The green energy law that will become effective in 10 months still has to clarify some important issues, such as the new rules for utilities that form monopolies and the prices paid for “clean” energy, in order to allow investors to make long-term plans, according to analysts.
“Though symbolically ground-breaking, there remain some unanswered questions regarding cost, surrounding infrastructure and regulation,” said a Japanese strategist in a report on the bill.
The bill seeks to reduce Japan’s dependency on nuclear power by boosting the use of renewable energy, hence, ensuring energy safety and security after the March 11 disaster.
The law will help strengthen the competitiveness of the Japanese solar industry and jump-start regional industries and job creation, the president of Sharp and chairman of Japan Photovoltaic Energy Association, Mikio Katayama, stated.
In a statement issued last month, the country’s former premier Naoto Kan vowed to eliminate atomic power in the country in the wake of the massive quake and the worst nuclear disaster in the world after 25 years.
This direction will not change after Kan’s mandate, a lawmaker in the ruling party DPJ said. “Japan has clearly shifted gears to promoting renewable energy.” The new prime minister of Japan is former finance minister Yoshihiko Noda.
At present, green energy covers about 10 percent of Japan's total power generation.
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