METI announced Japan’s estimated power generation cost on April 27th. The estimation showed that utility-scale PV generation cost is ¥12.7-15.5 per kWh, while onshore wind is between ¥13.9-21.9 per kWh. Because the amount of power generation (such as PV solar) would change according to weather condition, therefore residents and enterprises will have to pay additional fees if they want more power.
Based on the estimation, METI later came up with a draft regarding best mix of energy sources for 2030. The proportion of nuclear power with lower generation cost is set at 20%-22%; PV solar is 7%; wind power is about 1.7%; geothermal power with stable generation but requires more time to develop is around 1%; biomass power is 4%; and hydropower is about 9%.
Some people may wonder if the proportion of renewable energy can increase further, but METI believes it will become a burden for citizens. As a result, METI decided to keep the proportion of solar and wind power below 10% in order to lower electricity prices. Yet, this move may affect the rate of adoption on future solar power.
