Solar boom threatens to overwhelm Japan’s power grid

More solar developers being denied access to grid.

The Japan Renewable Energy Foundation of companies involved in solar projects said 20% of solar power developers that responded to a recent survey said they were denied access by local utilities because of overcapacity while 37% said they would experience limits on the amount of electricity utilities could accept.

In April, regional utility Hokkaido Electric Power said its transmission system, onto which large solar systems are interconnected, had received four times as many applications as it could manage.

Experts say Japan’s current electricity system will need to be revamped soon if the solar boom continues. Amid a solar power boom, there are increasing concerns that Japan’s electrical grids cannot support proposed projects.

The rush to solar was triggered by the introduction in July 2012 of generous feed-in tariffs for renewable energy, including solar.

The Ministry of Economy, Trade and Industry said 11,012 MW of non-residential photovoltaic projects were approved since the start of the FIT policy and the beginning of this year.

A report by IHS Inc. said Japan's solar power market could reach US$19.8 billion this year, surpassing Germany, the biggest market from 2009 to 2012.