Japan is to introduce a system of feed-in tariffs (FITs) for renewable energy as part of plans to boost green investment and improve energy security.
The country’s Industry minister, Yukio Edano, has approved the introduction of FITs from July 1st and believes that the policy will boost Japan’s installed renewable energy capacity by 2500 MW over the next 12 months alone.
The move is part of Japan’s policy to reduce its dependence on nuclear energy following the Fukushima disaster in March 2011. All of Japan’s nuclear reactors were shut down in the wake of the accident and have not yet been restarted.
Nuclear power accounted for around 30 per cent of Japan’s electricity supplies. Imports of oil, coal and gas have soared since the country’s nuclear power plants were shut down.
Under the FIT scheme, generators of solar power plants will receive 42 yen/kWh of electricity produced, while wind power generators will receive 23.1 yen/kWh. The subsidies will benefit Japan’s solar panel and wind turbine manufacturers, but foreign manufacturers will also target the country.
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