The system to purchase renewable energy like sunlight and wind was put into effect 10 months ago, and renewable energy seemed to have a bright future. However, various problems have come to the fore. Some operators of mega solar builders plan to start construction later, while securing a quota from the government before the closing date. They apparently anticipate a price decrease of materials necessary for the construction. Government officials of the related ministries are glum about the strategy of the builders. The purchase price of photovoltaic generation reduced 10% beginning in April this year. The builders who got a quota before April can sell electricity for 42 yen per kW for 20 years. The current purchase price in Japan is more than two times higher in Germany. It is quite natural that many companies rush to participate in the mega solar business.
The number of mega solar plants planned as of the end of January 2013 was 1,024, and the total generation capacity is 5,750,000 kW that is equivalent to that of six nuclear power generation plants. Total investment is estimated at 1,500 billion yen excluding land price. However, another risk was brought to the surface. One of Japan’s electric power companies declared that they could purchase only one quarter of the electricity that the mega solar operator plans to sell because of the shortage of transmission capacity. In addition, places available for mega solar construction will face shortage soon or later. Because the purchase of renewable energy will be transferred to the electricity bill consumers receive every month, there is a fear that the burden consumers have to bear will increase dramatically.
The Japanese mega solar market remains very promising despite the above facts, CEO of Gestamp Solar of Spain said. His company invests 90 billion yen in Japan. And Chinese investors are keeping close watch on the Japanese mega solar business as an investment with low risk and high return. It seems vital to work out measures to prevent bubble burst in the mega solar business.
Japan’s largest mega solar