Japan to develop geothermal power under net zero plan

: Electricity, Emissions
25/04/16

The Japanese government is gearing up to develop geothermal energy, as the clean power can help to decarbonise the power sector with stable output, unlike weather-dependent renewables such as solar and wind.

The trade and industry ministry Meti on 14 April launched a public-private council to discuss the development of next-generation geothermal energy, aiming to formulate a draft guideline, including capacity and cost targets, by around October this year. The new technology could lift the country's potential geothermal capacity to at least 77GW, compared with 23.5GW based on conventional methods, according to the council.

The draft plan aims to establish the next-generation geothermal technology as early as the 2030s, to expand the use of the clean energy with competitive prices toward 2040, while tacking geological challenges, such as fault and complex geology, in Japan. Should the next-generation technology, such as closed-loop and supercritical geothermal, prove practical, Japan could utilise its potential, said Meti minister Yoji Muto on 15 April. Japan could consider exporting the next-generation technology globally, as it has around 70pc global share in conventional geothermal turbines, he added.

The geothermal strategy is in line with the country's new strategic energy plan (SEP), which was published in February, as well as prime minister Shigeru Ishiba's push to develop geothermal capacity. Ishiba had focused on less-utilised and high potential geothermal, as well as micro-hydropower, during his [campaign for the ruling Liberal Democratic Party presidential election](https://direct.argusmedia.com/newsandanalysis/article/2608517) last year.

The SEP assumes geothermal will account for 1-2pc of Japan's power mix in the April 2040-March 2041 fiscal year, which is relatively marginal compared with other renewables such as solar at 23-29pc, wind at 4-8pc, hydroelectric at 8-10pc and biomass at 5-6pc. But even the small share would be much higher compared with its actual share of 0.3pc of total power generation in 2023-24.

Diversification of renewable power sources would be necessary to achieve Japan's plan to reduce its greenhouse gas emissions by 60pc in 2035-36 and by 73pc in 2040-41, respectively, against the 2013-14 level, before achieving its net zero goal in 2050. Under the SEP, Tokyo aims to reduce its dependence on thermal power to 30-40pc in 2040-41 from 71pc in 2024.

Japanese private firms are already involved in further developing domestic and overseas geothermal projects. Japanese utility Hokkaido Electric Power and construction firm Obayashi said on 16 April that they will study potential geothermal resources in Hokkaido during April 2025-February 2026, taking advantage of subsidies provided by state-owned energy agency Jogmec.

Japanese battery maker Panasonic Energy said on 8 April that it has signed a power purchase agreement with regional utility Kyushu Electric Power's renewable arm Kyushu Mirai Energy to secure around 50GWh/yr of geothermal-based electricity from 1 April. The stable geothermal supplies, unaffected by weather, could double a renewable ratio in its domestic power consumption to around 30pc, Panasonic said.

By Motoko Hasegawa

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25/05/19

EU, UK to ‘work towards’ linking carbon markets

London, 19 May (Argus) — The EU and UK agreed to work towards linking their respective emissions trading systems (ETS), as part of their common understanding agreement concluded at a summit in London today. "The European Commission and the United Kingdom share the view that a functioning link between carbon markets would address many of the issues raised in respect of trade and a level playing field," the agreement states. A linking agreement should exempt both jurisdictions from their respective carbon border adjustment mechanisms, according to the common understanding, and the linked systems should cover power and industrial heat generation, and domestic and international maritime and aviation emissions. The statement specifically states that any link "should not constrain the European Union and the United Kingdom from pursuing higher environmental ambition". It also underlines that the UK ETS's supply cap and its emissions reduction pathway are "guided by" the country's Climate Change Act and nationally determined contributions to the Paris climate agreement, and that these should be "at least as ambitious" as the EU's. The UK has legally binding targets to cut its greenhouse gas (GHG) emissions by at least 68pc by 2030 and 81pc by 2035, both compared with 1990 levels. The EU aims to cut its net GHG emissions by 55pc by 2030, and is yet to set a 2035 target. Both jurisdictions are targeting net zero emissions by 2050, while they share the "same interests" in addressing climate change, commission president Ursula von der Leyen said today. Linking the systems would "save British businesses £800mn in EU carbon taxes", UK prime minister Keir Starmer said today, without specifying a timeframe for the savings. A study commissioned by a range of utilities and published last week found that linking the two systems would save up to €1.2bn on lower hedging costs resulting from improved market liquidity and lower bid-offer spreads. Today's agreement provides no timeline for linking the systems. The process to negotiate and link the Swiss ETS to the EU's scheme took almost 10 years. Alongside plans to work towards linking the EU and UK ETS, the jurisdictions also alluded in the agreement to continuing "technical regulatory exchanges" on energy technologies including hydrogen, carbon capture and storage and biomethane. And they will "explore in detail the necessary parameters" for the UK's potential participation in the EU's internal power market. By Victoria Hatherick and Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Australian carbon lobby urges government program reform

