New insurance product addressing concerns of hot spring operators in Japan
Onsen in Hakone, Japan (source: flickr/ kenleewrites, creative commons)
developer developer
15 Jun 2016
A new insurance product in Japan is now addressing concerns of hot spring owners over possible impact of geothermal development to their operations.
The fear of hot spring owners in Japan of development having an impact on their springs is now being addressed by a new insurance product.
Offered by Tokio Marine & Nichido Fire Insurance Co. – as reported by Japan Times – this new insurance product is ntended to ease the concern of hot spring operators about the impact of new geothermal power stations.
Developers of geothermal power projects can now buy an insurance policy that covers the expense for surveys to determine if their projects are the cause of changes in the quality and volume of hot water, Takeharu Kikuchi, a spokesman for the Tokyo-based company, said.
Until now, hot spring operators must pay for such surveys if they want to claim a nearby geothermal power station is causing problems, Kikuchi said. Surveys can cost between JPY 5 million ($41,000) and JPY30 million ($250,000).
So far geothermal development in Japan has not seen the expected growth, despite the great geothermal resources of the country and the introduction of an incentive program for renewable energy and geothermal in 2012.
Source: Japan Times
