Japan retains wind FIT as solar is cut

JAPAN: The government has protected support for onshore and offshore wind, while cutting those for solar for the fiscal year from April.

by Martin Foster 25 February 2016

The Japanese government has kept FIT prices for wind the same, while cutting it for solar (pic: Eurus Energy Holdings)

Wind power tariffs remain unchanged at JPY 22/kWh ($0.20) for onshore and JPY 36/kWh ($0.32) for offshore wind.

From 1 April, tariffs for solar power will be lowered to JPY 24/kWh ($0.21) from JPY 27/kWh ($0.24).

Solar power tariffs are now around 40% lower compared with the JPY 40/kWh ($0.36) tariff set at the 2012 launch of the feed-in tariff system in Japan, due to overdevelopment.

The move follows a cabinet decision in early February to amend a law governing the use of waters in ports, allowing offshore developers to occupy harbour space for a period of 20 years, far exceeding existing arrangements.

The decision aims to set in place a comprehensive guideline for local governments to follow.

"So far, wind developments have been viewed as temporary or short term in nature, but this amendment helps clarify their long-term nature," said a spokesman for the Ministry of Land, Infrastructure, Transport and Tourism.