Japan will approve landmark renewable energy bill

In the early morning of August 13, the Japanese cabinet’s government plans to pass a renewable energy bill backed by Japanese Prime Minister Naoto Kan. This is a way for Japan to reduce its dependence on nuclear energy after the worst nuclear power plant accident in the history of Japan. This will likely break the market monopoly of Japan's top 10 power plants.

The bill, aimed at boosting investment in renewable energy, will likely be passed by the end of this month. Ironically, this also paved the way for Japanese public opinion to support the resignation of the very low Prime Minister Naoto Kan.

The main feature of the bill is that it requires Japanese companies to purchase energy from external suppliers such as private companies and cooperatives under certain circumstances. This opened the door for Japan to increase the use of renewable energy, and Japan's development in renewable energy is relatively slow, accounting for only 9% of total energy sources.

However, large manufacturers who have suffered from power shortages and strong yen damage may face higher electricity costs.