JAPAN TO GIVE NEW ENERGY A BIG BUMP

Why Japan's Shift Away from Nuclear Is Good for Business
Lucy Birmingham, May 18, 2011 (Time)

"7-Eleven…seeking to help set the pace for change in Japan's energy policy…[will] spend over $123 million to switch to energy-efficient LED lighting at about 6,000 outlets in Tokyo, and will install solar panels on the roofs of 1,000 stores across the country over the next few months. The plan will not only save 125 kW a day per store, but also benefit manufacturers of LED lighting and solar-cell panels — a win-win for all.

"…Prime Minister Naoto Kan effectively scrapped Japan's plan for increasing domestic electricity supply…Renewable-energy experts agree that the ongoing nuclear crisis, while tragic, could be a remarkable opportunity to move away from the country's focus on nuclear power development and imported fossil fuels toward solar, wind, biomass, geothermal and other natural domestic sources."

Japan has sun (from Global Energy Network Institute - click to enlarge)

"Kan's call for a new energy plan…[followed his request for] Chubu Electric Power Co. to close its Hamaoka power plant [called the "most dangerous nuclear power plant in the world" for its location on a major fault line] until it can better fortify itself against the threat of a large earthquake and tsunami…[That] could shrink output in the nearby industrial region, including at some Toyota auto factories…[It] has called on consumers to conserve…

"The need to save electricity in Tokyo and other areas served by the disaster-hit Tokyo Electric Power Co. (TEPCO) and Tohoku Electric will intensify this summer as air-conditioning needs surge…TEPCO has said it expects to be able to meet most of that demand and avoid rolling blackouts. The government has also set a goal for reducing energy consumption by 15%. Japan Inc. has been quick to respond…At electronics stores now, the biggest sellers are the new power-saving air conditioners, TVs, computers and appliances…"

Lots of interest in Japan's big geothermal potential in recent years (click to enlarge)

"…[S]ome companies are hedging their bets and buying power generators. Companies like beverage maker Yakult, for instance, rely on a constant stream of steady electricity; a peak-hour blackout would have a devastating impact on output. The company plans to rent generators…There are not enough generators available in Japan…[Because of a] grid incompatibility…TEPCO, which has lost 40% of its power-generation capacity since March 11, has not been able to borrow significant amounts of electricity from utilities in the southwest that were unharmed in the twin natural disasters. A national, single-standard grid system, in tandem with more renewable-energy generation, would help solve Japan's power needs…But getting the nation's 10 major utilities to cooperate has proved difficult…

"New legislation is expected to help diversify the nation's energy portfolio. A new feed-in tariff (FIT) will oblige utility companies to buy all the power generated through renewable sources connected to a grid at fixed, premium rates….Geothermal, wind, biomass and small-scale hydropower projects all have potential in Japan, but for now, solar looks like the fastest way to add more power to the national grid. In the 1980s, Japan was the world's top solar-power producer, with strong government policies in place to promote that, but it has since fallen behind…[One calculation found that rice] produced on one hectare of land yields a yearly revenue of 1.58 million yen, while a solar plant on the same surface would generate a revenue of 7.5 million yen…[S]truggling agricultural farmers could become profitable solar farmers…The huge task of rebuilding the tsunami-struck northeastern coast could yield expansion in the renewables [and energy efficiency sectors]…"