Funding is available for independent demonstration projects that include such technology as electric vehicles for mobility and storage, renewable energy production and storage systems, and energy efficiency optimization.
“Following the Fukushima nuclear disaster in 2011, Japan suffered substantial damage to its grid infrastructure, along with a reduction in its base load generation. Consequently, there are more efforts to increase the country’s energy efficiency and renewable power generation,” said Sowmyavadhana Srinivasan, GlobalData’s senior analyst covering power.
However, the sector faces some roadblocks.
“The proliferation of renewable power projects in Japan is hindered by numerous difficulties with connecting to the grid, which is currently divided into 10 regions and operated by 10 different utilities. One of the major challenges for developers in 2014 was the requirement for an improved transmission system,” Srinivasan said.
This is compounded by the fact that it has taken around three to four years for developers to overcome all regulatory hurdles involved in implementing renewable projects, according to GlobalData.
The good news is that the Japanese government as reduced the waiting period to less than two years. Establishing a centralized grid will shorten the wait even more, according to the research firm.
Renewable energy accounted for 10 percent of Japan’s total installed capacity in 2014; GlobalData forecasts that the resource will grow to 19 percent by 2025.
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