METI
Font Size Change
S
M
L
Easy Web Browsing tool

Agency for Natural Resources and Energy Promulgation of the Partial Revision of the Act on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources by Electricity Utilities

The Partial Revision of the Act on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources by Electricity Utilitieswas approved and established by the 190th ordinary session of the Diet on May 25, 2016, and promulgated on June 3, 2016.

The Revised Act stipulates the revision of the new Feed-in Tariff (FIT) scheme to achieve both the introduction of renewable energy to the maximum extent possible and the curbing of the public burden.

1. Background to and objectives of the Act

Since the launch of the FIT scheme based on the Act on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources by Electricity Utilities in July 2012, the amount of introduced renewable energy under the scheme has almost doubled compared to under the previous scheme.

As in previous years, it is necessary for Japan to appropriately operate the FIT scheme and continue making progress in the introduction of renewable energy into society so as to achieve the FY2030 target for the introduction of renewable energy (renewable energy representing 22% to 24% of all sources for generating electricity), which was set in the Long-term Energy Supply and Demand Outlook formulated in July 2015.

  • Meanwhile, the following challenges in the FIT scheme have been pointed out:
    1. Promoting the well-balanced introduction of power sources to overcome the current situation where photovoltaic power generation (over 10kW) accounts for approximately 90% of the total amount of electricity authorized under the FIT scheme;
    2. Promoting the introduction of renewable energy in a cost-efficient manner to curb the public burden, considering that the amount of purchase cost has reached about 1.8 trillion yen;
    3. Realizing the efficient trade and distribution of electricity by taking advantage of the outcome of the Electricity System Reform, in light of the problem that Kyushu Electric Power Co., Inc. and other utilities suspended businesses’ applications for entering the renewable energy market in 2014.

The Revised Act addresses these challenges found in the existing FIT scheme and stipulates a new measure to achieve both the introduction of renewable energy to the maximum extent possible and the curbing of the public burden.

2. Outline of the Revised Act

  1. Creation of a new authorization system
    • Concerning a business plan that a renewable energy power generation utility should submit before entering the market, the Revised Act stipulates provisions to create a new authorization system under which the feasibility, e.g., ensuring the connection to grids, and details of the business plan are confirmed, and when the utility is expected to be able to operate the business appropriately, the METI Minister authorizes the utility.
  2. Revised method of setting purchase prices
    • Concerning the setting of procurement prices, the Revised Act stipulates provisions to introduce a new system under which purchase prices are set through public tender if considered effective for reducing the burden of electricity consumers, aiming to allow utilities to adopt a price setting system according to the characteristics and other elements of energy sources.
      In addition, the Revised Act also stipulates provisions to allow utilities to set multiple-year procurement prices in advance concerning the power sources that require long-term development.
  3. Revision of businesses obliged to purchase renewable energy and other regulations
    • The Revised Act stipulates provisions to change the definition of businesses obliged to purchase renewable energy from electricity retail businesses to electricity transmission and distribution businesses, so as to further expand the introduction of renewable energy electricity through the operation of wide-area electricity grids and other measures.
      In addition, the Revised Act stipulates measures to require utilities to sell purchased electricity at a wholesale electricity market and those to require utilities to submit a notification to the METI Minister of provisions that stipulate the conditions of electricity supply.
  4. Revision of the arrangement for reducing surcharges on electricity rates
    • A business that consumes a large amount of electricity is eligible to enjoy the arrangement for reducing surcharges on electricity rates. Concerning the arrangement, the Revised Act stipulates provisions to introduce a system under which a business that has applied for the arrangement is approved in light of its engagement in energy saving efforts and its current state of international competition.

3. Effective date

April 1, 2017
(Note: Provisions related to the revision of the arrangement for reducing or exempting surcharges on electricity rates mentioned in item 4) above: October 1, 2016.)

4. Details

For details of the Act, articles, and materials describing the outline, visit the following website:
ANRE website: Let’s get the key points of renewable energy systems! (in Japanese)external link

Release date

June 3, 2016

Division in Charge

New and Renewable Energy Division, Agency for Natural Resources and Energy

Related Information

Ministry of Economy, Trade and Industry1-3-1 Kasumigaseki, Chiyoda-ku, Tokyo 100-8901, Japan Tel: +81-(0)3-3501-1511
Copyright Ministry of Economy, Trade and Industry. All Rights Reserved.