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Japan Renewable Alert 52 | Orrick, Herrington & Sutcliffe LLP

Further Details of the FIP System
Other Matters Addressed in the Draft Ordinances
Future Outlook
In the upcoming fiscal years, we will see the implementation of critical changes to the REA, which has been amended by the “Act to Partially Amend the Electricity Business Act and Other Acts in Order to Establish a Resilient and Sustainable Electricity Supply System,” promulgated on June 12, 2020 (Act No. 49 of 2020; the “
Energy Resiliency Act”). In particular, the introduction as of April 1, 2022 of a new (1) FIP system, (2)decommissioning cost reserve scheme, and (3) nullification rule will have a significant effect on Japan’s renewable energy industry (
see item 1 of Japan Renewable Alert 51), and a draft of the METI ordinance ( ....

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Japan Renewable Alert 51 | Orrick, Herrington & Sutcliffe LLP

The Nullification Rule and the Feed-in Premium (FIP) system, which will have significant impact on Japan’s renewable market, have recently received further clarification. Both instruments, as reported in our Japan Renewable Alert 44, will be introduced, effective as of April 1, 2022, by the amendments to the Act on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources by Electricity Utilities (Act No.108 of 2011; the “
REA”) pursuant to the Act to Partially Amend the Electricity Business Act and Other Acts in Order to Establish a Resilient and Sustainable Electricity Supply System (Act No. 49 of 2020; the “
Amendment Act,” and the REA as amended by the Amendment Act, the “ ....

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