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REPORT
Feed-in Tariffs in Japan: Five Years of Achievements and Future Challenges

8 September 2017

REPORT
Feed-in Tariffs in Japan: Five Years of Achievements and Future Challenges

Renewable Energy Institute today released the full English translated version of the report "Feed-in Tariffs in Japan: Five Years of Achievements and Future Challenges". The original Japanese version of the report was released on 10 August 2017.

By the end of June 2017, five years have passed since the enforcement of the FIT Act in July 2012. During this period, renewables, in particular solar PV has been widely deployed and the share of renewables which was 9% in FY2011, has increased to as much as 15% in FY2016.

This report examines the outcome of the FIT scheme, pointing out how the deployment of renewables has contributed in the reduction of carbon dioxide emissions and wholesale electricity price, and how it has raised issues related to coexistence with local communities and the challenges involved in the implementation of the scheme.

Furthermore, this report makes projections of the FIT surcharge and estimates the surcharge unit price and wholesale electricity price in FY2030 on different scenarios. It shows that a wider deployment of renewables allows a decrease in wholesale electricity unit price, consequently lowering the total sum of surcharge and wholesale electricity price.

View original report in Japanese (Published in August 2017)

<Table of Contents>
Introduction
 Purpose of this report
 The role of the FIT scheme as a policy
The Results of the FIT Scheme Over the First Five Years
 Accelerating deployment – the road has been opened toward making renewable energy a main energy source
 Deployment by energy source – high growth observed except for wind power
 Various effects of large deployment
 Additional burden of expenses and the impact on the unit cost of electricity
 Challenges in coexisting with local communities
Challenges in Operating the FIT Scheme
 The rules for facility registration that raised the burden of expenses
 The rule of unlimited curtailment without compensation has great negative impacts
 Detailed analysis required for calculating procurement prices
Future Prospects: Projections of the FIT surcharge
 Assumptions for the estimations
 Results of the estimations
 Summary of estimation results
Conclusion

<Related report>
Recommendations for Woody Biomass Power Generation under FiT —for the realization of a sustainable use of bioenergy
26 December 2016 (Japanese original published on 25 November 2016)

Comparing Prices and Costs of Solar PV in Japan and Germany
The Reasons Why Solar PV is more Expensive in Japan

31 March 2016 (Japanese original published on 13 January 2016)

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