25/05/19

Australian carbon lobby urges government program reform

Sydney, 19 May (Argus) — Australia's lobby group Carbon Market Institute (CMI) urged the federal government to reform its Climate Active voluntary program, after utility Energy Australia admitted to flaws in its carbon offsetting strategy in a key legal case. The CMI said the Australian government must push reforms to the Climate Active program, and that carbon credits should not substitute decarbonisation efforts. Most of the voluntary demand for Australian Carbon Credit Units (ACCUs) comes from the federal government-backed Climate Active , which awards certification to businesses that measure, reduce and offset their carbon emissions to achieve carbon neutrality. "Offsets do not prevent or undo the harms caused by burning fossil fuels for a customer's energy use," Energy Australia said on 19 May. The utility admitted that carbon offsetting is not the best way to help customers reduce their emissions, as a legal action launched by advocacy organisation Parents for Climate in the Federal Court of Australia in 2023 reached its conclusion. The two parties have settled, with the utility saying it has now shifted its focus to direct emissions reductions. Energy Australia in 2016 launched the ‘Go Neutral' carbon offset product, which is certified by Climate Active and provided residential customers with a way to offset emissions generated by their electricity or gas consumption. But the utility admitted their electricity or gas use was still sourced predominantly from fossil fuels. It withdrew the ‘Go Neutral' product from the market in July last year and is phasing it out for existing customers during 2025. The government has been delaying key decisions on the future of the Climate Active voluntary program , including whether to change the existing list of eligible international units or setting a minimum percentage use of ACCUs. There are currently 528 active certified brands under the Climate Active program, down from almost 590 in the end of 2024. The number of brands that stopped using the certification increased to 240, from around 180 over that same period. By susannah Cornford Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US House panel votes down Republican megabill

25/05/16

US House panel votes down Republican megabill

Washington, 16 May (Argus) — A key committee in the US House of Representatives voted today to reject a massive budget bill backed by President Donald Trump, as far-right conservatives demanded deeper cuts to clean energy tax credits and social spending programs. The House Budget Committee failed to pass the budget reconciliation bill in a 16-21 vote, with four House Freedom Caucus members — Ralph Norman (R-South Carolina), Chip Roy (R-Texas), Josh Brecheen (R-Oklahoma) and Andrew Clyde (R-Georgia) — voting no alongside Democrats. A fifth Republican voted no for procedural reasons. The failed vote will force Republicans to consider major changes to the bill before it comes up for a vote on the House floor as early as next week. Republican holdouts say the bill would fall short of their party's promises to cut the deficit, particularly because it would front-load increased spending and back-load cuts. The bill is set to add $3.3 trillion to the deficit, or $5.2 trillion if temporary provisions were permanent, according to estimates from the nonpartisan Committee for a Responsible Federal Budget. Some critics of the bill said the proposed cut of $560bn in clean energy tax credits is not enough, because the bill would retain some tax credits for new wind and solar projects. "A lot of these credits have been in existence for 30 or 40 years, and you talk about giveaways, we want to help those who really need help," Norman said ahead of his no vote. "That's the heart of this. Sadly, I'm a no until we get this ironed out." Negotiations will fall to House speaker Mike Johnson (R-Louisiana), who can only lose three votes when the bill comes up for a vote by the full House. But stripping away more of the energy tax credits enacted in the Inflation Reduction Act could end up costing Johnson votes among moderates. More than a dozen Republicans on 14 May asked to pare back newly proposed restrictions on the remaining clean energy tax credits. Ahead of the failed vote, Trump had pushed Republicans to support what he calls the "Big Beautiful Bill". In a social media post, he said "Republicans MUST UNITE" in support of the bill and said the party did not need "GRANDSTANDERS". The failed vote has parallels to the struggles that Democrats had in 2021 before the implosion of their push to pass their sprawling "Build Back Better" bill, which was later revived as the Inflation Reduction Act. Republicans say they will work over the weekend on a compromise. The House Budget Committee has scheduled another hearing at 10pm on 18 May to attempt to vote again on the budget package, but any changes to the measure would occur later, through an amendment released before the bill comes up for a vote on the House floor. By Chris Knight Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

