{"id":142612,"date":"2026-06-11T09:33:31","date_gmt":"2026-06-11T09:33:31","guid":{"rendered":"https:\/\/my.legal500.com\/guides\/?post_type=comparative_guide&#038;p=142612"},"modified":"2026-06-11T11:50:53","modified_gmt":"2026-06-11T11:50:53","slug":"japan-renewable-energy","status":"publish","type":"comparative_guide","link":"https:\/\/my.legal500.com\/guides\/chapter\/japan-renewable-energy\/","title":{"rendered":"Japan: Renewable Energy"},"content":{"rendered":"","protected":false},"template":"","class_list":["post-142612","comparative_guide","type-comparative_guide","status-publish","hentry","guides-renewable-energy","jurisdictions-japan"],"acf":[],"appp":{"post_list":{"below_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Nishimura &amp; Asahi<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2019\/12\/NA_logo_E2_color.jpg\"\/><\/span><\/div>"},"post_detail":{"above_title":"<div class=\"guide-author-details\"><span class=\"guide-author\">Nishimura &amp; Asahi<\/span><span class=\"guide-author-logo\"><img src=\"https:\/\/my.legal500.com\/guides\/wp-content\/uploads\/sites\/1\/2019\/12\/NA_logo_E2_color.jpg\"\/><\/span><\/div>","below_title":"<span class=\"guide-intro\">This country specific Q&amp;A provides an overview of Renewable Energy laws and regulations applicable in Japan<\/span><div class=\"guide-content\"><div class=\"filter\">\r\n\r\n\t\t\t\t<input type=\"text\" placeholder=\"Search questions and answers...\" class=\"filter-container__search-field\">\r\n\t\t\t<\/div>\r\n\r\n\t\t\t\r\n\r\n\r\n\t\t\t<ol class=\"custom-counter\">\r\n\r\n\t\t\t\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Does your jurisdiction have an established renewable energy industry? What are the main types and sizes of current and planned renewable energy projects? What are the current production levels? What is the generation mix (conventional vs renewables) in your country?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Since the introduction of the Feed-In Tariff (\u201cFIT\u201d) system in 2012, the renewable energy industry in Japan has developed significantly. The percentage of total electricity generation attributable to renewable energy increased from 10.4% in 2011 to 23.0% in 2024. In 2024, the breakdown of renewable energy sources was as follows: solar (9.9%); hydropower (7.4%); biomass (4.2%); wind(1.2%); and geothermal (0.4%). By contrast, thermal power plants other than biomass power plants still generate 67.6% of all electricity. In 2018, the Japanese government introduced auction processes to allow developers to use certain designated ocean areas for offshore wind projects under the Act on the Development of Marine Renewable Energy Power Generation Facilities (\u201cMarine Renewable Energy Act\u201d). According to the Act, the government has conducted auctions, and several developers have already been selected as Appointed Business Operators (sentei jigyosha). In 2025, the Act was amended to extend its scope to the exclusive economic zone. As a result, the number of offshore wind projects is expected to increase further.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are your country's net zero\/carbon reduction targets? Are they law or an aspiration?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In 2020, the government declared that Japan is striving to achieve carbon neutrality by 2050. On this basis, the Seventh Strategic Energy Plan, approved in 2025, outlines the direction of energy supply and demand and the energy mix with an outlook toward 2040, including a target under which renewable energy is expected to account for approximately 40\u201350% of the electricity generation mix. The target is not reflected in existing laws.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is there a legal definition of 'renewable energy' in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Act on Special Measures Concerning Promotion of Utilization of Electricity from Renewable Energy Sources (\u201cRenewable Energy Act\u201d) defines \u201crenewable energy\u201d as including sunlight, wind power, hydraulic power, geothermal power, biomass, and any other resources, other than crude oil, petroleum gas, combustible natural gas, coal, and products manufactured therefrom that may be designated by a cabinet order in the future.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Who are the key political and regulatory influencers for renewables industry in your jurisdiction? Is there any national regulatory authority and what is its role in the renewable energy market? Who are the key private sector players that are driving the green renewable energy transition in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The Ministry of Economy, Trade and Industry (\u201cMETI\u201d) and its related agency, the Agency for Natural Resources and Energy (\u201cANRE\u201d), are responsible for energy policy. The Minister of METI is authorized to certify business plans for renewable energy projects that are eligible for the FIT system and the feed-in premium (\u201cFIP\u201d) system in accordance with the Renewable Energy Act.<\/p>\n<p>The Organization for Cross-regional Coordination of Transmission Operators, Japan (\u201cOCCTO\u201d), is a public entity incorporated under the Electricity Business Act and performs various functions, including: (a) collecting payments from electricity retailers (which such retailers collect from electricity consumers) and distributing such payments as compensation to general transmission and distribution utilities (as obligated purchasers) under the FIT system, and as premiums to power generators under the FIP system; (b) conducting auctions to select power generation operators eligible for the FIT or FIP system; (c) managing reserves deposited by operators of solar power plants for the future decommissioning of those plants; and (d) operating the Capacity Market (yoryo shijo).