Presentation to Hokkaido International Business Association, March 21, 2013

1. ``Japan’s Renewable Energy
Revolution:
What it Means For Hokkaido
Businesses``
Eric Johnston
Hokkaido International Business
Association
March 21st, 2013

2. Japan and Renewable Energy:
The Fundamental Facts
 Proportion of Japan’s electricity generated
by renewable energy, including hydro, in
2011: 9.1 percent
 Proportion of electricity generated by
renewable energy, excluding hydro, that
same year: 1 percent
 Official estimate of how much power solar
energy could ``feasibly’’ generate: 100-
150GW
 No. of homes one GW of energy will supply:
243,000

3. Japan and Renewable Energy:
The Fundamental Facts
 Japan’s potential onshore wind power
capacity: 30GW
 No. of installed wind turbines (Sept. 2011):
1,807
 Total wind energy generating capacity:
2.4GW
 Est. geothermal generating capacity: 23.5GW
 No. of geothermal plants: 19
 Total generating capacity: 535MW

4. The New Tariff means businesses in
five different renewable energy
industries can sell their power at a
guaranteed fixed rate over a fixed
period of time

5. THE NEW FEED-IN TARIFFS
SOLAR POWER
Output Range ABOVE 10 KW BELOW 10KW
Basic Tariff
(per kilowatt/hour)
42 yen 42 yen
PERIOD 20 years 10 years

6. THE NEW FEED-IN TARIFFS
WIND POWER
Output Range ABOVE 20 KW BELOW 20KW
Basic Tariff
(per kilowatt/hour)
23.10 yen 57.75 yen
PERIOD 20 years

7. THE NEW FEED-IN TARIFFS
GEOTHERMAL POWER
Output Range ABOVE 15 KW BELOW 15KW
Basic Tariff
(per kilowatt/hour)
27.30 yen 42 yen
PERIOD 15 years

8. THE NEW FEED-IN TARIFFS
MINI-HYDRO
Output
Range
1mW-30mW 200kW-1mW Under 200kW
Basic Tariff
(per kilowatt
hour)
25.20 yen 30.45 yen 35.70 yen
PERIOD 20 years

9. THE NEW FEED-IN TARIFFS
BIOMASS
Sector Methane Gas Unused
Wood
Products
General
Wood
Waste-related
Biomass
Recycled
Wood
Products
Type Sewer
Sludge
Gas
Household
Waste
Unused Wood
Products
General
Wood
Solid
General
Waste
Solid
Sludge
“
Basic
Tariff
(per kwH)
40.95 yen 33.60
yen
25.20
yen
17.85 yen 13.65
yen
Period
20 years

10.  From April to October
2012, the number of
renewable energy power
facilities approved as
targets by electricity
purchasing schemes was
146,899, generating 2,557
megawatts (MW)
 Electricity output from
approved renewable
sources:
86% was from solar
power
 Output from solar power
facilities that generate
10 kW or more (non-
residential), including
mega solar power
facilities, accounted for
64% of the total
renewable energy
sources.
 Although a large
quantity of the total
approved power will

11. GENERAL PROBLEMS
AND CHALLENGES

12. PROBLEMS AND CHALLENGES:
SOLAR POWER
Unlike many other countries, the
FIT for solar power is strict, either
under or over 10kW. Different FITs
for 10, 20, 50, and 100 kW plants
are desired.
More flexibility with FIT period is
needed.
FIT critics charge that it is
designed to benefit a few large

13. PROBLEMS AND CHALLENGES:
WIND POWER
 FIT needs to be based on wind conditions
of location, not a fixed amount of power
generation for all locations.
 Noise: Local communities complain about
loud windmills
 Birds: Bird strikes and migratory patterns
mean strict environmental regulations on
wind farm development in places like the
area in and around the Kushiro Wetlands.
 Remoteness: On-shore windmills often

14. PROBLEMS AND CHALLENGES:
GEOTHERMAL POWER
 Vast majority of Japan’s geothermal
resources in National Park areas: Strict
Environmental regulations.
 Many ideal geothermal locations on, or
beside, onsens, whose politically-
connected owners oppose geothermal
development for business reasons.
 Geothermal requires heavy initial
investment. High cost to maintain and
repair plants.

15. PROBLEMS AND CHALLENGES:
MINI- HYDRO POWER
 Requires rivers and streams with regular
flows of water at ideal speeds.
 Strict gradation requirements often means
construction work is needed, creating
further environmental damage.
 Remote areas of many ideal mini-hydro
spots means increased costs to deliver
generated electricity.

16. PROBLEMS AND CHALLENGES:
BIOMASS POWER
 For Wood Products, responsibility is
divided between Forestry Agency (under
MAFF) and METI. Bureaucratic turf wars
means bureaucratic headaches for
Biomass producers.
 Utilities very cold toward biomass power;
grid connections are often extremely
expensive.
 Biomass seen more as heat, rather than
electricity, generating resource.

17. HOKKAIDO?

18. Renewable Energy Projects Are
Moving Forward,
Especially in Solar and Wind
 Japan’s largest solar power plant to date
will be built in Hokkaido: 200MW-20 times
the capacity of the country’s currently
largest plant in Sakai, Osaka Pref.
 Softbank’s Masayoshi Son has targeted
Tomakomai and Obihiro for both solar and
wind farm development. Projects are
generating hundreds of megawatts.

19. HOKKAIDO’S POTENTIAL
(SOURCE: Renewable Energy Organization Hokkaido)

20. HOKKAIDO’S POTENTIAL
TOTAL ESTIMATED
POTENTIAL OF
RENEWABLE ENERGY
IN HOKKAIDO:
5.7 billion kilowatts
(55,682.8万kW)
THIS IS THE EQUIVALENT OF
556 NUCLEAR POWER PLANTS–

21. HOKKAIDO’S MAIN
ADVANTAGES FOR EMBRACING
RENEWABLES
 Nuclear Power Lobby is extremely weak in
Hokkaido, compared to Tokyo and
especially Kansai.
 Environmental conservation and
awareness high.
 Climate, topography, geography,
population spread more favorable toward
smaller, independent renewable energy
projects than in large cities.
 Conditions for offshore wind and

22. CHALLENGES HOKKAIDO MUST
OVERCOME FOR RENEWABLES
 Tendency of local politicians and bureaucrats,
and major corporations, to not take initiative
and to leave all major decisions affecting
Hokkaido to Tokyo.
 Skepticism among many in Hokkaido,
especially older generations running the
prefecture, about technical feasibility of
renewable energy.
 Ensuring that weather extremes do not
interrupt renewable energy supplies,
especially in winter.