Japan to add 11,000 MW of fossil fuels – Thinking about renewables for 2050? Maybe?
Media reports this week said targets for renewable energy had been inserted into the plan at the insistence of New Komeito, which is opposed to nuclear power.
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Under industry ministry rules in force since 2012, the main monopolies are in general required to hold competitive auctions for any new plants that start operations from April 2019 to reduce costs.
The monopolies can bid for the plants themselves or in alliance with other companies. In some cases, the monopolies can bypass the auctions but will need to pass government screening to ensure costs have been kept at a minimum. Last year’s auction for 2.6 gigawatts of coal-fired plants only attracted bids for 680 MW.
http://www.businessspectator.com.au/news/2014/3/31/energy-markets/japan-add-11000-mw-fossil-fuels
31 March 2014
Japan’s utilities are again stepping up plans to increase electricity output from coal and natural gas to replace lost nuclear power, with a prolonged shutdown of reactors continuing and a rising prospect that many units may not come back online.
This week Tokyo Electric Power Co, operator of the wrecked Fukushima nuclear plant, and other regional monopolies are planning to add 11,000 megawatts (MW) of gas- and coal-fired electrical capacity, according to company announcements and media reports.
The difference this time is that the utilities will seek to contract the building of generators to other companies because their finances have been strained by the high-cost fossil fuels needed to replace nuclear units.
Three years after the Fukushima nuclear crisis all of Japan’s 48 operable reactors remain shut, with no restarts scheduled.
“Given the current unwillingness of the government to have stronger support for nuclear power they have to be prepared for the future replacement,” said Tatsujiro Suzuki, a vice chairman of the Japan Atomic Energy Commision, who is stepping down on Monday.
Opposition within the ranks of the ruling Liberal Democratic Party and its coalition partner New Komeito has held up approval of a basic energy framework draft that defines nuclear power as an important source of energy.
Media reports this week said targets for renewable energy had been inserted into the plan at the insistence of New Komeito, which is opposed to nuclear power.
Japan’s nine nuclear operators have been forced to restart ageing and mothballed thermal power stations, and delay mandatory maintenance on others to meet seasonal demand spikes, resulting in soaring fuel costs.
Japan now derives about 90 per cent of its electricity from fossil fuel-fired power, which pushed imports of liquefied natural gas (LNG) and thermal coal to a record high last year.
A massive earthquake and tsunami in March 2011 hit the Fukushima nuclear power station north of Tokyo, causing three reactor meltdowns and forcing the evacuation of 160,000.
New power plants
Most of the new construction plans are for so-called “base-load” coal-fired plants, raising concerns about air pollution, though the utilities are only allowed to use technologies rated as the best at limiting carbon dioxide
emissions.
Under industry ministry rules in force since 2012, the main monopolies are in general required to hold competitive auctions for any new plants that start operations from April 2019 to reduce costs.
The monopolies can bid for the plants themselves or in alliance with other companies. In some cases, the monopolies can bypass the auctions but will need to pass government screening to ensure costs have been kept at a minimum. Last year’s auction for 2.6 gigawatts of coal-fired plants only attracted bids for 680 MW.
More information here;
“In July 2012 Japan introduced FiTs for renewable power in a drive to reduce its dependence on nuclear energy. The tariff for solar electricity was quite attractive at JPY 42 (USD 0.41/EUR 0.30) per kWh. Although the country approved a 10% solar FiT cut as of April 1, 2013, the rate remained appealing enough and Japan is now one of the top solar markets globally.
However, a survey by METI has revealed that approximately 4,700 project developer with FiT approvals from 2012 have not yet started producing power, Yomiuri Shimbun said. Some 570 have not even secured land and equipment. The ministry’s move to withdraw approvals is to make sure that developers do not put off projects in a bid to take advantage of falling PV module prices.
The Japanese government plans to reduce the solar FiT once again from April 2014.”
“Considering all these challenges, some industry watchers don’t see renewables as a near-term energy source. The Institute of Applied Energy (IAE), an independent research organization in Tokyo, estimates it will be several decades before solar and wind energy makes a significant contribution to Japan’s energy needs.
“At present, nonhydro renewable energies combined is just 1 percent of Japan’s power generation,” says Kazuaki Matsui, executive director of IAE. Though supporters of green energy will disagree, Matsui believes it is just not possible to install solar and wind farms in the huge numbers necessary over the next 20 years to make a serious difference. “We might expect some sizable [output] from renewables, maybe in 2050.” ”
http://spectrum.ieee.org/energy/renewables/japans-green-power-dreams-delayed
Panel proposes Japan offshore wind tariff lift, solar cut
The offshore wind tariff for major projects should be lifted
by nearly two-thirds to 36 yen a kilowatt-hour from the year
that starts from April, while the solar tariff should be cut by
11 percent to 32 yen a kilowatt-hour for corporate projects, the
panel suggested in a report issued late on Friday.
While generous subsidies have sparked a rush of solar energy
projects, the trade ministry is now considering revoking
authorization for some unbuilt installations.
Industry sources have said the promise of a quick profit
encouraged speculative developers lacking the experience and
expertise needed to deliver, and would cause many projects to
fall through.
As of November, less than a quarter of the 26,226 megawatts
of solar capacity approved since subsidies were introduced in
July 2012 is selling power to the grid, according to data issued
late last month by Japan's Ministry of Economy, Trade and
Industry (METI).
Below is a table of the prices proposed by the committee for
the fiscal year that begins from April and the actual prices for
the current fiscal year that ends in March. The prices are in
yen per kilowatt-hour (kwh) and exclude tax.
Power producer type Fiscal Fiscal
2014 2013
Solar power (10 kwh or more) 32 36
Solar power (10 kwh or less) 37 38
Offshore wind power (20 kwh or more) 36 22
Onshore wind power (20 kwh or more) 22 22
Offshore wind power (20 kwh or less) 55 55
Onshore wind power (20 kwh or less) 55 55
Small-and-Medium scale hydro power* 14-34 24-34
Biomass power** 26-40 26-40
Geothermal power** 13-39 13-39
*Depend on size and use of existing waterways.
**Depend on project size.
(Reporting by James Topham; Editing by Joseph Radford)
http://in.reuters.com/article/2014/03/10/japan-renewables-subsidies-idINL3N0LU5CA20140310
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