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Japan hydropower market: Government incentives aiding industry
Analyzing the Hydropower Industry in Japan - a new market research report on 2014-04-24 20:33:01
The hydropower market in Japan is very diverse: from small, kilowatt waterwheels in Yamanashi prefecture to major GW projects in Kanagawa prefecture. The hydropower sector of the country is mainly supported by financial incentives and policies introduced by the government. All of the utility firms in Japan are part of the country´s hydropower sector. Due to the recent earthquake and tsunami, damage and shortage in electricity supply, the government plans to reopen five hydropower plants. These plants are expected to add 360 MW of hydropower capacity. Of these, four plants are owned by the Tokyo Electric Power Company.

The global renewable energy market has seen rapid development over the past few years, however, Japan´s renewable energy market has remained in a grounded state due to market policies for renewable energy not being sufficiently examined or implemented. Now the new administration in the country, which won the general election in August 2009 and is led by the Democratic Party of Japan, has several high targets in its manifesto, including a 25% reduction of greenhouse gases by 2020 based on 1990 levels, the introduction of a FIT for all quantities and types of renewable resources, and increasing the percentage share of renewable resources in the primary energy mix of the country to 10%.

With these major planned policies, it is expected that the new administration will show initiative as a leader by increasing investments in the renewable energy sector and pushing for new measures to deal with global warming issues.

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