IDEAS home Printed from
   My bibliography  Save this paper

New Buyback Program for Photovoltaic Generation : Issues in the view of Electric Utilities Industry Policy


  • Yoko Ito

    (The Institute of Energy Economics, Japan)


This paper examines the background, the anticipated effects and the issues raised with regards to the New Buyback Program for Photovoltaic Generation, which was introduced based on the enactment of the "Bill on the Promotion of the Use of Nonfossil Energy Sources and Effective Use of Fossil Energy Source Materials by Energy Suppliers" and "Bill to Amend the Act on the Promotion of the Development and Introduction of Alternative Energy"(passed in August 2009). The New Buyback Program is a system whereby general electric power companies are required to purchase excess electric power generated by photovoltaic generating equipment installed mainly in domestic buildings for a period of 10 years at a fixed tariff. Reducing the cost of power generation is the key to achieve the widespread adoption of photovoltaic generation in Japan. This paper therefore pays attention to the acceleration of cost reductions accompanying the introduction of the new Program, and the subsequent anticipated increase in international competitiveness within related industries. It also touches upon a recent trend that the negative impact of the financial crisis may imply the perspective for the photovoltaic industry is not always positive. Against this background, this paper seeks to consider, with regard to the introduction of the new Program, the problems arising from changes in policy focus from reducing dependence on oil and the liberalization of the utilities, to the climate change mitigations. It argues that the implementation of the new Program requires a well-defined policy coordination considering the compatibility with existing policies and frameworks. Namely, those issues such as the passing on of the cost of the buyback tariff against the liberalization policy as well as energy competition in ever increasing environmental pressures need to be reviewed in a wider picture of long-term utility policy that are to be build upon a balance between the three pillars of energy, economy and the environment.

Suggested Citation

  • Yoko Ito, 2010. "New Buyback Program for Photovoltaic Generation : Issues in the view of Electric Utilities Industry Policy," Energy Working Papers 22798, East Asian Bureau of Economic Research.
  • Handle: RePEc:eab:energy:22798

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    photovoltaic energy; buyback; energy policy; Japan;

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eab:energy:22798. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Shiro Armstrong). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.