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Demonstration Experiment on Sale of Non-fossil fuel energy certificates with Tracking Information

December 17, 2018

The Ministry of Economy, Trade and Industry (METI) will conduct a demonstration experiment to add tracking information, such as electricity source types and power plant locations, to non-fossil fuel energy certificates to be auctioned in February 2019. Electricity labeled with the non-fossil fuel energy certificates with tracking information that is sold by electricity retailers is considered to originate from renewable energy sources. Users can utilize their purchase of such power in their efforts to prove compliance with RE100.* This will expand companies' options for procuring renewable energy.

* RE100 is an initiative by the Climate Group of the United Kingdom and the CDP, aiming to source 100% of electricity to be used for business operations from renewable sources.

1. Outline

The Act on the Promotion of Use of Non-fossil Energy Sources and Effective Use of Fossil Energy Materials by Energy Suppliers requires electricity retailers to increase the ratio of non-fossil sources of the electricity they supply to 44% by 2030. In order to assist the achievement of this goal, a non-fossil fuel energy value trading market, which enables electricity retailers to purchase certificates representing non-fossil fuel value, was created in May 2018.

Non-fossil fuel energy certificates sold to this point only certify the environmental value originating from sources under the FIT system; however, detailed information, such as electricity source types and power plant locations, was not clarified. Such tracking information is added in this demonstration experiment. Electricity labeled with the non-fossil fuel energy certificates with tracking information sold by electricity retailers is considered to originate from renewable energy sources. Users can utilize their purchase of such power in their efforts to comply with RE100. This will further enhance the convenience of non-fossil fuel energy certificates and will expand options for procuring electricity originating from renewable energy in Japan.

The method of participating in the demonstration experiment and information on briefing sessions for companies will be provided on the portal site below. We hope for the participation of many electricity retailers and power generation companies.

2. Demonstration experiment

Timing: On the occasion of the auction for non-fossil fuel energy certificates for electricity originating from FIT renewables to be held in February 2019
Targets: Electricity retailers and power generation companies that wish to participate

3. Related links

4. Reference materials

Division in Charge

Office for Electricity Supply Policy, Electricity Infrastructure Division, Electricity and Gas Industry Department, Agency for Natural Resources and Energy