Offshore Wind Worldwide 2022 edition - Flipbook - Page 139
Offshore Wind Worldwide 2022
The business operator typically enters into a
utility company’s grid connection
agreement, and such utility company is
required to obtain regulatory approval from
METI and MLIT.
There are ten major utility companies in
Japan (TEPCO, Kansai, Chubu, Tohoku,
Chugoku, Kyushu, Hokkaido, Hokuriku,
Shikoku and Okinawa).
C. Permitting process
The issuer depends on the regulatory
permits. For instance, Development and
Permission under the City Planning Act
requires permission to be granted from a
local municipality, whereas a local
agricultural committee will provide permits
for agricultural land conversion.
Each permit will become final and binding
upon its issuance by the relevant regulator.
139
III. Offtake issues
A. Offtake, remuneration,
and tariff scheme
1.Feed-in Tariff system (“FIT system”)
The Act on Special Measures Concerning
the Promotion of the Use of Renewable
Electric Energy by Operators of Electric
Utilities (the “FIT Act”) regulates the
procurement price and procurement
terms. Under the FIT Act, an entity whose
business will be to supply renewable
energy (specifically, energy generated by a
renewable energy power generation
facility it owns and maintains) to a utility
company under the terms of specified
contracts (i.e., the PPA) may apply to
obtain a METI Certificate in respect of its
business plan. Under the FIT Act, the
minister of METI will specify the
procurement price and terms. Further,
utility companies cannot decline to enter
into a PPA with a certified business
operator unless the agreement’s content
would potentially and unfairly harm their
interest.
Set out in the table below are the current
prices per kWh based on statements
announced by the chair of the study group
on the procurement price for offshore
wind power (4 February 2022). Note
METI has not specified these prices as
final yet.
It should be noted that for offshore wind
projects under the New Act, the
procurement price will be determined
through the auction process.