In Japan, many utilities are either denying or restricting purchase of clean energy produced by many investors, throwing in doubt the future of renewable energy strategy, reports The Detroit News.
Most of the utilities are putting all new applications on hold till further notice.
Already, five utilities including Kyushu Electric Power have made the same announcement and two more announced partial restrictions.
The reason utilities show is that they can’t accommodate the flood of newcomers to the green energy business.
Another challenge is that supplies of power from sources such as solar are not reliable enough or easily stored.
So far, Japan has been undergoing a green boom. Lately it has been turning into a disaster, with a proposal for putting some shut nuclear reactors, back online. The green surplus in Japan echoes similar experiences in Germany and Spain.
The number of applications for solar facilities with Kyushu Electric jumped to 72,000 in March. People were trying to beat the lowering of the government-set tariff that utilities pay renewable energy producers to 32 yen (30 cents) a kilowatt hour from 36 yen (34 cents).
If all the planned solar panels in Japan were installed, their capacity would equal 8 percent of overall energy demand.
Most Japanese who invested in solar had hoped that higher rates for renewable energy would continue for 10 years or longer.
Japan’s energy policy has set a goal for renewable energy including solar, wind, water and geothermal power to provide about 20 percent of energy needs by 2030. Before Fukushima, renewable energy in Japan had been virtually zero.
U.S. solar including First Solar Inc. and SunPower, have already heavily invested in Japan solar energy segment.
Softbank, a Japanese telecommunications and Internet company also moved into the solar business after Fukushima. Softbank’s founder and CEO Masayoshi Son advocate renewables profoundly.
The company has built or is planning 20 solar and wind-power facilities in Japan, and is even working on wind generation in the Gobi desert.
In future, communities will form around decentralized energy sources, instead of going to a giant utility. Japanese government is mismanaging the initiatives, and demanded a more open debate. Japan has to learn from the mistakes of Germany, stated, Hiroaki Fujii, head, SB Energy, Softbank’s renewable business.
In Germany, as a result of green policies that began in 2010, and its decision to scale back its dependence on nuclear power, electricity bills shot up enormously.
Some serious sorting out was needed on solar applicants and the tariff system, and that would mean some people interested in the solar business would have to be turned away, acknowledged, Yasuhiro Goto, deputy director, government’s New and Renewable Energy Division.
A limited approach had been considered from the start, but the government opted for no limits because it wanted to encourage widespread participation in the green initiative. Those who are infuriated should calm down and a solution such as expanding grid access would take time. The plan is going very well and it just went too fast, added Goto.
Sabeena Wahid