Japan to get RE boost by 2013

Renewable energy continues to grow in Japan—with a lot of help from FIT.

Japan now aims to increase the electric power it derives from renewable energy by 13% by March 2013. This will add 2,500 MW of solar, wind, and hydropower to Japan’s existing RE capacity of 18,750MW.

Japan currently generates only 9% of its electricity from renewable sources.

New and generous feed-in tariffs (FITs) are expected to prod Japanese RE producers into boosting the supply of renewable energy sources. FIT, which is to be implemented this July, will compel utilities to pay RE producers for electricity they provide to the grid.

FIT guarantees above-market rates for solar, wind, geothermal, biomass and hydroelectric power. The Japan Photovoltaic Energy Association proposed a FIT of US$0.52 cents a kilowatt hour for solar power for 20 years. For wind, the Japan Wind Power Association suggested as much as US$0.31 a kilowatt- hour for the same period.

The FIT for solar power is estimated at US$0.52 per kilowatt hour for some 20 years.