Feed-in Tariff Program to Cost Japanese 4.9 T. Yen in FY 2030

Economy Politics

Tokyo, March 2 (Jiji Press)--Financial burden on Japanese consumers under the country's feed-in tariff renewable energy incentive program may reach 4.9 trillion yen in fiscal 2030, a government estimate has shown.

This represents a 1.6-fold growth from 3.1 trillion yen in fiscal 2019, exceeding the initially projected burden of up to 4 trillion. The estimate is based on the assumption that all renewable energy facilities certified under the program start generating electricity.

In that case, 25 pct of all electricity generated in Japan will be from renewable sources in fiscal 2030. The proportion outpaces the government's goal of 22-24 pct.

The FIT program is a policy mechanism to promote investments in high-cost renewable energy facilities. Under the program, utilities buy electricity generated from renewable energy sources such as solar and wind power at fixed prices for fixed periods, while the purchase costs are passed onto electricity bills.

The estimate was released by the Ministry of Economy, Trade and Industry on Monday in a meeting of experts discussing ways to promote renewable energy.

[Copyright The Jiji Press, Ltd.]

Jiji Press