UK offshore wind sector needs stability: Industry

25/05/16

UK offshore wind sector needs stability: Industry

London, 16 May (Argus) — The UK's offshore wind sector requires urgent government action to restore investor confidence and meet 2030 decarbonisation goals, industry leaders warned at the All-Energy conference in Glasgow on 14 May. Speaking at the panel Offshore Wind 2024: A Year in Turmoil, experts called for policy stability, streamlined consenting and stronger supply chains to unlock the sector's potential. Chair of industry body Global Wind Energy Council (GWEC) Jonathan Cole criticised the government's proposed locational marginal pricing reforms, arguing they introduce complexity and deter long-term investment. "We're not building coffee shops and bookstores, we're building infrastructure that will sit in one location for generations," he said. Cole warned that a 1pc rise in capital costs could erase £20bn in projected benefits, urging policymakers to prioritise stability over "speculative" market changes. ScottishPower Renewables' chief executive, Charlie Jordan, echoed the need for clarity, highlighting the £75bn investment in UK grid upgrades, particularly in Scotland, as critical for jobs and future-proofing the energy system. He said the ongoing review of electricity market arrangements (Rema) risks undermining grid investment and called for practical measures like general taxation to protect consumers from rising transmission costs. Both panellists stressed the need to accelerate consenting processes to maintain project timelines. They also emphasised strengthening the UK's offshore wind supply chain to compete with nations like South Korea and France. "Without swift action on ports, manufacturing and grid connections, we'll lose opportunities," Jordan said, pointing to Scotland's ScotWind seabed leasing programme and Celtic Sea offshore wind projects. Scotland has 3GW of offshore wind capacity across seven wind farms, including the 1.1GW Seagreen and 30MW Hywind Scotland. Projects under construction, such as the 450MW Neart na Gaoithe and 882MW Moray West, bring the nation's pipeline to 10.2GW expected by 2030, aligning with the Scottish government's 11GW target. The ScotWind seabed leasing round saw 25GW of leasing options agreements awarded in January 2022, with projects like the 2.1GW Berwick Bank, 1.1GW Inch Cape and 560MW Green Volt in planning. But recent setbacks have raised concerns about deliverability. The cancellation of Danish utility Orsted's 2.4GW Hornsea 4 project in May, despite a 15-year contracts for difference (CfD) at £83/MWh, underscores the sector's challenges. Orsted cited rising costs and "execution risks" from installing 180 turbines, highlighting economic unviability under current conditions. Transparency in energy pricing was deemed essential for public support. Jordan said prohibitive costs, driven by taxes and seabed leasing fees, make UK industrial users 70pc less competitive than their European counterparts. Cole added that clear communication is vital as discussions about market reforms and potential EU alignment intensify. With the upcoming seventh round of the CfD scheme and ongoing government consultations, the panel urged decisive action to stabilise the sector. "This is the time for long-term vision, not academic experiments," Cole said. By Timothy Santonastaso Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Austrian PV additions fall 100MW on year in 1Q

25/05/15

Austrian PV additions fall 100MW on year in 1Q

London, 15 May (Argus) — Austrian solar photovoltaic (PV) capacity additions fell by around 100MW on the year in the first quarter of 2025, solar association PV Austria told Argus , a decrease of around 20pc. Newly installed PV capacity in January-March stood at 399MW, PV Austria said, compared with 497MW added in the first quarter of last year, according to data from grid regulator E-control. But late reports from Austria's distribution system operators may still cause a slight uptick in capacity addition numbers for the last quarter, PV Austria said. The association largely attributed the fall in solar additions to uncertainty around government policies, which "compromised" planning security and "jeopardised" investments into renewable energy, it told Argus . And it cited the "abrupt" end of the VAT exemption for small PV systems as well as the extension and tightening of the energy crisis contribution as further reasons for the decline. PV Austria called on the government to pass the electricity industry act (ElWG) and the renewable energy expansion acceleration act (EABG) as soon as possible. The government in February pledged to pass the ElWG in the summer of this year. Austria had just under 8.3GW of solar capacity installed as of the start of January, the latest data from transmission system operator APG show. Solar output more than doubled on the year in 2024 and APG has several times highlighted the challenges posed by increased PV capacity for demand forecasting and grid stability during times of solar peaks, when excess power must either be transported abroad or to storage power plants and can also lead to curtailments at wind and hydropower units. By John Horstmann Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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