Japan has been drawing a lot of attention and investment from foreign electricity generating companies, especially in solar power, where favourable regulations and substantial demand for green energy are driving activity.

The catastrophic Tohoku earthquake and subsequent Fukushima nuclear disaster in 2011 gave added urgency to an energy-reform programme that was already moving in a greener direction, albeit slowly.

Prior to 2011, around 30% of Japan’s power came from nuclear energy but now the figure is less than 3%. That has created room for other energy sources to meet an insatiable appetite. The country of 127 million consumes almost as much electricity as India, home to 1.3 billion people.

With nuclear capacity greatly reduced, fossil fuels still make up 90% of Japan’s total energy consumption. The country is the world’s largest liquefied natural gas (LNG) and the third-largest oil importer. But under the 2015 Paris climate accord, it has committed to a 26% reduction in its greenhouse gas (GHG) emissions by 2030.

Experts say Japan’s commitment to be greener has spurred more foreign direct investment (FDI) in renewable energy in recent years. It also helps that the government has curbed monopolies and removed many regulatory and technical barriers to investment.

“Renewable generation benefits from strong support by the Japanese government, and started with a generous feed-in-tariff mechanism for a wide range of technologies, creating a new market for investors in infrastructure in the aftermath of the Great Tohoku earthquake,” Didier Holleaux, executive vice-president of the French utility Engie, told Asia Focus.

“It is now switching to a competitive renewable energy scheme starting with solar PV (photovoltaic), and potentially for other technologies to bring renewable energy generation more in line with the reality of the local market.”

Read more at: https://www.bangkokpost.com/business/world/1376439/land-of-the-rising-solar

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