With this year's Boao Forum stressing the openness and innovation of Asia, CGTN's Terrence Terashima takes us to Japan to show one area that is sparking interest in the country -- the smart electrical grid.

TERRENCE TERASHIMA TOKYO "Japan has seen a rapid transformation in electricity infrastructure in the last decade, as the nation effort itself with electricity sector reforms after the Great Eastern Japan earthquake in 2011. The new energy policy has widened investment prospects in the energy sector, with a shift towards distribution network, including smart grid applications and energy-efficient services.

Smart community projects are accelerating nationwide. With a prospects of rapid market growth.

MASAKI UMEJIMA PH.D, COUNCILOR OF INTERNATIONAL AFFAIRS ECHONET CONSORTIUM "We will complete that approach by 2024, after 2045 we can see new figure of energy business but until then we are preparing business environment."

The dissolution of vertically-integrated power utilities, has allowed Virtual Power Plant projects in number of rural areas of the country, forming an energy grid. Locally produced and locally consumed efficiently.

JUNICHI TADOKORO, MANAGER FUTURE CITY CREATION PROMOTION DIVISION, NEC "VPP will allow communities to utilize a variety of energy sources, anything from household generators and battery cells to power plants, and maintain an appropriate balance between supply and demand."

The smart city grid enable to make predictions of future demands and calculate the output balance. Which will not only conserve energy, but in some cases will generate revenue. Miyama City in Southern Japan, was a typical farming community with rapid diminishing population. But since the introduction of a smart grid project. It turned itself to a semi profiting business model. With over 930 thousand dollar profit.

NORITO SHIRAIWA, EXECUTIVE OFFICER MIYAMA SMART ELECTRIC CO., LTD. "Miyama did not have any significant industry but with the electricity sector reform, we manage to create more jobs. The smart community project has benefited local employments and economy."

Experts say legal issues and environment is still needed to be worked out, but it will likely to contribute to the boost in regional economies. Terrence Terashima, CGTN Tokyo.