Japan SOLAR market growing faster than expected: Japan's solar market eclipsed only by China
Japan will probably become the largest solar market in the world after China this year, boosted by an incentive program that offers above-market rates for energy from renewable sources.
Commercial and utility-scale projects will boost solar installations to a range of 6.1 gigawatts to 9.4 gigawatts in 2013, exceeding an earlier forecast of 3.2 gigawatts to 4 gigawatts, Bloomberg New Energy Finance said in a research note.
“The upward revision was done because of the rapid increase in shipments seen last quarter as well as the fact that the pipeline of projects is even stronger than previously expected,” BNEF said in the report.
The forecast reflects the push by Japan to find alternative sources of energy following the Fukushima earthquake and tsunami in March 2011, which prompted the closure of all but two of the nation's nuclear reactors. Japan in July began offering incentives through feed-in tariffs to encourage investments in energy sources such as wind and solar.
“The feed-in tariff has been successful in sparking interest and potential for unprecedented growth in solar,” Travis Woodward, a Tokyo-based solar analyst at BNEF, said in an e-mailed message. “This large introduction of solar is significant enough to compliment other strategies to alleviate power demand issues from idling almost all nuclear plants in Japan. Solar system prices will need to come down closer to global average, however, to make a sustainable market.”