<\/p>\n<p>In addition to METI, the Ministry of Land, Infrastructure, Transport and Tourism (\u201cMLIT\u201d) is authorized, under the Marine Renewable Energy Act, to grant certifications for dominant use of designated ocean areas for offshore wind power projects.<\/p>\n<p>The Ministry of the Environment (\u201cMoE\u201d) is responsible for environmental policy and administers subsidy programs for certain renewable energy projects from an environmental perspective.<\/p>\n<p>In addition, many private companies, including electric\/gas utilities, trading companies, oil companies, financial institutions, and their affiliates, actively participate in the renewable energy industry through the FIT\/FIP system and subsidy programs.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the approaches businesses are taking to access renewable energy? Are some solutions easier to implement than others? If there was one emerging example of how businesses are engaging in renewable energy, what would that be? For example, purchasing green power from a supplier, direct corporate PPAs or use of assets like roofs to generate solar or wind?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Some electricity retailers supply electricity generated entirely from renewable energy sources, as certified by non-fossil certificates with tracking information. Businesses can readily procure renewable energy by purchasing such electricity. In addition, installing renewable energy generation facilities either (i) on-site (on-site PPAs), typically, through installation of solar panels on the roof of a building or factory, or (ii) at separate sites (off-site PPAs) is a widely used means of accessing renewable energy. These corporate PPAs are increasingly being adopted.<\/p>\n<p>Under the Electricity Business Act, registration is required to engage in the business of supplying electricity to meet general demand. Accordingly, except for certain exceptional cases, a registered electricity retailer must be involved in a (physical) corporate PPA transaction (i.e., a \u201cdirect\u201d corporate PPA between a generator and a consumer is not always possible). By contrast, in the case of a \u201cvirtual\u201d corporate PPA, a direct transaction between a generator and a consumer may be permitted subject to certain conditions.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Has the business approach noticeably changed in the last year in its engagement with renewable energy? If it has why is this (e.g. because of ESG, Paris Agreement, price spikes, political or regulatory change)? What are the key developments in renewable energy in your country over the last 12 months?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Transactions through corporate PPAs under the FIP system (including transitions from the FIT system to the FIP system) have become increasingly popular. In addition, the government continues to encourage the transition from the FIT system to the FIP system. For example, in 2025, the curtailment order was revised to favor business operators using the FIP system, and the revised rules are expected to apply from 2026 or 2027. Specifically, curtailment of power plants operating under the FIP system will be implemented after curtailment of power plants operating under the FIT system. Therefore, the risk of curtailment for FIT projects has increased. As a result, an increasing number of business operators with projects under the FIT system have recently decided to transition to the FIP system.<\/p>\n<p>The decommissioning cost reserve scheme under the Renewable Energy Act currently applies only to solar power generation facilities. However, under the amendments to the relevant rules in 2026, wind power plants have also been brought within the scope of this scheme. This amendment may have an impact on the business plans of wind power plants operating under the FIT\/FIP system. The amended rules are scheduled to take effect from April 2027.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How visible and mature are discussions in business around reducing carbon emissions; and how much support is being given from a political and regulatory perspective to this area (including energy efficiency)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As the government has set an ambitious target to achieve carbon neutrality by 2050, Japanese society is moving rapidly toward decarbonization. For example, companies are striving to procure electricity generated from renewable energy sources, and financial institutions are actively providing funds for the development of renewable energy power plants. As mentioned above, the government is supporting decarbonization by introducing the FIT and FIP systems to facilitate the introduction and development of renewable energy. The importance of BESS has been increasing as a result of the intensive introduction of renewable energy, and the government is encouraging the development of BESS through subsidies and the capacity market. In addition, the government is focusing on other new technologies for decarbonization, such as hydrogen, ammonia or CCS (Carbon Capture and Storage) and, in 2024, has enacted new laws to facilitate these technologies.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are rights to explore\/set up, interconnect or transfer renewable energy projects, such as solar or wind farms, granted? How do these differ based on the source of energy, i.e. solar, wind (on and offshore), nuclear, carbon capture, hydrogen, CHP, hydropower, geothermal; biomass; battery energy storage systems (BESS) and biomethane?