Japan’s renewables bill clears first hurdle in parliament

Facebook
Twitter
LinkedIn
Reddit
Email

The lower house of Japan's parliament has passed a new green bill aimed at promoting investment in solar and other renewable energy sources and weaning the country off nuclear power.

Before March’s Fukushima nuclear plant disaster, Japan was planning to ramp up its nuclear capacity to cater for 50% of its energy demand by 2030. However, the fallout from Fukushima has undermined public confidence in the safety of atomic power and created uncertainty over the future of Japan’s energy policy.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

And, in what is likely to be his final act in office, Prime Minister Naoto Kan is attempting to pass the green bill and stay true to his post-Fukushima pledge of overhauling Japan’s energy portfolio.

The bill's passage follows weeks of intense deliberation in Parliament. Should the upper house also approve the reforms, which requires utilities to buy any electricity from solar and other renewable sources at set rates for up to 20 years, the bill will be passed into law and come into force next July.

Solar is expected to be the main beneficiary and initial growth area as it can be installed quickly. On Tuesday, Trade Minister Banri Kaieda told a parliament committee that the bill was expected to help renewable capacity increase by 30GW over the next decade.

However, critics claim the bill’s impact on energy policy could be diluted because of a failure to resolve certain key details. Among these are the price paid by utilities, which will not be decided until a parliament-appointed panel meets next year.

Another concern comes in the form of Japan's recent history of short-lived governments. This instability brings with it the implied risk of a change in policy by a future administration, which will be an immediate concern for investors; the bill is due for a mandatory review after a new plan for Japan’s energy supply mix target in 2030 is finalised next year. A further mandatory review is due in 2014.

For solar, the ambitious growth targets bring with them another problem: panel supply. In 2010, Japan’s panel sales totalled 992MW, and this figure would need to grow sixfold to cater for a 10GW industry.

If domestic panel makers remain hesitant to add production lines, one possible scenario would see imports rise to fill the shortfall, according to Mitsubishi Research Institute's environment and energy research division general manager, Kazumichi Ito. Yet this would defeat the bill's objective of helping promote the development of the renewable energy industry in Japan.

“My concern is that the revised bill, which aims to promote the [renewable energy] market for an initial three-year period, now appears to have nothing to do with its original purpose of fostering the renewable energy industry in a long run,” Ito said.

Read Next

May 22, 2025
US energy utility AES has signed two long-term power purchase agreements (PPAs) with technology giant Meta for two solar PV projects in the US states of Texas and Kansas.
May 22, 2025
The New York State Energy and Research Development Authority (NYSERDA) has contracted 2.2GW of solar PV across 18 projects.
May 22, 2025
SMA Solar will begin local assembly of power systems for large-scale solar and energy storage systems in the US.
May 22, 2025
Prefabricated solar structure provider 5B has become the first recipient of the Australian government’s AU$1 billion Solar Sunshot Program, securing up to AU$46 million for its “Maverick” automated solar deployment system.
May 21, 2025
There is potential for cPPAs to deliver the energy transition, according to speakers at the Renewables Procurement and Revenue Summit.
May 21, 2025
US PV module manufacturer Silfab Solar has acquired a patent portfolio for back-contact (BC) solar cells from solar research firm EnPV.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
June 17, 2025
Napa, USA
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
July 1, 2025
London, UK
Solar Media Events
July 8, 2025
Asia
Solar Media Events
September 16, 2025
Athens, Greece