The Japan Times recently reported that Japanese companies are increasingly expanding into the renewable energy sector due to a new incentive program that is expected to spur demand for environmentally friendly power. To promote power generation using renewable energy sources, such as solar, wind, geothermal and biomass power, the government will introduce a so-called feed-in-tariff scheme in July. Under the system, utilities will be obligated to purchase electricity from households and companies with their own green power generation systems at a fixed price for a set period of time. With almost all of Japan’s nuclear reactors shut down since the Fukushima disaster, leading to fears of an electricity shortfall this summer and beyond, businesses for the first time are starting to invest in renewable energy, eyeing the sector’s potentially huge profitability. Major cellphone operator Softbank Corp. has drawn up plans to build massive solar power plants at more than 10 sites nationwide, in collaboration with local municipalities. “We must launch renewable energy operations as soon as possible,” Softbank President and CEO Masayoshi Son said recently to a global symposium on natural energy.
Japan firms angling for slice of green energy pie. Companies are increasingly expanding into the renewable energy sector due to a new incentive program that is expected to spur demand for environmentally friendly power. Japan Times