Solar Japan: Japan approves a full Germany worth of renewable energy in a single month

Solar Japan: some of the world’s most attractive feed-in-tariffs

In the single month of March 2014 Japan approved almost as much renewable energy projects as all solar ever installed in Germany

Japan’s ten regional electricity monopoly operators traditionally kept renewable energy below 1% following an unwritten rule. Tokyo Electric Power Company (TEPCO) kept renewable well below this magic 1% limit – until recently TEPCO’s renewable energy ratio was about 0.05%, slightly “greener” than Kansai, and Shikoku Electrical Power Companies with 0.03% renewables, and Chugoku Electrical Power Company with 0.02% of renewables in their energy mix.

Complete reversal of Japan’s previous “no renewables” strategy

Switching off all nuclear power stations combined with extremely high natural gas (LNG) prices forced change of this “no renewables” strategy in Japan, and Japan quickly moved in the opposite direction with some of the highest feed-in-tariffs globally, about three times higher than in Germany. (To understand the details of LNG costs and prices for Japan, read our Japan Energy Report, where you’ll find month-by-month data of Japan’s coal and gas payments, as well as the price developments and the reasons for the extraordinarily high prices Japan pays for LNG and LPG).

solar japan : Driven by high LNG costs Japan approves almost as much solar energy projects in a single month as ever installed in Germany
Driven by high LNG costs Japan approves almost as much solar energy projects in a single month as ever installed in Germany

Solar plants ever installed in Germany total about 36.5 GigaWatt – Japan almost approved as much renewables in the single month of March 2014

Germany’s Federal Network Agency (Bundesnetzagentur) published detailed data of solar energy projects installed and approved for subsidy in Germany. As of May 31, 2014, all solar power ever installed and approved for subsidy in Germany amounts to 36.5 GigaWatt (peak). The figure above shows that Japan’s Industry Ministry METI approved about 26.7 GigaWatt of solar projects under the feed-in-tariff program during the single month of March 2014 alone.

Here are the actual figures of renewable electrical power projects approved by METI under the FIT program during the single month of March 2014 alone:

solar projects less than 10kW: 159,070kW = 0.16GW
solar projects over 10kW: 26,521,483kW = 26.5GW
Subtotal solar (all sizes): 26,680,553kW = 26.7GW
Total all types of renewable energy: 27,436,598kW = 27.4GW

The figure also shows that March 2014 is somewhat an anomaly – because feed-in-tariffs are reduced each year on April 1 at the beginning of the new financial year, METI cooperates with applicants to approve large numbers of applications during the last month of the previous tariff. Thus renewable project applications in Japan have developed an annual rhythm.

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