Expanded renewable energy plan shifts costs to households

TOKYO —

The Ministry of Economy, Trade and Industry plans to charge a premium of up to 200 yen per month on each household in electricity bills to cover costs for utility companies to buy power from expanded sources of renewable energy in an effort to address climate change.

The ministry is planning to start as early as 2012 a system to oblige utilities to buy electricity generated by businesses and homes from wind, water, geothermal heat and biomass energy in addition to solar energy, which is included in the existing renewable energy purchase program.

Under the ministry’s power sourcing plan approved by a panel of experts, a standard household of a couple and two children would be charged around 150 to 200 yen per month 10 years after the system is introduced. It is based on the estimate that a standard household consumes 300 kilowatt hours per month.

The plan may draw flak from the public as companies and households that do not have power-generating facilities may just have to pay the charges and receive no benefit.

Economy, Trade and Industry Minister Masayuki Naoshima told a press conference prior to the meeting, ‘‘Based on the outcome of the meeting, we would like to design the details of the system and try to introduce the system smoothly soon.’‘

Regarding the view that people who cannot afford power-generating facilities may feel the system is unfair, he said further discussions will take place on the issue when hammering out the details, which is expected to finish by the end of this year.

But Naoshima added that the envisioned system is ‘‘essential’’ in promoting the introduction of renewable energy while tackling climate change.

The plan has also set the purchasing price of electricity generated from renewable energy sources other than solar power to around 15-20 yen a kilowatt hour, with the term to last about 15-20 years.

The present system, which started in November last year, requires power utilities to buy excess electricity generated from solar power in households. So far, households have not been footed with a premium on their electricity bills.

Utilities are currently paying 48 yen a kilowatt hour for excess electricity, but the ministry said that it plans to gradually lower the price.

http://www.japantoday.com/category/business/view/expanded-renewable-energy-plan-shifts-costs-to-households