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Japan’s Solar Power Boom – How Can Local Authorities Capitalise?

Until recently renewable sources have accounted for a very small proportion of Japan’s energy production, as it was still considered an expensive option. However, as nuclear power stations were shut down amidst safety fears in the wake of the accident at Fukushima Daiichi, and public unease concerning nuclear power mounted, renewable energy has become a more popular alternative. After the events at Fukushima, the former DPJ government introduced a range of policies designed to boost the use of renewable energy to 25% of total power by 2020. To stimulate investment in this sector the Ministry of Economy, Trade and Industry (METI) introduced a feed-in tariff system whereby utility companies must buy a proportion of their electricity from renewable sources at a high fixed rate. The feed-in tariff for solar energy was set particularly high sparking a rapid boom in solar power investment as large corporations rushed to install solar panels. With a guaranteed high return, it has been relatively easy for these companies to recoup their initial investment.

According to Bloomberg New Energy Finance Group, in the first quarter of 2013 domestic shipments of solar power rose by 73% compared to the previous quarter, and it is predicted that in 2013 Japan will become the world’s largest solar market, leaping ahead of Germany and China. Despite a recent 10% cut in the tariff price, the solar power industry continues to grow rapidly.

Local authorities have also been able to capitalise on the initiative. Seventeen prefectures now have large scale solar power facilities already established or under construction, most of which are run in partnership with private companies.
One way in which local authorities can benefit from the boom is to rent out publicly owned spaces for solar power generation. Kanagawa prefecture, for example, was one of the first local authorities to make roof space available to private companies to install solar panels, in exchange for a rental fee. Other councils have since followed suit, many providing the roofs of schools or sports halls for solar energy generation. In order to encourage continued investment in solar power, Tokyo Metropolitan Government has recently created a solar register, carrying out detailed assessments of all the roofs in the city in order that building owners can easily calculate the potential profit that could be generated through installation of solar panels. This runs in tandem with its solar power promotion project ‘power of the roof’ which provides an advice centre and low interest loans for residents wishing to install solar panels.

The extra income generated by such schemes can then be fed back into the local community. Particularly in under-populated areas, the local authorities have been able to hire out disused land or buildings and can then use the extra income generated from these schemes for regional development projects. Other prefectures, such as Hiroshima, have used the additional profit to create subsidies for energy saving equipment in individual households, recognising that the renewable energy tariffs were being passed on to residents through their electricity bills.

Solar power has been particularly popular with farmers whose land was affected by radiation from the Fukushima accident. Here the prefectural government has investigated the possibility of supplementing the income of farmers in badly affected areas through solar power generation. The city of Minami-Soma, areas of which still form part of the restricted zone, has introduced a solar sharing initiative. So that fields can be used for both crops and solar power generation, tilting solar panels have been erected on stilts above soil. Fukushima prefecture now uses the sites as a model case to investigate the effects of the solar panels on crop growth and, in the meantime, farmers who are unable to sell their crops because of shipment restrictions and rumours of contamination can survive from the income generated through sales of solar power.

The model project forms part of Fukushima Prefecture’s renewable energy scheme, which aims for the prefecture to be self-sufficient on locally produced renewable energy by 2040. Decentralisation has allowed local authorities the autonomy to develop progressive renewable energy policies and while the future of national energy policy remains uncertain, many are aiming to use local resources to become energy self-sufficient in order to avoid the risk of energy shortages in the future. An example of this, also in Fukushima, is the recently opened Minami-Soma Solar Agri Park – a large scale solar project proposed by a former executive of the Tokyo Electric Power Company (TEPCO) who grew up in the area. The park not only generates solar energy but also houses facilities for growing crops and an educational facility for schoolchildren to learn more about renewable energy. The project is an example of how public private partnerships can allow local authorities to meet renewable energy targets.

Sources:
Harlan, Chico, Washington Post 4th June 2013 ‘In Japan, New Policy Spurs Solar Power’ http://articles.washingtonpost.com/2013-06-04/world/39723876_1_feed-in-tariff-nuclear-power-solar-power
Toru Nakagawa, Asahi Shimbun, 6th May 2013 ‘Solar power taking off in a big way across Japan’ http://ajw.asahi.com/article/economy/technology/AJ201305060069
Japan for Sustainability, 23rd September 2012 ‘Kanagawa Prefecture launches roof rental business for PV power generation’ http://www.newscientist.com/article/dn23257-solar-plant-domes-spring-up-in-fukushimas-shadow.html
Tokyo Solar Energy Portal Site http://www.tokyosolar.jp/
Yomiuri Shimbun 13th June 2013 ‘Nōgyō to hatsuden, onaji hatake de…Fukushima de moderu jigyō’ http://www.yomiuri.co.jp/feature/eq2011/information/20130619-OYT8T00355.htm
Rob Gilhooly, New Scientist, 11th March 2013 ‘Solar plant domes spring up in Fukushima’s shadow’ http://www.newscientist.com/article/dn23257-solar-plant-domes-spring-up-in-fukushimas-shadow.html

Picture © Sakaori via Wikimedia Commons

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