{"id":75116,"date":"2018-02-07T14:15:15","date_gmt":"2018-02-07T14:15:15","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/japan-adjusts-biomass-subsidies-due-increased-demand\/"},"modified":"2025-09-19T08:47:23","modified_gmt":"2025-09-19T08:47:23","slug":"japan-adjusts-biomass-subsidies-due-increased-demand","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/japan-adjusts-biomass-subsidies-due-increased-demand\/","title":{"rendered":"Japan adjusts biomass subsidies due to increased demand"},"content":{"rendered":"

Japanese regulators announced at the end of 2017 about plans to stop the\u00a0issuance of set price Feed-in-Tariff (FiT) subsidies for most biomass power plants, while\u00a0the Ministry of Economy Trade and Industry (METI) will offer a set amount (in MWs of capacity) of FiT contracts for suppliers as to bid on in a new tendering system.<\/em><\/p>\n

The FiT subsidy was firstly introduced back in 2012 and the government has been receiving many responses to it. Starting September 2017,\u00a0METI had already issued contracts for more than 16 GW of biomass capacity, far greater than the agency's target of 6-7 GW in 2030.<\/p>\n

As reported by Canadian Biomass,\u00a0METI has already taken the step of reducing the fixed FiT price for \"general wood,\" which includes pellets, imported woodchips, and palm kernel shell (PKS), from 24 \u00a5\/kWh to 21 \u00a5\/kWh, starting in the fourth quarter of 2017.<\/p>\n

Also, METI has estimated that the FiT contracts already issued would put a weight of\u00a01.8 trillion yen ($16.2 billion) on electricity providers, and therefore ratepayers. Nevertheless, METI thinks that\u00a0they have sufficient certified capacity under the FiT, and the new system will allow for more predictable budgets and the potential for cost reduction.<\/p>\n

Still, the new system doesn't affect the capacity that has already been certified under the FiT\u00a0at 24 or 21 \u00a5\/kWh.\u00a0The first round of bidding will take place in FY2018 (April 1, 2018 to March 31,2019), with a total pool of 200 MW of capacity available for tendering. The maximum bid price is set at the previous FiT level, 21 \u00a5\/kWh.<\/p>\n

Analysts project that the Japanese wood pellet demand will increase from 500,000 tonnes in 2017 to 9.5 million tonnes in 2025. Total biomass demand in Japan is expected to increase from 7.6 million tonnes in 2017 to 23 million tonnes in 2025.<\/p>","protected":false},"excerpt":{"rendered":"

Japanese regulators announced at the end of 2017 about plans to stop the\u00a0issuance of set price Feed-in-Tariff (FiT) subsidies for most biomass power plants, while\u00a0the Ministry of Economy Trade and Industry (METI) will offer a set amount (in MWs of … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":58149,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716,4715],"tags":[3295,3363,3298],"class_list":["post-75116","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends","category-market-analysis","tag-biomass","tag-japan","tag-power-plant","topic-wood-energy","area-asia-middle-east"],"acf":[],"yoast_head":"\nJapan adjusts biomass subsidies due to increased demand<\/title>\n<meta name=\"description\" content=\"Japanese regulators announced at the end of 2017 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