JAPANESE POWER PRODUCERS HAIL RENEWABLE ENERGY LAW
JAPANESE POWER PRODUCERS HAIL RENEWABLE ENERGY LAW
Japanese solar and wind power companies welcomed Friday's passage of a
bill promoting renewable energy, while a steelmakers association expressed
relief that the measure makes allowances for industries that use massive
amounts of electricity.
The feed-in tariffs created by the legislation will greatly expand the
market for solar energy technology, said Mikio Katayama, president of
Sharp Corp. (TSE:6753) and chairman of the Japan Photovoltaic Energy
Association.
The association had forecast the number of jobs in the industry to grow to
about 450,000 in 2020, up ninefold from 2010. But Katayama, speaking at a
news conference, said he now thinks the job increase will happen "well in
advance."
Showa Shell Sekiyu KK (5002) President Jun Arai also hailed the bill's
enactment, saying the popularization of new energy sources "needs a policy
push." The oil company is involved in solar cell manufacturing.
The law's feed-in tariff provision requires power companies to buy
electricity from renewable sources, such as wind and solar, at fixed
prices. Those prices, along with other details, have yet to be worked out.
Tetsuro Nagata, head of the Japan Wind Power Association, called for rates
of at least 20 yen per kilowatt-hour for 20 years. Nagata is also
president of Eurus Energy Holdings Corp.
Since the utilities buying the electricity can pass the costs onto their
customers, the law includes a cross-partisan compromise on easing the
burden on industrial users. That earned the praise of the Japan Iron and
Steel Federation.
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