Electricity prices in Okinawa remain higher than the national average. Reasons include the lack of an interconnected grid with the mainland, a structure that is susceptible to fuel prices, higher maintenance costs due to the number of remote islands and the small scale of demand.
Electricity bills in Okinawa are generally said to be somewhat higher than the national average. Average bills by household size and summer cooling demand are cited as factors affecting actual charges. It is also noted that Okinawa Electric Power's charges include a basic charge and electricity usage charge based on contracted capacity and consumption, plus a fuel cost adjustment and renewable energy surcharge.
The first of the 4 reasons for higher prices is that Okinawa has an independent grid that is not connected to the mainland power system. As a result, it cannot benefit from wide-area power transfers and must maintain greater reserve generating capacity, driving up equipment maintenance costs. Second, the power supply is centered on thermal generation and is susceptible to fuel prices, so fluctuations in imported resource prices directly affect rates.
In addition, supplying many inhabited remote islands creates additional costs for maintaining small-scale facilities on each island, tending to increase the burden per household. Finally, the small scale of demand limits the base over which investment can be recovered, affecting the long-term rate structure as well.
As a climatic factor, Okinawa's hot and humid conditions increase cooling use and push up electricity demand throughout the year. The breakdown of electricity bills includes the fuel cost adjustment and renewable energy surcharge, and the article indicates that subsidies and reviewing plans are options for reducing the burden.