The Japanese parliament has acted on the government's promise to encourage investment in renewable energy sources by passing into law on 26 August measures that will introduce feed-in tariff provisions requiring power companies to buy electricity from renewable sources, such as wind and solar, at fixed prices. Those prices, along with other details, have yet to be worked out.
Naturally enough solar and wind power companies welcomed the passage of a bill promoting renewable energy, while a steelmakers association expressed relief that the measure makes allowances for industries that use huge amounts of electricity.
The feed-in tariffs created by the legislation will greatly expand the market for solar energy technology, said Mikio Katayama, president of Sharp Corp. and chairman of the Japan Photovoltaic Energy Association. The association had forecast that the number of jobs in the industry will grow to about 450 000 in 2020, up ninefold from 2010. But Katayama said he now thinks the increase will happen "well in advance" of that date,
Tetsuro Nagata, head of the Japan Wind Power Association, called for support rates of at least 20 yen per kilowatt-hour for 20 years. Nagata is also president of Eurus Energy Holdings Corp.
Since the utilities buying the electricity can pass the costs onto their customers, the law includes a cross-partisan compromise on easing the burden on industrial users. That provision was praised by the Japan Iron and Steel Federation.
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