UPDATE 1-Japan’s Kyushu Electric may restrict renewable energy supplies after nuclear ramp-up via Reuters

By Osamu Tsukimori

TOKYO, Aug 29 (Reuters) – Kyushu Electric Power Co may start restricting third-party supplies of solar energy after it restarts a fourth nuclear reactor, the company said on Wednesday, underscoring the risks to a government push to boost renewable energy.

Japan’s fifth-biggest utility by sales plans to restart the No. 2 reactor at its Sendai station later on Wednesday, giving Kyushu the most nuclear generation since the 2011 Fukushima disaster led to the shutdown of Japan’s atomic power sector.

The move could lead to possible restrictions on the purchase of renewable energy as early as next month, a Kyushu spokesman told Reuters, declining to be identified because of company policy.

“Output restrictions can occur when power demand is low and solar power generation is high, such as in the autumn, spring or at the year-end and beginning of the year,” the spokesman said.

The Fukushima disaster prompted a shift in Japan toward renewable energy, backed by mandatory preferential rates for solar, wind and other supplies.

Introduced in 2012, the preferential rates, known as feed-in-tariffs, were at the time among the highest in the world, sparking a rush of investments by startups and other companies.


However, the slow return of nuclear, which once accounted for 30 percent of Japan’s electricity generation, is now threatening the once-guaranteed income for operators of renewables.

The government changed regulations in 2015, allowing the old utilities, which control the country’s transmission grids, to restrict supplies of renewable energy from their solar or wind farms if they deem it necessary to maintain grid stability.

The orders can be made at short notice and without having to pay compensation.




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