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Japan about to approve Renewable Energy Law

Japan Set to Pass Law on Renewable Energy, WSJ By MITSURU OBE 12 Aug 11, TOKYO—Japan’s parliament is set to approve a landmark bill on renewable energy that was championed by Prime Minister Naoto Kan as a way to reduce the nation’s dependence on nuclear power, and which would break the monopoly of the 10 major utilities.

The final passage of the bill, which aims to bolster investment in renewable energy following the worst nuclear-plant accident in the country’s history, is expected by the end of the month…….

Mr. Kan has predicted the legislation would spark “explosive growth” in solar and wind power. He made a commitment to raise the share of renewable energy to at least 20% of total power supply by early 2020s.

The main feature of the bill is a requirement that utilities purchase power from outside providers, such as private companies or cooperatives, under certain circumstances. This rule is seen as opening the door for much greater use of alternative energy sources, an area where Japan lags, accounting for just 9% of total supply.

The legislation, known as a feed-in-tariff law, puts the industry minister in charge of setting the prices at which utilities are obliged to purchase electricity from renewable-power generators…….

The feed-in-tariff is expected to galvanize Japan’s solar-panel makers, such as Sharp Corp. andKyocera Corp., and give a much-needed boost to the wind-power industry. But even Sharp is of two minds, since it also ranks as a major consumer of electricity and doesn’t want to see costs go up as it tries to compete with foreign rivals.

The prospects of new opportunities in renewable energy has also spurred new entrants, such as mobile-phone group Softbank Corp., which is looking to develop mega solar projects in regions hit by the March 11 earthquake…..

http://online.wsj.com/article/SB10001424053111903918104576504362770587244.html

August 13, 2011 - Posted by Christina Macpherson | Japan, politics