• 16 hours Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 17 hours Oil Gains Spur Growth In Canada’s Oil Cities
  • 18 hours China To Take 5% Of Rosneft’s Output In New Deal
  • 18 hours UAE Oil Giant Seeks Partnership For Possible IPO
  • 19 hours Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 20 hours VW Fails To Secure Critical Commodity For EVs
  • 21 hours Enbridge Pipeline Expansion Finally Approved
  • 22 hours Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 23 hours OPEC Oil Deal Compliance Falls To 86%
  • 2 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 2 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 2 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 2 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 2 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 2 days Aramco Says No Plans To Shelve IPO
  • 4 days Trump Passes Iran Nuclear Deal Back to Congress
  • 5 days Texas Shutters More Coal-Fired Plants
  • 5 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 5 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 5 days Chevron Quits Australian Deepwater Oil Exploration
  • 5 days Europe Braces For End Of Iran Nuclear Deal
  • 5 days Renewable Energy Startup Powering Native American Protest Camp
  • 6 days Husky Energy Set To Restart Pipeline
  • 6 days Russia, Morocco Sign String Of Energy And Military Deals
  • 6 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 6 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 6 days India Needs Help To Boost Oil Production
  • 6 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 6 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 6 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 6 days District Judge Rules Dakota Access Can Continue Operating
  • 7 days Surprise Oil Inventory Build Shocks Markets
  • 7 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 7 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 7 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 7 days Oil M&A Deals Set To Rise
  • 7 days South Sudan Tightens Oil Industry Security
  • 8 days Over 1 Million Bpd Remain Offline In Gulf Of Mexico
  • 8 days Turkmenistan To Spend $93-Billion On Oil And Gas Sector
  • 8 days Indian Hydrocarbon Projects Get $300 Billion Boost Over 10 Years
New Iran Sanctions Could Send Oil Prices Higher

New Iran Sanctions Could Send Oil Prices Higher

Fresh sanctions on Iran could…

What’s Stopping An Oil Price Rally?

What’s Stopping An Oil Price Rally?

Oil prices rallied in Q3…

New Feed-In Tariffs will Create Huge Solar Boom in Japan

After the nuclear meltdown at Tokyo Electric Power Co.’s Fukushima Dai-Ichi plant last year and the subsequent off-lining of their entire nuclear industry, Japan suddenly found itself with a huge energy deficit.

They first turned to fossil fuels, but due to the high prices and large amount of carbon emissions this never offered a long term solution. Instead, Japan hope to encourage renewable energy sources to make up the shortfall, and have released such attractive solar feed-in tariffs that many have predicted Japan will overtake both Germany and the current leader, Italy, to become the largest solar PV market in the world.

The tariffs, which will take effect next month, will force utility companies to pay a generous 42 yen (53 cents) per kilowatt-hour to solar energy producers. Japan hopes that the tariffs will quickly motivate investment to add 3.2 gigawatts of solar energy to the electric grid, and replace the power supplied from the nuclear industry, which accounted for 21% of Japan’s energy needs. Germany was the first country to make use of feed-in tariffs, which helped it to attract a massive 22GW of solar installations.

Mina Sekiguchi, an associate partner and head of energy and infrastructure at KPMG, admitted that the tariff is attractive and “reflects the Government’s intention to set up many solar power stations very quickly.”

However not everyone is excited by the potential of the new tariffs. Quite obviously the fossil fuel companies, who are currently benefitting from Japans energy demand needs and will lose out if the tariffs are as successful as predicted, are complaining. They voice concerns over the high rates that utilities will be forced to pay, nearly three times the current cost of conventional power.

Masami Hasegawa, the senior manager of Keidanren, Japan’s most powerful business lobby, criticised that this mechanism forces “a high degree of market intervention by setting tariffs artificially high and making users shoulder the cost. We (Keidanren) question the effectiveness of such a scheme.”

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News