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Annex B7. Japan Instruments Renewable heat policy New energy law - PSNEO - PLINE - Taxes to promote energy structure - Local energy tax system - Subsidies for community energy projects - Biomass nippon strategy Special measures for new energy In 1993 the Japanese government gave the responsibility of promoting new energy and energy conservation technology to the New Energy and Industrial Technology Development Organization (NEDO)73. In June of 1997 a New Energy Law was introduced defining “New Energy” as an oil-alternative energy resource including hydrogen fuel-cells, renewables, waste power, and CHP facilities. The law was revised in 2002 to include biomass and cold energy from snow and ice. In May 2006 it was proposed that the definition include geothermal, small-scale hydro, and waste energy from fossil fuels. The New Energy Law acts as an umbrella policy under which a number of more specified policies exist. Incentives were designed as grants and subsidies, preferential tax treatment, and loan schemes. Each category is the responsibility of one of the Ministry of Economy, Trade and Industry (METI), Ministry of Environment (MOE), Ministry of Agriculture, Forestry and Fisheries (MAFF), and the Ministry of Land Infrastructure, and Transport (MLIT) The first pillar of the New Energy Law, offers grants and subsidies for technological development (RD&D), demonstration and field test projects, and introduction and dissemination. In addition to several of the policies listed in detail below, the Subsidization for the Development and Promotion of Biomass Utilization programme €8.6 M (¥14 400 M74) in 2005 and €9.6 M in 2006 and the Project for Promoting the Introduction of High-efficiency Housing/Building Energy Systems, offering subsidies for geothermal heat-pumps (GHPs) of €31,200 in 2006, have also been designed in support of renewable heat, at least in part. Carrot. Under the umbrella of the New Energy law, the Support Programs for Assisting New Energy- Related Businesses (PSNEO) scheme was created. An incentive of one third of installation costs and a guarantee for 90% of any debt accrued is provided. These incentives are available to private sector firms that invest in advanced new energy technologies and facilities including solar thermal, differential temperature energy, and waste heat (IEA, 2004). In 2004, an annual budget of €28.9 M was allocated for all renewables including solar PV, natural gas co-generation, and others in addition to renewable heat decreasing to €20.7 M in 2005 and increasing to €23.7 M in 2006 (Tomita, 2007). Carrot and Guidance. The Project for Promoting the Local Introduction of New Energy (PLINE) scheme under the New Energy Law offers subsidies for renewable energy projects including solar thermal, waste thermal, water-source heat pumps, and biomass. Small hydro and geothermal energy generation are ineligible. 73. NEDO was established initially in 1980 by the Japanese government to develop new oil-alternative energy technologies. 74.1000¥=€6 173 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006PDF Image | RENEWABLES FOR HEATING AND COOLING
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