Tuesday, July 5, 2011

Japan's Richest Man Challenges Nuclear Future with Nationwide Solar Plans

Solar energy is going to be a driving force in rebuilding of Japan's energy sector after the devastating earthquake that caused much destruction earlier this year.

Billionaire Masayoshi Son has a track record in taking on monopolies after building a business that opened up the nation’s telecommunications industry. Now he aims to shake up Japan’s power utilities after the worst nuclear crisis in 25 years.

Son, the 53-year-old chief executive officer of Softbank Corp. (9984), plans to build solar farms to generate electricity with support from at least 33 of Japan’s 47 prefectures. In return, he’s asking for access to transmission networks owned by the 10 regional utilities and an agreement they buy his electricity.

Radiation has spread across at least 600 square kilometers (230 square miles) in northeastern Japan after the March 11 earthquake and tsunami caused reactor meltdowns at the Fukushima nuclear plant. Prime Minister Naoto Kan said in May he will rethink a plan to increase atomic power to 50 percent of the nation’s total from 30 percent. Renewable energy accounts for 10 percent, according to Japan’s Agency for Natural Resources and Energy, and Son wants that ratio to be tripled by 2020.

“The question is how this nation is going to survive after cutting nuclear power,” Son said at a government panel meeting June 12. “A framework should be designed in a way to make the power business open for anyone who has the will to start it.”

Sunny Farms

Solar plants using 20 percent of unused agricultural land in Japan can have the generation capacity of about 50 gigawatts, almost matching that of Tokyo Electric, Son said.

“We can probably invite more companies to invest in our solar projects once a business model is set up,” said Yukiko Kada, governor of Shiga prefecture, who is one of Son’s partners.

The Japanese government may break up utilities’ regional monopolies and separate their power-generation businesses from distribution operations, Kyodo News reported May 31, without saying where it obtained the information. A panel will begin discussing the issue from June as the government seeks to reform the power industry by 2020, Kyodo said.

Any move to separate power distribution from utilities “should have a national discussion after careful analysis on the merits and demerits as well as the impact on the stability of power supply and electricity fees,” Hiromasa Yonekura, chairman of Keidanren, Japan’s biggest business lobby, said on June 6.

“It’s an extremely important issue that can impact the international competitiveness of Japanese industries,” he said

Article Source: posted on The Asia-Pacific Journal

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