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  5. Ordinances and Public Notices for Enforcement of the Act on Rationalizing Energy Use and Shifting to Non-fossil Energy Promulgated Today

Ordinances and Public Notices for Enforcement of the Act on Rationalizing Energy Use and Shifting to Non-fossil Energy Promulgated Today

March 31, 2023

The Ministry of Economy, Trade and Industry (METI) hereby announces that in line with the enforcement of the Act on Rationalizing Energy use and Shifting to Non-fossil Energy(hereinafter referred to as the “revised Act”), some ordinances and public notices for the enforcement of the revised Act were promulgated on March 31, 2023.

1. Background

The Act on Rationalizing Energy Use has until now required large-scale businesses that use energy to rationalize the use of fossil energy. The Revised Act, which will be put into effect on April 1, 2023, will require them to rationalize the use of all kinds of energy, including non-fossil energy, and shifting to non-fossil energy. It will also change the legal system to encourage the optimization of electricity demand in light of the need to expand the introduction of non-fossil energy toward achieving carbon neutrality by 2050, while coping with fluctuations in the electricity supply from renewable power sources such as solar power.

Based on the revision of the Act, METI has amended the provisions of some ordinances and public notices related to the Act as necessary and also established decision-making criteria for businesses in the shift to non-fossil energy.

METI expects such businesses to tackle the shift to non-fossil energy and other related efforts in accordance with the decision-making criteria.

2. Highlights of the amended provisions

(1) METI amended certain provisions to enforce the following three measures set by the revised Act.

[ⅰ] Expanding the scope of energy subject to the rational use of energy to non-fossil energy
In response to the fact that the revised Act expands the scope of energy to non-fossil energy, METI stipulated the provisions for calorific conversion coefficients of non-fossil fuels, e.g., hydrogen and ammonia, which are used by businesses in regular reporting of their energy consumption.

[ⅱ] Measures for the shift to non-fossil energy
METI newly established “Decision-Making Criteria for Businesses in the shift to Non-Fossil Energy at Factories, etc.” The criteria show [ⅰ] actions taken by businesses to tackle the shift to non-fossil energy, e.g., choosing facilities exclusively for power generation and cogeneration that are tailored to use of non-fossil fuels, and [ⅱ] reference levels in achieving the goal, i.e., shift to non-fossil energy, for certain industries, such as manufacture of iron and steel (blast furnaces and electric furnaces), manufacture of cement, manufacture of paper and paperboard, manufacture of chemical and allied products (petrochemicals and soda), and manufacture of motor vehicles.

Moreover, the measures require specified businesses, e.g., those running factories or those in the field of certain services, to submit a goal to improve the ratio of non-fossil electricity to the total energy that they have consumed.

Likewise, METI newly established separate decision-making criteria for consignors, cargo transportation businesses and passenger transportation businesses in the shift to non-fossil energy. The criteria show [ⅰ] actions taken by businesses in the field of transportation to tackle the shift to non-fossil energy, e.g., switching the means of transportation from diesel vehicles, etc. to electric vehicles, fuel cell electric vehicles, etc., and [ⅱ] reference levels in achieving the goal, i.e., shift to non-fossil energy, e.g., the ratio of non-fossil energy vehicles to the total number of cargo vehicles used for transportation.

[ⅲ] Measures for the optimization of electricity demand
METI showed guidelines for actions taken by businesses for the optimization of electricity demand , e.g., shifting the existing use of grid power to the use of fuels or thermal energy during hours when the supply and demand balance is tight or utilizing storage batteries, etc. during hours when output is controlled.

Moreover, METI also decided to newly require businesses to submit, in regular reporting, the number of times that they have conducted the demand-response program.

(2) Target standard values for sashes and insulated glass as building materials in light of not only the amendments in line with the revised Act but also the results of discussions of the working group in charge

METI increased the target standard values for sashes and insulated glass as building materials under the Top Runner Program by about 40%, in which the heat insulating efficiency required for windows was calculated from the required energy efficiency performance for new houses built from 2030 onward.

Moreover, it also increased the target standard values for some heat insulating materials by  5 to 6%.

(3) In light of the discussion results of the working group concerning the window performance labeling system, METI also reviewed the target standard values of windows so as to assess windows with higher heat insulating performance, and decided to state the ratio of solar heat gain of windows on the label, as an effort to further improve the energy efficiency  performance of houses.

3. Future schedule

Enforcement date: April 1, 2023

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Division in Charge

Energy Efficiency Division, Energy Efficiency and Renewable Energy Department, Agency for Natural Resources and Energy