Japanese automakers have been developing electric vehicles as a lowenvironmental-load alternative to gasoline-powered vehicles, and some of them are planning to start regular sales of electric cars in 2009, including Fuji Heavy Industries' R1e and Mitsubishi Motors' i MiEV. The market for EVs is expected to grow, supported by government subsidies. The new electric vehicles will be able to run 80–160 kilometers on a single charge. A network of charging stations should also take shape.
Meanwhile, in line with the Action Plan for Achieving a Low-Carbon Society (approved by the cabinet in July 2008), which seeks to increase photovoltaic (solar) power generation 10-fold by 2020 and 40-fold by 2030, the government is expected to expand its support for technological development in this field. We can expect to see subsidies and tax breaks for households and others switching to solar power.
Japan's New Energy and Industrial Technology Development Organization (NEDO) is completing its project for demonstration of residential fuel-cell systems for market creation in fiscal 2008 (year through March 2009), and regular sales are expected to start. Residential polymer electrolyte fuel cell (PEFC) systems generate electricity from the reaction between hydrogen (produced from city gas, kerosene, or other sources) and oxygen in the air. The exhaust heat produced during the generation process can be used to heat water, making this an energy-efficient approach. The government is expected to provide subsidies for the introduction of these systems.
(International Affairs Team, Economic Research Team, and New Technology Promotion Office, December 17, 2008)
