The trade and industry ministry has drafted a plan to have power utility companies buy all electricity generated from renewable energy sources. Currently they only buy surplus solar-generated electricity from photovoltaic (PV) panels installed at homes. In addition to this, power companies would have to buy all electricity generated by wind power, geothermal power, hydropower and biomass, plus electricity from solar PV panels installed by enterprises.
The government hopes to introduce a new system based on the plan from fiscal 2011. Power companies will pass the cost of electricity from renewable sources on to electricity bills. Ten years after the introduction of this plan, an average family would be expected to pay ¥150 to ¥200 more a month.
The government may face difficulty in getting cooperation from opposition forces to pass a related bill through the Diet. But the plan is a step forward in expanding renewable energy capacity in Japan. The government and the power industry must realize that Japan is lagging far behind other countries in expanding renewable energy capacity.