Dipping energy costs give Japan more time to sort out renewable capacity woes

Thanks to lower oil prices.

Japan LPG prices are linked to fuel oil prices and thus will see similar 10~20% cuts in prices as crude, in the event that lower oil prices are sustained.

According to a research note from Nomura, sustained lower oil and gas prices would have negative implications for the solar demand environment in 2015F, particularly from the US and Japan.

The cuts reduce energy costs and give Japan more time to sort out its renewable capacity issues.

Five utilities have already frozen new applications for connection with renewable sources, the report said.

It continued to say that lower gas feedstock prices give them sufficient time to fill the demand gap from raising gas imports while nuclear re-starts are pushed through.