Growth in distributed power, solar energy after Japan's nuclear crisis

New Frost and Sullivan market insights finds that problems with nuclear plants and the grid system can lead Japanese consumers and politicians to demand new solutions

Mountain View, Calif., March 24, 2011 — The recent crisis in Japan has hit the country's power grid with intensity that may take months to rebuild, and could have lasting repercussions on parts of the Japanese economy. It may help spur growth in other power markets, such as alternatives and distributed generation.

New Frost and Sullivan market insights finds that problems with nuclear plants and the grid system can lead Japanese consumers and politicians to demand new solutions. These requests may include non-centralized electricity generation, solar power and micro combined heat and power (microCHP).

"Japan is already a world leader in green and alternative power research and usage," said Frost & Sullivan energy and environment markets research director Roberta Gamble. "Expanding the market at a faster rate can help spur innovations that increase efficiencies and reduce costs, which can have a global impact in terms of making these technologies more attractive outside of Japan as well."

Alternative energy costs are high compared to traditional solutions, but Japan has a history of aggressive incentives and mandates that help grow the market. This factor, in addition to the nuclear crisis, could lead to further growth in distributed power and solar energy.

"The concerns of nuclear power and an extensive grid system, both of which have been adversely affected by the earthquake and tsunami, may further mobilize national sentiment," said Gamble. "Public officials may be pushed to pursue more aggressive green energy and distributed generation solutions."

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