Japan's electricity consumption is set to rise 0.8 percent a year through March 2020 as consumers switch from natural gas and kerosene to electricity, according to a forecast by a power industry group.
Electricity consumption may increase to 1.13 trillion kilowatt-hours in the year starting April 2019 from estimated demand of 999.4 billion kilowatt-hours in the current fiscal year, according to a report released today by Japan Electric Power Survey Committee.
Consumers are using less kerosene for heating and natural gas for cooking and buying houses fitted only with electric appliances, which are marketed as safer in Japan, according to the report.
The introduction of plug-in electric cars will further drive electricity demand, mitigating the impact of a declining population and energy conservation, said Tomohiro Jikihara, an analyst at Deutsche Securities Inc. in Tokyo.
"Japan's power market largely hinges on how fast electric vehicles gain popularity in coming years," Jikihara said before today's announcement. "The introduction of power-saving light- emitting diode lightbulbs and energy-conserving appliances, on the other hand, will be one of the major downward factors."
The committee hasn't taken electric vehicles into account in its forecast because there isn't enough data, Research Director Satoshi Manabe told reporters today.
