The government has started a review of the feed-in-tariff (FIT) system under which the nation's major power companies in principle have to buy electricity generated by solar, wind, geothermal and medium- to small-scale hydro power and biomass at fixed prices.
According to the trade and industry ministry, from July 1, 2012, when the system was started, to the end of this past October, 5.852 million kW of electricity from green energy sources were introduced — equivalent to electricity produced by five large nuclear power plants. The figure compares with 20.6 million kW of electricity from renewable energy sources prior to the start of the FIT system.
Although the FIT system has achieved some accomplishment, the weight of renewable energy sources in total electricity production is small compared with foreign countries. According to the Japan Renewable Energy Foundation, in one year since the start of the FIT system, the weight of electricity produced by green energy sources except hydro power increased from 1.4 percent to 2.4 percent. The review of the FIT system should not be perfunctory. Instead, the government should make serious efforts to remove obstacles to the expansion of renewable energy sources. Such efforts should include the separation of power transmission and distribution from power generation to help increase the entry of operators of renewable energy sources into the power market.