Grid Congestion for Renewable Energy May Expand to South Japan

Power grids in southern Japan are close to capacity for solar and wind projects as the country pushes to add stations that derive power from clean energy. Chugoku Electric Power Co. (9504) and Kyushu Electric Power Co. (9508) each have less than 1 Giga watt of available grid capacity for solar or wind projects after deducting existing and approved capacity, according to estimates by Bloomberg New Energy Finance released yesterday.

The study coincides with a debate about how to fix grid congestion on Hokkaido, the northernmost island of Japan. Hokkaido Electric Power Co. (9509), the island’s sole utility, says applications for large-scale solar plants have surged since Japan began offering inducements to promote clean energy, leaving it with more proposed capacity than its grid can handle. Japan has approved 22.4 Giga watts of renewable energy capacity since an incentive program began in July 2012, according to the Ministry of Economy, Trade and Industry. BNEF estimates. Japan has 34 Giga watts of technical grid availability for new solar and wind projects.

Reform of the power market could improve the country’s grid, the London-based researcher said in the report. Such a bill is expected to be submitted to parliament in the autumn.

Source:  http://www.bloomberg.com

Switzerland plans radical solar subsidy cuts

The Swiss Solar Energy Professional Association (Swissolar) calls the government's plans for PV "catastrophic". Feed-in tariffs, payment duration and the separate category for integrated PV systems are on the chopping block. Still there might be some positive outcomes.

The Swiss government has plans to revise the Energy Regulation in the country. Among these revisions is also the threat to massively reduce FITs for renewable energy installations. The planned changes are "catastrophic" according to Swissolar. 

The plan is to reduce the FITs for photovoltaic systems by 35 to 40% and lower the remuneration period to 15 years. For all other renewable technologies, the compensation rates are to be reviewed and increased in view of the reduced payment period, added Swissolar. The solar association believes that with its first estimate it would take 22 years thus for photovoltaic systems to be profitable with such proposed tariffs. Moreover the government is also planning to completely axe the category "integrated systems," thereby reducing the tariffs for integrated photovoltaic systems by up to 50%. The so-called "cost covering feed-in tariff"  for solar power, or KEV as known in Switzerland, is 19.9 to 39.4 Swiss Rappen per kWh (16.1 to 31.9 Euro cents per kWh). 

Still Swissolar sees positive aspects as well in the government proposal. This way project progress reports will account for PV as well. And there will also be no more annual subsidy cut. A transition period is also expected. Old rates will apply for all PV systems that are operational before the implementation of the new FITs. Also PV systems that are connected later, but already have assurance for FITs, will receive the higher subsidies. 

The adoption of the solar subsidies is planned for January 1, 2014. The new energy bill will only apply from May 1 when there will be referendum. Currently the consultation process is ongoing and will carry on until mid-September. The solar association added, "Swissolar will make use of this period to make it clear to the authorities that excessive tariff reductions in the solar sector will inflict massive damage."

Source: http://www.pv-magazine.com