05 Mar 2018

Recently, the Japanese Ministry of Economy, Trade and Industry declared that renewable energies were expected to become the main power source in Japans energy mix.

This announcement was partly prompted by the staggering price decrease of Japanese solar PV panels, which plummeted from ¥35kWh in 2010 to ¥10kWh in 2017. Also, the increase of renewables against total power output peaked at 15% in 2017 from 10% in 2010. Japans aim is for this increase to continue up to 22-24% by 2040.

However, the Feed-in-Tariff (Fit) system which is pushing this integration of renewables in the Japanese energy mix remains a high cost to government. Indeed, it is government that pays for the electricity households and businesses generate and export. Despite the scheme’s success in promoting the uptake of renewable and low-carbon electricity generation technologies, the FiT scheme is nor a feasible or sustainable potion for the long-term given the Schemes increased cost associated with the large predicted uptake of renewables in the future.

Moving away from this scheme is crucial if Japan is to drive decarbonisation far into the future.