2012 Volume 42 Issue 3 Pages 671-682
For the purpose of promotion of renewable energy, this paper analyzes reasons not to promote sufficient renewable energy for a Renewable Portfolio Standard (RPS) system introduced in Japan and problems with the institutional design of Feed-in Tariff (FIT) being considered for introduction. Therefore, the first part of this paper discusses arguments in Japanese policies for renewable energy. The main reason for not promoting sufficient renewable energy in Japan so far includes few institutional goals for the RPS system. The FIT system for photovoltaic power generation was introduced in 2009 and the amount of electricity from solar power has increased. However, solar surcharges imposed on consumers of electricity for photovoltaic power generation through the FIT system has already caused regional gaps. In the Kyusyu district introduction of solar power is high, but consumption of electricity is low so electricity consumers pay relatively high solar surcharges. With the introduction of the FIT system, all renewable energy becomes a target, thus introduction of the FIT system is expected to increase the costs of sharing, so the adjustment costs assessed by the Coordinate Cost Agency become more important.
On the other hand, the second part of this paper discusses the promotion of solar power, analyzes the introduction of a mega-solar power plant in an industrial complex, and refers to problems and provisions of a mega-solar power plant. Although there is the image that an industrial complex causes pollution problems the main industrial complexes in Japan are presently making efforts to become environmentally friendly. However, efforts to introduce renewable energy as an environmentally friendly resource are few. In addition to considering the introduction of renewable energy to an industrial complex, I consider whether the introduction of renewable energy is the purpose for promotion of renewable energy. To introduce renewable energy in an industrial complex has different advantages and disadvantages for solar power than in a consumer's roof, and renewable energy by autonomy, generators, pools, etc. This paper takes up three factors— economic obstruction, physical obstruction and social obstruction factors— , as advances for each improvement.
JEL Classification: Q48
