further details of available plans. Following this, an auction will be held, and the supplier that offers the least expensive deal will be selected. Finally, iChoosr will take care of the switching process, and provide before and after support for the group of participants.

Tokyo and iChoosr are serving as mediators between the energy companies and citizens, aggregating demand to reduce the burden on customers of finding affordable plans. With this hassle-free scheme, Tokyo expects wider implementation of renewable energy in households.