Agency for Natural Resources and EnergyRelease of a Model Contract for the Feed-in Tariff Scheme for Renewable Energy
The Ministry of Economy, Trade and Industry (METI) has prepared a model contract which will be useful for finalizing contracts between electric utilities and businesses that generate electricity using renewable energy sources, based on the feed-in tariff scheme for renewable energy.
Under the Feed-in tariff scheme for renewable energy, businesses that generate electricity using renewable energy sources are able to have electric utilities purchase electricity generated from such energy sources during a fixed period at a fixed price based on contracts between such businesses and utilities.
METI has produced a model contract to contribute to the smooth finalization of contracts between such businesses and electric utilities. METI created the model contract in accordance with the Act on Special Measures Concerning New Energy Use by Operators of Electric Utilities (hereinafter called the "Act") and other provisions defined in the related laws and regulations, while considering practical requirements and other procedures related to fundraising activities of such businesses.
Note: METI created the model taking the following cases into consideration:
1) A case where a business that generates electricity using renewable energy sources concludes a contract with a purchaser of the electricity who is not only an electric utility but one to which the business is connected under an interconnected power system;
2) A case where a business generates 500kW or more electricity using approved facilities for solar and wind power generation;
3) A case where a business concludes a specific contract and grid connection contract with an electric utility even before starting the installation of approved facilities for power generation; and
4) A case where a business raises funds from financial institutions or other organizations to start a power generation business.
It should be noted that the model provided here is merely one example of potential contract documents and that the model does not preclude use as a basis for a contract while adding or deleting contract provisions as appropriate, according to the nature of energy sources, sizes of facilities for power generation, or individual contents of the contract, to the extent that the final contract is not inconsistent with the provisions or purposes of laws and regulations.
In addition, the model does not preclude the use of other contract documents, although it is necessary to create a contract document consistent with the Act and other provisions defined in the related laws and regulations.
September 26, 2012
Division in Charge
Energy Conservation and Renewable Energy Department, Agency for Natural Resources and Energy