Japan - Renewable EnergyJapan - Renewable Energy

Overview
Japan is a top market for renewable energy products and services globally, ranked 2nd in the analysis conducted by the Department of Commerce in its 2016 Top Markets Series Report on Renewable Energy opportunities.

2016 Top Market Report: Renewable Energy – Japan
Since the earthquake and tsunami that significantly damaged the Fukushima Daiichi nuclear power plant in 2011, Japan’s power sector has been marked by significant turmoil. Almost immediately, Japan switched off its entire nuclear power network, creating a severe energy supply challenge that also spurred an important and unprecedented opportunity for renewable energy developers.

While the Japanese renewable energy market has always been significant, the decision to use policy incentives to adjust its energy mix meant that growth was all but assured. The Feed-in Tariff system (FIT) system was implemented in July 2012 to promote renewable energy deployment, and the generation capacity by renewable energy has increased steadily.  

The Ministry of Economy, Trade and Industry (METI) is in charge of enforcing the laws and regulations for renewable energy in Japan.  METI is also in charge of implementing the FIT and issuing certificates that make renewable energy projects for solar, wind, small-mid hydro, biomass and geothermal eligible for mandatory power purchase under the FIT system. 

The FIT rates are re-examined and revised annually by the METI. The FIT rates for PV have been decreasing year by year, and this year the wind FIT was also reduced. In FY2017, a tender system was introduced for solar projects with a capacity above 2MW and some categories of biomass projects, and METI also decided to use a tender system for some fixed foundation offshore wind power projects.

In 2018, the Japanese government announced its long-term energy mix plan, which cemented renewable energy’s status as a major energy source in the future while continuing to support nuclear power because of its zero carbon emissions.  The most recent energy mix targets are to have renewable sources account for 22 to 24 percent (Hydro 9%, Solar 7%, Biomass 4-6%, Wind 2%) and nuclear 20 to 22 percent of electric power generation in fiscal 2030.  While METI will continue to promote renewable energy, it will also pursue avenues to encourage renewable energy market independence from the FIT system.   Recently, it is reported that METI has started reviewing its renewable energy support policies and discussing partially ending the current Feed-in Tariff system. 

In sum, Japan has become one of the world’s largest renewable energy markets, with significant growth projected well into the future. 

Newly Installed Generation Capacity (at the end of December 2018)                               unit: Megawatt 

• Agency for Natural Resources and Energy
• Ministry of Economy, Trade and Industry
• New Energy and Industrial Technology Development Organization
• The Federation of Electric power Companies of Japan
• Japan Photovoltaic Energy Association
• Japan Wind Power Association
• Japan Small Wind Turbines Association
• Japan Wood Biomass Association
• Biomass Power Association
• Japan Geothermal Association
• J-WatER
• The American Chamber of Commerce in Japan’s Energy Committee

CS Japan Contact
Ms. Minae Suzuki, Commercial Assistant
Minae.Suzuki@trade.gov