The New Purchase System for Photovoltaic Electricity will be launched November 1, 2009.

The Ministry of Economy, Trade and Industry (METI) today issued directives relevant to the Law on the Promotion of the Use of Nonfossil Energy Sources and Effective Use of Fossil Energy Materials by Energy Suppliers (Law No 72 of 2009), including ministerial ordinances and notifications. Pursuant to them, the New Purchase System for Photovoltaic Electricity will be launched on November 1, 2009.

The details of this system have been discussed by the Purchase System Subcommittee (Chair: Kenji Yamaji, professor at the School of Engineering, University of Tokyo) under the Electricity Industry Committee and the New and Renewable Energy Subcommittee of the Advisory Committee for Natural Resources and Energy. The results have been compiled into the Subcommittee’s report on the detailed design of the purchase system.

Background

The New Purchase System for Photovoltaic Electricity is of critical importance for Japan in not only promoting energy security and global warming prevention but also countering the economic crisis. The basic concept of the system was developed by the New and Renewable Energy Subcommittee. Its detailed design, which is closely related to issues addressed by the Electricity Industry Committee, has been discussed by the Purchase System Subcommittee, a new group formed under both the Electricity Industry Committee and the New and Renewable Energy Subcommittee.

New Purchase System for Photovoltaic Electricity

In consideration of these discussions, METI today issued the directives needed for the implementation of the New Purchase System for Photovoltaic Electricity, including ministerial ordinances and notifications. Pursuant to them, the New Purchase System for Photovoltaic Electricity will be launched on November 1, 2009.

This system obliges electric utilities to purchase excess electricity generated through Photovoltaic facilities at specified prices. For example, electricity from households will be purchased at ¥48/kWh, and that from non-households at ¥24/kWh.

Issuance of other related directives

In connection with the introduction of the New Purchase System for Photovoltaic Electricity, METI issued directives to define the target of renewable energy use by power companies under the Act on Special Measures concerning New Energy Use by Electric Utilities (RPS Act). After consideration of the results of the discussion by the RPS Act Subcommittee (under the New and Renewable Energy Subcommittee of the Advisory Committee for Natural Resources and Energy) and the public comments received, these directives stipulate that the mandatory target for power companies should be set by the target amount of use of electricity generated through wind, biomass, hydroelectricity, geothermal power, and other renewable energies.

Release Date

August 31, 2009

Division in Charge

New Purchase System for Photovoltaic Electricity
-New and Renewable Energy Division, Energy Conservation and Renewable Energy Department, Agency for Natural Resources Energy
-Electricity Market Division, Electricity and Gas Industry Department, Agency for Natural Resources and Energy
RPS Law
-Office of Renewable Portfolio Standard, Energy Conservation and Renewable Energy Department, Agency for Natural Resources and Energy

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