Japan plans new renewable tariffs


Protective Relay Training - Basic

Our customized live online or in‑person group training can be delivered to your staff at your location.

  • Live Online
  • 12 hours Instructor-led
  • Group Training Available
Regular Price:
$699
Coupon Price:
$599
Reserve Your Seat Today

Japan Feed-in Tariff Reform expands renewable procurement to IPPs, supports low-carbon electricity, and sets 15-year contracts for wind, biomass, small hydro, and geothermal, with nationwide surcharges and revised solar rates for households and small businesses.

 

Context and Background

A policy overhaul expanding renewable purchases, fixing 15-year FITs, and standardizing surcharges nationwide.

  • IPPs join utilities in buying renewable electricity
  • 15-year purchase contracts to de-risk investment
  • Applies to wind, biomass, small hydro, geothermal; solar differs

 

Japan plans to make the power sector buy electricity from a wider range of renewable energy sources than it does currently in a feed-in tariff incentive scheme from the year starting April 2012.

 

The government is expected to submit related bills for the new scheme during the current parliament session, aiming to make electricity low-carbon and to support a clean-energy market.

Currently, Japan's 10 power companies are required to pay 48 yen 60 cents US per kilowatt hour for surplus solar electricity from house owners and 24 yen per kwh for the surplus from small businesses and are allowed to add on the extra costs to users evenly.

Below are some of the main points that differentiate the existing scheme effective in the business year starting in April, from the new scheme based on a set of proposals a government advisory panel approved recently.

For 2011/2012:

• 10 power companies only buy surplus solar from small-lot suppliers.

• Prices for house owners will be cut to 42 yen per kwh as solar panel prices are on the decline.

• Prices for small businesses will be raised to 40 yen per kwh to lessen the impact of the government's ending subsidies for installation.

For 2012/2013 and onwards:

• Not only 10 power companies but also independent power producers IPP will buy electricity from renewable sources.

• Their buying will last for 15 years.

• It will apply to electricity from solar, wind, biomass, small-scale hydro and geothermal power — except for surplus electricity only from household solar suppliers.

• Prices for wind, small-sized hydro, biomass, geothermal will be either 15 yen or 20 yen per kwh.

• Prices for solar are to be decided later.

• There will be no difference in surcharges from one company to another as power producers will pass their total payments to users evenly nationwide.

 

Related News

Related News

Revenue from Energy Storage for Microgrids to Total More Than $22 Billion in the Next Decade

Energy Storage for Microgrids enables renewables integration via ESS, boosting resilience and reliability while supporting…
View more

Cal ISO Warns Rolling Blackouts Possible, Calls For Conservation As Power Grid Strains

Cal ISO Flex Alert urges Southern California energy conservation as a Stage 2 emergency strains…
View more

Canada expected to miss its 2035 clean electricity goals

Canada 2035 Clean Electricity Target faces a 48.4GW shortfall as renewable capacity lags; accelerating wind,…
View more

France to speed up data centre grid connections via underground cables

France Data Centre Grid Connections move ahead as the government considers temporary links to underground…
View more

Ontario to Provide New and Expanded Energy-Efficiency Programs

Ontario CDM Programs expand energy efficiency, demand response, and DER incentives via IESO's Save on…
View more

Why the Texas Power Grid Is Facing Another Crisis

Texas Power Grid Reliability faces record peak demand as ERCOT balances renewable energy, wind and…
View more

Sign Up for Electricity Forum’s Newsletter

Stay informed with our FREE Newsletter — get the latest news, breakthrough technologies, and expert insights, delivered straight to your inbox.

Electricity Today T&D Magazine Subscribe for FREE

Stay informed with the latest T&D policies and technologies.
  • Timely insights from industry experts
  • Practical solutions T&D engineers
  • Free access to every issue

Live Online & In-person Group Training

Advantages To Instructor-Led Training – Instructor-Led Course, Customized Training, Multiple Locations, Economical, CEU Credits, Course Discounts.

Request For Quotation

Whether you would prefer Live Online or In-Person instruction, our electrical training courses can be tailored to meet your company's specific requirements and delivered to your employees in one location or at various locations.