The trade and industry ministry plans to revise the law governing the feed-in tariff system introduced in 2012 to promote introduction of renewable energy. Through the amendment, the government hopes to achieve a cost-effective expansion of green energy use and hold down the financial burden on consumers.
Since renewable energy in Japan remains more expensive than in other countries, it is reasonable to devise measures to reduce the cost added on to electricity bills. But in so doing, the government needs to take the utmost care so that its emphasis on efficiency will not discourage potential renewable energy producers from entering the market or force out community-based small-scale operators.
The system started in July 2012, following the shutdown of the nation's nuclear reactors in the wake of the March 2011 disaster at Tokyo Electric Power Co.'s Fukushima No. 1 plant. By requiring the major power companies to purchase at fixed prices electricity generated by solar, wind, geothermal, biomass and medium- to small-scale hydro power, the system aims to facilitate investments in renewable energy sources and expand the use of electricity from such sources. The cost the utilities have paid for the purchases is tacked on to consumers' electricity bills.