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In fiscal year 2026, the FIP system is available for solar projects with a capacity of 10kW or more, and for wind, hydropower, geothermal, or biomass projects with a capacity of 50kW or more. The FIT system is still available under certain conditions, on a limited basis. However, the government has decided that, from fiscal year 2027 onward, new commercial (ground-mounted) solar projects will no longer be eligible for support under the FIT and FIP systems. To be eligible for both systems, developers must obtain certification of their business plans from the Minister of METI pursuant to the Renewable Energy Act. To obtain such certification, developers must submit an application that complies with the business plan development guidelines issued by METI. In addition, developers of a certain scale of solar, wind, or biomass projects who wish to be eligible under the Renewable Energy Act must apply for participation in an auction process conducted by OCCTO.<\/p>\n<p>Developers of offshore wind projects under the Marine Renewable Energy Act must apply to participate in an auction process conducted by METI and MLIT, and must win the auction and obtain certification from METI and MLIT in order to use a substantial portion of certain designated ocean areas.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Is the government directly involved with the renewables industry (auctions etc)? Are there government-owned renewables companies or are there plans for one?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The government supports the development of renewable industries via the FIT\/FIP system and subsidies. There is no government-owned renewables company, except for the Japan Organization for Metals and Energy Security (known as JOGMEC), an incorporated administrative agency, whose role includes providing financial support for oil, gas and metals projects, and supporting the development of geothermal, offshore wind, hydrogen, ammonia, and CCS projects.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Please provide a brief overview of key legislation and regulation in the renewable energy sector, including any anticipated legislative proposals.<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In 2012, the government introduced the FIT system pursuant to the Renewable Energy Act. Under the FIT system, certified operators are entitled to sell electricity to a general transmission and distribution utility (as an obligated purchaser) at a fixed price for a fixed period (typically 20 years). The fixed price (chotatsu kakaku) is determined annually by a government committee based on the type of power generation and facility size, applying a cost-plus margin concept. To be eligible for the FIT system, developers must obtain certification of their business plans from the Minister of METI.<\/p>\n<p>An amendment to the Renewable Energy Act in 2022 introduced the FIP system. Under the FIP system, certified operators are required to sell electricity by themselves (through the wholesale electricity market (JEPX) or via a bilateral power purchase agreement (corporate PPA)); however, they are entitled to receive a certain premium from OCCTO. The amount of the premium is calculated as the difference between the standard price (kijun kakaku) and the reference price. The standard price is determined by a governmental committee, based on the cost-plus margin concept, depending on the type of power generation and facility size. The reference price is determined on a monthly basis, considering information such as expected revenue from the wholesale electricity market and the non-fossil value market.<\/p>\n<p>From April 2024, an amendment to the Renewable Energy Act became effective, introducing a new requirement to obtain certification of business plans. Under the amended Renewable Energy Act, an operator, subject to certain exceptions, must hold an explanatory meeting for local residents regarding the project, before applying for certification of its business plan or certification of amendments of important items in the business plan, such as the name of the operator or certain investors. Details of the requirement are provided in a guideline issued by ANRE.<\/p>\n<p>With respect to offshore wind projects, the Port and Harbour Act was revised in 2016 to introduce auction processes for dominant use of certain port areas for the purposes of offshore wind projects or other public projects. In addition, in 2018, the government enacted the Marine Renewable Energy Act to further facilitate the development of offshore wind projects. The Marine Renewable Energy Act enables a developer that has won an auction process to be the dominant user of a certain designated ocean area, which is a large sea area outside of port areas, for the purposes of an offshore wind project for a certain period, up to 30 years. The Marine Renewable Energy Act was amended in 2025 to expand its scope to the exclusive economic zone in addition to the territorial sea.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any government incentive schemes promoting renewable energy (direct or indirect)? For example, are there any special tax deductions or subsidies (including Contracts for Difference) offered? Equally, are there any disincentives?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>In addition to the FIT\/FIP system under the Renewable Energy Act, there are multiple subsidies for development of renewable energy projects, granted by METI, MoE, or local governments. In addition, there is preferential tax treatment available for renewable power projects, such as a reduction in the tax base of certain renewable power assets under the fixed assets tax.