New and Renewable Energy Systems
Renewable energy is a low-carbon/decarbonized domestic energy source and contributes to national energy security. Globally, the renewable energy is growing as a cost-competitive power source in an expanded introduction in response to the growing needs of decarbonization. Since the feed-in tariff (FIT) system was introduced in 2012 in Japan, its share in power supply configuration in Japan increased from about 10.8% in FY 2011 to about 20.3% in FY 2021. On the other hand, while the cost of photovoltaic power generation has been reduced, its drastic introduction has caused too much burden on the public due to renewable energy levies, limited site locations, community symbiosis issues, constraints on the power grid operation, and others.
The 6th Strategic Energy Plan (Cabinet Decision in October 2021) stipulated the government policy to thoroughly promote renewable energy sources as the “major power source” and its maximum introduction. The share of renewable energy was drastically increased from 20-22% to 36-38% in the new Energy Mix of 2030. To facilitate economic independence of renewable energy sources, the new market linked feed-in premium (FIP) system was institutionalized in FY 2022. The evaluation of the advanced next generation power grid is being accelerated, intending to ensure appropriate business discipline, and develop efficient grid structures compatible with large-scale introduction of renewable energy. Under these measures, renewable energy is expected to play a significant role in achieving the 2030 reduction target of greenhouse gas emissions and realizing the Carbon Neutrality in 2050.
Photovoltaic power generation has an advantage of short lead time till operation. Therefore, its expansion is a key in the coming years to 2030. In view of consumers’ procurement needs of renewable energy as well as facilitating power procurement at fixed price for a long-term, business development will need to be geared such as the PPA (Power Purchase Agreement) business model (third-party owned type) or self-consumption-oriented expansion of renewable energy utilization. Meanwhile, better wind conditions of offshore wind energy generation are expected to provide stable and more efficient power generation compared with land-based generation. New business plans are being proposed based on the “Act on Sea Area Utilization for Renewable Energy” (enforced in April 2019). The government boosts the offshore wind energy generation as a trump card for the role of renewable energy as the major power contributor.
JEMA continues proactively its activities for maximum expansion of renewable energy through recommendations and opinions on policy measures, responses to technological issues, international and Japanese standardization, etc.
History of the laws and actions with respect to renewable energy in Japan
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November 2009 |
The Excess Electricity Purchasing Scheme on a Feed-in-Tariff Rule for Photovoltaic Power Generation being effected |
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July 2012 |
Introduction of the Fixed-price Feed-in Tariff Scheme (FIT Scheme) for Renewable Energy |
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February 2015 |
Extension of the scope of output control, mandatory introduction of the remote output control system for photovoltaic and wind power generation |
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April 2017 |
Introduction of Auction Systems, Multi-year Option Price Setting, Transition of Certification System from Equipment Certification to Business Plan Certification |
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April 2022 |
Introduction of |
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April 2024 |
Introduction of purchase price calculation rules to encourage additional investment in existing PV power generation facilities |
Trend of cumulative installed renewable energies in Japan
