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New small-scale plant to start operation this spring in Japan

New small-scale plant to start operation this spring in Japan Onsen in Hakone, Japan - not related to story (source: flickr/ kenleewrites, creative commons)
Alexander Richter 4 Feb 2014

The first new geothermal power plant in 15 years in Japan will start operation in April 2014, according to its developer Cuo Electric Power Co. The plant is located in Ogui, Kumamoto Prefecture, Japan.

News from Japan report that Chuo Electric Power Co. plans to start operation of its new geothermal power plant in April this year.

The plant will be the first new geothermal power plant starting operation in 15 years. There are various other similar small-scale geothermal power plants in various planning stages across Japan. All have in common that their maximum installed capacity will be up to 15 MW. Among others, Orix Corp. and Toshiba Corp. are planning to put their geothermal power station into service sometime around the spring of 2015.

Vice President of Chuo Electric Power Co., a Tokyo-based company that makes bulk purchases of electricity to supply power to condominium households at low prices, says that his company “likes to connect [its] customers living in urban condominiums and rural areas”, through projects like this.

“The company has undertaken the construction and operation of a geothermal plant from a firm called “Waita-kai” operated by residents in a hot spring resort in Oguni, Kumamoto Prefecture. Although the planned power station with a maximum output of 2,000 kilowatts will only cater to 1,500 households, the construction of a geothermal plant with output capacity greater than 1,000 kilowatts is to be the first in the country since 1999, when Tokyo Electric Power Co.’s Hachijojima Geothermal Power Station was put into operation on Hachijo Island, south of Tokyo.

The development of geothermal power generation often comes in conflict with the interests of local residents, who are worried about a possible reduction in the amount of hot spring water as a result of such construction. Chuo Electric Power Co. overcame such a hurdle by building a geothermal plant not as large as ones developed by major power companies and by sharing profits with Waita-kai. Chuo Electric Power further plans to build five more geothermal plants of a similar scale over the next five years. The company will sell electricity to major utilities for the time being but is planning to eventually retail power to condominiums.

“While large-scale geothermal plants normally require environmental assessments spanning three to four years, mid-sized geothermal power stations are not subject to such regulations. The purchase price for renewable energy generated by a power plant whose maximum output is less than 15 MW is also set relatively high at 42 yen ($0.41) per kilowatt hour under the feed-in tariff system, encouraging new companies to enter the business. The purchase price is set far cheaper at 27.3 yen ($0.268) per kilowatt hour for renewable energy generated by plants with a maximum output of 15 MW or more.”

Source: Mainichi