Renewable Energy Aggregation/VPP glossary

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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.


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.