1.

4 Investment and development plans of local governments

Local governments take part in Smart city projects in Japan through R&D,
developing master-plan and forming alliance. Except big cities, local governments
have weak financial basis; hence, a large scale investment by local governments is
not likely. As a consequence, many projects remain at the planning & development
phase.
Majority of local governments rely on state subsidies. When a project is put into
place, for instance, installation of PV+HEMS is subsidised by the central and local
governments: the amount of subsidy given by the central government is usually
larger.

In the process of reconstruction, communities hit by the GEJE were requested to

submit proposals for smart city project to the Ministry of Economy, Trade and
Industry (METI). METI is going to allocate a total of 8.6 billion JPY for those
projects.

1.5 Incentives for smart cities by the government

There are various subsidies and tax scheme for sustainability connected initiatives,
some of which are special measures for to the GEJE. Private developers in Japan
may qualify for 50% subsidies to build shared use buildings under a program to
foster more sustainable cities. Buyers of energy efficient homes may qualify for
tax breaks. Many of smart city projects are supported by the METI’s subsidy
scheme. One of the programs by the Ministry of Land, Infrastructure and
Transport will support the growth of centralized, low-emission cities with
legislation that would provide subsidies to companies that undertake development in
line with local governments ‘vision for reconstruction. The government also
have support programs for companies, organization and consortium to participate
in smart city programs abroad.

1.6 Information on legislation

There is no clear legislation aimed at smart cities or eco cities. However, there are
numerous regulations which relate each component of smart city. Some of these
regulations are being eased to accelerate the process of reconstruction.
Smart cities in Japan remain mostly conceptual and fragmented because of redtapes
and bureaucratic legislations. Building a smart house is possible. However,
creating smart housing block is cumbersome affairs which need to clear
legislations one after another.
1.7 Projects and tenders
In principle, tenders are open for foreign companies. In practice; however,
foreign companies need to be represented in Japan. In March 2012, TEPCO
invited proposals for the specification for smart meters from domestic and foreign
suppliers to enhance price competitiveness. Proposals could be submitted in
English, yet, in order to be accepted, Japanese language is a must.
1. Next-Generation Energy and Social Demonstration -
http://www.meti.go.jp/english/press/data/20100408_01.html
The four projects, Yokohama City, Toyota City, Keihanna City (Kyoto
Prefecture’s Kansai Science Park), Kitakyushu City, which are supervised
by METI from 2010, are running ahead of other smart city projects in
Japan. The Yokohama Smart City Project (YSCP) is the best-known and
the most-advanced project.