On March 7, 2014, the Procurement Price Calculation Committee compiled and publicized a recommendation concerning the FY2014 purchase prices and the periods thereof. Respecting the recommendation, METI finalized the prices and periods thereof as below:

1) Electricity generated by photovoltaic power for customers other than households (10 kW or more)

	FY2013	FY2014
Purchase price (excluding tax)	36 yen /kWh	32 yen /kWh
Purchase period	20 years	20 years

2) Electricity generated by photovoltaic power for household customers (10 kW or less)

	FY2013	FY2014
Purchase price (excluding tax)	38 yen /kWh	37 yen /kWh
Purchase period	10 years	10 years

3) Electricity generated by offshore wind power* (newly created purchase category)

Purchase price (excluding tax)	Offshore wind power	36 yen /kWh
	Reference: Land-based wind power	22 yen /kWh
Purchase period		20 years

*Note 1: Electricity generated by offshore wind power refers to that generated at facilities for which ships and other vehicles must be used to gain access, either for the purposes of construction or operational maintenance.

4) Electricity generated by small and medium hydropower utilizing existing headrace tunnels** (newly created purchase category)

		Less than 200 kW	From 200 kW to less than 1000 kW	From 1000 kW to less than 30,000 kW
Purchase price (excluding tax)	Utilizing existing head race channels	25 yen /kWh	21 yen /kWh	14 yen /kWh
	Reference: Installing fully new facilities	34 yen /kWh	29 yen /kWh	24 yen /kWh
Purchase period		20 years

**Note 2: Electricity generated by utilization of existing headrace tunnels refers to that generated by upgrading electricity facilities and hydroelectric water pipes by utilizing currently installed headrace tunnels.

5) Electricity generated by other renewable energy sources

Purchase prices and purchase periods will remain the same.

METI calculated possible FY2014 surcharge rates based on the purchase prices and other factors in item 1 above and as a result, determined the rate of 0.75 yen/kWh. As a reference, monthly surcharges collected from average households which consume 300 kWh per month will be 225 yen based on this rate.*

In addition, FY2014 surcharge rates will be added to the electricity rates billed between May 2014 and April 2015.

*Note: In addition to the FY2014 surcharges, those set by the Excess Electricity Purchasing Scheme for Photovoltaic Power, which was abolished at the end of June 2012, will be added to the electricity rates billed for every month until September 2014 as follows:

	Hokkaido	Tohoku	Tokyo	Chubu	Hokuriku	Kansai	Chugoku	Shikoku	Kyushu	Okinawa
Surcharges per 1 kWh under the abolished system	0.04 yen	0.05 yen	0.05 yen	0.03 yen	0.04 yen	0.03 yen	0.05 yen	0.05 yen	0.04 yen	0.03 yen

For further details, see the Japanese language press release.

1: Procurement Price Calculation Committee

Recommendation concerning the FY2014 purchase prices and the periods thereof:
/committee/chotatsu_kakaku/report_003.html (in Japanese)

2: Working Group for Operating the Feed-in Tariff Scheme of the New and Renewable Energy

Subcommittee under the Advisory Committee for Natural Resources and Energy:
/committee/gizi_8/19.html (in Japanese)

March 25, 2014

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