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Japanese Feed-in Tariffs are the highest in the world

Julkaistu 17.12.2012

The Ministry of Economy, Trade and Industry (METI) in Japan has settled the details of the Feed-in Tariff scheme for renewable energy on 18 June 2012 and FIT has been implemented since 1 July 2012.

METI has set purchase price and purchase period for renewable energy which contains Solar Power, Wind Power, Geothermal, Hydro and Biomass. The price level of FIT in Japan for renewable energy is “the highest all over the world”, which is expected to trigger a boom in Japanese renewable energy business.

Feed in Tariff in Japan between July 2012 - end of March 2013.

Before the disaster in March 2011 Japan’s energy production was divided as follow:

Nuclear power: ca 30.8%, Natural gas: ca 27.2%, Coal: ca 23.8%, Oil: ca 8.3%, Hydro: ca 8.7%, Renewable Energy (exclude Hydro): ca 1.2%

All 50 nuclear power plants were closed after the massive disaster and most of the plants are still closed. Reduced energy supply has been giving serious problems to Japanese business and economy. Consequently Japan needs to raise the energy supply generated by other energy source, in particular “Renewable Energy”.

Solar power is the most popular project in Japan now. Many projects have been submitted and that would make Japan the 3rd largest solar market in the world.

Kyocera has starting to construct solar power plant (70MW) in Kagoshima which covers 22 000 housings. SB energy, which is an energy subsidiary of Softbank, published to construct 39.5MW plant in Tottori. SB energy is planning to construct total about 10 megawatt solar power plants which generate total 200MW in the future.

There are also many big projects in wind power sector. Japan Wind Power Association published mid-term vision which mentions total 50 000 MW wind power energy will be installed until year 2050. 

Regarding to Geothermal energy, Japanese government is targeted for achievement of the practical use of Enhanced Geothermal System (EGS) technology generated by utilization of steam coming from reservoir which constructed artificially at a chunk of hot rock located in deep under the ground.

Japanese government sets out for growth of ocean energy generated by tides and ocean current force.

What comes to Biomass energy, electric generators will be installed at incineration facility site cooperative with local municipalities.

New goal for renewable energy;

Huge amount of waste has been produced by the disaster happened in Tohoku area in March 2012. The waste is utilized for energy production at present.

Japanese Feed in tariff will be reviewed by the national government every year and it is prospected to decrease over time. It means that penetrating into green energy market in Japan at an earlier stage will make higher profits. Now, it may be a good timing to start thinking about penetration into Japanese renewable energy market.

Contact person for this article;

Takako Uchida, International Coordinator, Japan (takako.uchida(at)