In order to help achieve the goal of carbon neutrality by 2050, the Ministry of Economy, Trade and Industry (METI) has decided to develop a green innovation fund of Y2 trillion as part of the New Energy and Industrial Technology Development Organisation. METI has noted that the fund should focus on providing support to companies engaging in fields which have significant policy effects and require long-term, continuous funding support measures for research and development projects in order to reach implementation.
Biomass-fuelled power generation facilities continue to play an important role in Japan's renewable energy portfolio. While the requirements in this respect are complex, interest in biomass renewable energy remains strong. Further, it is anticipated that as the sustainability rules applicable to woody and agricultural biomass fuels are settled, interest and investment in the biomass industry will continue to accelerate. This article provides an overview of the sustainability rules applicable in Japan.
The government recently commenced the first tender process under Japan's new offshore wind law for a floating wind project off the coast of Goto City. This article summarises the key elements of the Occupancy Guidelines for the Goto Offshore Area which, although specific to the Goto project, provide insight as to the Japanese authorities' general approach towards the implementation of the offshore wind law and how the tender processes for the other identified sites will proceed.
In 2017 the Civil Code, which was enacted in 1896, was substantially amended for the first time in more than a century. Although the amendments, which came into effect on 1 April 2020, cover a broad range of issues, many were made to reflect existing case law and commonly accepted interpretations of the pre-amended Civil Code. However, there are some changes which may affect current practices in the energy sector.
It appears inevitable that the coronavirus pandemic will affect Japan's solar energy industry. For example, China's public health measures may have an adverse effect on the shipment of photovoltaic modules and other equipment manufactured there, on which many Japanese developers rely. Further, if the government declares a national emergency, this may inhibit engineering, procurement and construction contractors' ability to perform their obligations to develop and construct solar projects.
Cabinet recently approved the Proposal to Amend the Electricity Business Act for the Purposes of Establishing a Resilient and Sustainable Electricity System. The bill introduces a feed-in premium programme, under which energy developers developing projects after April 2022 may receive a certain premium on top of the market price for the electricity that they generate.
The Ministry of Economy, Trade and Industry and the Ministry of Land, Infrastructure, Transport and Tourism recently designated an area off the coast of Goto City as the first zone dedicated to the promotion of offshore wind projects under the Act Promoting the Use of Marine Areas for the Development of Marine Renewable Energy Generation Facilities. This designation is unique in that, of the 11 areas initially considered, Goto City was the only sea area where floating wind power generation was proposed.
Although Japan has significant offshore renewable energy output potential, a number of issues – both systemic and technological – have hindered efforts to develop its offshore renewable market. With the introduction of the Act on Promoting the Use of Marine Areas for the Development of Marine Renewable Energy Generation Facilities, the government aims to develop such offshore renewable energy capacity and encourage and facilitate the development of offshore renewable projects in Japan.