Japans volume of primary energy supply – oil, natural gas, coal, nuclear and renewable electricity – is projected to decline by 0.4 percent in fiscal year 2020 due in part to continued energy efficiency improvements, according to a recent report from Japan’s Institute of Energy Economics.
One factor in the projected slide to 452.4 million metric tons of oil equivalent is Japans Feed- Tariff policy for renewable energy – known as Fit – which was enacted at the beginning of July 2012 to accelerate the adoption of renewable energy. Under the system, electric utilities and merchants purchase renewable-generated electricity at prices and contract durations set by the Ministry of Economy, Trade and Industry. End-users pay a surcharge to help cover the renewable portion of the total power supply.
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The countrys renewable electricity supply is projected to grow 6.3 percent to 203.3 terrawatt hours this fiscal year. Of this, the institute estimates, 147.2 TWh will be attributable to Fit generation. Renewable energy-based power generation in FY2020 will total 152.3 TWh, the institute estimates – the majority consisting of 76.2 TWh for solar photovoltaics, 39.6 TWh for small and medium-sized hydroelectric plants and 30.2 TWh for biomass.