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of the surveys planned after FY2010 are not going to be conducted because the survey system is demolished based on the results of the review of projects administered by METI. Geothermal Development Promotion Survey will be conducted by METI from FY2011. METI published the result of a political review on the subsidy for development of small- and medium-scale hydraulic and geothermal power in 28 May 2010, and concluded that the subsidy will be reconsidered or abolished. This subsidy includes ―the Geothermal Development Promotion Surveys‖ and this is actually a statement of abolition of the project. The big mistake of this decision was immediately demonstrated by the Great East Japan Earthquake. The Japanese government has taken a leading role in the development of geothermal energy resources. The government has introduced a compensation system for geothermal developers that provides compensation for interest on bank credits to support developers undertaking well drilling, a process that requires a large investment at an early stage. There are two types of subsidies for companies developing power plants, one aimed at the drilling of exploration wells, with a subsidy ratio of 50%; and the other for the construction of production and reinjection wells, and facilities above the ground, with a subsidy ratio of 20%. These systems started in 1983. Beginning in 2002, binary facilities in geothermal power generation systems were rewarded with a subsidy ratio of less than a one-third. The actual subsidy record for FY 2009: 3 Production wells were drilled at: Matsukawa, Kakkonda and Ogiri 4 Reinjection wells were drilled at: Kakkonda, Otake, Yamakawa, and Hatchobaru 3 Power Plant Facilities: new pipe laying at Ogiri, Kirishima international hotel and Takigami, pH control system at Takigami 14.5.2 Development Cost Trends The latest construction of the conventional steam turbine type geothermal power plant was in Hachijojima in 1999. There are no recent statistics on the development cost, so that it is difficult to comment on development cost trends. During the last ten years‘ stagnancy, the trend of geothermal power plant design is shifting from a large-scale to a relatively small-scale. Therefore, the total cost of construction tends to decrease, but the unit construction cost is increasing. 14.6 Development Constraints The recent reduction of political supports to geothermal development is a primary constraint to geothermal market promotion in Japan. Internationally, geothermal energy is categorized as a renewable energy together with solar, wind, hydro and biomass energy. However, in Japan, only solar and wind were classified as ―New Energy‖ that enjoyed protection under the Special Measures Law for the Promotion of the Use of New Energy enacted in 1997. Geothermal energy was not included. Moreover, in 2001, biomass was added to the list of ―New Energy‖ to be promoted by the New Energy Subcommittee of the Advisory Committee for ANRE, but geothermal energy was not. According to the Energy Supply and Demand Outlook presented by the government, future growth in geothermal energy is assumed to be zero. Consistent with this perspective, in 2001, the METI decided to cut the entire budget for geothermal energy research and development (Figure 14.2). This decision was purely political. However, geothermal energy was legally included in the category of ―New Energy‖ in 2008, and this should reduce constraints on development. 161PDF Image | Geothermal Research and Tech IEA
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