Japan’s rural electrification before the mid-1930s: Private-owned utility, local community, and policy

Abstract The paper provides a narrative history of Japan’s rural electrification before the mid 1930s, focusing on the interplay among private-owned utilities, local communities, and policy. In joining the revisionist historiography on rural electrification, the paper highlights the important role played by private-owned utilities in electrifying the countryside before the 1930s. Although extending electricity systems to the countryside was uneconomical compared with densely populated cities, the rural market provided business opportunities when private-owned utilities sought to balance load factors and sell surplus power generation capacity. However, as consequence of profit-seeking, the rural communities were charged higher price for electricity, faced inferior supply conditions, and disputed with private-owned utilities over how to electrify the villages. Some communities tried public ownership, but the Japanese government was not always favourable to local initiatives out of ideology and national system considerations. The noninterventionist policy incited social discontent that aired itself in the late 1920s in tariff disputes and, with the onset of the Great Depression, pushed the government to change its policy to subsidisation and eventually to nationalisation. By contextualising rural electrification in Japan’s business, ideological, and regulatory context, this paper re-evaluates private-owned utilities, but also points out its limitation in electrifying the countryside.