Japan’s Ministry of Economy, Trade and Industry (METI) will cut the prices to buy electricity from wind and solar under the country’s feed-in tariff system over the three years until 2019. Public hearing will be organized and final decision is expected to be made by March 2017.
Several changes will be made to the Japanese FIT system:
- Price will be set for 3 years
- FIT for repowering of wind power
Meanwhile, the approval for FIT for wind power will be done at an earlier stage than before. Now FIT will be approved in the middle of the EIA process (2-3 years from project start).
These changes in the system can significantly improve the predictability of wind power business profitability in Japan.
- The price for large wind power shall be gradually lowered from 22JPY/kWh in FY2016 to 19JPY/kWh in FY2019.
- The price for offshore wind power shall be maintained 36JPY/kWh for FY2019.
- The price for repowering is newly settled and set at 3JPY/kWh lower than large wind power price.