Japan’s plans to boost energy efficiency could make it one of the top markets in the Asia Pacific region for smart grid deployment.
New research states Japan was one of the first countries globally to invest in smart grid research and development.
The Ministry of Energy started a new programme in 2014 to encourage microgrid development in Japan.
GlobalData’s Senior Analyst Sowmyavadhana Srinivasan said: “Following the Fukushima nuclear disaster in 2011, Japan suffered substantial damage to its grid infrastructure, along with a reduction in its base load generation.”
As a consequence, there was more effort to increase energy efficiency and renewable power generation. However, the projects were delayed due to problems connecting to the grid.
She added: “One of the major challenges for developers in 2014 was the requirement for an improved transmission system.”
It also took up to four years for developers to get past the regulations involved in making renewable projects but the government has now reduced the waiting period to two years.
Renewable energy accounted for only 10% of Japan’s total installed capacity in 2014 but the figure is expected to grow to 19% by 2025.