8-3-3 A rapid growth of renewable energy and challenges of replacement of photovoltaic facilities under the renewable energy support scheme

Abstract

Feed-in-Tariff scheme has strongly supported increase of renewable energy in Japan. Massive and rapid expansion of renewable energy had impacts on the prices of wholesale electricity market in the European countries and the United States. The decrease of the market price hurt the profit of power generation facilities. This analysis shows that a weak wholesale price caused by the rapid growth of renewable energy has impacts on not only thermal power plant but renewable energy themselves in the long term. Excessive preferential treatments, will distort the market and inhibit a sustainable growth of renewable energy.