Renewable energy push blunted as ad-hoc rules stymie private upstarts (Japan)

Japan Times ^ | 09/15/2013 | Kyodo

[TexGrill]

Ever since Japan kicked off a system to encourage the use of renewable energy for electricity in July 2012, businesses, civic organizations and even local government bodies have been trying to break into the tightly held power market.

Under the so-called feed-in tariff system, utilities are required purchase any generated electricity derived from five types of renewable energy for a fixed price and a set time.

But the momentum seems to be slowing. Several potential power suppliers are dropping their bids after coming face to face with restrictions that make it difficult for them to link to the power grids run by the utilities, which are essentially monopolies.

Since there are no regulations defining grid access, the restrictions can be imposed at will by the major utilities.

“We entered a lottery held by Hokkaido Electric Power Co. but did not win,” said Taisuke Takahashi, who manages the secretariat of the nonprofit Minami Hokkaido Shizen Energy Project in the city of Hakodate.

The group planned to build a wind farm composed of 10 units with a capacity of 2,000 kilowatts each on Mount Kijihiki in neighboring Hokuto, using bank loans and money invested by citizens.

“Wind conditions are good and roads are there that can transport large turbine blades,” said the group’s leader Peter Howlett. Few places offer equally good conditions, he said.

[TexGrill]

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