(Reuters) – On the second anniversary of a scheme aimed at boosting Japan’s renewable energy after the Fukushima crisis, its powerful industry ministry is taking steps critics say will choke off solar investment and pave the way for a return to nuclear power.
Japan’s ambitious plans for solar in the past two years — if they were to come on stream — could allow the country to surpass Germany as the world’s biggest consumer of solar power.
But the Ministry of Economy, Trade and Industry (METI) has cut tariffs for solar power by a fifth in the two years and has imposed time limits on installations, arguing solar costs have fallen and projects are running late, with only 13 percent of approved projects actually installed and operating.
Solar industry participants say METI’s actions mean it does not make commercial sense to invest in the renewables sector.
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(Reuters) – On the second anniversary of a scheme aimed at boosting Japan’s renewable energy after the Fukushima crisis, its powerful industry ministry is taking steps critics say will choke off solar investment and pave the way for a return to nuclear power.Japan’s ambitious plans for solar in the past two years — if they were to come on stream — could allow the country to surpass Germany as the world’s biggest consumer of solar power.
But the Ministry of Economy, Trade and Industry (METI) has cut tariffs for solar power by a fifth in the two years and has imposed time limits on installations, arguing solar costs have fallen and projects are running late, with only 13 percent of approved projects actually installed and operating.
Solar industry participants say METI’s actions mean it does not make commercial sense to invest in the renewables sector.
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When Japan introduced its new renewable energy policy in July 2012, under which utilities must buy electricity generated from renewable sources such as wind, solar or geothermal, its feed-in-tariff rates were among the highest in the world.METI has since cut its feed-in price to 32 yen per kilowatt-hour (kwh) in the fiscal year starting April for projects 10 kwh or more, down from 36 yen in the year ending in March and lower from the 40 yen in the first year of the incentive program.
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“METI is working to regain the power and credibility it lost after March 11 with polices like these that marginalize renewables in order to emphasize industry-friendly energy sources, like nuclear,” said Tetsunari Iida, executive director of Japan’s Institute for Sustainable Energy Policies.
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