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How does the structure of the natural gas industry in your country impact the price of electricity? Are there any plans to de-link the price of renewable electricity from gas prices? Are there plans in your jurisdiction to keep open coal plants originally scheduled for retirement?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The price of natural gas directly affects the price of electricity since gas-fired power plants are still the mainstream source of power generation (approximately 31.8%). De-linking the price of renewable electricity from gas prices has not yet been widely discussed. The government plans to reduce reliance on coal-fired power plants and, in particular, encourages the retirement of inefficient coal-fired power plants. In this regard, mechanisms had been put in place in the capacity market to incentivize reduced generation from inefficient coal-fired power plants through operational curtailment measures. However, due to heightened uncertainty in LNG procurement arising from recent geopolitical developments in the Middle East, these curtailment incentive measures have been temporarily suspended for the 2026 fiscal year in order to conserve LNG.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the significant barriers that impede both the renewables industry and businesses' access to renewable energy? For example, permitting, grid delays, credit worthiness of counterparties, restrictions on foreign investment, regulatory constraints on acquisitions; disputes\/challenges?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Appropriate sites for geothermal power plants tend to be located in areas designated as national parks under the Natural Parks Act, and permission is required to develop plants in those areas. In addition, permission under the Hot Springs Act is required to excavate the ground for purposes of bringing hot water or hot steam from underground. In addition, building consensus with local people, including those who engage in the hot spring (onsen) business, is sometimes difficult. These factors constitute some of the major barriers to development of geothermal power plants. However, in 2024, the government announced a \u201cGeothermal Development Acceleration Package\u201d that includes a policy to provide strong support for the development of both conventional and next-generation geothermal energy. This package is intended to address these challenges and promote further development of geothermal energy.<\/p>\n<p>As the number of corporate PPA transactions increases, the creditworthiness of off-takers has become an increasingly important issue, particularly where project financing is procured. In addition, cybersecurity at power plants has also become a major concern.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What are the key contracts you typically expect to see in a new-build renewable energy project?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Key contracts typically include PPAs (Power Purchase Agreements), grid connection agreements, land lease agreements, EPC contracts, O&amp;M agreements, insurance agreements, fuel supply agreements (for biomass projects), turbine supply agreements (for wind projects), and finance-related agreements.<\/p>\n<p>In projects supported by the FIT system, PPAs are usually prepared using a common template prepared by an electricity transmission utility, which is obligated to purchase generated electricity from certified operators. However, in non-FIT projects, including projects supported by the FIP system, negotiation of a PPA is necessary unless an operator sells electricity on the JEPX.<\/p>\n<p>Secured grid connection rights and land use rights are requirements for obtaining FIT\/FIP certification from METI. Developers are often required to bear certain construction costs necessary for grid connection. Contracts governing such matters are typically required.<\/p>\n<p>Where project financing is procured, a loan agreement, security agreements, a sponsor support agreement, hedge agreements and direct agreements are commonly executed. In addition, lenders typically review project agreements such as EPC contracts, O&amp;M agreements, and PPAs in order to secure bankability of a project.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Are there any restrictions on the import or export of renewable energy, local content obligations or domestic supply obligations? What are the impacts (either actual or expected) in your jurisdiction of the implementation of the Net Zero Industry Act (EU) Regulation 2024\/1735 or the \u201cforeign entity of concern\u201d regulations in the U.S.?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Under the long-term decarbonized power auction system, which was established as part of the capacity market in 2023, a cap (30%) is imposed, with respect to BESS, on the awarded capacity of BESS from any single manufacturing country in order to avoid reliance on a specific country. The contribution to the local economy and the Japanese economy is considered and evaluated in the auction process for offshore wind projects under the Marine Renewable Energy Act. The impact of implementation of the Net Zero Industry Act (EU) Regulation and the \u201cforeign entity of concern\u201d regulations in the U.S. seems to be limited so far.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How has deployment of renewables been impacted in the last year by geopolitical uncertainties and other non-country specific factors: For example, the conflict in the Middle East, financing costs, changing tariff regimes, supply chain or taxes or subsidies (e.g. the impact of the One, Big, Beautiful Bill on the tax credits and other incentives created by the Inflation Reduction Act in the U.S.)