Transition to renewable energy
Systematic Revision towards Renewable Energy as a Main Source of Electricity
On June 5, 2020, the Bill for the Act of Partial Revision of the Electricity Business Act and Other Acts for Establishing Resilient and Sustainable Electricity Supply Systems passed the Diet. The bill includes partial revision of the Act on Renewable Energy Special Measures. Its outlines are the followings;
[i] Supporting businesses in introducing a market-price-linked measure
Aiming to encourage renewable energy generators to secure their predictability for investment return and take market-conscious activities, the revised Act is to establish a Feed-in-Premium (FIP) scheme in addition to the existing FIT scheme, a new scheme in which renewable energy generators are able to receive a certain level of premium based on the market price.
[ii] Fortifying electricity grids taking advantage of the potential of renewable energy
The revised Act is to establish a system in which part of the expenditures for fortifying electricity grids necessary for expanding the introduction of renewable energy into businesses, e.g., regional interconnection lines, which regional electricity transmission/distribution businesses bear under the current Act, is to be supported based on the surcharge system across Japan.
[iii] Appropriately discarding facilities for generating renewable energy
The revised Act is to impose obligations on renewable energy generators to establish an external reserve fund for the expenditures for discarding their facilities for generating renewable energy as a measure for addressing concerns over inappropriate discarding of PV facilities.
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