Energy / Climate Change

January 10, 2008


Japan's Energy Agency Reports Progress Renewable Energy Use Law

Keywords: Energy Conservation Government Non-manufacturing industry Policy / Systems 

On July 9, 2007, Japan's Agency for Natural Resources and Energy released a report on the fiscal 2006 implementation of the Law on Special Measures Concerning New Energy Use by Electric Utilities, better known as the Japanese Renewable Portfolio Standard (RPS) Law (in effect April 2003), which requires electricity suppliers to include in their mix specified amounts of electricity from renewable energy sources such as photovoltaic or wind power generation. The government's target is to generate 12.2 billion kilowatt-hours (kWh) of energy annually from renewable sources by 2010, equivalent to 1.35% of national electricity sales.

Under the RPS Law, electricity suppliers are allowed to choose the optimal way to meet their legal obligations by (1) generating their own renewable electricity, (2) purchasing renewable electricity from other power producers, or (3) purchasing a certificate of renewable electricity production from other suppliers (known as a Tradable Renewable Certificates system). According to the report, in fiscal 2006, the government set a total commitment of 4,442,611,000 kWh for 39 electricity suppliers, and all of them fulfilled their obligations.

When suppliers use more electricity from renewable sources than required in a given fiscal year, they are allowed to carry over the excess into the next one in a system called electricity banking. Since 18 of the 39 suppliers surpassed their legally required renewable energy quotas in fiscal 2006, including electricity banked by power producers, a total of 5,662,818,000 kWh was banked for fiscal 2007.

In fiscal 2006, there were 67,127 individual renewable energy generation facilities newly recognized under the RPS Law, and renewable electricity produced by all of the certified facilities reached a total 6,507,378,311 kWh (compared to 5,576,235,408 kWh in fiscal 2005).

Posted: 2008/01/10 09:52:16 AM
Japanese version