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Act on Sophisticated Methods of Energy Supply Structures

This law imposes an obligation on retail electricity providers above a certain size to procure non-fossil certificates in proportion to the amount of their sales.



Abbreviation for “feed-in premium,” a system to promote the introduction of renewable energy by adding a certain premium (subsidy) to the price at which electricity is sold on the wholesale market by renewable energy power producers.


Intra-area wheeling contract

A contract that stipulates, among other conditions, that electricity procured by a retail electricity provider or other contracting party will be delivered to electricity users via the grid of a transmission and distribution system operator in proportion to the amount of electricity used.


Non-fossil certificate

"Non-fossil value, which is part of the environmental value of non-fossil fuel power sources such as renewable energy, is extracted and converted into the form of certificates that can be sold and traded.
Non-fossil certificates that track information on the attributes of the generating facility are also recognized by RE100."


Off-site PPA

A contractual arrangement between a provider of renewable energy power sources and a purchaser of electricity, in which renewable energy power generated at a location remote from the place of demand (off-site) is supplied to the purchaser via the general power grid.

Output curtailment

The system of “output curtailment” aims to maintain a balance between electricity demand and supply by restraining the output of renewable energy power plants, based on instructions from general electricity distribution operators.


Power balancing group

A balancing group is a group of businesses that serves as the settlement unit for imbalances under the balancing system. A balancing group made up of power generators is called a generation balancing group.

Power generation quantity adjustment contract

A contract that stipulates, among other conditions, that the contracting power provider will supply electricity in accordance with a plan that has been submitted in advance to a transmission and distribution system operator.


Subsidy for Installation of Battery Storage Systems in Conjunction with Solar Power Generation

This subsidy available to power generation operators who obtain FIP certification and integrate battery storage with renewable energy facilities, starting from the revised budget from 2022.

Subsidy for Promotion of Consumer-led Introduction of Solar Power Generation

This subsidy, which began with the FY2021 supplementary budget, is provided to power generation companies that install and introduce new solar power generation equipment to supply electricity to specific customers.
In FY2023, it was implemented under the name of “Consumer-led Solar Power Generation Introduction Promotion Project.”