Review of Renewable Energy Feed-in Tariff System and Challenges for Expanding Solar Power Generation
The renewable energy feed-in tariff (FIT) system was introduced in 2012 as a centerpiece of energy policy after the Fukushima Daiichi Nuclear Power Plant accident. Two years have passed since the start of the project, and the problem has become apparent. While the system is being reviewed, we will consider issues for expanding renewable energy power generation such as solar power.
Introduction of feed-in tariff system
There is a national consensus that renewable energy should be emphasized in Japan's energy policy, which was fundamentally reconsidered following the March 2011 accident at Tokyo Electric Power Company's Fukushima Daiichi Nuclear Power Station. . Under such circumstances, the Renewable Energy Special Measures Law was enacted in August of the same year in hopes of becoming a trump card for the spread of solar and wind power generation. This law introduced a new renewable energy feed-in tariff (FIT).
Under this system, electric power companies (power companies) are obliged to purchase the entire amount of electricity generated using renewable energy sources such as solar power for a certain period of time at a certain price. The costs incurred by electric power companies for purchases are collected in the form of a surcharge proportional to the amount of power used, but since the surcharge is included in the electricity bill, it is ultimately borne by the power users such as companies and households. will do. This system was implemented from July 2012.
However, there have been problems with the spread of photovoltaic power generation through the feed-in tariff system since the inception of the system. One of them is the concern that the surcharge will increase because the purchase price has been set at a high level, and social criticism of the burden will increase. In particular, the purchase price and period for photovoltaic power generation of 10 kW (kilowatt) or more was excessively preferential, and there was a strong view that it would not last long due to growing criticism.
Mechanism of renewable energy feed-in tariff system
Created based on the figure in the Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry, “Feed-in Tariff System for Renewable Energy” (July 2012)
Procurement (Purchase) Price and Procurement (Purchase) Period for Renewable Energy Power Generation (FY2014)
Power source Procurement category Procurement price (yen/kWh [kWh]) Procurement period (years)
Tax included Tax excluded
Solar 10kW or more 34.56 32.00 20
Less than 10kW
(Purchase of surplus electricity in households, etc.)
37.00 37.00 10
Wind power 20kW or more 23.76 22.00 20
Less than 20kW 59.40 55.00
Offshore wind power 20kW or more 38.88 36.00 20
Geothermal 15,000 kW or more 28.08 26.00 15
Less than 15,000 kW 43.20 40.00
Small and medium hydro 1,000 kW or more and less than 30,000 kW 25.92 24.00 20
200 kW or more and less than 1000 kW 31.32 29.00
Less than 200kW 36.72 34.00
Small and medium-sized hydropower utilizing existing waterways 1,000 kW or more and less than 30,000 kW 15.12 14.00 20
200 kW or more and less than 1000 kW 22.68 21.00
Less than 200kW 27.00 25.00
Biomass Methane fermentation gas 42.12 39.00 20
Thinned wood, etc. 34.56 32.00
General woody biomass, crop residues (sawmill offcuts, rice straw, etc.) 25.92 24.00
Construction material waste 14.04 13.00
General waste (wood chips, paper, etc.) 18.36 17.00
Created based on the table on the website of the Agency for Natural Resources and Energy, Ministry of Economy, Trade and Industry
Revision of the system in a stricter direction for solar power
In fact, in June 2014, about two years after the implementation of the system, a new energy subcommittee was established within the Advisory Committee for Natural Resources and Energy, an advisory body to the Minister of Economy, Trade and Industry, and it was decided that the FIT would be reviewed. . A Secretariat document distributed at the 6th meeting held on 5 November states:
Renewable energy sources differ greatly in their characteristics from one type to another. It may be important to consider the characteristics of each energy source when promoting the expansion of introduction.
"Maximum introduction" will be evaluated in terms of power generation (kWh basis), but it is important to achieve this maximization in a cost-effective manner. In that case, it is important to promote introduction in a well-balanced manner based on the characteristics of each power source, such as introducing a considerable amount of power sources that can generate more power (kWh) with less installed capacity (kW). Isn't there
Source: Ministry of Economy, Trade and Industry Research Committee for Natural Resources and Energy, Energy Conservation and New Energy Subcommittee, New Energy Subcommittee (6th Meeting), secretariat material "Issues for realizing maximum introduction based on the characteristics of each renewable energy" (November 5, 2014)
In the Kasumigaseki dialect, ``Isn't it important?'' means ``Important.'' In addition, after the above statement, the same document also lists solar power 11, wind power (onshore) 18, geothermal power 70, hydropower (small and medium hydro power) 53 as annual power generation per kW (million kWh) for each renewable energy source. , showing a value of 70 biomass. In addition, regarding the stability of output, solar power and wind power (onshore) are evaluated as "variable", and geothermal power, hydropower (small and medium hydropower), and biomass are evaluated as "stable". From these points of view, it is expected that the system review compiled by the New Energy Subcommittee will set out strict directions for solar FIT, which has a low utilization rate and unstable output.
