Renewable Energy Institute released the “Recommendations to the Government on Revising Renewable Energy Policies” (original Japanese version released on 17 July 2019).
Under the Act on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources by Electricity Utilities (also known as the Feed-in Tariff Act, hereinafter referred to as the “FiT Act”), renewable energy has achieved a fast-paced diffusion in Japan since 2012. In 2010, the share of all generated output covered by renewable energy sources was 10.2 % , the majority being from hydropower. By 2018, the share of renewables increased to 18.4 % , mainly with the ensuing rapid development of solar photovoltaic (PV) generation. Power generated by renewables other than hydropower plants already surpasses that generated by the latter. In particular, the competitiveness of renewables is increasing. The cost of electricity from solar PV is swiftly falling; in fiscal 2012, the tariff for purchasing electricity per kWh (for more than 10 kW) stood at 40 yen, this has decreased to 14 yen in fiscal 2019.The Subcommittee on Mass Introduction of Renewable Energy and Next-Generation Electricity Networks under the Ministry of Economy, Trade and Industry (METI) has discussed prospective revision of the current FiT Act in accordance with the schedule prescribed in it, and released its interim proposal in mid August. The discussion is presumably focused on the following two items as particularly major changes from the FiT Act in its present form.
・Shift from the feed-in tariff scheme to direct marketing and the feed-in premium (FiP) scheme
・Systematic transmission planning for high integration of renewables into the market
In this document, we, Renewable Energy Institute, set forth our views on the government’s policy to revise the FiT Act, and on the renewable energy auction system, and propose the following three recommendations.
Recommendation 1: Prioritize the improvement of the market environment for renewables
Recommendation 2: Promote systematic mid-long term transmission planning
Recommendation 3: Introduce a multi-year plan for auction volumes
<Related Links>
Report (September 2018, Japanese original July 2018)
Feed-in Tariffs in Japan: Five Years of Achievements and Future Challenges
