Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 158
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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).
2.3 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.
Japan
3. OFFTAKE ISSUES
3.1 Offtake, remuneration, and tariff
scheme
3.1.1 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 Utilities5 (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.
It should be noted that for offshore wind
projects under the Renewable Energy Sea
Areas Use Law, the procurement price will be
determined through the auction process.
5 The name of the FIT Act was amended as of 1 April 2022. Formerly it was referred to as the Act on Special Measures Concerning the Procurement of
Renewable Electric Energy by Operators of Electric Utilities.
