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Continuation of the Sale of Non-fossil Fuel Energy Certificates with Tracking Information in FY2019

March 25, 2019

The Ministry of Economy, Trade and Industry (METI) decided to continue the sale in 2019 of non-fossil fuel energy certificates which provide energy retailers with proof that the portion of energy under the certificate is from renewable energy sources and which allows for the identification of power plants that contribute environmental value.

Users are able to utilize this purchase of such power in their efforts to prove compliance with RE100.*

1. Outline of the non-fossil fuel energy certificate program

In May 2018, Japan started issuance of certificates which serve as proof that electricity originates from renewable energy sources covered by the Feed-in Tariff Scheme for Renewable Energy (FIT), and established a non-fossil fuel energy value trading market in which market participants are able to trade environmental value in the form of the certificate. In this market, electricity retailers are able to purchase certificates and thereby make use of the purchase in their efforts to achieve the target ratio of non-fossil sources of the electricity they supply, a goal stipulated in the Act on the Promotion of Use of Non-fossil Energy Sources and Effective Use of Fossil Energy Materials by Energy Suppliers. In addition, if such retailers sell electricity ratified under the certificate to consumers, the electricity is correctly evaluated as renewable energy.

In February 2019, METI conducted a demonstration experiment to identify renewable energy sources based on which the environmental value of the non-fossil fuel energy certificates has been approved. If an electricity retailer sells electricity ratified under the certificate to consumers, the consumers are able to make use of this purchase in their efforts to comply with RE100*.

Many electricity retailers and electricity producers participated in the experiment in February 2019 and METI confirmed that it will be able to operate a system to identify the power plants where the renewable energy that serves as the basis for the certificate originated. In light of the experiment results, METI decided to continue to identify the power plants where the renewable energy originated, while also improving the FIT system.

METI will also continue to strive to improve the user-friendliness of such certificates so as to encourage consumers to purchase renewable energy.

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

2. Information on the explanatory meeting for companies

On April 2, 2019, METI will hold an explanatory meeting for companies that intend to participate in the next auction for non-fossil fuel energy certificates scheduled to be held in May 2019. To attend the meeting, visit the following website and complete the registration procedures. METI hopes that many electricity retailers and electricity producers will attend the meeting.

Details of the explanatory meeting for companies:
Date and time: April 2 (Tue.), 2019; from 13:30 to 15:00
Venue: Meeting Room 312, 3rd floor, METI Annex
To complete a prior registration: If you wish to attend the meeting, visit the following website and complete the registration procedures by 17:00 on March 29 (Fri.), 2019.

3. Links to related information

Division in Charge

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