Japan to lead wind power energy investments in Asia Pacific, says Frost & Sullivan

JAPAN WIND
Greentech Lead Asia:While renewable energy investment plummeted in Europe in 2012 plagued by economic woes and reduction in incentives, Asia Pacific region is gaining momentum in terms of renewable energy investments such as solar and wind.According to the latest report from Frost & Sullivan, wind energy industry will get boost in 2013 primarily driven by the extension of federal tax credit in the U.S. and Japan’s recent announcement to invest in offshore wind farms in Fukushima.

Wind power in Japan

Government support is key to the growth of renewable energy, and in countries like Japan and the U.S, wind power market growth continues to be fuelled by government support. The compelling need for safe and clean energy is driving these developed economies to push for alternative energy initiatives.

According to Suchitra Sriram, program manager, Energy and Environment, Frost & Sullivan, “the shutdown of Japan’s nuclear reactors in the aftermath of the earthquake and tsunami has changed the perspectives towards renewable energy technologies.”

Despite high costs and challenges associated with wind energy to power grid, Japan is keen to invest in developing onshore wind power projects. In fact, Japan’s investments in developing its onshore wind power projects have been dismal since 2008 due to complicated construction guidelines and grid connection issues, the report said.

Until now Asia Pacific region has been slow in onshore wind projects. With Japan’s plan to aggressively promote offshore wind projects in the country, the focus of developing offshore wind farms is expected to shift from the West to the East.

The Fukushima offshore wind power project has a planned capacity of 1 GW. This project, once commissioned, has the potential to push Japan as one of the leading wind power markets in the Asia Pacific region, according to Sriram.

Japan introduced the feed-in-tariff system in July 2012 which requires utilities to purchase electricity produced from offshore wind farms at up to Y42 per kWh which is not only twice the rate of onshore wind farms but also considered to be the highest in the world.

A lull in the country’s onshore wind power market during the recent years had driven some Japanese wind turbine manufacturers to focus on overseas European and US markets. However, Japan’s shift in interest from nuclear to renewable energy is likely to change the scenario now.

Frost & Sullivan expects these developments will attract not only home-grown engineering and construction companies but also global wind turbine manufacturers to re-enter Japan.

Japan to boost renewable-energy capacity by about 13% by 2013

Japan has announced plans to boost renewable-energy capacity by about 13 percent through the year ending March 2013. As per this, the country will add 2,500 MW of clean energy including solar and wind in the fiscal year.

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