Aomori Prefecture is considering imposing taxes on solar and onshore wind power facilities, including existing projects, a proposal that has been strongly opposed by three industry associations. At a meeting of the prefectural expert committee held on the 2nd, representatives of these associations pointed out that this is an improper practice of “ex post facto taxation”. At the same time, they also objected to the development restriction area division that is stricter than the national standard. This dispute highlights the policy contradiction between renewable energy development and environmental protection in Aomori Prefecture, which has always been regarded as an important base for the development of renewable energy in Japan.
The three industry organizations that participated in the meeting and expressed their opinions were: the Japan Wind Power Association, the Solar Power Association, and the Renewable Energy Long-term Stable Power Source Promotion Association.
Aomori Prefecture plans to introduce a “new renewable energy tax” for solar and onshore wind power generation in the prefecture, which will cover existing projects. It is worth noting that Miyagi Prefecture, which took the lead in implementing a similar policy in April this year, ultimately decided not to levy taxes on existing facilities due to strong opposition from businesses.
The three industry associations clearly expressed their opposition to the imposition of new taxes on existing projects. They believe that it is impossible to foresee new tax policies in the future during the project development period, and such retroactive taxation is unreasonable. They also oppose the imposition of taxes on projects under development.
Representatives of the association pointed out that most renewable energy projects rely on loan support from financial institutions. The new tax policy may affect the attitude of the financial industry, leading to stricter loan approval, and ultimately reducing investors’ willingness to invest in Aomori Prefecture. They also said that they may have to consider using the revenue originally planned for local feedback to pay for the new tax.
Regarding the demarcation of protected areas, the associations objected to the county government’s inclusion of Category 2 and 3 natural park areas in areas where renewable energy development is prohibited, called for not setting restrictions that are stricter than national standards, and suggested that full consideration be given to the positive attitude of local governments towards the development of renewable energy.
Saito, director of the Japan Wind Power Association, said at the meeting that the association will strive to reach a consensus through careful communication on the basis of ensuring the understanding and trust of local residents, promote the healthy development of renewable energy, and contribute to the development of Aomori Prefecture.
Data shows that Aomori Prefecture’s wind power generation reached about 1.48 billion kWh in fiscal 2022, ranking first in the country. Although national policies support the “maximum promotion” of renewable energy, conflicts with local residents still exist in some areas due to landscape issues.
