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Liberalization of the electricity retail market will be the first time in the history of the country that consumers can choose electricity suppliers. Industry insiders, including Solar Frontier and Canadian Solar, said in an interview that they have high hopes for the impact of the process, but the process will take some time.
In an interview, Hideki Gakumazawa, general manager of communications at Solar Frontier, explained that enabling consumers to choose suppliers means that the so-called healthy and sustainable lifestyle (LOHAS) population, environmental and ethical consumers, can choose from Green suppliers buy electricity.
In addition, according to a Solar Frontier spokesperson, the role of independent power producers targeting the retail market may increase as Japan's PV segments approach the grid and market-level prices.
The Japan Renewable Energy Foundation (JREF) said that by the end of 2014, Japan had reached the market price in the residential sector. Solar Frontier said that from this year it will be able to sell complete home solution PV kits at a flat price, including inverters and panels, and sell packages including energy storage at a flat price from 2018, while also considering its sales agents. Profit margins.
Japan is targeting the 2030 fiscal year, and greenhouse gases are down 26% from 2013 levels. In order to achieve this, it has set a 22% to 24% renewable energy source in the national energy structure as its target for COP21 INDC, which was interpreted as meaning that about 7% of 1,065kWh of electricity production needs to come from photovoltaics.
New business model for new power retailers
In the early stages, about 750 companies have registered to become Japanese power retailers. These include mobile phone providers, cable providers, convenience stores and gas stations. They are selling electricity in some new business models.
Solar Frontier's Gakumazawa said: "Each of these companies offer their own plans to customers. For example, some telephone companies offer lower monthly phone bills to customers who buy electricity from them."
“Similarly, if customers participate in the electricity business of some oil companies, these companies will offer discounts on oil prices.â€
However, full market liberalization will not take effect this year. New retailers will join the market from April 1, but deregulation will eventually include loosening power transmission assets from public sector controls. Japan has ten large regional utility companies responsible for power grids and power generation and power sales. The availability of renewable energy in grid-connected installed capacity has always been a major problem in Japan, and has been widely reported on this and other websites.
Although Suntech, CEO of Artes Sunshine Power, interviewed PV-Tech in early 2015, he hopes that market liberalization can “inject new life†into Japanese PV (click to view PV-Tech's previous reports). JREF, Solar Frontier and other parties echoed, but the unloading of utilities and power transmissions will not be fully enacted until 2020. The government appointed the Wide Area System Operation Coordination Agency (OCCTO) on April 1, 2015, which, as its name suggests, will focus on interconnecting regional power grids. Similarly, the public sector currently operates most of its generation assets.
Gakumazawa said: "We also believe that, further, the establishment of OCCTO and the upcoming legal bundling of power companies can contribute to the development of renewable energy."
“The market is deregulated, and the government is essentially designed to create a more efficient national grid, increase price competitiveness and enable the grid to handle changes in energy mix.â€
“The importance of renewable energy is theoretically twofold. First, it means that the national grid can accommodate more renewable energy installed capacity. In turn, it can also reduce the risk of reduction.â€
BNEF makes big predictions
On February 19, Bloomberg reported that Bloomberg New Energy Finance (BNEF), one of its analysts, predicted that Japan will install 13.2GW to 14.3GW of PV this year.
This is almost twice the forecast given by Solar Frontier's internal analysts and higher than expected by several other Japanese institutions. However, Hiroshi Matsukawa, an analyst at Tokyo-based RTS PV, also interviewed that it may be difficult to make a forecast for the 2016 fiscal year ending March 2017.
Although in the UK and other markets, feed-in tariff subsidies and other subsidies are certified on the grid, in Japan, the project has now been approved by the Ministry of Economy, Trade and Industry through a direct application process.
The deadline for developers who have obtained the subsidy for feed-in tariffs but have not yet been established. These developers, the amount of installed capacity is uncertain, but believe that at least several megawatts, must present valid grid connection agreement evidence by April 2017, otherwise it will completely lose its right to subsidize the feed-in tariff. Matsukawa said that this may lead to a wave of sprinting similar to the UK's last quarter of the year, which makes it difficult to accurately predict the Japanese market's activities for the next year and two months.
After the April 2017 deadline, a new renewable energy law will be drafted and implemented later that year, and Japan will be transformed into an auction for large-scale PV, GTM Research said recently, which could reduce the market by 3GW per year. . BNEF believes that after 2017, the market may decline and install 9.8GW to 12.4GW next year and “gradually reduceâ€.
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Talking about the confusing Japanese photovoltaic market
Abstract Japan's deregulation of the electricity market, which will be launched in April 2016, may make a significant contribution to the development of photovoltaics in the country's energy mix, surpassing the industry and the government's 7% target by 2030. The liberalization of the electricity retail market will be the first consumer in the history of the country...
Japan's deregulation of the electricity market, which will be launched in April 2016, may make a significant contribution to the development of photovoltaics in the country's energy mix, surpassing the industry and the government's 7% target by 2030.