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ces. This is seen as opening the door for much greater use of renewable energy, an area where Japan lags, accounting for just 9% of total supply. But big manufacturers, already hurt by power shortages and the effects of the high yen on exports, will face higher electricity bills as a result. The legislation, known as a feed-in-tariff law, puts the industry minister in charge of setting the prices at which utilities are obliged to purchase electricity from renewable power generators. The idea was given little chance of winning legislative approval until the Fukushima disaster created a groundswell of opposition to nuclear power. But its expected passage is also due to the personal efforts of Kan, who said he was first inspired by renewable energy in 1980 when he visited a wind farm in Denver, Colo., and who insisted he wouldn't leave office until the law is enacted. Kan has predicted the legislation would spark "explosive growth" in solar and wind power. He has made a commitment to raise the share of renewable energy to at least 20% of total power supply by early 2020s. But even with the new legislation, Hisashi Hoshi, an analyst at the Institute of Energy Economics, Japan, said "achieving the target will not be easy without offering generous incentives." The challenge of connecting a large number of renewable power generators to the grid is another possible hurdle. Upgrading the grid is expected to take time and cost up to Y2 trillion, according to the Ministry of Economy, Trade and Industry. To ease the burden on heavy electricity users such as electric furnace steelmakers, the legislation leaves open the possibility of reducing a new surcharge for large power users. The concession came after fierce opposition to the legislation from the steel industry. The feed-in-tariff is expected to galvanize Japan's solar panel makers, such as Sharp Corp. (6753.TO) and Kyocera Corp. (6871.TO), and give a much-needed boost to the wind power industry. But even Sharp is of two minds, since it also ranks as a major consumer of electricity a
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