Japan introduced its highly successful feed-in tariff (FIT)
in 2012. But to continue growth in the renewables area, it must
The FIT was introduced to promote renewable energy following
the Fukushima nuclear crisis, and the subsequent shutdown of
all nuclear plants across the country. In 2012, the Japanese
government pledged to pay ¥42 per kilowatt for solar energy
– a deal that lawyers called '
a golden carrot’ – and has approved
around 66 gigawatts (GW).
But it might have been too successful. At least five
Japanese utilities have restricted new solar
farms’ access to their grids to assess their
capacity, and the Ministry of Trade, Economy and Industry
(Meti) has also begun scrutinising projects more closely.
When the FIT was first introduced in 2012, it sponsored 18.6
GW of non-household solar power projects, said Naoaki Eguchi,
head of banking and project finance at Baker & McKenzie in