According to The Climate Group, new legislation in China and laws about to be enacted in Japan could be the global tipping point for renewables achieving grid parity with fossil fuel-based power generation.

A bill has passed Japan’s lower house of Parliament that proposes feed-in tariffs to support growing the country’s renewable sector to 10 trillion yen ($129.75bn) by the end of this decade, supplying 20 per cent of Japan’s electricity needs. Japan’s trade minister, Banri Kajeda said that rates for most forms of renewable energy will attract a payment of up to 20 yen per kWh for around 15 years.

Damian Ryan, policy manager of The Climate Group, said: “The likelihood that Japan will follow China in rolling out major policy incentives to scale up renewable energy production is an exciting prospect.

“The demand created by these two Asian giants could well provide the global tipping point that accelerates the emergence of renewables as cost-competitive or indeed cost-beating alternatives to fossil fuel power generation.”

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