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Table 2 Comparison of cost structures and performance of renewable energy by type of technology for Germany and Japan

From: Regional economic effects of renewable energies - comparing Germany and Japan

Cost and revenue structures (JPY/kW) (for installations in the year 2012) Solar Wind Hydro Biomass
150 kW (roof) 1,000 kW (ground) 2,000 kW (onshore) 200 kW 5,000 kW (wood)
Germany Japan JP/GER Germany Japan JP/GER Germany Japan JP/GER Germany Japan JP/GER Germany Japan JP/GER
At planning and installation stage                
Total investment 235,300 369,533 157% 208,000 372,000 179% 177,190 360,673 204% 968,108 1,587,500 164% 502,154 478,400 95%
Direct investment cost 149,240 260,000 174% 140,504 238,000 169% 130,000 230,000 177% 683,668 600,000 88% 432,464 287,000 66%
Indirect investment cost (e.g. planning/construction) 86,060 109,533 127% 67,496 134,000 199% 47,190 130,673 277% 284,440 987,500 347% 69,690 191,400 275%
At system operation stage                
Operating cost 20,246 34,005 168% 18,184 31,158 171% 19,444 33,269 171% 68,048 139,112 204% 114,984 184,957 161%
Operator revenue 26,430 42,048 159% 26,998 37,843 140% 25,966 38,544 148% 90,055 177,828 197% 136,577 201,830 148%
Profit before tax 6,184 8,043 130% 8,814 6,685 76% 6,522 5,275 81% 22,006 38,716 176% 21,593 16,873 78%
ROS from operation (before tax)* 23.4% 19.1% −4.3% 32.6% 17.7% −15.0% 25.1% 13.7% −11.4% 24.4% 21.8% −2.7% 15.8% 8.4% −7.4%
ROE from operation (before tax)** 8.5% 7.3% −1.2% 7.4% 6.0% −1.4% 13.9% 4.9% −9.0% 7.0% 8.1% 1.1% 11.6% 11.8% 0.2%
Investment-related ratios                
Operating cost/total investment 9% 9% 1% 9% 8% 0% 11% 9% −2% 7.0% 9% 2% 23% 39% 16%
Other investment/total investment 37% 30% −7% 32% 36% 4% 27% 36% 10% 29% 62% 33% 14% 40% 26%
  1. *Own calculation based on primary research data on cost, investment, and equity for Japan and on IÖW data for Germany (Hirschl B, Heinbach K, Prahl A, Salecki S, Schröder A, Aretz A, Weiß : Wertschöpfung durch Erneuerbare Energien – Ermittlung der Effekte auf Länder- und Bundesebene, forthcoming); ROE figures for Germany are referring to the underlying assumptions of the German government and public research institutions on ROE industry averages for RE projects which are applied for the determination of technology-specific feed-in-tariffs; these assumptions are published in the review report on the Renewable Energy Law (‘EEG Erfahrungsbericht’).
  2. **The underlying equity ratios differ slightly between Japan and Germany: for Japan 30%; for Germany: 25% (water/wind), 30% (150 kW solar/biomass), 50% (solar 1 MW)/exchange rate: 130JPY/Euro.
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