renewable energy introduced exceeds the connectable amount in the region, measures such as suppressing the output of solar power generation and reinforcing the
power transmission system become necessary. Therefore, the introduction cost of a
scenario that focuses on large-scale power generation facilities is expected to rise
sharply. In the case of local production for local consumption, the initial introduction
cost is high, but since the output power is consumed locally, the connectable amount
should be greater than in the former scenario. When the amount of installation is
fixed, the cost of introducing mainly large-scale power generation facilities may
exceed the cost of introducing local production for local consumption.
Since autumn 2014, there have been frequent problems with renewable energy
power generation in Japan, and the amount of renewable energy seems to have
exceeded the connectable amount in many areas. When first introducing a FIT
system, it is reasonable to set an introduction target according to national needs,
assume various introduction scenarios according to that goal, and select a scenario
with low cost. However, in the Long-term Energy Supply and Demand Outlook
announced in July 2015, it was decided that the target of solar power generation for
2030 would be 7% of the power supply mix.
21.3 Conclusion
This chapter deals with the current situation of renewable energy introduction under
the feed-in tariff (FIT) system in Japan, with particular reference to the unification
problem (overreliance on a single renewable energy source) and mismatch between
the amount of certified renewable energy and electricity demand. The results of this
analysis are summarized below.
1. Solar power is installed nationwide and is increasing in regions that are more
suitable for the introduction of other renewable energy (wind power). Given the
lack of interregional power grids in Japan, the amount of renewable energy that
can be connected is limited. The system would be more efficient if it reflected
regional suitability for different renewable energy sources.
2. In calculating the fixed price of solar power generation, the committee introduced
a competitive method, setting a uniform purchase price nationwide to encourage
effective use of natural resources. In areas where solar radiation is high, there is
little electricity demand, and as a result, a large amount of solar power generation
was introduced in areas with low electricity demand. In order to solve this
mismatch, purchase prices should be set regionally, reflecting natural resource
endowment and electricity demand, as in China.
3. Centrally introducing a large-scale power generation facility (centralized installation) saves installation costs initially, but if the amount of installed power
exceeds a certain level, the output of renewable energy is suppressed. As such,
there is a possibility that the overall introduction cost will rise sharply, so it is
21 Opportunities for Renewable Energy Introduction Through Feed-in Tariff (FIT). . .
405
power transmission system become necessary. Therefore, the introduction cost of a
scenario that focuses on large-scale power generation facilities is expected to rise
sharply. In the case of local production for local consumption, the initial introduction
cost is high, but since the output power is consumed locally, the connectable amount
should be greater than in the former scenario. When the amount of installation is
fixed, the cost of introducing mainly large-scale power generation facilities may
exceed the cost of introducing local production for local consumption.
Since autumn 2014, there have been frequent problems with renewable energy
power generation in Japan, and the amount of renewable energy seems to have
exceeded the connectable amount in many areas. When first introducing a FIT
system, it is reasonable to set an introduction target according to national needs,
assume various introduction scenarios according to that goal, and select a scenario
with low cost. However, in the Long-term Energy Supply and Demand Outlook
announced in July 2015, it was decided that the target of solar power generation for
2030 would be 7% of the power supply mix.
21.3 Conclusion
This chapter deals with the current situation of renewable energy introduction under
the feed-in tariff (FIT) system in Japan, with particular reference to the unification
problem (overreliance on a single renewable energy source) and mismatch between
the amount of certified renewable energy and electricity demand. The results of this
analysis are summarized below.
1. Solar power is installed nationwide and is increasing in regions that are more
suitable for the introduction of other renewable energy (wind power). Given the
lack of interregional power grids in Japan, the amount of renewable energy that
can be connected is limited. The system would be more efficient if it reflected
regional suitability for different renewable energy sources.
2. In calculating the fixed price of solar power generation, the committee introduced
a competitive method, setting a uniform purchase price nationwide to encourage
effective use of natural resources. In areas where solar radiation is high, there is
little electricity demand, and as a result, a large amount of solar power generation
was introduced in areas with low electricity demand. In order to solve this
mismatch, purchase prices should be set regionally, reflecting natural resource
endowment and electricity demand, as in China.
3. Centrally introducing a large-scale power generation facility (centralized installation) saves installation costs initially, but if the amount of installed power
exceeds a certain level, the output of renewable energy is suppressed. As such,
there is a possibility that the overall introduction cost will rise sharply, so it is
21 Opportunities for Renewable Energy Introduction Through Feed-in Tariff (FIT). . .
405