With fears of power shortages and blackouts still rampant in Japan, 74 percent of respondents to a nationwide poll taken on August 20 and 21 by a major Japanese newspaper organization expressed support for a gradual cutback on nuclear power plants in Japan, while only 11 percent demanded an immediate halt to nuclear energy.
The Mainichi Daily News poll also found that 56 percent are opposed to a proposed rise in the consumption tax and other taxes to help finance social security costs and reconstruction efforts in the aftermath of the March 11 Great East Japan Earthquake and tsunami; while 41 percent were in favor.
Some 70 percent of respondents to a Mainichi poll are critical of the Cabinet's handling of the Great East Japan Earthquake and tsunami, and the ensuing nuclear disaster. More than half of the respondents also said Prime Minister Naoto Kan was taking too long to step down as the nation's leader.
Three months have passed since Kan announced he would relinquish power after achieving a “certain level” of progress on the handling of the disaster at the Fukushima No. 1 Nuclear Power Plant. During this time he has suggested changing government policy, with a departure from reliance on nuclear power, and – on August 11 – his administration moved to separate the Nuclear and Industrial Safety Agency from the Ministry of Economy, Trade and Industry.
The government plans to set up a new agency in charge of nuclear safety, possibly under the Environment Ministry rather than the Cabinet Office. Kan told a parliamentary session that the agency “must be independent” and its “head must be someone who understands the problems” of nuclear power administration
Under a divided Diet in which the opposition camp controls, 70 percent of respondents to the Mainichi poll expressed their support for “a partial coalition” by the ruling Democratic Party of Japan (DPJ), the Liberal Democratic Party (LDP), and other parties, depending on specific issues involved. Only 17 percent said they support “a grand coalition” by the nation's largest parties.
According to Reuters, a renewable energy bill is in the final stages of consideration by the Diet, but is mired in political controversy. A key concern is the level of subsidized power pricing for different types of green energy. Another is Japan's revolving-door governments
“Investors say they find no institutional risk in investing in the renewable energy sector in Europe, but they say there is such a risk in Japan, given uncertainty of the scheme's prospects, and there is also a risk in the country's politics,” said Shinichiro Takiguchi, executive senior researcher at private think-tank Japan Research Institute.
The legislation , which take effect in July 2012, would mandate utilities to buy electricity generated by solar, wind, biomass, geothermal, and small-sized hydro power plants at government preset rates for up to 20 years. The government has said it wants the feed-in tariff scheme to boost capacity of the five renewable energy types by more than 30,000 megawatts (MW) over a decade. That would add over 12 percent to Japan's total generation capacity before the nuclear disaster of 240,000 MW.
Reuters pointed out that a number of companies stand to benefit from the legislation, including mobile carrier Softbank (News - Alert), which wants to invest in solar power; solar panel makers such as Suntech Power, Showa Shell Sekiyu, Kyocera (News - Alert), and Sharp; and wind power developers, including Eurus Energy Holdings, a joint venture between Tokyo Electric Power Co and Toyota Tsusho Corp.
“I think 36-38 yen will be good enough,” said Yutaka Yamamoto, president of Suntech Power Japan.”A feed-in tariff scheme will drive growth of the [solar panel] market significantly,” pointing to similar schemes in Germany, Spain, and elsewhere that drove rapid green energy investment. “The only risk factor is the feed-in tariff rate,” he said.
Power companies also point out that Japan's fragmented grid has limited ability to absorb massive capacity from solar and wind, and is in need of investment. The power industry has said they would be able to accept up to 10,000 MW of solar and 5,000 MW of wind based on the current grid infrastructure.
“I think the scheme is one-sided as it is focused only on new power suppliers, taking advantage of end-users,” said Akihiro Sawa, executive senior fellow at the Tokyo-based 21st Century Public Policy Institute and a former trade ministry official.”We need another plan.” Sawa said. “We need policy steps to make conventional power companies realize how lucrative it is to invest in the sector and sell green electricity to users.”
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Cheryl Kaften is an accomplished communicator who has written for consumer and corporate audiences. She has worked extensively for MasterCard (News - Alert) Worldwide, Philip Morris USA (Altria), and KPMG, and has consulted for Estee Lauder and the Philadelphia Inquirer Newspapers. To read more of her articles, please visit her columnist page.Edited by
Jennifer Russell