?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>It appears that the impact of geographical uncertainties and other non-country specific factors has been limited. However, the government has recognized the risks of Japan\u2019s reliance on imported fossil fuels, as highlighted by the impact of the conflict in the Middle East, and the importance of reinforcing renewable energy policies from an energy security perspective. The introduction of renewable energy is expected to be accelerated further.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">Could you provide a brief overview of the major projects that are currently happening in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The development of offshore wind power plants in Japan faces a number of challenges, such as rising material costs and fluctuations in exchange rates and interest rates. However, the government is reviewing the auction system and the rules under the Marine Renewable Energy Act to support such development, and intends to continue conducting auctions to facilitate further project development. Accordingly, offshore wind projects are expected to become major renewable energy projects in Japan. In March 2026, the largest offshore wind power plant located in a port area in Fukuoka Prefecture began commercial operation.<\/p>\n<p>In addition, BESS projects are increasing, as BESS can provide balancing power, which is becoming important due to the large-scale introduction of renewable energy.<\/p>\n<p>Furthermore, in addition to renewable energy projects relying on the FIT\/FIP system, there also are renewable energy projects that do not rely on such a system, which often use on-site or off-site corporate PPAs, or participate in subsidy programs provided by government agencies.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are the business models in the renewable energy sector in your jurisdiction adapting to the increasingly significant pace of deployment of BESS? What percentage of deals are standalone, co-located or hybrid? How is the implementation of these business models impacting financing structures?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>While BESS projects are gradually increasing in Japan, the market is still nascent and reliable data on deal structures is limited. To date, the impact of BESS deployment on established financing structures has remained modest.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">What is required in your jurisdiction to facilitate confidence in new development and financing in newer areas like offshore wind or hydrogen?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>As mentioned above, the government has strongly encouraged the development of offshore wind power projects. As a result of legislation designed to facilitate such development, large-scale offshore wind projects are expected to be launched in the near future. In this context, the government is reviewing and revising the auction system to support project completion. For example, in light of the recent continuing increase in prices, a price adjustment mechanism will be introduced in future auction rounds.<\/p>\n<p>In addition, the government actively supports geothermal projects, hydrogen\/ammonia projects, BESS projects, and CCS projects, all of which will contribute to the achievement of a carbon neutral society. Such governmental support is essential to facilitate confidence in new development and financing in newer areas.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How are renewables projects commonly financed in your jurisdiction?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>Project financing is commonly used, especially for large-scale projects. Large Japanese banks are often appointed as mandated lead arrangers (MLAs). Other financial institutions such as trust banks, regional banks, insurance companies and lease companies, frequently participate in project financing as lenders. Investment by funds through tokumei-kumiai (TK), pursuant to the Commercial Code, is also common.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\t\t\t\t\t<li class=\"question-block filter-container__element\">\r\n\t\t\t\t\t\t<h3 class=\"filter-container__match-html\">How is the rising demand for data centres impacting the grid and electricity prices for consumers?<\/h3>\r\n\t\t\t\t\t\t<button id=\"show-me\">+<\/button>\r\n\t\t\t\t\t\t<div class=\"question_answer filter-container__match-html\" style=\"display:none;\"><p>The government is aware of the growing impact of the rapid increase in data centers on future electricity demand and grid planning, and is discussing solutions to the issues expected to arise from grid connection of such large-scale demand.<\/p>\n<\/div>\r\n\r\n\r\n\t\t\t\t\t<\/li>\r\n\r\n\t\t\t\t\r\n<div class=\"word-count-hidden\" style=\"display:none;\">Estimated word count: <span class=\"word-count\">3596<\/span><\/div>\r\n\r\n\t\t\t<\/ol>\r\n\r\n<script type=\"text\/javascript\" src=\"\/wp-content\/themes\/twentyseventeen\/src\/jquery\/components\/filter-guides.js\" async><\/script><\/div>"}},"_links":{"self":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide\/142612","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/comparative_guide"}],"about":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/types\/comparative_guide"}],"wp:attachment":[{"href":"https:\/\/my.legal500.com\/guides\/wp-json\/wp\/v2\/media?parent=142612"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}