Keidanren Chair Yonekura is back in the news once again talking about how the Kan plan to emphasize solar, wind, and other “natural” energy resources will drive up electricity costs and drive industry overseas. The “drive up electricity costs” comes because the plan calls for the electric power companies to buy surplus from non-power companies (e.g., households and factories) at a price high enough to encourage development of such disbursed power generation. And assuming the electric power companies (which may well end up being the electrical grid company in Tepco’s case) pass these costs along, electricity will cost consumers more.
Assuming, that is, the consumer is purely a consumer and is not also selling power to the grid. Because if you are selling a lot of power to the grid during the day and buying a little in the evening, you could well come out ahead. The key numbers are (1) how much you produce, (2) how much of your production you use, (3) how much you sell to the grid, and (4) how much you buy from the grid. Plus the buy and sell prices.
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Strangely, Yonekura seems to assume that factories with extensive roof surfaces cannot possibly install solar power equipment and meet most of their own needs. He seems to assume that industry will have the same buy-from-the-grid pattern it does today. Me? I give Japanese industry more credit for adaptability.