Occurrence of grid connection pending problem
Moreover, while deliberations by the New Energy Subcommittee continued, a new problem surfaced. Hokkaido Electric Power Company, Tohoku Electric Power Company, Shikoku Electric Power Company, and Okinawa Electric Power Company including Kyushu Electric Power Co., Ltd. decided to revitalize the power system based on the FIT in order to avoid confusion in the operation of the electric power system due to the rapid increase in applications for mega-solar (large-scale solar power) power generation. It has put forward a policy of withholding responses to applications for connection of renewable energy power generation facilities to the power grid.
In light of this situation, the New Energy Subcommittee made a hasty decision to establish a "grid working group" at its fourth meeting held on September 30. Whatever the conclusion of this working group, the pending grid connection issue will inevitably become a dark cloud in the way of solar FIT.
Fundamental Principles for the Expansion of Solar Power
What must be remembered here is that although the FIT has an important meaning as a trigger, it is not itself the royal road to the expansion of solar power generation. In the October 2014 issue of PVeye, a magazine specializing in photovoltaic power generation, the author (Kikawa) wrote, "As long as we rely on FIT, the true renewable energy era will not come." Ultimately, unless it becomes a power source that can compete on a market basis, it will not enter into a sustainable form.If we continue to use it in the future, a power source that will not spread unless there is a public burden will not last long.” rice field. Also, in the November 2014 issue of "SOLAR JOURNAL", "Understanding Japan's Renewable Energy 'Future'", it is predicted that the ratio of renewable energy generation in the power supply mix in 2030 will be 30% (including hydroelectric power generation). expressed the same opinion.
This does not mean that we are against FIT. What I want to say is that FIT alone is not enough. What happens after FIT is important. We must not forget that the fundamental principle for the expansion of solar power is market-based diffusion.
A Path to Solving Transmission Line Problems
If we focus only on FIT for the expansion of renewable energy power generation, the benchmark countries for Japan tend to be Germany and Spain. However, the target countries from which lessons should really be drawn are the Nordic countries, the United States, Australia, and China, which have achieved market-based penetration of solar and wind power in some regions. In these countries, a common feature of regions where renewable energy power generation is widespread on a market basis is that they have a well-developed power grid.
In Japan as well, after the FIT, the key to full-scale expansion of renewable energy power generation, including solar power generation, is to solve the problem of power transmission lines. What kind of measures are there for that purpose?
(1) Utilization of “surplus” transmission lines after nuclear power plant decommissioning
The first is to check whether there is really a shortage of power lines. Here, the focus is on the utilization of transmission and transformation equipment used in nuclear power plants that will be decommissioned in the future. Based on the standards, 30 of the 48 existing nuclear power plants in Japan will be out of operation by the end of December 2030. For example, Kyushu Electric Power is likely to soon announce the decommissioning of Genkai Nuclear Power Station Unit 1, which began operation in 1975, and Genkai Nuclear Power Station Unit 2, which began operation in 1981. Not only will the decommissioning of the reactors be announced, but there will also be transmission and transformation equipment for the six units of the Fukushima Daiichi Nuclear Power Plant, which has already been decided to decommission. Resolving the problem of transmission lines, which is indispensable for the full-scale expansion of renewable energy power generation, should start with the thorough utilization of the "surplus" transmission and transformation facilities resulting from the decommissioning of nuclear power plants.
(2) Building a mechanism for laying transmission lines
The second is to build a mechanism to create transmission lines. There is a view that no one wants to build transmission lines because they are not profitable, but is this true? There is no doubt that transmission lines will become a bottleneck facility in Japan in the future, where the spread of distributed power sources and the expansion of wide-area interconnection of electric power systems are required. A legitimate interest (profit) is usually given to the supplier of the bottleneck equipment. Profit margins in transmission lines may be low, but they are certainly stable. A mechanism for the financial market to accurately evaluate transmission line projects, a mechanism for increasing social acceptance in areas where transmission lines are to be laid, a mechanism for policy support for investment in transmission lines... Building these is extremely important. Don't forget that electric power companies also have a way to expand the scale of transmission by improving the performance of existing transmission facilities.
(3) Introduction of a system that eliminates the need for transmission lines
The third is to introduce a system that does not require transmission lines in the first place. Expand smart communities across the country, increase the weight of "local production for local consumption" of electricity, and reduce the load on the transmission system. For the same purpose, we will improve the power storage function of renewable energy power generation facilities and the transformer facilities that are connected to them. At the site of renewable energy generation, surplus electricity is used to electrolyze water and transport electricity in the form of hydrogen to the consumption area (the "SPERA Hydrogen System" being developed by Chiyoda Corporation By combining with toluene, hydrogen can be transported in a liquid state at normal temperature and pressure). All of these are measures to realize the expansion of renewable energy power generation without the need to lay large-scale power transmission lines.
Some of the solutions to the power line problem mentioned here are quite time consuming. On the other hand, there are some that can be tackled immediately. Steadily accomplishing both of these goals, overcoming the transmission line problem, and aiming for market-based spread is the royal road to full-fledged expansion of renewable energy power generation, including solar power generation.
Title photo = Jiji Press Photo
