Geothermal to keep FIT in Japan, while auction system is introduced for solar and wind

Shibuya, Tokyo, Japan (source: flickr/ Guwashi999, creative commons)
Alexander Richter 9 Aug 2019

The Japanese government has adapted the feed-in-tariff (FIT) system for renewable energy technologies, introducing a wholesale/ tender system for solar and wind, while geothermal, biomass and small-scale generation keep the FIT.

In June of this year, it was reported that Japan is looking to abolish the “country’s feed-in tariff program, under which electricity produced by businesses and others from renewable energy sources — such as from solar and wind — is bought by power suppliers at fixed rates”.

With that the plan was to reduce the cost burden on the public with a revision to a related law in fiscal 2020 to adopt a competitive bidding system for electricity generated by businesses using large-scale facilities, according to sources with knowledge of the matter.

Now, this week, the Ministry of Economy, Trade and Industry, “summarized a plan to end the system for purchasing electricity created by solar and wind power generation companies at a price determined by major power companies from the newly certified one and switch to another system. Aim to revise related laws in 2020. The burden on consumers is increasing due to an increase in the cost of purchasing renewable energy. The introduction of a new system will reduce costs and promote the spread of renewable energy.”

As highlighted on social media that while the FIT for commercial solar and wind generation will be replaced with a wholesale/ tender system, geothermal, biomass and small-scale generation keep the feed-in-tariff.

We will report if we learn more if there are further details available.

Source: Nikkei, Institute High Tech