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with the need for new power generation following the March 2011 Tohoku earthquake and tsunami, these actions are seen as encouraging the development of new geothermal energy plants.150 Obstacles, however, remain. One of the main challenges in developing geothermal resources in Japan is that most of the best resources are in national parks and/or close to areas that rely on hot springs to support their local economy; in such areas, residents and businesses are concerned about the potential impact of geothermal power plants on the hot springs.151 In addition, the development of large power plants typically takes 8 to 10 years, so it is unlikely that a significant number of new large power plants will come online in the next few years. Smaller plants can, however, be developed more quickly.152 While no large projects have moved forward recently, U.S.-based equipment supplier Ormat has been active in the Japanese market. It supplied equipment in 2004 for at least one smaller project, a 2 MW plant, and is the supplier for an upcoming 1.5 MW project. Several other projects, both small and large, have been announced, but available information indicates that participation in these projects by U.S. firms is limited, at least so far.153 150 Industry representatives, interviews by USITC staff, Tokyo, May 13, 2013, and May 14, 2013; Crowe, “Japan’s Geothermal Resources Get a Closer Look,” May 11, 2011; Watanabe, “Japan Considering,” April 9, 2013. 151 Industry representatives, interviews by USITC staff, Tokyo, May 13, 2013, and May 14, 2013. 152 Ibid. 153 BNEF database (accessed June 3, 2013). 5-37PDF Image | Renewable Energy and Related Services: Recent Developments
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