Japan’s government has approved incentives for clean energy to ease the country’s dependence on costly fossil fuel and nuclear power, while increasing revenues for energy sources that would promote the country as a market for renewable energy, Japan Today reports.
The plan could usher in billions of yen in clean-energy investments following Industry Minister Yukio Edano’s approval of the feed-in-tariffs (FIT). According to Financial Times, electric power companies are required to buy excess electricity from renewable sources, up to a maximum of 500 kwh, at a higher rate, and will gradually be allowed to buy more.
Asia’s leading independent research brokerage, CLSA, estimates an increase in revenue of up to $30 billion by 2016 that would appeal to solar power industries such as Panasonic Corp. and China’s Suntech. The government also plans to subsidize the solar-generated electricity and wind power.
Japan plans to increase the capacity of its solar, wind and geothermal energy. Renewable sources account for only 1% of Japan’s power supply while nuclear power accounts for almost 30%.
The government has been finding ways to reduce its dependence on nuclear power after the tsunami-triggered Fukushima nuclear disaster prompted a nuclear shut down and threatened power shortages across the country.