West Japan utilities to boost wind power by 400 MW

Thu Dec 22, 2011 4:42am EST

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* Shikoku Elec, Hokuriku Elec have high wind potential

* Japan to launch feed-in tariff for renewables in July

* East Japan utilities have similar plan for wind power

TOKYO, Dec 22 (Reuters) - Six regionally dominant electricity utilities in central and western Japan have agreed to coordinate the use of their grid to boost wind power capacity in the area by a total 400 megawatts from about 1,230 MW over the next four to five years.

Shikoku Electric Power Co and Hokuriku Electric Power Co, both of which have a high potential for wind power, plan to start accepting applications from operators of wind turbines in the coming months, the six companies said in a statement on Thursday.

Both utilities have limited power demand in their service areas and wind power is difficult for such a small grid network to keep under control. But by supplying surplus power to their peers covering large cities such as Osaka and Nagoya the two would be able to accept more power from wind turbines.

Japan is overhauling its energy policy after the Fukushima crisis shattered the public's trust in nuclear safety, encouraging lawmakers to approve a new plan to promote renewable energy by requiring utilities to buy electricity from clean energy power generators but allowing them to pass on the cost to end-users in a so-called "feed-in" tariff system.

"We're coming up with a framework in time for the launch in July of the government's feed-in tariff scheme, and starting to accept applications," a Hokuriku Electric spokesman said.

"It will take four to five years to see actual wind power capacity connected to our grid, however, taking into account the period of preparation and construction," he added.

Unlike in Europe, where power grids are connected across national borders, Japan's fragmented system is divided into nine regional utilities' areas and is split between the west of the country, which has a power frequency of 60 hertz, and the east, which uses 50 hertz.

Three utilities in eastern Japan announced a similar move in September, aiming to increase wind power capacity by 400 MW from around 1,130 MW currently by using the grid network of Tokyo Electric Power Co, Japan's biggest utility in terms of electricity demand.

The country's new feed-in tariff scheme requires regional utilities to buy any amount of electricity from wind and other renewable plants at preset, economically feasible rates in the first three years of applications to lure investors.

The price to be paid by utilities for a different type of green energy is expected to decided by a parliament-appointed panel early next year. (Reporting by Risa Maeda; Editing by Michael Watson)

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