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Renewable energy plan loses steam

  • 2015-01-26 15:00:00
  • , Nikkei
  • Translation

(Nikkei: January 25, 2015 – p. 1)

 

 The generation capacity of renewable energy by 200 major companies, including projected amounts, will be about 7,520,000 kilowatts in total as of the end of FY2015. The amount will only increase by 9% compared to the amount at the end of FY2014. This data was compiled based on the 18th environmental management levels survey conducted by Nikkei. The growth rate has tapered off from the 28% increase projected for the end of FY2014. Companies seem to be cautiously gauging the profitability of renewable energy because the purchase price for photovoltaic power, which accounts for about 90% of corporate capital investment, is expected to drop sharply.

 

 The survey was conducted from August through November in 2014. Replies were received from a total of 726 companies listed on the Tokyo Stock Exchange from both the manufacturing and nonmanufacturing industries. The survey inquired about the generation capacity of approved equipment registered with the government. The generation capacity of renewable energy by the 200 major companies’ equipment that is currently in operation amounts to about 30% of all renewable energy generation in the country.

 

 New renewable energy generation plans for FY2015 amounted to about 640,000 kilowatts, which is equivalent to slightly less than the generation capacity of one nuclear reactor. This represents a decrease of 1,510,000 kilowatts from FY2014. As for investment in renewable energy, the companies plan to spend 401 billion yen in FY2015, only a 6% increase compared to a 68% increase in FY2014.

 

 The government will begin deliberations on the optimal composition of power generation sources (best mix), such as nuclear power and renewable energy. In response to a question about the most desirable nuclear power generation capacity in 2030, 21% answered “about 15%,” followed by 19% answering “about 10%” and 11% saying “0.”

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