Japan Toughens Rules for Renewable Energy Incentive Payments (Bloomberg)
Japan’s trade ministry is setting stricter rules for production and sales of renewable energy in what it says is a drive to speed up development of projects and ensure stable power supply.
Japan introduced a renewable energy incentive program in July 2012 after the Fukushima nuclear disaster, offering some of the highest rates for solar-produced electricity in the world.
The rates attracted floods of solar applications, so much so that utilities who are required to buy the power for their transmission grids say they are being overwhelmed. Plus, the supply is unstable.
As many renewable energy projects haven’t started even years after winning approval, the new rules allow utilities to strip a renewable energy provider of grid access if they miss the start date.
The same can happen if they fail to pay for access within a month of signing a contract, according to a document released by the ministry today.
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