Guidelines for Retail Sales of Electricity

The Ministry of Economy, Trade, and Industry has revised the guidelines for displaying certificates of the usage of non-fossil with the introduction of the system for non-FIT non-fossil certificates. Retail electric power companies’ ratio of non-fossil power source is determined not by the power source composition, but by the amount of non-fossil certificates used. Japanese government started issuance of certificates since 2018 which prove that electricity comes from renewable energy sources covered by the Feed-in Tariff Scheme for Renewable Energy (FIT), and established a non-fossil fuel energy value trading market in which market participants are able to trade environmental value in the form of the certificate. In this market, electricity retailers are able to purchase such certificates and thereby put their efforts to achieve the target ratio of non-fossil sources of the electricity they supply, a goal stipulated in the Act on the Promotion of Use of Non-fossil Energy Sources and Effective Use of Fossil Energy Materials by Energy Suppliers.

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