In Japan, new policy spurs solar power boom

Yuriko Nakao/Bloomberg - Hideki Yoshida, an electrical engineer at Japan Asia Group Ltd., inspects solar panels at the Kushiro Hoshigaura SolarWay solar photovoltaic power plant in Kushiro. Japan is expected to become the largest solar market after China this year.
TOKYO — Across Japan, technology firms and private investors are racing to install devices that until recently they had little interest in: solar panels. Massive solar parks are popping up by the dozen, and companies are mounting panels atop warehouse and factory rooftops as part of a rapid build-up that one developer likened to an “explosion.”
The boom is striking in part because of how simply it was sparked — by a little-noted government policy, implemented nearly a year ago, that suddenly guaranteed generous payments to anybody selling renewable energy, including solar power.
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Because of that policy, known as a feed-in tariff, investors and analysts say Japan has become one of the world’s fastest-growing users of solar energy, a shift that comes as this resource-poor country tries to find clean and homegrown alternatives to nuclear power. This year alone, Japan is forecasted to install solar panels with the capacity of five to seven modern nuclear reactors.
Before the 2011 meltdowns at the Fukushima Daiichi plant, Japan had all but neglected renewable forms of energy, instead emphasizing atomic power, which it hoped would provide half of the nation’s energy by 2030. But the accident at Fukushima forced the shuttering of the country’s 50 operable reactors, only two of which have been restarted. The remaining shutdowns could prove temporary, with Japanese Prime Minister Shinzo Abe pledging that restarts of reactors have been deemed safe. A majority of Japanese, though, remain opposed to atomic energy, and analysts say the solar takeoff highlights Japan’s appetite for other options.
There is a downside: Renewables are several times pricier than nuclear power or fossil fuels such as coal, oil and gas. The rising use of solar power means energy bills will spike, potentially complicating Abe’s plan to jump-start Japan’s long-foundering economy.
Most consumers, so far, think that sacrifice is worthwhile, and they say nuclear power has hidden cleanup and compensation costs that only emerge after an accident. Fossil fuels, meanwhile, release harmful greenhouse gasses and must be imported from Australia, Russia, Indonesia and the Middle East.
People here tended to support clean energy projects even before the nuclear disaster, but now there is “more interest in natural energy,” said Moriaki Yoshikawa, the secretary general of an environmental nonprofit organization, Eco Plan Fukui, which has helped build five solar plants in a central region of Japan that hosts four nuclear plants.
This year, Japan’s total solar capacity — 7.4 gigawatts at the end of 2012 — is set to roughly double, adding between 6.1 and 9.4 gigawatts, Bloomberg New Energy Finance said in a recent report. Such growth would make Japan the second-fastest growing solar market behind China and leave it only behind Germany and Italy as measured by total installed capacity. A gigawatt can supply power to an estimated 250,000 homes.
Tariff terms
The feed-in tariff is the legacy of Naoto Kan, Japan’s unpopular prime minister at the time of the Fukushima disaster, who decided after the meltdowns that atomic power was too dangerous for this earthquake prone-country. So Kan made a deal with the opposition party. He’d resign only after Japan’s parliament cooperated to pass several bills including a renewable energy bill that established the tariff. Japan, Kan said, should boost renewables to account for about one-fifth of Japan’s energy mix by the 2020s. At the moment, they account for about 10 percent, most of that coming from hydroelectric sources.
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