Naperville, IL -- (SBWIRE) -- 03/05/2013 -- Although the global renewable energy market has developed rapidly over the past few years, Japan's renewable energy market has remained in an undeveloped state, due to the fact that market policies for renewable energy have not been sufficiently examined or implemented. To address this, the Japanese parliament approved legislation in 2011 for the creation of a national Feed-In Tariff (FIT) scheme. The Japanese government introduced FITs in June 2012. Utilities will now pay ¥42/kWh for solar power, which is twice the tariff paid in Germany and thrice the tariff offered in China. The government now aims to have established a green energy market worth JPY50 trillion ($628 billion) by 2020, through deregulation and the introduction of subsidies. This is expected to boost the development of solar, wind and geothermal projects, since it will be mandatory for utility providers to purchase power from renewable energy sources at a rate fixed by the government.
Geothermal to Drive Growth in Indonesia's Renewable Energy Sector
The Indonesian government is currently focusing on increasing the utilization of geothermal resources in order to promote investment in cleaner energy solutions. A government mandate has been implemented stating that geothermal energy production must contribute at least 5% to national electricity by 2025. Geothermal energy in Indonesia has also attracted investments from various US companies and international bodies, which are expected to increase as a result of policy incentives. The World Bank is providing $400m of funding for the development of geothermal energy in Indonesia, as part of its $40 billion initiative to develop low-carbon growth projects globally.
To view table of contents for this market report please visit: