Kyushu Electric Says About 5,000 Solar Projects Cut Amid Reviews

(Bloomberg) — Kyushu Electric Power Co. said about 5,000
solar-power projects planned in regions served by the Japanese
utility have been canceled amid reviews of grid capacity for
clean energy.

The projects canceled in February would have combined
capacity of about 1,400 megawatts, Daishin Kuramoto, a spokesman
for Kyushu Electric, said by phone Thursday, confirming an
earlier report by the Mainichi newspaper.

Kuramoto declined to comment on what led developers to call
off their plans, saying they weren’t asked to give the company
reasons.

The cancellations came after a recent government rule
change that allows utilities to ask solar-power producers to
reduce output without having to compensate them once utilities’
grid capacity for clean energy reaches its peak.

The government is reviewing ways to incorporate more clean
energy into Japan’s power grids amid a boom in solar
installations triggered by an incentive program introduced in
July 2012.

Kyushu suspended giving grid access to new entrants in
September to review how much more clean energy its grids can
handle. Other utilities followed, raising concerns for solar
developers.

The Ministry of Economy, Trade and Industry later announced
rule changes, including one that would remove obligations for
utilities to compensate solar-power producers.

To contact the reporter on this story:
Chisaki Watanabe in Tokyo at
cwatanabe5@bloomberg.net

To contact the editors responsible for this story:
Reed Landberg at
landberg@bloomberg.net
Ana Monteiro, Amanda Jordan

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