Japan Grants Wind Power Subsidies to Tsunami-Struck Northern Regions

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Researched by Industrial Info Resources (Sugar Land, Texas)--The archipelago of Japan, while small in size, has great potential for renewable energy, especially wind power. According to 2011 estimates, if both onshore and offshore potential were realized, Japan could produce 2,000 gigawatts of electricity. Wind power faces many obstacles to its development; however, it is still a power source under investigation by many Japanese power producers. One of the major issues facing wind power both on- and offshore is the cost of transmission lines.

Because ideal wind conditions tend to exist in less than convenient areas, the cost of building transmission lines can be daunting for smaller companies looking to invest in wind power. However, the Japanese government has stepped in and is preparing a plan to take away some of that burden and make wind power a more viable power source.

Last week, Yuko Edano, the Japanese Minister of Economy, Trade, and Industry, designated parts of the tsunami-struck Tohoku and Hokkaido regions as "Wind Power Generation Priority Zones," a working title. Under the proposed plan, any windfarm built within such zones will be eligible for a special spending plan that will drastically reduce the transmission infrastructure cost burden on the power producer. The plan states that for windfarms in the designated zones, the cost to construct new transmission infrastructure will be split between the national government, the local power monopoly, and the power producer that owns the project. The exact percentages are as yet unknown, but the Japanese government has stated that it will prepare a budget during the 2013 fiscal year.

Industrial Info is currently tracking 2,101 megawatts (MW) of wind power projects representing more than $2.8 billion in investment throughout Japan. Roughly 70%, or 1,470 MW, of that capacity is in the planning stages, most awaiting permits. Another 18% or so is operational, totaling 390 MW of wind power. According to Industrial Info's data, Hokkaido and the Tohoku region have the highest number of and the most investment in wind power projects. The three prefectures with the most windfarm projects are Hokkaido (six) and Aomori (five), with Akita and Shizuoka tied with three each. With the exception of Shizuoka, which is located to the southwest of Tokyo, all of these prefectures are included in the Tohoku or Hokkaido areas. Ranked by investment, Ibaraki prefecture leads with $851 million, followed by Aomori with $484 million, and Hokkaido with $398 million, for a total of $1.7 billion in wind power investment in this region alone.

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