Tuesday, 20 August 2019

Japan to Attract More Solar Firms


Because of diminishing reliance on nuclear power, Japanese government is increasingly supporting more of solar industry, especially Chinese solar companies. The domestic solar power market reached $19.8 billion (¥1.91 trillion) in 2013, surpassing Germany, which was the biggest market from 2009 to 2012, according to the report by IHS Inc. 

Japan is one of the world’s largest solar energy market with the installation of new solar power systems more than doubling capacity, according to a report by a U.S. research firm.

The use of solar power in Japan has accelerated since the so-called feed-in tariff scheme for renewable energy was introduced in July 2012 to help offset the loss of nuclear power caused by the repercussions of the Fukushima disaster, which has led to nearly all of the nation’s 50 reactors to be idled over nuclear safety concerns.

To improvise dependence on solar power, the Chaorisolar Energy Science and Technology Co Ltd and the Sky Solar Holding Co Ltd have planned to install 100 megawatts project by investing around 7.5 billion yen ($93.9 million) in Japan. The collaboration is a new vibe because both of them are specialist in their fields. Chaorisolar is a Shanghai-based maker of photovoltaic products whereas Sky Solar builds solar farms. The project is supposed to generate gross profits equal to $10yuan ($1.60) a watt.

This cooperation is regarded as a strong turning point to improve Chaorisolar’s sales in spite of much negligence in large markets such as Europe. While that is exceeded by the 6.8 gigawatts of new solar power systems projected in China this year, the price of the equipment is expected to make Japan the largest market in terms of value, the report said.

Global suppliers in the solar power industry are being drawn to Japan’s market, companies such as Hareonsolar Technology Co Ltd, Yingli Green Energy Holding Co Ltd and Canadian Solar Inc, are planning to open a subsidiary in Japan. In fact, Suntech Power Holdings Co has ventured in Japan after acquiring MSK Corp, a maker of solar equipment. Whereas domestic firms continue to dominate the market for residential systems, which account for nearly 40 percent of all demand in the country, because consumers are showing a strong preference for domestic brands, IHS said.

Solar power will also contribute to the growth of electric vehicles charging and for hydrogen production, making it the next-generation energy source. The country’s manufacturing sector alone is supposed to increasingly rely on some 60 GW of solar power to run its operations, accounting for 10% of the total electricity demand in the sector.

The residential segment will contribute around 80 GW of solar power installations by 2030, covering about 20% of total electricity demand in this segment.

Two other research entities, including Bloomberg New Energy Finance, also project that Japan’s solar power market will become the world’s largest this year.

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