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Non-fossil Fuel Energy Certificates with Tracking Information to be Sold Utilizing the FY2019 First Auction for Non-Fossil Fuel Energy Certificates

July 1, 2019

Regarding the non-fossil fuel energy certificates for FY2019, the Ministry of Economy, Trade and Industry (METI) decided to continue the effort for identifying the power plants from which renewable energy, as a basis of the certificate, originates, through utilizing the first auction for non-fossil fuel energy certificates. If an electricity retailer sells electricity taking advantage of the certificate, the electricity is traded as that originating from any renewable energy source and consumers are able to make use of this purchase in their efforts to comply with RE100.*

1. Overview

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 such 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.

Since February 2019, METI has been conducting a series of demonstration experiments in a continuous manner to identify renewable energy sources based on which the environmental value of the non-fossil fuel energy certificates has been approved. METI will continue this effort also by utilizing the FY2019 first auction for non-fossil fuel energy certificates, which will be held in August 2019. 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.

METI will 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. Outline of the procedures that companies should complete to enter the auction

As no changes are made in the procedures for entering this auction for non-fossil fuel energy certificates to be held in August 2019 from those for the previous experiment in May 2019, METI will not hold any explanatory meeting for this auction in August 2019. If you wish to participate in a tracking demonstration experiment to be held in the next auction, please see the reference material and confirm the coming schedule and how to participate in the experiment.

If you entered the previous auction, you do not need to input part of the necessary information. METI hopes that many electricity retailers and electricity producers will enter the auction.

3. Links to related information

References

Division in Charge

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